Exam 24: Standard Cost Systems

Controlling the materials price variance is usually the responsibility of:

If the actual amount of direct materials used in production was less than the standard amount allowed for units produced, there was:

Standard cost system-using variance data During its first month of operations, the Beech Company charged Work-in-Process Inventory with $40,000 of direct materials, $46,000 of direct labor costs, and $80,000 of manufacturing overhead costs. Beech Company uses a standard cost system, and the variances at the end of this first month are as follows: (a) Compute the actual cost of direct materials placed into production during the month. $________________ (b) Compute the actual cost of direct labor hours worked during this month. $________________ (c) Compute the actual cost of manufacturing overhead for this month. $________________ (d) Assume that the balance in the Work-in-Process account is $6,000 at the end of this first month. If total standard unit cost is $20 per unit, the number of units completed during this month and transferred to Finished Goods Inventory is _______________ units.

In establishing standard costs for labor, management must look at all of the following except:

Controlling the materials quantity variance is usually the responsibility of:

A large unanticipated reduction in the property taxes on a company's factory would, all other things equal, most likely cause:

A standard cost is the per unit cost actually incurred under normal operating conditions.

Greenleaf's flexible budget for June, based on actual output, called for the use of 10,000 square feet of materials at a standard cost of $9.90 per square foot. Company records show that the actual price paid for the materials used in June was $9.70 per square foot, and that the direct materials price variance for the month was $2,090 favorable. The materials quantity variance for Greenleaf's June operations was:

The calculation of the labor efficiency variance is:

The journal entry to apply overhead to Work-In-Process Inventory for the month included:

Standard costs Define standard costs. Under what conditions should previously established standard costs be revised?

Matson's labor efficiency variance for April is:

Roman's labor rate variance for July is:

The Delux Company purchased and used 2,900 yards of material in its manufacturing process. The actual cost of the materials was $2.20 per yard. Standard materials and costs were 2,700 yards at $2.00 per yard. Required: (a) Compute the materials quantity variance. (b) Compute the materials price variance. (c) Compute the total material variance.

The journal entry to record the cost of direct materials used in June includes:

A favorable overhead spending variance means that:

An unfavorable cost variance will be debited to a cost variance account.

The calculation of the labor rate variance is:

If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit, then the journal entry to record the cost of materials used includes:

Standard cost system-materials and labor variances Job no. 811 involved the production of 200 units of product MF. The total standard and actual costs for materials and direct labor on this job are shown below: Compute the following cost variances for job no. 811. Indicate whether each variance is favorable (F) or unfavorable (U). (a) Materials price variance: $________________ (b) Materials quantity variance: $________________ (c) Labor rate variance: $________________ (d) Labor efficiency variance: $________________ Direct materials: Standard Actual Standard:520 pounds @ \3 .40 per pound \ 1,768 Actual: 540 pounds @\ 3.45 per pound \ 1,863 Direct labor: Standard: 220 hours @ \1 0 per hour \ 2,200 Actual: 213 hours @\ 11 per hour \ 2,343