Exam 11: Standard Costs and Operating Performance Measures

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 price per kilogram of this input should be:

Spence Corporation, which makes skylights, has provided the following data for December: Required: Compute the rate variances and the efficiency variances for indirect labor and power and indicate whether they are favorable or unfavorable.

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: -The total standard cost for direct labor for May was closest to:

Lido Company's standard and actual costs per unit for the most recent period, during which 400 units were actually produced, are given below: Required: From the foregoing information, compute the following variances. Show whether the variance is favorable (F) or unfavorable (U): a. Materials price variance. b. Materials quantity variance. c. Direct labor rate variance. d. Direct labor efficiency variance. e. Variable overhead rate variance. f. Variable overhead efficiency variance.

The Alpha Company produces toys for national distribution. Standards for a particular toy are: Materials: 12 ounces per unit at 56¢ per ounce. Labor: 2 hours per unit at $2.75 per hour. During the month of December, the company produced 1,000 units. Information for the month follows: Materials: 14,000 ounces were purchased and used at a total cost of $7,140. Labor: 2,500 hours worked at a total cost of $8,000. -The materials price variance is:

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 rate variance for the month?

The Alpha Company produces toys for national distribution. Standards for a particular toy are: Materials: 12 ounces per unit at 56¢ per ounce. Labor: 2 hours per unit at $2.75 per hour. During the month of December, the company produced 1,000 units. Information for the month follows: Materials: 14,000 ounces were purchased and used at a total cost of $7,140. Labor: 2,500 hours worked at a total cost of $8,000. -The materials quantity variance is:

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 rate variance for the month?

During the most recent month at Hybarger Corporation, queue time was 3.0 days, inspection time was 0.8 day, process time was 2.8 days, wait time was 11.8 days, and move time was 0.6 day. Required: a. Compute the throughput time. b. Compute the manufacturing cycle efficiency (MCE). c. What percentage of the production time is spent in non-value-added activities? d. Compute the delivery cycle time.

The following data have been provided by Hanover Corporation, a company that produces forklift trucks: The variable overhead efficiency variance for supplies cost is:

Misemer Corporation is developing standards for its products. One product requires an input that is purchased for $57.00 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 $3.60 per kilogram. Receiving costs are $0.26 per kilogram. The standard price per kilogram of this input 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 rate variance for the month?

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

Management by exception means that a manager's attention is directed toward those parts of the organization where things are not proceeding according to plans.

Brailey Corporation, which makes helicopter rotors, has provided the following data for October: Required: Compute the rate variances and the efficiency variances for indirect labor and power and indicate whether they are favorable or unfavorable.

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 standards for product J35 call for 1.0 pounds of a raw material that costs $15.60 per pound. Last month, 5,700 pounds of the raw material were purchased for $90,345. The actual output of the month was 5,280 units of product J35. A total of 5,200 pounds of the raw material were used to produce this output. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month?

Leriche Corporation has provided the following data for a recent month: -The variable overhead rate variance for indirect labor is 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 Throughput (Manufacturing Cycle) Time?

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