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Exam 29: Controlling Manufacturing Costs: Standard Costs

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Question 51

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Costs that do not vary in total during a period even though the volume of manufacturing activity changes are called ____________________ costs.

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verified

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Question 52

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A budget performance report compares actual costs for a period with the budgeted costs for that period.

A) True
B) False

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Question 53

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The difference between the actual cost of an item and its standard cost is called a(n) ___________________.

The flexible budget usually shows

A price variance for an item is the difference between its actual price and its standard price multiplied by the standard quantity.

Kenwood Company's manufacturing overhead costs for the assembly department are given below. $\begin{array} { l r c } & \begin{array} { c } \text { Fixed Costs } \\\text { Per Month }\end{array} & \begin{array} { c } \text { Variable Costs } \\\text { Per Hour }\end{array} \\\text { Indirect Labor } & \$ 1,400 & \$ .95 \\\text { Payroll Taxes } & 90 & 1.05 \\\text { Indirect Materials } & 220 & .20 \\\text { Power and Water } & 340 & .35 \\\text { Depreciation } & 1,020 & - \\\text { Taxes and Insurance } & 450 & - \\\text { Repairs } & 175 & .15\end{array}$ -Using the information provided prepare a departmental monthly overhead performance report comparing actual costs with the budget allowance for the number of hours worked. Assume that during the month of May actual production was 1,900 hours. Actual costs for the month were as follows: $\begin{array} { l r } \text { Indirect Labor } & \$ 3,195 \\\text { Payroll Taxes } & 2,055 \\\text { Indirect Materials } & 575 \\\text { Power and Water } & 1,025 \\\text { Depreciation } & 1,015 \\\text { Taxes and Insurance } & 415 \\\text { Repairs } & 475\end{array}$

An analysis would indicate

The quantity variance for an item is the difference between its actual quantity and its standard quantity, multiplied by the ____________________ cost of the item.

An analysis would indicate