Question 1

Majer Corporation makes a product with the following standard costs:
  The company reported the following results concerning this product in February.
  The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The labor rate variance for February is:

Accepted Answer

A)  $1,146 U 
B)  $1,176 U 
C)  $1,176 F 
D)  $1,146 F

Question 2

Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:
  During March, the following activity was recorded by the company:
• The company produced 2,400 units during the month.
• A total of 19,400 pounds of material were purchased at a cost of $13,580.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse.
• During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.
• Variable manufacturing overhead costs during March totaled $14,061.
The direct materials purchases variance is computed when the materials are purchased.
-The materials price variance for March is:

Accepted Answer

A)  $1,940 U 
B)  $1,940 F 
C)  $1,750 F 
D)  $1,750 U

Question 3

Duboise Corporation makes a product with the following standard costs:
  The company reported the following results concerning this product in October.
  The materials price variance is recognized when materials are purchased.Variable overhead is applied on the basis of direct labor-hours.
Required:
a.Compute the materials quantity variance.
b.Compute the materials price variance.
c.Compute the labor efficiency variance.
d.Compute the labor rate variance.
e.Compute the variable overhead efficiency variance.
f.Compute the variable overhead rate variance.

Accepted Answer

The answer of Duboise Corporation makes a product with the...

Question 4

The materials price variance is computed based on the amount of materials purchased during the period.

Accepted Answer

A) True 
 B)False

Question 5

Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
  The company has reported the following actual results for the product for December:
 
-The variable overhead efficiency variance for the month is closest to:

Accepted Answer

A)  $1,003 U 
B)  $935 U 
C)  $1,003 F 
D)  $935 F

Question 6

Majer Corporation makes a product with the following standard costs:
  The company reported the following results concerning this product in February.
  The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The variable overhead efficiency variance for February is:

Accepted Answer

A)  $245 U 
B)  $245 F 
C)  $250 F 
D)  $250 U

Question 7

The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output,multiplied by the variable part of the predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Question 8

Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:
  During March, the following activity was recorded by the company:
• The company produced 2,400 units during the month.
• A total of 19,400 pounds of material were purchased at a cost of $13,580.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse.
• During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.
• Variable manufacturing overhead costs during March totaled $14,061.
The direct materials purchases variance is computed when the materials are purchased.
-The materials quantity variance for March is:

Accepted Answer

A)  $1,116 F 
B)  $1,302 F 
C)  $1,302 U 
D)  $1,116 U

Question 9

Bulluck Corporation makes a product with the following standard costs:
  The company reported the following results concerning this product in July.
  The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The labor efficiency variance for October is:

Accepted Answer

A)  $1,400 Favorable 
B)  $1,900 Unfavorable 
C)  $3,750 Favorable 
D)  $4,375 Unfavorable

Question 10

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?

Accepted Answer

The answer of The following labor standards have been established...

Question 11

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.
  The following data pertain to operations for the last month:
 
-The standard variable overhead rate per machine setup is:

Accepted Answer

A)  $20.00 
B)  $21.30 
C)  $18.44 
D)  $21.00

Question 12

Hofbauer Inc. has provided the following data concerning one of the products in its standard cost system.
  The company has reported the following actual results for the product for September:
 
-The labor efficiency variance for the month is closest to:

Accepted Answer

A)  $2,940 U 
B)  $2,940 F 
C)  $2,996 F 
D)  $2,996 U

Question 13

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?

Accepted Answer

A)  $3,141 U 
B)  $2,025 U 
C)  $8,600 U 
D)  $8,725 U

Question 14

Tharaldson Corporation makes a product with the following standard costs:
  The company reported the following results concerning this product in June.
  The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The variable overhead efficiency variance for June is:

Accepted Answer

A)  $372 F 
B)  $372 U 
C)  $360 F 
D)  $360 U

Question 15

Doogan Corporation makes a product with the following standard costs:
  The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The materials price variance for January is:

Accepted Answer

A)  $13,320 U 
B)  $13,320 F 
C)  $11,544 F 
D)  $11,544 U

Question 16

The standard price per unit for direct materials should reflect the final,delivered cost of the materials.

Accepted Answer

A) True 
 B)False

Question 17

Becka Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
  The company produced 2,300 units of this product in November.
Required:
a.What is the total standard cost of one unit of this product?
b.What was the standard grams allowed for the actual output of this product in November?
c.What was the standard hours allowed for the actual output of this product in November?

Accepted Answer

The answer of Becka Inc.has provided the following data concerning...

Question 18

Elliott Corporation makes and sells a single product.Last period the company's labor rate variance was $14,400 U.During the period,the company worked 36,000 actual direct labor-hours at an actual cost of $338,400.The standard labor rate for the product in dollars per hour is:

Accepted Answer

A)  $9.40 
B)  $9.00 
C)  $8.50 
D)  $8.10

Question 19

Bumgardner Inc. has provided the following data concerning one of the products in its standard cost system.
  The company has reported the following actual results for the product for April:
 
-The materials quantity variance for April is:

Accepted Answer

A)  $891 U 
B)  $810 U 
C)  $891 F 
D)  $810 F

Question 20

The following labor standards have been established for a particular product:
  The following data pertain to operations concerning the product for the last month:
 
-The labor rate variance for the month was:

Accepted Answer

A)  $5,750 F 
B)  $5,750 U 
C)  $1,130 F 
D)  $1,130 U

Exam 10: Standard Costs and Variances

The materials price variance is computed based on the amount of materials purchased during the period.

The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output,multiplied by the variable part of the predetermined overhead rate.

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?

Hofbauer Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for September: -The labor efficiency variance for the month is 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 price variance for the month?

The standard price per unit for direct materials should reflect the final,delivered cost of the materials.

Elliott Corporation makes and sells a single product.Last period the company's labor rate variance was $14,400 U.During the period,the company worked 36,000 actual direct labor-hours at an actual cost of $338,400.The standard labor rate for the product in dollars per hour is:

Bumgardner Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for April: -The materials quantity variance for April 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: -The labor rate variance for the month was: