Quiz 7: Standard Costing and Variance Analysis
Business
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Q 3Q 3
An operations flow document shows all processes necessary to manufacture one unit of a product.
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Q 4Q 4
A standard cost card is prepared after manufacturing standards have been developed for direct materials,direct labor,and factory overhead.
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Q 5Q 5
A standard cost card is prepared before developing manufacturing standards for direct materials,direct labor,and factory overhead.
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True False
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Q 10Q 10
The price variance reflects the difference between the quantity of inputs used and the standard quantity allowed for the output of a period.
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Q 11Q 11
The price variance reflects the difference between the price paid for inputs and the standard price for those inputs.
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True False
Q 12Q 12
The usage variance reflects the difference between the price paid for inputs and the standard price for those inputs.
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True False
Q 13Q 13
The usage variance reflects the difference between the quantity of inputs used and the standard quantity allowed for the output of a period.
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Q 16Q 16
The point of purchase model calculates the materials price variance using the quantity of materials purchased.
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Q 17Q 17
The point of purchase model calculates the materials price variance using the quantity of materials used in production.
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Q 18Q 18
The difference between the actual wages paid to employees and the standard wages for all hours worked is the labor rate variance.
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True False
Q 19Q 19
The difference between the actual wages paid to employees and the standard wages for all hours worked is the labor efficiency variance.
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True False
Q 20Q 20
The difference between the standard hours worked for a specific level of production and the actual hours worked is the labor efficiency variance.
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True False
Q 21Q 21
The difference between the standard hours worked for a specific level of production and the actual hours worked is the labor rate variance.
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True False
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Q 23Q 23
The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead spending variance.
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True False
Q 24Q 24
The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead efficiency variance.
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True False
Q 25Q 25
The difference between budgeted variable overhead for actual hours and standard overhead is the variable overhead efficiency variance.
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True False
Q 26Q 26
The difference between budgeted variable overhead for actual hours and standard overhead is the variable overhead spending variance.
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True False
Q 27Q 27
The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead spending variance.
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True False
Q 28Q 28
The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead volume variance.
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True False
Q 29Q 29
The difference between budgeted and applied fixed factory overhead is referred to as a fixed overhead volume variance.
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Q 42Q 42
Practical standards are the most effective standards for controlling and motivating workers.
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Q 49Q 49
Total quality management (TQM)and just-in-time (JIT)production systems are based on the premise of ideal production standards.
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True False
Q 50Q 50
In a totally automated organization,using theoretical capacity will generally provide the lowest fixed overhead application rate.
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True False
Q 51Q 51
In a totally automated organization,using theoretical capacity will generally provide the highest fixed overhead application rate.
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True False
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Q 53Q 53
The effect of substituting a non-standard mix of materials during the production process is referred to as a material mix variance.
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True False
Q 54Q 54
The effect of substituting a non-standard mix of materials during the production process is referred to as a material yield variance.
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True False
Q 55Q 55
When multiple labor categories are used,the financial effect of using a different mix of workers in a production process is referred to as a labor mix variance.
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True False
Q 56Q 56
When multiple labor categories are used,the financial effect of using a different mix of workers in a production process is referred to as a labor yield variance.
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True False
Q 57Q 57
When multiple labor categories are used,the monetary impact of using a higher or lower number of hours than a standard allows is referred to as a labor mix variance.
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True False
Q 58Q 58
When multiple labor categories are used,the monetary impact of using a higher or lower number of hours than a standard allows is referred to as a labor yield variance.
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True False
Q 59Q 59
As production becomes more automated,direct labor may be viewed more as a conversion cost than as a prime cost.
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Q 60Q 60
The difference between total actual cost incurred and total standard cost applied is referred to as _________________________.
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Q 61Q 61
The two components of total material/labor variance are ______________________________ and ___________________________________
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Q 62Q 62
The difference between what was paid for inputs and what should have been paid for inputs is referred to as a _________________________.
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Q 63Q 63
The difference between standard quantity allowed and quantity used for a unit of output is known as an ______________________________.
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Q 64Q 64
The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the _______________________________________________________.
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Q 65Q 65
The difference between budgeted variable overhead for actual hours and standard overhead is the __________________________________________________.
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Q 66Q 66
The difference between actual and budgeted fixed factory overhead is referred to as a __________________________________________________.
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Q 67Q 67
The difference between budgeted and applied fixed factory overhead is referred to as a __________________________________________________.
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Q 68Q 68
Standards that provide for no human limitations or operating delays are referred to as ______________________________.
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Q 69Q 69
Standards that are attainable with reasonable effort are referred to as ___________________________________.
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Q 70Q 70
Standards that reflect what is expected to occur are referred to as ______________________________.
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Q 71Q 71
Standards that allow for waste and inefficiency are referred to as ______________________________.
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Q 72Q 72
When multiple materials are used,the effect of substituting a non-standard mix of materials during the production process is referred to as a ____________________ variance.
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Q 73Q 73
When multiple materials are used,the difference between the total quantity and the standard quantity of output when a nonstandard mix of materials is used is known as the _________________________ variance.
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Q 74Q 74
When multiple labor categories are used,the financial effect of using a different mix of workers in a production process is referred to as a _________________________ variance.
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Q 75Q 75
When multiple labor categories are used,the monetary impact of using a higher or lower number of hours than a standard allows is referred to as a ______________________________ variance.
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Q 76Q 76
A primary purpose of using a standard cost system is
A)to make things easier for managers in the production facility.
B)to provide a distinct measure of cost control.
C)to minimize the cost per unit of production.
D)b and c are correct.
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Multiple Choice
Q 77Q 77
The standard cost card contains quantities and costs for
A)direct material only.
B)direct labor only.
C)direct material and direct labor only.
D)direct material,direct labor,and overheaD.
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Multiple Choice
Q 78Q 78
Which of the following statements regarding standard cost systems is true?
A)Favorable variances are not necessarily good variances.
B)Managers will investigate all variances from standard.
C)The production supervisor is generally responsible for material price variances.
D)Standard costs cannot be used for planning purposes since costs normally change in the future.
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Multiple Choice
Q 79Q 79
In a standard cost system,Work in Process Inventory is ordinarily debited with
A)actual costs of material and labor and a predetermined overhead cost for overhead.
B)standard costs based on the level of input activity (such as direct labor hours worked).
C)standard costs based on production output.
D)actual costs of material,labor,and overheaD.
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Multiple Choice
Q 80Q 80
A standard cost system may be used in
A)job order costing,but not process costing.
B)process costing,but not job order costing.
C)either job order costing or process costing.
D)neither job order costing nor process costing.
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Multiple Choice
Q 81Q 81
Standard costs may be used for
A)product costing.
B)planning.
C)controlling.
D)all of the above.
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Multiple Choice
Q 82Q 82
A purpose of standard costing is to
A)replace budgets and budgeting.
B)simplify costing procedures.
C)eliminate the need for actual costing for external reporting purposes.
D)eliminate the need to account for year-end underapplied or overapplied manufacturing overheaD.
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Multiple Choice
Q 83Q 83
Standard costs
A)are estimates of costs attainable only under the most ideal conditions.
B)are difficult to use with a process costing system.
C)can,if properly used,help motivate employees.
D)require that significant unfavorable variances be investigated,but do not require that significant favorable variances be investigateD.
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Multiple Choice
Q 84Q 84
A bill of material does not include
A)quantity of component inputs.
B)price of component inputs.
C)quality of component inputs.
D)type of product output.
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Multiple Choice
Q 85Q 85
An operations flow document
A)tracks the cost and quantity of material through an operation.
B)tracks the network of control points from receipt of a customer's order through the delivery of the finished product.
C)specifies tasks to make a unit and the times allowed for each task.
D)charts the shortest path by which to arrange machines for completing products.
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Multiple Choice
Q 86Q 86
A total variance is best defined as the difference between total
A)actual cost and total cost applied for the standard output of the period.
B)standard cost and total cost applied to production.
C)actual cost and total standard cost of the actual input of the period.
D)actual cost and total cost applied for the actual output of the perioD.
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Multiple Choice
Q 87Q 87
The term "standard hours allowed" measures
A)budgeted output at actual hours.
B)budgeted output at standard hours.
C)actual output at standard hours.
D)actual output at actual hours.
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Multiple Choice
Q 88Q 88
A large labor efficiency variance is prorated to which of the following at year-end?
A)no no no
B)no yes yes
C)yes no no
D)yes yes yes
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Multiple Choice
Q 89Q 89
Which of the following factors should not be considered when deciding whether to investigate a variance?
A)magnitude of the variance
B)trend of the variances over time
C)likelihood that an investigation will reduce or eliminate future occurrences of the variance
D)whether the variance is favorable or unfavorable
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Multiple Choice
Q 90Q 90
At the end of a period,a significant material quantity variance should be
A)closed to Cost of Goods Sold.
B)allocated among Raw Material,Work in Process,Finished Goods,and Cost of Goods Sold.
C)allocated among Work in Process,Finished Goods,and Cost of Goods Sold.
D)carried forward as a balance sheet account to the next perioD.
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Multiple Choice
Q 91Q 91
When computing variances from standard costs,the difference between actual and standard price multiplied by actual quantity used yields a
A)combined price-quantity variance.
B)price variance.
C)quantity variance.
D)mix variance.
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Multiple Choice
Q 92Q 92
A company wishing to isolate variances at the point closest to the point of responsibility will determine its material price variance when
A)material is purchased.
B)material is issued to production.
C)material is used in production.
D)production is completeD.
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Multiple Choice
Q 93Q 93
The material price variance (computed at point of purchase)is
A)the difference between the actual cost of material purchased and the standard cost of material purchased.
B)the difference between the actual cost of material purchased and the standard cost of material used.
C)primarily the responsibility of the production manager.
D)both a and c.
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Multiple Choice
Q 94Q 94
The sum of the material price variance (calculated at point of purchase)and material quantity variance equals
A)the total cost variance.
B)the material mix variance.
C)the material yield variance.
D)no meaningful number.
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Multiple Choice
Q 95Q 95
A company would most likely have an unfavorable labor rate variance and a favorable labor efficiency variance if
A)the mix of workers used in the production process was more experienced than the normal mix.
B)the mix of workers used in the production process was less experienced than the normal mix.
C)workers from another part of the plant were used due to an extra heavy production schedule.
D)the purchasing agent acquired very high quality material that resulted in less spoilage.
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Multiple Choice
Q 96Q 96
If actual direct labor hours (DLHs)are less than standard direct labor hours allowed and overhead is applied on a DLH basis,a(n)
A)favorable variable overhead spending variance exists.
B)favorable variable overhead efficiency variance exists.
C)favorable volume variance exists.
D)unfavorable volume variance exists.
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Multiple Choice
Q 97Q 97
The total labor variance can be subdivided into all of the following except
A)rate variance.
B)yield variance.
C)learning curve variance.
D)mix variance.
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Multiple Choice
Q 98Q 98
The standard predominantly used in Western cultures for motivational purposes is a(n)____ standard.
A)expected annual
B)ideal
C)practical
D)theoretical
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Multiple Choice
Q 99Q 99
Which of the following standards can commonly be reached or slightly exceeded by workers in a motivated work environment?
A)no no no
B)no yes yes
C)yes yes no
D)no yes no
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Multiple Choice
Q 100Q 100
Management would generally expect unfavorable variances if standards were based on which of the following capacity measures?
A)yes no no
B)no no no
C)no yes yes
D)yes yes no
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Multiple Choice
Q 101Q 101
Which of the following capacity levels has traditionally been used to compute the fixed overhead application rate?
A)expected annual
B)normal
C)theoretical
D)prior year
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Multiple Choice
Q 102Q 102
A company has a favorable variable overhead spending variance,an unfavorable variable overhead efficiency variance,and underapplied variable overhead at the end of a period.The journal entry to record these variances and close the variable overhead control account will show which of the following?
