Exam 11: Standard Costs and Operating Performance Measures

A manufacturing company that has only one product has established the following standards for its variable overhead. The company uses direct labor-hours (DLHs) as its measure of activity. The following data pertain to operations for the last month: -What is the variable overhead efficiency variance for the month?

The variable overhead efficiency variance measures how efficiently variable overhead resources were used.

Wandersee Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: The delivery cycle time was:

Leriche Corporation has provided the following data for a recent month: -The variable overhead rate variance for power is closest to:

Servantez Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company's cost formula for variable overhead is $9.50 per MH. During the month, the actual total variable overhead was $51,300 and the actual level of activity for the period was 5,700 MHs. What was the variable overhead rate variance for the month?

The materials quantity variance is computed based on the amount of materials purchased during the period.

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: -The actual direct labor rate for May in dollars per hour was closest to:

A favorable labor rate variance indicates that

Whoever is responsible for the control of the denominator activity in the predetermined overhead rate should also be responsible for the variable overhead efficiency variance.

Spragg Corporation is developing standards for its products. One product requires an input that is purchased for $62.00 per kilogram from the supplier. By paying cash, the company gets a discount of 6% off this purchase price. Shipping costs from the supplier's warehouse amount to $4.45 per kilogram. Receiving costs are $0.50 per kilogram. Each unit of output requires 0.48 kilogram of this input. The allowance for waste and spoilage is 0.04 kilogram of this input for each unit of output. The allowance for rejects is 0.13 kilogram of this input for each unit of output. Required: a. Determine the standard price per kilogram of this input. Show your work! b. Determine the standard kilograms of this input per unit of output. Show your work!

Marazzi Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was:

Kronstedt Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

The following standards for variable overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: -What is the variable overhead rate variance for the month?

In standard costing, the standard quantity allowed refers to the output that should have been achieved based on the planned inputs for the period.

The standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times are referred to as:

The Apoundright Company uses standard costing and has established the following standards for its single product: Direct materials: 2 gallons at $3 per gallon Direct labor: 0.5 hours at $8 per hour Variable overhead: 0.5 hours at $2 per hour During November, the company made 4,000 units and incurred the following costs: Direct materials purchased: 8,100 gallons at $3.10 per gallon Direct materials used: 7,600 gallons Direct labor used: 2,200 hours at $8.25 per hour Actual variable overhead: $4,175 The company applies variable overhead to products on the basis of standard direct labor-hours. -The materials quantity variance for November was:

The Upton Company uses a standard costing system in which variable overhead is assigned to production on the basis of standard direct labor-hours. Data for the month of February include the following: Variable overhead cost incurred: $48,700 Total variable overhead variance: $300 F Standard hours allowed for actual production: 7,000 Actual direct labor-hours worked: 6,840 -The variable overhead efficiency variance is:

The Koski Company has established standards as follows: Actual production figures for the past year were as follows: -The materials price variance is:

The production manager is usually held responsible for the labor efficiency variance.

Kissack Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, the company budgeted production of 4,000 doors. Actual production was 4,300 doors. According to standards, each door requires 9.3 machine-hours. The actual machine-hours for the month were 40,430 machine-hours. The budgeted supplies cost is $6.20 per machine-hour. The actual supplies cost for the month was $234,614. The variable overhead efficiency variance for supplies cost is: