Question 1

The following are inputs and outputs to the help desk:
operator training
number of calls per day
maintenance of computer equipment
number of operators
number of complaints
Identify whether each is an input or an output to the help desk.

Accepted Answer

The answer of The following are inputs and outputs to...

Question 2

Robin Company purchased and used 520 pounds of direct materials to produce a product with a 510 pound standard direct materials requirement. The standard materials price is $2.10 per pound. The actual materials price was $2.00 per pound.
Prepare the journal entries to record 1) the purchase of the materials and 2) the material entering production.

Accepted Answer

The answer of Robin Company purchased and used 520 pounds...

Question 3

The total manufacturing cost variance is

Accepted Answer

A)  the difference between actual costs and standard costs for units produced 
B)  the flexible budget variance plus the time variance 
C)  the difference between planned costs and standard costs for units produced 
D)  none of the answers are correct

Question 4

Greyson Company produced 8,300 units of product that required 4.25 standard hours per unit. Determine the standard fixed overhead cost per unit at 27,000 hours, which is 100% of normal capacity, if the favorable fixed factory overhead volume variance is $14,895.

Accepted Answer

The answer of Greyson Company produced 8,300 units of product...

Question 5

Tucker Company produced 8,900 units of product that required 3.25 standard hours per unit. The standard variable overhead cost per unit is $4.00 per hour. The actual variable factory overhead was $111,000.
Determine the variable factory overhead controllable variance.

Accepted Answer

The answer of Tucker Company produced 8,900 units of product...

Question 6

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a

Accepted Answer

A)  quantity variance 
B)  controllable variance 
C)  volume variance 
D)  rate variance

Question 7

The principle of exceptions allows managers to focus on correcting variances between

Accepted Answer

A)  standard costs and actual costs 
B)  variable costs and actual costs 
C)  competitor's costs and actual costs 
D)  competitor's costs and standard costs

Question 8

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:  The direct labor rate variance is

Accepted Answer

A)  $2,960 unfavorable 
B)  $4,500 favorable 
C)  $2,960 favorable 
D)  $4,500 unfavorable

Question 9

The following data is given for the Zoyza Company:  Overhead is applied on standard labor hours.
-The fixed factory overhead controllable variance is

Accepted Answer

A)  $73,250 favorable 
B)  $73,250 unfavorable 
C)  $59,400 favorable 
D)  $59,400 unfavorable

Question 10

The total manufacturing cost variance consists of

Accepted Answer

A)  direct materials price variance, direct labor cost variance, and fixed factory overhead volume variance 
B)  direct materials cost variance, direct labor rate variance, and factory overhead cost variance 
C)  direct materials cost variance, direct labor cost variance, and variable factory overhead controllable variance 
D)  direct materials cost variance, direct labor cost variance, and factory overhead cost variance

Question 11

Standard costs serve as a device for measuring efficiency.

Accepted Answer

A) True 
 B)False

Question 12

The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70
Actual costs 6,000 hours at $12.00
What is the direct labor time variance?

Accepted Answer

A)  $18,000 favorable 
B)  $18,000 unfavorable 
C)  $17,550 unfavorable 
D)  $17,550 favorable

Question 13

If the standard to produce a given amount of product is 2,000 units of direct materials at $12 and the actual was 1,600 units at $13, the direct materials quantity variance was $5,200 favorable.

Accepted Answer

A) True 
 B)False

Question 14

The following data is given for the Zoyza Company:  Overhead is applied on standard labor hours.
-The fixed factory overhead volume variance is

Accepted Answer

A)  $9,000 favorable 
B)  $9,000 unfavorable 
C)  $5,500 favorable 
D)  $5,500 unfavorable

Question 15

The following data is given for the Stringer Company:  Overhead is applied on standard labor hours.
-The direct materials price variance is

Accepted Answer

A)  $22,800 unfavorable 
B)  $22,800 favorable 
C)  $52,000 unfavorable 
D)  $52,000 favorable

Question 16

While setting standards, managers should never allow for spoilage or machine breakdowns in their calculations.

Accepted Answer

A) True 
 B)False

Question 17

The amount of the total factory overhead cost variance is

Accepted Answer

A)  $2,000 favorable 
B)  $5,000 unfavorable 
C)  $2,500 unfavorable 
D)  $5,000 favorable

Question 18

*Actual hours are equal to standard hours for units produced.
-The variable factory overhead controllable variance is

Accepted Answer

A)  $8,981.75 favorable 
B)  $7,280.75 unfavorable 
C)  $8,981.75 unfavorable 
D)  $7,280.75 favorable

Question 19

Tippi Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour. Production of 7,700 units required 17,550 hours at an hourly rate of $15.20 per hour.
What is the direct labor a) rate variance, b) time variance, and c) total cost variance?

Accepted Answer

The answer of Tippi Company produces lamps that require 2.25...

Question 20

Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts.

Accepted Answer

A) True 
 B)False

Exam 22: Performance Evaluation Using Variances From Standard Costs

The following are inputs and outputs to the help desk: operator training number of calls per day maintenance of computer equipment number of operators number of complaints Identify whether each is an input or an output to the help desk.

The total manufacturing cost variance is

Greyson Company produced 8,300 units of product that required 4.25 standard hours per unit. Determine the standard fixed overhead cost per unit at 27,000 hours, which is 100% of normal capacity, if the favorable fixed factory overhead volume variance is $14,895.

Tucker Company produced 8,900 units of product that required 3.25 standard hours per unit. The standard variable overhead cost per unit is $4.00 per hour. The actual variable factory overhead was $111,000. Determine the variable factory overhead controllable variance.

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a

The principle of exceptions allows managers to focus on correcting variances between

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows: The direct labor rate variance is

The following data is given for the Zoyza Company: Overhead is applied on standard labor hours. -The fixed factory overhead controllable variance is

The total manufacturing cost variance consists of

Standard costs serve as a device for measuring efficiency.

The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70 Actual costs 6,000 hours at $12.00 What is the direct labor time variance?

If the standard to produce a given amount of product is 2,000 units of direct materials at $12 and the actual was 1,600 units at $13, the direct materials quantity variance was $5,200 favorable.

The following data is given for the Zoyza Company: Overhead is applied on standard labor hours. -The fixed factory overhead volume variance is

The following data is given for the Stringer Company: Overhead is applied on standard labor hours. -The direct materials price variance is

While setting standards, managers should never allow for spoilage or machine breakdowns in their calculations.

The amount of the total factory overhead cost variance is

*Actual hours are equal to standard hours for units produced. -The variable factory overhead controllable variance is

Tippi Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour. Production of 7,700 units required 17,550 hours at an hourly rate of $15.20 per hour. What is the direct labor a) rate variance, b) time variance, and c) total cost variance?

Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts.