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Exam 22: Evaluating Variances From Standard Costs

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Question 31

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Match each of the following formulas or descriptions with the term (a-e) it defines. -(Actual Direct Hours - Standard Direct Hours) × Standard Rate per Hour

A) Direct materials price variance
B) Direct labor rate variance
C) Direct labor time variance
D) Direct materials quantity variance
E) Budgeted variable factory overhead

F) A) and D)
G) D) and E)

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Question 32

Multiple Choice

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The following data relate to direct labor costs for the current period:Standard costs6,000 hours at $12.00Actual costs7,500 hours at $11.40​What is the direct labor rate variance?

A) $18,000 unfavorable
B) $4,500 favorable
C) $17,100 unfavorable
D) $3,600 favorable

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

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Question 33

Multiple Choice

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Periodic comparisons between planned objectives and actual performance are reported in

Use this information for Stringer Company to answer the questions that follow. ​The following data are given for Stringer Company: ​ Overhead is applied on standard labor hours. -The direct materials price variance is

Use this information for Zoyza Company to answer the questions that follow. ​ The following data are given for Zoyza Company: ​ Overhead is applied on standard labor hours. ​​ -The variable factory overhead controllable variance is

Using the following information, prepare a factory overhead cost budget for Andover Company where the total factory overhead cost is $75,500 at normal capacity (100%). Include capacity at 75%, 90%, 100%, and 110%. Total variable cost is $6.25 per unit and total fixed costs are $38,000. The information is for the month ended August 31. (Hint: Determine units produced at normal capacity.)

Use this information to answer the questions that follow. ​ The following data relate to direct labor costs for February: ​ ​ -What is the direct labor time variance?

Because accountants have financial expertise, they are the only ones that are able to set standard costs for the production area.

Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard.?Determine the (a) price variance, (b) quantity variance, and (c) total cost variance.

Titus Company purchased on account and used 650 pounds of tomatoes (direct materials) to produce a taco sauce with a 635-pound standard direct materials requirement. The standard materials price is $22.40 per pound. The actual price of the tomatoes was $22.20 per pound. Prepare the journal entries to record (1) the purchase of the tomatoes and (2) the tomatoes entering production. Titus records standards and variances in the general ledger.

Standards are performance goals used to evaluate and control operations.

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $​4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.​What is the direct materials quantity variance?

A favorable cost variance occurs when actual cost is less than standard cost at actual volumes.

Use this information for Taylor Company to answer the questions that follow. ​ The following data are given for Taylor Company: ​ Overhead is applied based on standard labor hours. ​ -Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: Actual costs950 hours at $37 Standard costs975 hours at $36? Determine the direct labor (a) time variance, (b) rate variance, and (c) total direct labor cost variance.

Aquatic Corp.'s standard material requirement to produce one Model 2000 is 15 pounds of material at $110 per pound. Last month, Aquatic purchased 170,000 pounds of material at a total cost of $17,850,000. It used 162,000 pounds to produce 10,000 units of Model 2000.?Calculate the materials price variance and materials quantity variance, and indicate whether each variance is favorable or unfavorable.

An unfavorable cost variance occurs when standard cost at actual volumes exceeds actual cost.

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material, $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound.​What is the direct materials price variance?

A negative fixed overhead volume variance can be caused due to all of the following except

Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.60. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.50.?Determine the (a) price variance, (b) quantity variance, and (c) total cost variance.

The total manufacturing cost variance consists of