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Exam 9: Standard Costing and Variances

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Question 41

True/False

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Fixed overhead does not have separate price and quantity variances.The model used to analyze variable costs does not apply to fixed overhead,so the fixed overhead spending variance cannot be broken down into price and quantity variances.

A) True
B) False

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Question 42

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Warner Company has budgeted fixed overhead of $225,000 based on budgeted production of 7,500 units.During October,7,200 units were produced and $236,400 was spent on fixed overhead.What is the fixed overhead spending variance?

A) $11,400 unfavorable
B) $9,000 unfavorable
C) $20,400 unfavorable
D) $20,400 favorable

E) A) and B)
F) A) and C)

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Question 43

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Swan Company has a direct labor standard of 15 hours per unit of output.Each employee has a standard wage rate of $14 per hour.During March,employees worked 13,100 hours.The direct labor rate variance was $9,170 favorable,the direct labor efficiency variance was $15,400 unfavorable.How many units were produced?

Jupiter Co.applies overhead based on direct labor hours.The variable overhead standard is 4 hours at $12 per hour.During February,Jupiter Co.spent $113,400 for variable overhead.9,150 labor hours were used to produce 2,400 units.What is the variable overhead efficiency variance?

Raven applies overhead based on direct labor hours.The variable overhead standard is 2 hours at $11 per hour.During July,Raven spent $116,700 for variable overhead.8,890 labor hours were used to produce 4,700 units.What is the variable overhead rate variance?

Madrid Co.has a direct labor standard of 4 hours per unit of output.Each employee has a standard wage rate of $11 per hour.During February,Madrid Co.paid $99,500 to employees for 9,150 hours worked.2,400 units were produced during February.What is the direct labor rate variance?

Jupiter Co.applies overhead based on direct labor hours.The variable overhead standard is 4 hours at $12 per hour.During February,Jupiter Co.spent $113,400 for variable overhead.9,150 labor hours were used to produce 2,400 units.How much is variable overhead on the flexible budget?

A spending variance is made up of

The formula AH × (SR - AR) is the

A price standard is the price that should be paid per output unit for the input.A price standard is the price that should be paid for a specific quantity of input,not per output unit.

Exeter has a material standard of 1 pound per unit of output.Each pound has a standard price of $26 per pound.During July,Exeter paid $66,100 for 2,475 pounds,which they used to produce 2,350 units.What is the direct materials quantity variance?

The difference between the actual cost driver amount and the standard cost driver amount,multiplied by the standard variable overhead rate is the

The difference between the actual labor hours and the standard labor hours,multiplied by the standard labor rate is the

A standard cost card shows what the company spent to produce each unit of product.The standard cost card shows what the company should spend to produce a single unit of product based on expected production and sales for the coming period.

The difference between the actual volume and the budgeted volume,multiplied by the fixed overhead rate based on budgeted volume,is the

Dill has a fixed overhead spending variance of $3,900 unfavorable.During July,4,500 units were budgeted to be produced,4,700 units were actually produced,and $71,400 was actually spent on fixed overhead.How much was budgeted fixed overhead?

Whitman has a direct labor standard of 2 hours per unit of output.Each employee has a standard wage rate of $22.50 per hour.During July,Whitman paid $94,750 to employees for 4,445 hours worked.2,350 units were produced during July.What is the direct labor efficiency variance?

A master budget is an example of a

Exeter has a material standard of 1 pound per unit of output.Each pound has a standard price of $26 per pound.During July,Exeter paid $66,100 for 2,475 pounds,which they used to produce 2,350 units.What is the direct materials price variance?

Bonnie Company has a direct labor standard of 15 hours per unit of output.Each employee has a standard wage rate of $14 per hour.The standard variable overhead rate is $10 per hour.During March,employees worked 13,100 hours.The direct labor rate variance was $9,170 favorable,the variable overhead rate variance was $13,100 unfavorable,and the direct labor efficiency variance was $15,400 unfavorable.What is the variable overhead efficiency variance?