Exam 11: Standard Costs and Operating Performance Measures

Plikerd Corporation has provided the following data for August: Required: Compute the variable overhead rate variances for lubricants and for supplies for August. Indicate whether each of the variances is favorable (F) or unfavorable (U). Show your work!

Reenu Company manufactures wigs out of used dental floss. The variable cost standards for wig production developed by Reenu are as follows: Variable overhead at Reenu is based on direct labor-hours. The actual results for the month of October were as follows: -What is Reenu's variable overhead rate variance for October?

The standards for product M74M specify 2.5 direct labor-hours per unit at $13.20 per direct labor-hour. Last month 3,160 units of product M74M were produced using 8,100 direct labor-hours at a total direct labor wage cost of $104,085. Required: a. What was the labor rate variance for the month? b. What was the labor efficiency variance for the month?

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

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

Lantagne Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: -The manufacturing cycle efficiency (MCE) was closest to:

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

Purchase of poor quality materials will generally result in a favorable materials price variance and an unfavorable labor rate variance.

Aase 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 total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

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 standard variable overhead rate per direct labor-hour is:

The general model for calculating a quantity variance is:

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

Albro Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: -The delivery cycle time was:

Pittmon Corporation is developing direct labor standards. The basic direct labor wage rate is $13.90 per hour. Employment taxes are 10% of the basic wage rate. Fringe benefits are $4.28 per hour. A particular product requires 0.90 direct labor-hours per unit. The allowance for breaks and personal needs is 0.07 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.12 direct labor-hours per unit. Required: a. Determine the standard rate per direct labor-hour. Show your work! b. Determine the standard direct labor-hours per unit of product. Show your work! c. Determine the standard labor cost per unit of product to the nearest cent. Show your work!

Couey Corporation, which produces highway lighting poles, has provided the following data: -The variable overhead efficiency variance for indirect labor is:

Harnish Corporation is developing standards for its products. One product requires an input that is purchased for $55.00 per kilogram from the supplier. By paying cash, the company gets a discount of 8% off this purchase price. Shipping costs from the supplier's warehouse amount to $5.17 per kilogram. Receiving costs are $0.28 per kilogram. Each unit of output of the product requires 0.75 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 0.11 kilogram of this input for each unit of output. -The standard quantity in kilograms of this input per unit of output should be:

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 efficiency variance for the month?

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

In October, 5,000 meters of raw material were purchased at an actual cost of $4.50 per meter. During October, 4,850 meters of the raw material were used to produce 2,400 units of the completed product. Standards call for 2 meters of the raw material for each unit of the completed product. The standard price of the raw material is $4.70 per meter. The materials variances for October were:

The following direct labor standards have been established for product W88V: The following data pertain to last month's operations: Required: a. What was the labor rate variance for the month? b. What was the labor efficiency variance for the month?