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Bulluck Corporation makes a product with the following standard costs: Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for July is: A) $191 U B) $210 U C) $210 F D) $191 F The company reported the following results concerning this product in July. Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for July is: A) $191 U B) $210 U C) $210 F D) $191 F The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for July is:


A) $191 U
B) $210 U
C) $210 F
D) $191 F

E) B) and D)
F) A) and B)

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Luma Inc. has provided the following data concerning one of the products in its standard cost system. Luma Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for September: The raw materials quantity variance for the month is closest to: A) $69 F B) $78 F C) $69 U D) $78 U The company has reported the following actual results for the product for September: Luma Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for September: The raw materials quantity variance for the month is closest to: A) $69 F B) $78 F C) $69 U D) $78 U The raw materials quantity variance for the month is closest to:


A) $69 F
B) $78 F
C) $69 U
D) $78 U

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

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Balladares Inc. has a standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard for variable manufacturing overhead is 0.10 hours at $6.30 per hour. The company has reported the following actual results for the product for May: Balladares Inc. has a standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard for variable manufacturing overhead is 0.10 hours at $6.30 per hour. The company has reported the following actual results for the product for May: Required: a. Compute the variable overhead rate variance for May. b. Compute the variable overhead efficiency variance for May. Required: a. Compute the variable overhead rate variance for May. b. Compute the variable overhead efficiency variance for May.

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a. Variable overhead rate variance = (AH...

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Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

A) True
B) False

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Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for September: Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead rate variance for September. f. Compute the variable overhead efficiency variance for September. The company has reported the following actual results for the product for September: Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for September: Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead rate variance for September. f. Compute the variable overhead efficiency variance for September. Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September. e. Compute the variable overhead rate variance for September. f. Compute the variable overhead efficiency variance for September.

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a. Materials price variance = (AQ × AP) ...

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Devoto Inc. has provided the following data concerning one of the products in its standard cost system. Devoto Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for June: The raw materials quantity variance for the month is closest to: A) $77 U B) $85 F C) $85 U D) $77 F The company has reported the following actual results for the product for June: Devoto Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for June: The raw materials quantity variance for the month is closest to: A) $77 U B) $85 F C) $85 U D) $77 F The raw materials quantity variance for the month is closest to:


A) $77 U
B) $85 F
C) $85 U
D) $77 F

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

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D

Pleiss Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's standard variable manufacturing overhead rate is $2.40 per machine-hour. The actual variable manufacturing overhead cost for the month was $5,240. The original budget for the month was based on 2,100 machine-hours. The company actually worked 2,270 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,280 machine-hours. What was the variable overhead efficiency variance for the month?


A) $24 Favorable
B) $232 Favorable
C) $208 Favorable
D) $432 Unfavorable

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

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Pyrdum Corporation produces metal telephone poles. In the most recent month, the company budgeted production of 3,500 poles. Actual production was 3,800 poles. According to standards, each pole requires 4.6 machine-hours. The actual machine-hours for the month were 17,800 machine-hours. The standard variable manufacturing overhead rate is $5.40 per machine-hour. The actual variable manufacturing overhead cost for the month was $96,712. The variable overhead efficiency variance is:


A) $2,320 U
B) $1,728 F
C) $2,320 F
D) $1,728 U

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

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Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December: The variable overhead efficiency variance for the month is closest to: A) $1,003 U B) $935 U C) $1,003 F D) $935 F The company has reported the following actual results for the product for December: Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December: The variable overhead efficiency variance for the month is closest to: A) $1,003 U B) $935 U C) $1,003 F D) $935 F The variable overhead efficiency variance for the month is closest to:


A) $1,003 U
B) $935 U
C) $1,003 F
D) $935 F

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

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The following materials standards have been established for a particular product: The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: The direct materials purchases variance is computed when the materials are purchased. What is the materials price variance for the month? A) $480 F B) $430 F C) $430 U D) $480 U The following data pertain to operations concerning the product for the last month: The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: The direct materials purchases variance is computed when the materials are purchased. What is the materials price variance for the month? A) $480 F B) $430 F C) $430 U D) $480 U The direct materials purchases variance is computed when the materials are purchased. What is the materials price variance for the month?


