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Exam 29: Controlling Manufacturing Costs: Standard Costs

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Question 41

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WinterRec uses a standard cost system.The following data is available for November: The actual direct labor rate for November is:

A) $8 per hour.
B) $7.60 per hour.
C) $8.40 per hour.
D) $8.20 per hour.

E) None of the above
F) A) and B)

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Question 42

Multiple Choice

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Use the high-low point method to determine variable cost per unit:

A) $0.60 per unit.
B) $0.80 per unit.
C) $1.00 per unit.
D) $1.20 per unit.

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

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Question 43

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As the volume of output increases,the ____________________ cost per unit of output decreases.

If the predetermined overhead application rate is a percentage of labor cost,then a favorable labor time variance will be accompanied by a favorable manufacturing overhead variance.

Prepare a budget for manufacturing costs for Anasta Manufacturing for the month of April 2016 from the following information.Direct materials are estimated to be $600,000 for the year and direct labor is estimated to be $108,000.The direct labor per hour average is $16 and the budgeted level of direct labor activity for the month is 1,100 hours.

Costs are expected to behave in a similar manner within a relevant range of activity.

Better Blankets,Inc.makes a SnuggieBlank using flannel material and trim binding.They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need.The Standard Cost Card for The SnuggieBlank model is shown. The company reported the following results concerning January results: The variable overhead spending variance in January is:

Costs in excess of established standards are ___________________.

Standard quantity is usually determined by the

In a factory,the total variable costs are $600 if 500 units are produced.If 400 units are produced,the total variable costs would be

Better Blankets,Inc.makes a SnuggieBlank using flannel material and trim binding.They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need.The Standard Cost Card for The SnuggieBlank model is shown. The company reported the following results concerning January results: The labor rate variance in January is:

A budget that shows expected costs at only one level of production activity is called a(n)____________________ budget.

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are called ____________________ costs.

In order to analyze the differences between actual costs and standard costs,it is necessary to identify the fixed and variable components of semi-variable costs.

Complete the flexible budget of manufacturing costs for Lansome Industries for September 2016.Overhead is based on direct labor hours.

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

Better Blankets,Inc.makes a SnuggieBlank using flannel material and trim binding.They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need.The Standard Cost Card for The SnuggieBlank model is shown. The company reported the following results concerning January results: The variable overhead efficiency variance in January is:

The labor time (efficiency)variance and the labor ____________________ variance together make up the total labor variance.

In a factory,the fixed costs per unit are $45 when 400 units are produced.If 450 units are produced,the fixed costs per unit would be

The production manager is accountable for all material quantity variances as defective product and scrap is a result of inexperienced workers.