Exam 29: Controlling Manufacturing Costs: Standard Costs

The difference between the actual cost of an item and its standard cost is called a(n) ___________________.

Kenwood Company's manufacturing overhead costs for the assembly department are given below. Fixed Costs Per Month Variable Costs Per Hour Indirect Labor \ 1,400 \ .95 Payroll Taxes 90 1.05 Indirect Materials 220 .20 Power and Water 340 .35 Depreciation 1,020 - Taxes and Insurance 450 - Repairs 175 .15 -Using the information provided prepare a departmental monthly overhead performance report comparing actual costs with the budget allowance for the number of hours worked. Assume that during the month of May actual production was 1,900 hours. Actual costs for the month were as follows: Indirect Labor \ 3,195 Payroll Taxes 2,055 Indirect Materials 575 Power and Water 1,025 Depreciation 1,015 Taxes and Insurance 415 Repairs 475

Costs that do not vary in total during a period even though the volume of manufacturing activity changes are called ____________________ costs.

The flexible budget usually shows

A budget performance report compares actual costs for a period with the budgeted costs for that period.

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

An analysis would indicate

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

An analysis would indicate