A)debit credit credit
B)credit debit credit
C)debit credit debit
D)credit debit debit
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Multiple Choice
Q 103Q 103
Bailey Corporation.incurred 2,300 direct labor hours to produce 600 units of product.Each unit should take 4 direct labor hours.Bailey Corporation applies variable overhead to production on a direct labor hour basis.The variable overhead efficiency variance
A)will be unfavorable.
B)will be favorable.
C)will depend upon the capacity measure selected to assign overhead to production.
D)is impossible to determine without additional information.
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Multiple Choice
Q 104Q 104
A variable overhead spending variance is caused by
A)using more or fewer actual hours than the standard hours allowed for the production achieved.
B)paying a higher/lower average actual overhead price per unit of the activity base than the standard price allowed per unit of the activity base.
C)larger/smaller waste and shrinkage associated with the resources involved than expected.
D)both b and c are causes.
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Multiple Choice
Q 105Q 105
Which of the following are considered controllable variances?
A)yes yes yes
B)no no yes
C)no yes no
D)yes yes no
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Multiple Choice
Q 106Q 106
A company may set predetermined overhead rates based on normal,expected annual,or theoretical capacity.At the end of a period,the fixed overhead spending variance would
A)be the same regardless of the capacity level selected.
B)be the largest if theoretical capacity had been selected.
C)be the smallest if theoretical capacity had been selected.
D)not occur if actual capacity were the same as the capacity level selecteD.
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Multiple Choice
Q 107Q 107
The variance least significant for purposes of controlling costs is the
A)material quantity variance.
B)variable overhead efficiency variance.
C)fixed overhead spending variance.
D)fixed overhead volume variance.
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Multiple Choice
Q 108Q 108
Fixed overhead costs are
A)best controlled on a unit-by-unit basis of products produced.
B)mostly incurred to provide the capacity to produce and are best controlled on a total basis at the time they are originally negotiated.
C)constant on a per-unit basis at all different activity levels within the relevant range.
D)best controlled as to spending during the production process.
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Multiple Choice
Q 109Q 109
The variancemost useful in evaluating plant utilization is the
A)variable overhead spending variance.
B)fixed overhead spending variance.
C)variable overhead efficiency variance.
D)fixed overhead volume variance.
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Multiple Choice
Q 110Q 110
A favorable fixed overhead volume variance occurs if
A)there is a favorable labor efficiency variance.
B)there is a favorable labor rate variance.
C)production is less than planned.
D)production is greater than planneD.
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Multiple Choice
Q 111Q 111
The fixed overhead application rate is a function of a predetermined activity level.If standard hours allowed for good output equal the predetermined activity level for a given period,the volume variance will be
A)zero.
B)favorable.
C)unfavorable.
D)either favorable or unfavorable,depending on the budgeted overheaD.
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Multiple Choice
Q 112Q 112
Actual fixed overhead minus budgeted fixed overhead equals the
A)fixed overhead volume variance.
B)fixed overhead spending variance.
C)noncontrollable variance.
D)controllable variance.
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Multiple Choice
Q 113Q 113
Total actual overhead minus total budgeted overhead at the actual input production level equals the
A)variable overhead spending variance.
B)total overhead efficiency variance.
C)total overhead spending variance.
D)total overhead volume variance.
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Multiple Choice
Q 114Q 114
A favorable fixed overhead spending variance indicates that
A)budgeted fixed overhead is less than actual fixed overhead.
B)budgeted fixed overhead is greater than applied fixed overhead.
C)applied fixed overhead is greater than budgeted fixed overhead.
D)actual fixed overhead is less than budgeted fixed overheaD.
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Multiple Choice
Q 115Q 115
An unfavorable fixed overhead volume variance is most often caused by
A)actual fixed overhead incurred exceeding budgeted fixed overhead.
B)an over-application of fixed overhead to production.
C)an increase in the level of the finished inventory.
D)normal capacity exceeding actual production levels.
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Multiple Choice
Q 116Q 116
In a standard cost system,when production is greater than the estimated unit or denominator level of activity,there will be a(n)
A)unfavorable capacity variance.
B)favorable material and labor usage variance.
C)favorable volume variance.
D)unfavorable manufacturing overhead variance.
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Multiple Choice
Q 117Q 117
In analyzing manufacturing overhead variances,the volume variance is the difference between the
A)amount shown in the flexible budget and the amount shown in the debit side of the overhead control account.
B)predetermined overhead application rate and the flexible budget application rate times actual hours worked.
C)budget allowance based on standard hours allowed for actual production for the period and the amount budgeted to be applied during the period.
D)actual amount spent for overhead items during the period and the overhead amount applied to production during the perioD.
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Multiple Choice
Q 118Q 118
Variance analysis for overhead normally focuses on
A)efficiency variances for machinery and indirect production costs.
B)volume variances for fixed overhead costs.
C)the controllable variance as a lump-sum amount.
D)the difference between budgeted and applied variable overheaD.
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Multiple Choice
Q 119Q 119
The efficiency variance computed on a three-variance approach is
A)equal to the efficiency variance computed on the four-variance approach.
B)equal to the variable overhead spending variance plus the efficiency variance computed on the four-variance approach.
C)computed as the difference between applied variable overhead and actual variable overhead.
D)computed as actual variable overhead minus the flexible budget for variable overhead based on actual hours workeD.
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Multiple Choice
Q 120Q 120
The use of separate variable and fixed overhead rates is better than a combined rate because such a system
A)is less expensive to operate and maintain.
B)does not result in underapplied or overapplied overhead.
C)is more effective in assigning overhead costs to products.
D)is easier to develop.
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Multiple Choice
Q 121Q 121
Under the two-variance approach,the volume variance is computed by subtracting ____ based on standard input allowed for the production achieved from budgeted overhead.
A)applied overhead
B)actual overhead
C)budgeted fixed overhead plus actual variable overhead
D)budgeted variable overhead
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Multiple Choice
Q 122Q 122
The overhead variance calculated as total budgeted overhead at the actual input production level minus total budgeted overhead at the standard hours allowed for actual output is the
A)efficiency variance.
B)spending variance.
C)volume variance.
D)budget variance.
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Multiple Choice
Q 123Q 123
In a just-in-time inventory system,
A)practical standards become ideal standards.
B)ideal standards become expected standards.
C)variances will not occur because of the zero-defects basis of JIT.
D)standard costing cannot be useD.
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Multiple Choice
Q 124Q 124
A company using very tight (high)standards in a standard cost system should expect that
A)no incentive bonus will be paid.
B)most variances will be unfavorable.
C)employees will be strongly motivated to attain the standards.
D)costs will be controlled better than if lower standards were useD.
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Multiple Choice
Q 125Q 125
Patterson Company
The following information is for Patterson Company's July production:
(Round all answers to the nearest dollar. )
Refer to Patterson Company.What is the material price variance (calculated at point of purchase)?
A)$2,700 U
B)$2,700 F
C)$2,610 F
D)$2,610 U
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Multiple Choice
Q 126Q 126
Patterson Company
The following information is for Patterson Company's July production:
(Round all answers to the nearest dollar. )
Refer to Patterson Company.What is the material quantity variance?
A)$3,105 F
B)$1,050 F
C)$3,105 U
D)$1,890 U
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Multiple Choice
Q 127Q 127
Patterson Company
The following information is for Patterson Company's July production:
(Round all answers to the nearest dollar. )
Refer to Patterson Company.What is the labor rate variance?
A)$3,480 U
B)$3,480 F
C)$2,800 U
D)$2,800 F
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Multiple Choice
Q 128Q 128
Patterson Company
The following information is for Patterson Company's July production:
(Round all answers to the nearest dollar. )
Refer to Patterson Company.What is the labor efficiency variance?
A)$1,875 U
B)$ 938 U
C)$1,875 F
D)$1,125 U
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Multiple Choice
Q 129Q 129
Brennan Company
The following information is for Brennan Company's September production:
(Round all answers to the nearest dollar. )
Refer to Brennan Company.What is the material price variance (calculated at point of purchase)?
A)$ 735 F
B)$ 735 U
C)$ 710 F
D)$ 710 U
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Multiple Choice
Q 130Q 130
Brennan Company
The following information is for Brennan Company's September production:
(Round all answers to the nearest dollar. )
Refer to Brennan Company.What is the material quantity variance?
A)$ 740 F
B)$ 750 F
C)$ 750 U
D)$2,625 U
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Multiple Choice
Q 131Q 131
Brennan Company
The following information is for Brennan Company's September production:
(Round all answers to the nearest dollar. )
Refer to Brennan Company.What is the labor rate variance?
A)$1,040 U
B)$1,040 F
C)$1,420 U
D)$1,420 F
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Multiple Choice
Q 132Q 132
Brennan Company
The following information is for Brennan Company's September production:
(Round all answers to the nearest dollar. )
Refer to Brennan Company.What is the labor efficiency variance?
A)$825 F
B)$825 U
C)$835 F
D)$835 U
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Multiple Choice
Q 133Q 133
Wimberley Company
Wimberley Company has the following information available for December when 3,500 units were produced (round answers to the nearest dollar).
Refer to Wimberley Company.What is the labor rate variance?
A)$875 F
B)$865 F
C)$865 U
D)$875 U
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Multiple Choice
Q 134Q 134
Wimberley Company
Wimberley Company has the following information available for December when 3,500 units were produced (round answers to the nearest dollar).
Refer to Wimberley Company.What is the labor efficiency variance?
A)$2,050 F
B)$2,050 U
C)$2,040 U
D)$2,040 F
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Multiple Choice
Q 135Q 135
Wimberley Company
Wimberley Company has the following information available for December when 3,500 units were produced (round answers to the nearest dollar).
Refer to Wimberley Company.What is the material price variance (based on quantity purchased)?
A)$3,075 U
B)$2,938 U
C)$2,938 F
D)$3,075 F
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Multiple Choice
Q 136Q 136
Wimberley Company
Wimberley Company has the following information available for December when 3,500 units were produced (round answers to the nearest dollar).
Refer to Wimberley Company.What is the material quantity variance?
A)$2,250 F
B)$2,250 U
C)$225 F
D)$2,475 U
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Multiple Choice
Q 137Q 137
Wimberley Company
Wimberley Company has the following information available for December when 3,500 units were produced (round answers to the nearest dollar).
Refer to Wimberley Company.Assume that the company computes the material price variance on the basis of material issued to production.What is the total material variance?
A)$2,850 U
B)$2,850 F
C)$5,188 U
D)$5,188 F
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Multiple Choice
Q 138Q 138
Cibolo Company
Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar).
Refer to Cibolo Company.What is the labor rate variance?
A)$3,780 F
B)$3,780 U
C)$3,825 F
D)$3,825 U
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Multiple Choice
Q 139Q 139
Cibolo Company
Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar).
Refer to Cibolo Company.What is the labor efficiency variance?
A)$ 2,955 F
B)$ 2,955 U
C)$ 3,000 U
D)$ 3,000 F
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Multiple Choice
Q 140Q 140
Cibolo Company
Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar).
Refer to Cibolo Company.What is the material price variance (based on quantity purchased)?
A)$2,505 F
B)$2,505 F
C)$2,625 F
D)$2,625 F
Free
Multiple Choice
Q 141Q 141
Cibolo Company
Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar).
Refer to Cibolo Company.What is the material quantity variance?
A)$ 510 F
B)$ 525 U
C)$ 525 F
D)$3,675 U
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Multiple Choice
Q 142Q 142
Cibolo Company
Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar).
Refer to Cibolo Company.Assume that the company computes the material price variance on the basis of material issued to production.What is the total material variance?
