Exam 9: Standard Costs and Variances

The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August: • Actual cost of direct material purchased and used: $65,560 • Material price variance: $5,960 unfavorable • Total materials variance: $22,360 unfavorable • Standard cost per pound of material: $4 • Standard cost per direct labor-hour: $5 • Actual direct labor-hours: 6,500 hours • Labor efficiency variance: $3,500 favorable • Standard number of direct labor-hours per unit of Roff: 2 hours • Total labor variance: $400 unfavorable -The actual direct labor rate per hour was:

Buis Corporation,which makes landing gears,has provided the following data for a recent month: Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable.Show your work!

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on machine-hours. The following data pertain to operations for the last month: -What is the variable overhead rate variance for the month?

Snuggs Corporation makes a product with the following standard costs: The company reported the following results concerning this product in October. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. -The variable overhead rate variance for October is:

Kibodeaux Corporation makes a product with the following standard costs: The company budgeted for production of 3,300 units in June, but actual production was 3,400 units. The company used 33,240 liters of direct material and 320 direct labor-hours to produce this output. The company purchased 35,900 liters of the direct material at $4.90 per liter. The actual direct labor rate was $22.70 per hour and the actual variable overhead rate was $2.70 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. -The labor efficiency variance for June is:

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials price variance for the month?

Imme Corporation's variable overhead is applied on the basis of direct labor-hours.The company has established the following variable overhead standards for product I81Z: The following data pertain to the most recent month's operations during which 1,360 units of product I81Z were made: Required: a.What was the variable overhead rate variance for the month? b.What was the variable overhead efficiency variance for the month?

Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March: • 8,600 pounds of sand were purchased at a cost of $7,310. • 7,200 pounds of sand were used for core tests. • 840 actual direct labor-hours were worked at a cost of $8,610. • Actual variable manufacturing overhead incurred was $3,200. -The variable overhead efficiency variance for March is:

The following data have been provided by Pollo Corporation: Lubricants and supplies are both elements of variable manufacturing overhead. -The variable overhead rate variance for lubricants is closest to:

Caquias Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. -The materials quantity variance for August is:

Jardell Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 6,400 units in June, but actual production was 6,400 units. The company used 3,180 direct labor-hours to produce this output. The actual variable overhead rate was $4.90 per hour. The company applies variable overhead on the basis of direct labor-hours. -The variable overhead efficiency variance for July is:

Jardell Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 6,400 units in June, but actual production was 6,400 units. The company used 3,180 direct labor-hours to produce this output. The actual variable overhead rate was $4.90 per hour. The company applies variable overhead on the basis of direct labor-hours. -The variable overhead rate variance for July is:

Igel Corporation makes a product with the following standard costs: The company reported the following results concerning this product in September. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. Required: a.Compute the materials quantity variance. b.Compute the materials price variance. c.Compute the labor efficiency variance. d.Compute the direct labor rate variance. e.Compute the variable overhead efficiency variance. f.Compute the variable overhead rate variance.

Hurren Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. -The labor rate variance for June is:

The Thompson Company uses standard costing and has established the following direct material and direct labor standards for each unit of Lept. Direct materials: 2 gallons at $4 per gallon Direct labor: 0.5 hours at $8 per hour During September, the company made 6,000 Lepts and incurred the following costs: Direct materials purchased: 13,400 gallons at $4.10 per gallon Direct materials used: 12,600 gallons Direct labor used: 2,800 hours at $7.65 per hour -The labor rate variance for September was:

Bonnot Corporation makes a product that has the following direct labor standards: The company budgeted for production of 2,100 units in October, but actual production was 1,900 units. The company used 410 direct labor-hours to produce this output. The actual direct labor rate was $20.60 per hour. -The labor efficiency variance for October is:

Arrow Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product. During May, Arrow purchased 160,000 pounds of direct material at a total cost of $304,000. The total direct labor wages for May were $37,800. Arrow manufactured 19,000 units of product during May using 142,500 pounds of direct material and 5,000 direct labor-hours. -The direct materials quantity variance for May is:

Johnny Corporation makes a product that uses a material with the following standards: The company budgeted for production of 9,500 units in April, but actual production was 9,600 units. The company used 85,400 kilos of direct material to produce this output. The company purchased 91,900 kilos of the direct material at $1.10 per kilo. The direct materials purchases variance is computed when the materials are purchased. -The materials price variance for April is:

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor rate variance for the month?

Pikus Corporation makes a product that has the following direct labor standards: In January the company's budgeted production was 3,400 units, but the actual production was 3,500 units. The company used 640 direct labor-hours to produce this output. The actual direct labor cost was $8,960. -The labor rate variance for January is: