Exam 11: Standard Costs and Operating Performance Measures

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 labor efficiency variance for January is:

Which of the following statements concerning practical standards is incorrect?

Hirons 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 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 quantity variance for the month?

The following data have been provided by Wordell Corporation: -The variable overhead rate variance for indirect labor is closest to:

Karrenberg Corporation keeps careful track of the time required to fill orders. The times required for a particular order appear below: Required: a. Determine the throughput time. Show your work! b. Determine the manufacturing cycle efficiency (MCE), Show your work! c. Determine the delivery cycle time. Show your work!

Couey Corporation, which produces highway lighting poles, 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 variable overhead rate variance is:

Metz Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product M70T specifies 7.7 direct labor-hours per unit of M70T. The standard variable overhead rate is $6.30 per direct labor-hour. During the most recent month, 400 units of product M70T were made and 3,000 direct labor-hours were worked. The actual variable overhead incurred was $18,000. Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month?

Dennehy Corporation, which makes sophisticated industrial valves, has provided the following data from its standard costing system and for its actual operations in November: Required: Compute the variable overhead rate variances for indirect labor and for power for November. Indicate whether each of the variances is favorable (F) or unfavorable (U). Show your work!

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 total variable overhead variance (including both the rate and efficiency variances) for November was:

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 efficiency variance for the month?

The following materials 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 materials price variance for the month? b. What is the materials quantity variance for the month?

Which of the following represents value-added time in the manufacturing cycle?

Mackessy Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual variable overhead costs for the most recent month appear below: The original budget was based on 7,400 machine-hours. The company actually worked 7,620 machine-hours during the month and the standard hours allowed for the actual output were 7,730 machine-hours. What was the overall variable overhead efficiency variance for the month?

Daughdrill Corporation is developing direct labor standards. The basic direct labor wage rate is $10.95 per hour. Employment taxes are 9% of the basic wage rate. Fringe benefits are $4.00 per direct labor-hour. The standard rate per direct labor-hour should be:

The following standards have been established for a raw material used to make product N04: The following data pertain to a recent month's operations: Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month?

The materials price variance should be computed:

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 materials quantity variance for October?

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 labor efficiency variance for October?