A)$1,050 U
B)$1,050 F
C)$3,030 U
D)$3,030 F
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Multiple Choice
Q 143Q 143
Jenkins Manufacturing
The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:
Refer to Jenkins Manufacturing Company.What is the material price variance?
A)$638 U
B)$638 F
C)$630 U
D)$630 F
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Multiple Choice
Q 144Q 144
Jenkins Manufacturing
The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:
Refer to Jenkins Manufacturing Company.What is the material quantity variance?
A)$275 F
B)$290 F
C)$290 U
D)$275 U
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Multiple Choice
Q 145Q 145
Jenkins Manufacturing
The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:
Refer to Jenkins Manufacturing Company.What is the labor rate variance?
A)$1,575 U
B)$1,575 F
C)$1,594 U
D)$0
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Multiple Choice
Q 146Q 146
Jenkins Manufacturing
The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:
Refer to Jenkins Manufacturing Company.What is the labor efficiency variance?
A)$731 F
B)$731 U
C)$750 F
D)none of the answers are correct
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Multiple Choice
Q 147Q 147
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the one-variance approach,what is the total overhead variance?
A)$6,062 U
B)$3,625 U
C)$9,687 U
D)$6,562 U
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Multiple Choice
Q 148Q 148
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the two-variance approach,what is the controllable variance?
A)$5,813 U
B)$5,813 F
C)$4,375 U
D)$4,375 F
Free
Multiple Choice
Q 149Q 149
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the two-variance approach,what is the noncontrollable variance?
A)$3,125 F
B)$3,875 U
C)$3,875 F
D)$6,062 U
Free
Multiple Choice
Q 150Q 150
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the three-variance approach,what is the spending variance?
A)$ 4,375 U
B)$ 3,625 F
C)$ 8,000 U
D)$15,750 U
Free
Multiple Choice
Q 151Q 151
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the three-variance approach,what is the efficiency variance?
A)$9,937 F
B)$2,187 F
C)$2,187 U
D)$2,937 F
Free
Multiple Choice
Q 152Q 152
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the three-variance approach,what is the volume variance?
A)$3,125 F
B)$3,875 F
C)$3,875 U
D)$6,062 U
Free
Multiple Choice
Q 153Q 153
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the four-variance approach,what is the variable overhead spending variance?
A)$4,375 U
B)$4,375 F
C)$8,750 U
D)$6,562 U
Free
Multiple Choice
Q 154Q 154
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the four-variance approach,what is the variable overhead efficiency variance?
A)$2,187 U
B)$9,937 F
C)$2,187 F
D)$2,937 F
Free
Multiple Choice
Q 155Q 155
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the four-variance approach,what is the fixed overhead spending variance?
A)$7,000 U
B)$3,125 F
C)$ 750 U
D)$ 750 F
Free
Multiple Choice
Q 156Q 156
Buckingham Company
Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:
Refer to Buckingham Company.Using the four-variance approach,what is the volume variance?
A)$3,125 F
B)$3,875 F
C)$6,063 U
D)$3,875 U
Free
Multiple Choice
Q 157Q 157
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the one-variance approach,what is the total overhead variance?
A)$ 275 U
B)$ 1,000 U
C)$ 4,325 U
D)$ 5,325 U
Free
Multiple Choice
Q 158Q 158
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the two-variance approach,what is the controllable variance?
A)$4,075 U
B)$4,075 F
C)$4,575 U
D)$4,575 F
Free
Multiple Choice
Q 159Q 159
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the two-variance approach,what is the noncontrollable variance?
A)$ 750 F
B)$ 750 U
C)$1,000 F
D)$1,000 U
Free
Multiple Choice
Q 160Q 160
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the three-variance approach,what is the spending variance?
A)$2,525 U
B)$2,775 U
C)$4,375 U
D)$4,375 F
Free
Multiple Choice
Q 161Q 161
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the three-variance approach,what is the efficiency variance?
A)$1,800 F
B)$1,800 U
C)$2,050 U
D)$2,550 F
Free
Multiple Choice
Q 162Q 162
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the three-variance approach,what is the volume variance?
A)$ 750 F
B)$ 750 U
C)$1,000 U
D)$1,000 F
Free
Multiple Choice
Q 163Q 163
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the four-variance approach,what is the variable overhead spending variance?
A)$2,525U
B)$4,075 F
C)$4,075 U
D)$4,325 U
Free
Multiple Choice
Q 164Q 164
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the four-variance approach,what is the variable overhead efficiency variance?
A)$ 250 U
B)$ 250 F
C)$1,800 U
D)$1,800 F
Free
Multiple Choice
Q 165Q 165
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the four-variance approach,what is the fixed overhead spending variance?
A)$ 250 U
B)$ 250 F
C)$1,000 U
D)$2,250 F
Free
Multiple Choice
Q 166Q 166
Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:
Refer to Commodore Company.Using the four-variance approach,what is the volume variance?
A)$ 750 F
B)$ 750 U
C)$1,000 F
D)$1,000 U
Free
Multiple Choice
Q 167Q 167
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the four-variance approach,what is the variable overhead spending variance?
A)$ 7,950 U
B)$ 25 F
C)$ 7,975 U
D)$10,590 U
Free
Multiple Choice
Q 168Q 168
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the four-variance approach,what is the variable overhead efficiency variance?
A)$9,570 F
B)$9,570 U
C)$2,200 F
D)$2,200 U
Free
Multiple Choice
Q 169Q 169
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the four-variance approach,what is the fixed overhead spending variance?
A)$15,900 U
B)$6,330 U
C)$6,930 U
D)$935 F
Free
Multiple Choice
Q 170Q 170
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the four-variance approach,what is the volume variance?
A)$6,930 U
B)$13,260 U
C)$0
D)$2,640 F
Free
Multiple Choice
Q 171Q 171
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the three-variance approach,what is the spending variance?
A)$23,850 U
B)$23,850 F
C)$14,280 F
D)$14,280 U
Free
Multiple Choice
Q 172Q 172
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the three-variance approach,what is the efficiency variance?
A)$11,770 F
B)$2,200 F
C)$7,975 U
D)$5,775 U
Free
Multiple Choice
Q 173Q 173
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the three-variance approach,what is the volume variance?
A)$13,260 U
B)$2,640 F
C)$6,930 U
D)$0
Free
Multiple Choice
Q 174Q 174
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the two-variance approach,what is the controllable variance?
A)$21,650 U
B)$16,480 U
C)$5,775 U
D)$12,080 U
Free
Multiple Choice
Q 175Q 175
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the two-variance approach,what is the noncontrollable variance?
A)$26,040 F
B)$0
C)$6,930 U
D)$13,260 U
Free
Multiple Choice
Q 176Q 176
Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:
Refer to Pearce Company Using the one-variance approach,what is the total variance?
A)$19,010 U
B)$6,305 U
C)$12,705 U
D)$4,730 U
Free
Multiple Choice
Q 177Q 177
Actual fixed overhead is $33,300 (12,000 machine hours)and fixed overhead was estimated at $34,000 when the predetermined rate of $3.00 per machine hour was set.If 11,500 standard hours were allowed for actual production,applied fixed overhead is
A)$33,300.
B)$34,000.
C)$34,500.
D)not determinable without knowing the actual number of units produceD.
Free
Multiple Choice
Q 178Q 178
One unit requires 2 direct labor hours to produce.Standard variable overhead per unit is $1.25 and standard fixed overhead per unit is $1.75.If 330 units were produced this month,what total amount of overhead is applied to the units produced?
A)$990
B)$1,980
C)$660
D)cannot be determined without knowing the actual hours worked
Free
Multiple Choice
Q 179Q 179
Pittsburg Company uses a standard cost accounting system.The following overhead costs and production data are available for September:
The total applied manufacturing overhead for September should be
A)$195,000.
B)$197,000.
C)$197,500.
D)$199,500.
Free
Multiple Choice
Q 180Q 180
Harrah Manufacturing Company uses a standard cost system and prepared the following budget at normal capacity for October:
Using the two-way analysis of overhead variances,what is the controllable variance for October?
A)$ 3,000 F
B)$ 5,000 F
C)$ 9,000 F
D)$10,500 U
Free
Multiple Choice
Q 181Q 181
The following information is available from the Ryan Company:
Assuming that Ryan uses a three-way analysis of overhead variances,what is the overhead spending variance?
A)$ 750 F
B)$ 750 U
C)$ 950 F
D)$1,500 U
Free
Multiple Choice
Q 182Q 182
Teague Company uses a two-way analysis of overhead variances.Selected data for the March production activity are as follows:
Assuming that budgeted fixed overhead costs are equal to actual fixed costs,the controllable variance for March is
A)$2,000 F
B)$4,000 U.
C)$4,000 F
D)$6,000 F
Free
Multiple Choice
Q 183Q 183
Marathon Manufacturing Company uses a standard cost system.Overhead cost information for January is as follows:
What is the total overhead variance?
A)$1,200 F
B)$1,200 U
C)$1,400 F
D)$1,400 U
Free
Multiple Choice
Q 184Q 184
Texas Metal Company
Texas Metal Company has developed standard overhead costs based on a monthly capacity of 180,000 machine hours as follows:
During November,90,000 units were scheduled for production,but only 80,000 units were actually produced.The following data relate to November:
Actual machine hours used were 165,000.
Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed).
All inventories are carried at standard cost.
Refer to Texas Metal Company.The variable overhead spending variance for November was
A)$15,000 U.
B)$23,000 U.
C)$38,000 F.
D)$38,000 U.
Free
Multiple Choice
Q 185Q 185
Texas Metal Company
Texas Metal Company has developed standard overhead costs based on a monthly capacity of 180,000 machine hours as follows:
During November,90,000 units were scheduled for production,but only 80,000 units were actually produced.The following data relate to November:
Actual machine hours used were 165,000.
Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed).
All inventories are carried at standard cost.
Refer to Texas Metal Company.The variable overhead efficiency variance for November was
A)$15,000 U.
B)$23,000 U.
C)$38,000 F.
D)$38,000 U.
Free
Multiple Choice
Q 186Q 186
Texas Metal Company
Texas Metal Company has developed standard overhead costs based on a monthly capacity of 180,000 machine hours as follows:
During November,90,000 units were scheduled for production,but only 80,000 units were actually produced.The following data relate to November:
Actual machine hours used were 165,000.
Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed).
All inventories are carried at standard cost.
Refer to Texas Metal Company.The fixed overhead spending variance for November was
A)$40,000 U.
B)$40,000 F
C)$60,000 F
D)$60,000 U.
Free
Multiple Choice
Q 187Q 187
Texas Metal Company
Texas Metal Company has developed standard overhead costs based on a monthly capacity of 180,000 machine hours as follows:
During November,90,000 units were scheduled for production,but only 80,000 units were actually produced.The following data relate to November:
Actual machine hours used were 165,000.
Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed).
All inventories are carried at standard cost.
Refer to Texas Metal Company.The fixed overhead volume variance for November was
A)$60,000 U.
B)$60,000 F
C)$100,000 F
D)$100,000 U.
Free
Multiple Choice
Q 188Q 188
Industrial Solutions Company
Industrial Solutions Company manufactures a cleaning solvent.The company employs both skilled and unskilled workers.To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor.The standard and actual material and labor information is presented below:
Standard:
Material A: 30.25 gallons @ $1.25 per gallon
Material B: 24.75 gallons @ $2.00 per gallon
Skilled Labor: 4 hours @ $12 per hour
Unskilled Labor: 2 hours @ $ 7 per hour
Actual:
Material A: 10,716 gallons purchased and used @ $1.50 per gallon
Material B: 17,484 gallons purchased and used @ $1.90 per gallon
Skilled labor hours: 1,950 @ $11.90 per hour
Unskilled labor hours: 1,300 @ $7.15 per hour
During the current month Industrial Solutions Company manufactured 500 55-gallon drums.
Round all answers to the nearest whole dollar.
Refer to Industrial Solutions Company.What is the total material price variance?
A)$877 F
B)$877 U
C)$931 U
D)$931 F
Free
Multiple Choice
Q 189Q 189
Industrial Solutions Company
Industrial Solutions Company manufactures a cleaning solvent.The company employs both skilled and unskilled workers.To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor.The standard and actual material and labor information is presented below:
Standard:
Material A: 30.25 gallons @ $1.25 per gallon
Material B: 24.75 gallons @ $2.00 per gallon
Skilled Labor: 4 hours @ $12 per hour
Unskilled Labor: 2 hours @ $ 7 per hour
Actual:
Material A: 10,716 gallons purchased and used @ $1.50 per gallon
Material B: 17,484 gallons purchased and used @ $1.90 per gallon
Skilled labor hours: 1,950 @ $11.90 per hour
Unskilled labor hours: 1,300 @ $7.15 per hour
During the current month Industrial Solutions Company manufactured 500 55-gallon drums.
Round all answers to the nearest whole dollar.
Refer to Industrial Solutions Company.What is the total material mix variance?
A)$3,596 F
B)$3,596 U
C)$4,864 F
D)$4,864 U
Free
Multiple Choice
Q 190Q 190
Industrial Solutions Company
Industrial Solutions Company manufactures a cleaning solvent.The company employs both skilled and unskilled workers.To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor.The standard and actual material and labor information is presented below:
Standard:
Material A: 30.25 gallons @ $1.25 per gallon
Material B: 24.75 gallons @ $2.00 per gallon
Skilled Labor: 4 hours @ $12 per hour
Unskilled Labor: 2 hours @ $ 7 per hour
Actual:
Material A: 10,716 gallons purchased and used @ $1.50 per gallon
Material B: 17,484 gallons purchased and used @ $1.90 per gallon
Skilled labor hours: 1,950 @ $11.90 per hour
Unskilled labor hours: 1,300 @ $7.15 per hour
During the current month Industrial Solutions Company manufactured 500 55-gallon drums.
Round all answers to the nearest whole dollar.
Refer to Industrial Solutions Company.What is the total material yield variance?
A)$1,111 U
B)$1,111 F
C)$2,670 U
D)$2,670 F
Free
Multiple Choice
Q 191Q 191
Industrial Solutions Company
Industrial Solutions Company manufactures a cleaning solvent.The company employs both skilled and unskilled workers.To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor.The standard and actual material and labor information is presented below:
Standard:
Material A: 30.25 gallons @ $1.25 per gallon
Material B: 24.75 gallons @ $2.00 per gallon
Skilled Labor: 4 hours @ $12 per hour
Unskilled Labor: 2 hours @ $ 7 per hour
Actual:
Material A: 10,716 gallons purchased and used @ $1.50 per gallon
Material B: 17,484 gallons purchased and used @ $1.90 per gallon
Skilled labor hours: 1,950 @ $11.90 per hour
Unskilled labor hours: 1,300 @ $7.15 per hour
During the current month Industrial Solutions Company manufactured 500 55-gallon drums.
Round all answers to the nearest whole dollar.
Refer to Industrial Solutions Company.What is the labor rate variance?
A)$0
B)$1,083 U
C)$2,583 U
D)$1,083 F
Free
Multiple Choice
Q 192Q 192
Industrial Solutions Company
Industrial Solutions Company manufactures a cleaning solvent.The company employs both skilled and unskilled workers.To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor.The standard and actual material and labor information is presented below:
Standard:
Material A: 30.25 gallons @ $1.25 per gallon
Material B: 24.75 gallons @ $2.00 per gallon
Skilled Labor: 4 hours @ $12 per hour
Unskilled Labor: 2 hours @ $ 7 per hour
Actual:
Material A: 10,716 gallons purchased and used @ $1.50 per gallon
Material B: 17,484 gallons purchased and used @ $1.90 per gallon
Skilled labor hours: 1,950 @ $11.90 per hour
Unskilled labor hours: 1,300 @ $7.15 per hour
During the current month Industrial Solutions Company manufactured 500 55-gallon drums.
Round all answers to the nearest whole dollar.
Refer to Industrial Solutions Company.What is the labor mix variance?
A)$1,083 U
B)$2,588 U
C)$1,083 F
D)$2,588 F
Free
Multiple Choice
Q 193Q 193
Industrial Solutions Company
Industrial Solutions Company manufactures a cleaning solvent.The company employs both skilled and unskilled workers.To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor.The standard and actual material and labor information is presented below:
Standard:
Material A: 30.25 gallons @ $1.25 per gallon
Material B: 24.75 gallons @ $2.00 per gallon
Skilled Labor: 4 hours @ $12 per hour
Unskilled Labor: 2 hours @ $ 7 per hour
Actual:
Material A: 10,716 gallons purchased and used @ $1.50 per gallon
Material B: 17,484 gallons purchased and used @ $1.90 per gallon
Skilled labor hours: 1,950 @ $11.90 per hour
Unskilled labor hours: 1,300 @ $7.15 per hour
During the current month Industrial Solutions Company manufactured 500 55-gallon drums.
Round all answers to the nearest whole dollar.
Refer to Industrial Solutions Company.What is the labor yield variance?
A)$2,583 U
B)$2,583 F
C)$1,138 F
D)$1,138 U
Free
Multiple Choice
Q 194Q 194
The sum of the material mix and material yield variances equals
A)the material purchase price variance.
B)the material quantity variance.
C)the total material variance.
D)none of the above.
Free
Multiple Choice
Q 195Q 195
The sum of the labor mix and labor yield variances equals
A)the labor efficiency variance.
B)the total labor variance.
C)the labor rate variance.
D)nothing because these two variances cannot be added since they use different costs.
