Exam 11: Standard Costs and Operating Performance Measures

Cox Company's direct material costs for the month of January were as follows: For January there was a favorable direct materials quantity variance of:

Massie Corporation, which produces commercial safes, has provided the following data: -The variable overhead rate variance for supplies is closest to:

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 price variance for November was:

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: -The variable overhead rate variance for May was closest to:

The management of Granger Sports Equipment has been maintaining delivery performance data in order to improve the company's customer service. Data for the most recent month follows: -What is the Process Time?

The following data have been provided by Dicus Corporation: -The variable overhead rate variance for lubricants is closest to:

Watrous Corporation is developing standards for a product. Each unit of output of the product requires 0.82 kilogram of a particular input. The allowance for waste and spoilage is 0.07 kilogram of this input for each unit of output. The allowance for rejects is 0.09 kilogram of this input for each unit of output. Required: Determine the standard kilograms of this input per unit of output. Show your work!

Cole laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: The company had no beginning inventories of any kind on Jan. 1. Variable overhead is applied to production on the basis of standard direct labor-hours. During January, the following activity was recorded by the company: Production of Fastgro: 4,000 bags Direct materials purchased: 85,000 pounds at a cost of $32,300 Direct labor worked: 390 hours at a cost of $4,875 Variable overhead incurred: $1,475 Inventory of direct materials on Jan. 31: 3,000 pounds -The total variance (both rate and efficiency) for variable overhead for January is:

Aymond Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company had budgeted its fixed manufacturing overhead cost at $42,700 for the month and its level of activity at 2,000 MHs. The actual total fixed manufacturing overhead was $44,100 for the month and the actual level of activity was 1,800 MHs. What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

From a standpoint of cost control, the most effective time to recognize materials price variances is when the materials are placed into production.

A favorable materials price variance coupled with an unfavorable material usage variance would MOST likely result from:

Zellner Corporation is developing direct labor standards. A particular product requires 0.94 direct labor-hours per unit. The allowance for breaks and personal needs is 0.02 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.10 direct labor-hours per unit. The standard direct labor-hours per unit should be:

Loehr Corporation's management reports that its average delivery cycle time is 14.0 days, its average throughput time is 6.3 days, its manufacturing cycle efficiency (MCE) is 0.27, its average move time is 0.1 day, and its average queue time is 3.9 days. Required: a. What is the wait time? b. What is the process time? c. What is the inspection time?

Why is the total materials variance divided into a price variance and a quantity variance?

Huger Corporation makes automotive engines. For the most recent month, budgeted production was 6,900 engines. The budgeted power cost is $5.10 per machine-hour. The company's standards indicate that each engine requires 7.5 machine-hours. Actual production was 7,000 engines. Actual machine-hours were 53,240 machine-hours. Actual power cost totaled $247,598. Required: Determine the rate and efficiency variances for the variable overhead item power cost and indicate whether those variances are unfavorable or favorable. Show your work!

All cost variances should be considered exceptions that require the attention of management.

Massie Corporation, which produces commercial safes, has provided the following data: -The variable overhead efficiency variance for supplies is:

If the actual labor hours worked exceed the standard labor hours allowed, what type of variance will occur?

Galimba Corporation, which produces commercial windows, has provided the following data: -The variable overhead efficiency variance for supplies is:

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