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Exam 9: Standard Costing and Variance Analysis

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Question 51

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Oxford Co.has a materials standard of 2.1 pounds per unit of output.Each pound has a standard price of $10 per pound.During February,Oxford Co.paid $57,220 for 4,840 pounds,which were used to produce 2,400 units.What is the direct materials price variance?

A) $6,820 unfavorable
B) $8,820 unfavorable
C) $8,820 favorable
D) $6,820 favorable

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

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Question 52

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Standard cost systems depend on which two types of standards?

A) Quantity and price standards
B) Quantity and efficiency standards
C) Rate and price standards
D) Rate and spending standards

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

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Question 53

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Benjamin Inc.uses a standard cost system and has the following information regarding the labor and overhead used in the production of widgets.Standard labor input is 2 hours per unit.The variable overhead rate is $8 per hour;fixed overhead is budgeted to be $100,000 on budgeted production of 8,000 widgets.During August,Benjamin Inc.paid its workers $161,670 for 16,800 hours.Actual variable overhead incurred totaled $133,560,and actual fixed overhead totaled $98,956.Benjamin Inc.produced 8,600 widgets during August.Calculate the: a.variable overhead rate variance. b.variable overhead efficiency variance. c.fixed overhead spending variance.

The difference between budgeted volume and practical capacity,multiplied by the fixed overhead rate,is the:

An ideal standard is one that can be achieved only under perfect conditions.

A quantity standard is:

The difference between the actual fixed manufacturing overhead cost and the budgeted fixed manufacturing overhead cost is the:

The difference between the actual price and the standard price,multiplied by the actual quantity of materials purchased,is the:

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

The flexible budget can be used as a benchmark for evaluating performance after the fact,as part of the control process.

The standard costs are summarized on a:

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 actual variable overhead?

Regent Corp.uses a standard cost system to account for the costs of its one product.Materials standards are 3 pounds of material at $14 per pound,and labor standards are 4 hours of labor at a standard wage rate of $11.During July Regent Corp.produced 3,300 units.Materials purchased and used totaled 10,100 pounds at a total cost of $142,650.Payroll totaled $146,780 for 13,150 hours worked.Calculate the: a.direct materials price variance. b.direct materials quantity variance.

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

Beech has budgeted fixed overhead of $202,500 based on budgeted production of 13,500 units.During July,14,100 units were produced and $214,200 was spent on fixed overhead.What is the budgeted fixed overhead rate?

When preparing a flexible budget,fixed costs should remain the same as on the master budget.

The direct materials quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price.

In a standard cost system,overhead is applied per unit by multiplying the ________ overhead rate times the ________ quantity of the cost driver.

Wilson Manufacturing has provided you with the following variances for the month of March: Wilson Manufacturing produced 6,200 units during the month of March;6,000 units were budgeted.Direct Materials Inventory did not change over the period.You have also been provided the following partial information: Calculate the: a.pounds of direct materials (purchased = used). b.actual direct labor hours. c.actual labor cost in dollars. d.actual spending for materials.

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.How much is variable overhead on the flexible budget?