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Dirickson 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. Dirickson 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 July: The raw materials quantity variance for the month is closest to: A) $86 U B) $86 F C) $94 U D) $94 F The company has reported the following actual results for the product for July: Dirickson 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 July: The raw materials quantity variance for the month is closest to: A) $86 U B) $86 F C) $94 U D) $94 F The raw materials quantity variance for the month is closest to:


A) $86 U
B) $86 F
C) $94 U
D) $94 F

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

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The standards for product V28 call for 7.5 pounds of a raw material that costs $18.10 per pound. Last month, 1,400 pounds of the raw material were purchased for $24,990. The actual output of the month was 160 units of product V28. A total of 1,300 pounds of the raw material were used to produce this output. The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month?

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

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Majer Corporation makes a product with the following standard costs: Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February. 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 rate variance for February is: A) $1,146 U B) $1,176 U C) $1,176 F D) $1,146 F The company reported the following results concerning this product in February. Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February. 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 rate variance for February is: A) $1,146 U B) $1,176 U C) $1,176 F D) $1,146 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 labor rate variance for February is:


A) $1,146 U
B) $1,176 U
C) $1,176 F
D) $1,146 F

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

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The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the fixed part of the predetermined overhead rate.

A) True
B) False

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Gipple Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24,870 grams of the direct material. During the month the company purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:


A) $305 U
B) $300 U
C) $300 F
D) $305 F

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

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Miguez Corporation makes a product with the following standard costs: Miguez Corporation makes a product with the following standard costs: The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour. 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 September is: A) $1,540 F B) $1,687 U C) $1,687 F D) $1,540 U The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour. 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 September is:


A) $1,540 F
B) $1,687 U
C) $1,687 F
D) $1,540 U

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

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Wolery Inc. has provided the following data concerning one of the products in its standard cost system. Wolery 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 April: The labor efficiency variance for the month is closest to: A) $3,255 F B) $3,255 U C) $3,495 U D) $3,495 F The company has reported the following actual results for the product for April: Wolery 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 April: The labor efficiency variance for the month is closest to: A) $3,255 F B) $3,255 U C) $3,495 U D) $3,495 F The labor efficiency variance for the month is closest to:


A) $3,255 F
B) $3,255 U
C) $3,495 U
D) $3,495 F

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

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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 labor rate variance for March is: A) $4,120 U B) $3,270 U C) $4,120 F D) $3,270 F 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 labor rate variance for March is:


A) $4,120 U
B) $3,270 U
C) $4,120 F
D) $3,270 F

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

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Kartman Corporation makes a product with the following standard costs: Kartman Corporation makes a product with the following standard costs: In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. 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 rate variance for June is: A) $1,890 F B) $2,061 U C) $2,061 F D) $1,890 U In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. 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 rate variance for June is:


A) $1,890 F
B) $2,061 U
C) $2,061 F
D) $1,890 U

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

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Pippin 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. Pippin 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 June: The labor efficiency variance for the month is closest to: A) $5,425 U B) $5,425 F C) $5,325 U D) $5,325 F The company has reported the following actual results for the product for June: Pippin 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 June: The labor efficiency variance for the month is closest to: A) $5,425 U B) $5,425 F C) $5,325 U D) $5,325 F The labor efficiency variance for the month is closest to:


A) $5,425 U
B) $5,425 F
C) $5,325 U
D) $5,325 F

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

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Duboise Corporation makes a product with the following standard costs: Duboise Corporation makes a product with the following standard costs: The company reported the following results concerning this product in October. The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. The company reported the following results concerning this product in October. Duboise Corporation makes a product with the following standard costs: The company reported the following results concerning this product in October. The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance.

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a. SQ = 1,900 units × 9.3 ounces per uni...

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Dirickson 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. Dirickson 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 July: The variable overhead rate variance for the month is closest to: A) $228 F B) $246 U C) $246 F D) $228 U The company has reported the following actual results for the product for July: Dirickson 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 July: The variable overhead rate variance for the month is closest to: A) $228 F B) $246 U C) $246 F D) $228 U The variable overhead rate variance for the month is closest to:


A) $228 F
B) $246 U
C) $246 F
D) $228 U

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

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Termeer 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. Termeer 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: The variable overhead efficiency variance for the month is closest to: A) $46 U B) $42 F C) $46 F D) $42 U The company has reported the following actual results for the product for August: Termeer 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: The variable overhead efficiency variance for the month is closest to: A) $46 U B) $42 F C) $46 F D) $42 U The variable overhead efficiency variance for the month is closest to:


A) $46 U
B) $42 F
C) $46 F
D) $42 U

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

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The following data have been provided by Furr Corporation: The following data have been provided by Furr Corporation: Indirect labor and power are both elements of variable manufacturing overhead. The variable overhead rate variance for indirect labor is closest to: A) $32,854 F B) $32,854 U C) $37,398 F D) $4,544 F Indirect labor and power are both elements of variable manufacturing overhead. The variable overhead rate variance for indirect labor is closest to:


A) $32,854 F
B) $32,854 U
C) $37,398 F
D) $4,544 F

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

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Polaco Corporation makes a product that has the following direct labor standards: Polaco Corporation makes a product that has the following direct labor standards: In May the company produced 8,500 units using 3,220 direct labor-hours. The actual direct labor rate was $22.10 per hour. The labor efficiency variance for May is: A) $3,978 F B) $4,320 F C) $4,320 U D) $3,978 U In May the company produced 8,500 units using 3,220 direct labor-hours. The actual direct labor rate was $22.10 per hour. The labor efficiency variance for May is:


A) $3,978 F
B) $4,320 F
C) $4,320 U
D) $3,978 U

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

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The labor efficiency variance is labeled favorable (F) if the actual hours used is less than the standard hours allowed for the actual output.

A) True
B) False

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Dirickson 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. Dirickson 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 July: The labor rate variance for the month is closest to: A) $1,312 F B) $1,312 U C) $1,216 U D) $1,216 F The company has reported the following actual results for the product for July: Dirickson 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 July: The labor rate variance for the month is closest to: A) $1,312 F B) $1,312 U C) $1,216 U D) $1,216 F The labor rate variance for the month is closest to:


A) $1,312 F
B) $1,312 U
C) $1,216 U
D) $1,216 F

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

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The Haney Corporation has a standard costing system. Variable manufacturing overhead is applied on the basis of direct labor-hours. The following data are available for January: ∙\bullet Actual variable manufacturing overhead: $25,500 ∙\bullet Actual direct labor-hours worked: 5,800 ∙\bullet Variable overhead rate variance: $600 Favorable ∙\bullet Variable overhead efficiency variance: $2,475 Unfavorable The standard hours allowed for January production is:


A) 5,975 hours
B) 5,800 hours
C) 5,425 hours
D) 5,250 hours

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

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The following labor standards have been established for a particular product: The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor rate variance for the month? A) $450 F B) $3,915 F C) $3,915 U D) $450 U The following data pertain to operations concerning the product for the last month: The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor rate variance for the month? A) $450 F B) $3,915 F C) $3,915 U D) $450 U What is the labor rate variance for the month?


A) $450 F
B) $3,915 F
C) $3,915 U
D) $450 U

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

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The labor rate variance measures the difference between the actual hourly rate and the standard hourly rate, multiplied by the standard hours allowed for the actual output.

A) True
B) False

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