A) $480 F
B) $430 F
C) $430 U
D) $480 U

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

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Handerson Corporation makes a product with the following standard costs: Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for August is: A) $2,400 U B) $2,400 F C) $2,352 F D) $2,352 U The company reported the following results concerning this product in August. Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for August is: A) $2,400 U B) $2,400 F C) $2,352 F D) $2,352 U The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for August is:


A) $2,400 U
B) $2,400 F
C) $2,352 F
D) $2,352 U

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

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Heye Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Heye Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for August: Required: a. Compute the materials price variance for August. b. Compute the materials quantity variance for August. c. Compute the labor rate variance for August. d. Compute the labor efficiency variance for August. e. Compute the variable overhead rate variance for August. f. Compute the variable overhead efficiency variance for August. The company has reported the following actual results for the product for August: Heye Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for August: Required: a. Compute the materials price variance for August. b. Compute the materials quantity variance for August. c. Compute the labor rate variance for August. d. Compute the labor efficiency variance for August. e. Compute the variable overhead rate variance for August. f. Compute the variable overhead efficiency variance for August. Required: a. Compute the materials price variance for August. b. Compute the materials quantity variance for August. c. Compute the labor rate variance for August. d. Compute the labor efficiency variance for August. e. Compute the variable overhead rate variance for August. f. Compute the variable overhead efficiency variance for August.

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a. Materials price variance = (AQ × AP) ...

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Ravena Labs., Inc. makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: ∙\bullet 3,750 units of compound were produced during the month. ∙\bullet There was no beginning direct materials inventory. ∙\bullet Direct materials purchased: 12,000 ounces for $225,000. ∙\bullet The ending direct materials inventory was 2,000 ounces. ∙\bullet Direct labor-hours worked: 5,600 hours at a cost of $67,200. ∙\bullet Variable manufacturing overhead costs incurred amounted to $18,200. ∙\bullet Variable manufacturing overhead applied to products: $18,375. The variable overhead rate variance for October is:


A) $1,400 Favorable
B) $1,900 Unfavorable
C) $3,750 Favorable
D) $4,375 Unfavorable

E) C) and D)
F) B) and D)

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Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product N06C: Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product N06C: The following data pertain to the most recent month's operations during which 1,600 units of product N06C were made: Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month? The following data pertain to the most recent month's operations during which 1,600 units of product N06C were made: Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product N06C: The following data pertain to the most recent month's operations during which 1,600 units of product N06C were made: Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month? Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month?

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a. Variable overhead rate variance = (AH × AR) − (AH × SR) = $36,540 − (8,700 hours × $4.10 per hour) = $36,540 − ($35,670) = $870 U b. Variable overhead efficiency variance = (AH − SH*) × SR = (8,700 hours − 8,800 hours*) × $4.10 per hour = (−100 hours) × $4.10 per hour = $410 F *SH = Standard hours per unit × Actual output = 5.5 hours per unit × 1,600 units = 8,800 hours

The Maxit Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July: ∙\bullet Actual variable manufacturing overhead cost incurred: $11,310 ∙\bullet Actual machine-hours worked: 1,600 hours ∙\bullet Variable overhead rate variance: $1,710 U ∙\bullet Total variable overhead spending variance: $2,310 U The variable overhead efficiency variance for July is:


A) $600 U
B) $540 U
C) $540 F
D) $600 F

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

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Creger Corporation, which makes landing gears, has provided the following data for a recent month: Creger Corporation, which makes landing gears, has provided the following data for a recent month: Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. Show your work! Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. Show your work!

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Variable overhead rate variance = (AH × ...

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Handerson Corporation makes a product with the following standard costs: Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for August is: A) $10,980 F B) $11,346 U C) $10,980 U D) $11,346 F The company reported the following results concerning this product in August. Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for August is: A) $10,980 F B) $11,346 U C) $10,980 U D) $11,346 F The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for August is:


A) $10,980 F
B) $11,346 U
C) $10,980 U
D) $11,346 F

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

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Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: During March, the following activity was recorded by the company: The company produced 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for March is: A) $1,060 F B) $1,060 U C) $935 F D) $935 U During March, the following activity was recorded by the company: The company produced 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for March is:


A) $1,060 F
B) $1,060 U
C) $935 F
D) $935 U

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

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Turrubiates Corporation makes a product that uses a material with the following standards: Turrubiates Corporation makes a product that uses a material with the following standards: The company budgeted for production of 2,300 units in April, but actual production was 2,400 units. The company used 16,410 liters of direct material to produce this output. The company purchased 18,600 liters of the direct material at $1.10 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is: A) $891 U B) $810 U C) $891 F D) $810 F The company budgeted for production of 2,300 units in April, but actual production was 2,400 units. The company used 16,410 liters of direct material to produce this output. The company purchased 18,600 liters of the direct material at $1.10 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is:


A) $891 U
B) $810 U
C) $891 F
D) $810 F

E) A) and D)
F) B) and D)

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B

Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December: The raw materials quantity variance for the month is closest to: A) $48 U B) $54 U C) $54 F D) $48 F The company has reported the following actual results for the product for December: Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December: The raw materials quantity variance for the month is closest to: A) $48 U B) $54 U C) $54 F D) $48 F The raw materials quantity variance for the month is closest to:


A) $48 U
B) $54 U
C) $54 F
D) $48 F

E) None of the above
F) All of the above

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