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Exam 11: Standard Costs and Variances

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Question 101

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Hushovd Iron Works has collected the following data for its Thunderbolt line of products: What is the direct material price variance?

A) $4,000 favorable
B) $4,000 unfavorable
C) $3,500 favorable
D) $3,500 unfavorable

E) A) and C)
F) A) and D)

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Question 102

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The standard variable overhead cost rate for Harris Manufacturing is $24 per unit.Budgeted fixed overhead cost is $42,000.Harris Manufacturing budgeted 3,800 units for the current period and actually produced 3,900 finished units.What is the fixed overhead volume variance? Assume the allocation base for fixed overhead costs is the number of units expected to be produced.

A) $2,400 favorable
B) $1,105 favorable
C) $2,400 unfavorable
D) $1,105 unfavorable

E) A) and D)
F) All of the above

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Question 103

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Sherwin Chemicals produces commercial strength cleansing supplies.Two of its main products are window cleanser that uses ammonia,and floor cleanser that uses bleach.Information for the most recent period follows: What is the Standard Price (SP) for bleach?

Razzle Baking Company gathered the following actual results for the current month: Actual amounts: Budgeted production and standard costs were: What is the direct labor rate variance?

Simon Sayz is a regional manufacturer of baby toys produced from plastic derived from organic and non-toxic sources.Management budgeted one-half hour of direct labor per toy at a standard rate of $12.50 per hour.The most current production run produced 1,850 toys and used 1,750 labor hours at a total cost of $22,750.What is the direct labor rate variance for this production run?

Neil's Service Shop performs routine vehicle maintenance.One such service is tire rotations.Neil's reports the following budgeted and actual amounts for tire rotations for the month of August. What is the labor efficiency variance for the month of August?

Batchelder Manufacturing reported the following budgeted and actual figures for one of its products: Given this data,what is the total variable overhead variance for this product?

The ________ department may be responsible to incur a "sales volume variance."

Sole Purpose manufactures beach shoes that use a canvas as the main raw material.Data related to the shoes for June follows: What is the materials quantity variance for canvas for June?

Which of the following shows the effect on work in process inventory when assigning direct labor costs to the production process?

The fixed overhead budget variance measures the difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.

Michael Corporation manufactures railroad cars,which is its only product.The standards for railroad cars are as follows: During the month of March,the company produced 1,650 railroad cars.Related production data for the month follows: What is the direct labor efficiency variance for the month?

Sherwin Chemicals produces commercial strength cleansing supplies.Two of its main products are window cleanser that uses ammonia,and floor cleanser that uses bleach.Information for the most recent period follows: What is the direct materials flexible budget variance for ammonia?

Raw materials inventory is credited for which of the following when recording the use of direct materials in the production process?

The managerial accountant at Matheson Tool Company is compiling a fixed overhead volume variance report.According to the data,4,200 standard hours were tallied at $8 per machine hour,the fixed overhead volume variance was calculated at $2,860 U.Compute the budgeted fixed overhead cost at $2,860U and compare the budgeted fixed overhead cost if the fixed overhead volume variance was $2,860F.

Channel One Industries uses a standard costing system to apply manufacturing costs to its production process.In May,Channel One anticipated producing 2,450 units with fixed manufacturing overhead costs allocated at $7.40 per direct labor hour with a standard of 1.5 direct labor hours per unit.In May,actual production was 3,200 units and actual fixed manufacturing overhead costs were $23,000. What was Channel One's fixed manufacturing overhead budget variance in May?

DOT Safety Systems manufactures motorcycle helmets.What is the standard quantity of material used to manufacture each helmet if the material required is 1.2 pounds,and DOT allows for .25 pounds of waste and .35 pounds of rejected material?

Raw material,ruined through mistakes during production,results in a materials quantity variance.

Madden Corporation manufactures t-shirts,which is its only product.The standards for t-shirts are as follows: During the month of May,the company produced 1,250 t-shirts.Related production data for the month follows: What is the direct materials quantity variance for the month?

The actual cost of direct materials is $50.25 per pound.The standard cost per pound is $56.00.During the current period,6,800 pounds were used in production.The standard quantity for actual units produced is 6.500 pounds.How much is the direct materials price variance?