Exam 29: Controlling Manufacturing Costs: Standard Costs

Usually, a well-run manufacturing company prepares only annual manufacturing cost budgets.

The price variance for an item is the difference between its actual price and its standard price, multiplied by the ____________________ quantity.

Semi-variable costs vary in direct proportion to the volume of activity.

Costs that vary in some degree with the volume of activity, but not in direct proportion to it are called ____________________ costs.

Costs that tend to change in total directly with the volume of manufacturing activity are called ____________________ costs.

Deducting the total variable cost from the total cost results in

As the level of activity increases, the total variable costs for the period

The difference between the total standard cost and the total actual cost is the

The labor time (efficiency) variance and the labor ____________________ variance together make up the total labor variance.

The Hoatzin Birdhouse Factory produced the following standard cost card. In July, the company had an order for 500 birdhouses (Model: Wren) for Job No. CB32. Manufacturing overhead is based on direct labor hours. The manufacturing overhead cost estimates for the year total $32,400 and total direct labor hours are estimated at 9,000 for the year. Complete the Standard Cost Card and Job Order Cost Sheet. Calculate the total cost variance. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {STANDARD COST CARD}$ $\text {Item: Model: Wren}$ Balsawood (7-- 8 " \times 10 " sheets at \ 0.92 per sheet) \6 .44 Balsa precut trim (1--3' strip a \ 0.86 per strip) .86 Total materials Labor 1/3 hour \ 15.30 Manufacturing Overhead 1/3 hour \ ? ? ? ? ? Total Standard Cost per Unit $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {JOB COST SHEET}$ $\text {Job Order No. CB32}$ Balsawood (3510 8" \times 10 " sheets) \3 ,194.00 Balsa precut trim ( 495 strips) Total materials Labor 165 hours Manufacturing Overhead 1651/2 hours \ ????? Total manufacturing costs

The labor standard for a product was five hours at a wage rate of $8 per hour. The firm produced 900 units of the item. Labor costs totaled $35,250 and 4,700 hours of labor were used. An analysis of labor costs would indicate

The standard quantity of materials for a product was 40 pounds per unit at the standard price of $2.00 per pound. The actual price per pound of materials was $1.50, and the actual quantity used was 44 pounds. An analysis would indicate

A budget that shows expected costs at more than one level of activity is called a(n) ____________________ budget.

The salary of the factory supervisor is a good example of

The range of activity at which the factory is likely to operate is referred to as the ____________________ range of activity.

Use the high-low point method to determine total costs if 16,000 units are produced.

The cost per unit of direct materials changes as output changes.

Complete the flexible budget of manufacturing costs for Lansome Industries for September 2013. Overhead is based on direct labor hours.

In a factory, the fixed costs are $6,000 when 600 units are produced. If 900 units are produced, the fixed costs per unit would be

A flexible budget shows budgeted costs at several different levels of activity.