Exam 24: Standard Cost Systems

What is the standard cost for direct labor?

If the hourly wage rate actually paid during January is higher than the standard rate, the result is:

There will be a favorable materials price variance if:

The overhead volume variance for the month in question was:

Unfavorable standard cost variances are normally closed at the end of the period by:

A summary of Montgomery's performance in September would not show:

With respect to materials costs, the supervisor of the Production Department should be held responsible for:

A large favorable variance from standard costs at the end of the year should be:

In a standard cost system, actual costs are charged to work in process as they are incurred.

In a system designed to measure cost variances, goods transferred from the Work-in-Process account to the Finished Goods Inventory are valued at:

A standard cost is the per unit cost incurred under:

It is possible for the overhead volume variance to be favorable and the overhead spending variance to be unfavorable.

Matson's labor rate variance for April is:

An unfavorable volume variance in a factory is generally:

Standard costs:

If the actual cost per pound of direct material is less than the standard cost per pound, there is:

The level of production plays an important role in determining cost standards.

Compute the following amounts: a Total overhead applied to production in June amounted to $__________. b Total overhead budgeted in June for the 450 batches manufactured amounted to $__________. c Serene's overhead spending variance was $___________ (favorable/unfavorable). d Serene's overhead volume variance was $___________ (favorable/unfavorable).

In the space below, provide the journal entry to record the cost of direct materials used on job no. 007.

The materials price variance is calculated by multiplying the difference between actual unit price and standard unit price, by the standard units purchased.