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Exam 22: Performance Evaluation Using Variances From Standard Costs

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Question 51

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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?

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

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Question 52

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

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

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Question 53

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Standard costs serve as a device for measuring efficiency.

The amount of the total factory overhead 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.

The total manufacturing cost variance is

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

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

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.

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

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.

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

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

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

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

The total manufacturing cost variance consists of

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.

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.

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.