Exam 11: Standard Costs and Operating Performance Measures

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?

A labor efficiency variance resulting from the use of poor quality materials should be charged to:

Osier Corporation, which produces cellular transmission towers, has provided the following data: -The variable overhead efficiency variance for power 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 quantity variance for the month?

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 price variance for October?

The standard direct labor rate should not include fringe benefits.

Giguere Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 2,000 machine-hours. Budgeted and actual overhead costs for the month appear below: The company actually worked 1,920 machine-hours during the month. The standard hours allowed for the actual output were 1,760 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?

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

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 rate variance is:

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

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 labor rate variance for November was:

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

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

In standard costing, practical standards can be used to forecast cash flows and to plan inventory, as well as to signal abnormal deviations in costs.

Process Time is the only value-added component of Throughput Time.

Calcagno Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product B47W: The following data pertain to the most recent month's operations during which 520 units of product B47W 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?

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 rate variance for the month?

Ewin Corporation is developing direct labor standards. The basic direct labor wage rate is $14.75 per hour. Employment taxes are 9% of the basic wage rate. Fringe benefits are $3.98 per hour. Required: Determine the standard rate per direct labor-hour. Show your work!

Dolney Corporation has provided the following data for a recent period: -The variable overhead rate variance for lubricants is closest to:

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