Free
Multiple Choice
Free
Essay
Q 197Q 197
Discuss briefly the type of information contained on (a)a bill of materials and (b)an operations flow document.
Free
Essay
Q 198Q 198
Define the following terms: standard cost system,total variance,material price variance,and labor efficiency variance.
Free
Essay
Q 199Q 199
Discuss how establishing standards benefits the following management functions: performance evaluation and decision making.
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Essay
Q 200Q 200
Discuss why standards may need to be changed after they have been in effect for some period of time.
Free
Essay
Free
Essay
Free
Essay
Free
Essay
Q 204Q 204
Distinguish between the four-variance,three-variance,two-variance,and one-variance approaches for computing factory overhead variances.
Free
Essay
Q 205Q 205
Explain the source of variable overhead spending and efficiency variances and how these variances are computed.
Free
Essay
Q 206Q 206
Explain the source of fixed overhead spending and volume variances and how these variances are computed.
Free
Essay
Q 207Q 207
Aldrich Company
Aldrich Company has the following information available for the current year:
Free
Essay
Q 208Q 208
Aldrich Company
Aldrich Company has the following information available for the current year:
Free
Essay
Q 209Q 209
Roberts Company
Roberts Company has the following information available for the current year:
Free
Essay
Q 210Q 210
Roberts Company
Roberts Company has the following information available for the current year:
Free
Essay
Q 211Q 211
Garfield Company
Garfield Company applies overhead based on direct labor hours and has the following available for the current month:
Free
Essay
Q 212Q 212
Garfield Company
Garfield Company applies overhead based on direct labor hours and has the following available for the current month:
Free
Essay
Q 213Q 213
Garfield Company
Garfield Company applies overhead based on direct labor hours and has the following available for the current month:
Free
Essay
Q 214Q 214
Lincoln Company
Lincoln Company applies overhead based on direct labor hours and has the following available for the current month:
Free
Essay
Q 215Q 215
Lincoln Company
Lincoln Company applies overhead based on direct labor hours and has the following available for the current month:
Free
Essay
Q 216Q 216
Lincoln Company
Lincoln Company applies overhead based on direct labor hours and has the following available for the current month:
Free
Essay
Q 217Q 217
Weslaco Company has made the following information available for its production facility for the current month.Fixed overhead was estimated at 19,000 machine hours for the production cycle.Actual machine hours for the period were 18,900,which generated 3,900 units.
Free
Essay
Q 218Q 218
Lubbock Company has made the following information available for its production facility for the current month.Fixed overhead was estimated at 22,000 machine hours for the production cycle.Actual machine hours for the period were 22,500;4,200 units were produced.
Free
Essay
Q 219Q 219
Berkshire Company
The following information is available for Berkshire Company for the current year:
Standard:
Material X: 3.0 pounds per unit @ $4.20 per pound
Material Y: 4.5 pounds per unit @ $3.30 per pound
Class S labor: 3 hours per unit @ $10.50 per hour
Class US labor: 7 hours per unit @ $8.00 per hour
Actual:
Material X: 3.6 pounds per unit @ $4.00 per pound (purchased and used)
Material Y: 4.4 pounds per unit @ $3.25 per pound (purchased and used)
Class S labor: 3.8 hours per unit @ $10.60 per hour
Class US labor: 5.7 hours per unit @ $7.80 per hour
Berkshire Company produced a total of 45,750 units.
Refer to Berkshire Company.Compute the material price,mix,and yield variances (round to the nearest dollar).
Free
Essay
Q 220Q 220
Berkshire Company
The following information is available for Berkshire Company for the current year:
Standard:
Material X: 3.0 pounds per unit @ $4.20 per pound
Material Y: 4.5 pounds per unit @ $3.30 per pound
Class S labor: 3 hours per unit @ $10.50 per hour
Class US labor: 7 hours per unit @ $8.00 per hour
Actual:
Material X: 3.6 pounds per unit @ $4.00 per pound (purchased and used)
Material Y: 4.4 pounds per unit @ $3.25 per pound (purchased and used)
Class S labor: 3.8 hours per unit @ $10.60 per hour
Class US labor: 5.7 hours per unit @ $7.80 per hour
Berkshire Company produced a total of 45,750 units.
Refer to Berkshire Company.Compute the labor rate,mix,and yield variances (round to the nearest dollar).
Free
Essay
Q 221Q 221
Wisteria Corporation produces a product using the following standard proportions and costs of material:
Free
Essay
Q 222Q 222
Mansfield Company began business early in January using a standard costing for its single product.With standard capacity set at 10,000 standard productive hours per month,the following standard cost sheet was set up for one unit of product:
Free
Essay
Q 223Q 223
A firm producing one product has a budgeted overhead of $100,000,of which $20,000 is variable.The budgeted direct labor is 10,000 hours.
Required: Fill in the blanks.
Free
Essay
Q 224Q 224
Pests Away Company manufactures a product effective in controlling beetles.The company uses a standard cost system and a flexible budget.Standard cost of a gallon is as follows:
Free
Essay
Q 225Q 225
Trump Corporation operates a factory.One of its departments has three kinds of employees on its direct labor payroll,classified as pay grades A,B,and C.The employees work in 10-person crews in the following proportions:
The work crews cannot work short-handed.To keep a unit operating when one of the regular crew members is absent,the head of the department first tries to reassign one of the department's other workers from indirect labor operations.
If no one in the department is able to step in,plant management will pull maintenance department workers off their regular work,if possible,and assign them temporarily to the department.These maintenance workers are all classified as Grade D employees,with a standard wage rate of $10 an hour.
The following data relate to the operations of the department during the month of May:
Required: Compute labor rate,mix,and yield variances.
Free
Essay
Q 226Q 226
Adams Corporation manufactures a certain product by mixing three kinds of materials in large batches.The blend master has the responsibility for maintaining the quality of the product,and this often requires altering the proportions of the various ingredients.Standard costs are used to provide material control information.The standard material inputs per batch are:
Free
Essay