FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Standard Costs and Operating Performance Measures

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

Cole laboratories makes and sells a lawn fertilizer called Fastgro.The company has developed standard costs for one bag of Fastgro as follows: The company had no beginning inventories of any kind on Jan.1.Variable overhead is applied to production on the basis of standard direct labor-hours.During January,the following activity was recorded by the company: $\bullet$ Production of Fastgro: 4,000 bags $\bullet$ Direct materials purchased: 85,000 pounds at a cost of $32,300 $\bullet$ Direct labor worked: 390 hours at a cost of $4,875 $\bullet$ Variable overhead incurred: $1,475 $\bullet$ Inventory of direct materials on Jan.31: 3,000 pounds -The materials quantity variance for January is:

A) $800 U
B) $300 U
C) $300 F
D) $750 F

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

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Harnish Corporation is developing standards for its products.One product requires an input that is purchased for $55.00 per kilogram from the supplier.By paying cash,the company gets a discount of 8% off this purchase price.Shipping costs from the supplier's warehouse amount to $5.17 per kilogram.Receiving costs are $0.28 per kilogram.Each unit of output of the product requires 0.75 kilogram of this input.The allowance for waste and spoilage is 0.04 kilogram of this input for each unit of output.The allowance for rejects is 0.11 kilogram of this input for each unit of output. -The standard price per kilogram of this input should be:

A) $55.00
B) $56.05
C) $53.95
D) $64.85

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

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Bullins Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) .The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month?

The following data pertain to operations concerning the product for the last month: What is the materials price variance for the month? A.$14,850 U B.$8,250 U C.$8,640 U <underLine>D.</underLine> $2,860 F AP = $60,500 / 4,400 = $13.75 Materials price variance = AQ (AP - SP) = 4,400 ($13.75 - $14.40) = $2,860 F -In October,5,000 meters of raw material were purchased at an actual cost of $4.50 per meter.During October,4,850 meters of the raw material were used to produce 2,400 units of the completed product.Standards call for 2 meters of the raw material for each unit of the completed product.The standard price of the raw material is $4.70 per meter.The materials variances for October were:

Rodenberger Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below: The delivery cycle time was:

Lantagne Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: -The delivery cycle time was:

The following materials standards have been established for a particular product:

The following standards for variable overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: -What is the variable overhead efficiency variance for the month?

Daughdrill Corporation is developing direct labor standards.The basic direct labor wage rate is $10.95 per hour.Employment taxes are 9% of the basic wage rate.Fringe benefits are $4.00 per direct labor-hour.The standard rate per direct labor-hour should be:

Loehr Corporation's management reports that its average delivery cycle time is 14.0 days,its average throughput time is 6.3 days,its manufacturing cycle efficiency (MCE) is 0.27,its average move time is 0.1 day,and its average queue time is 3.9 days. Required: a.What is the wait time? b.What is the process time? c.What is the inspection time?

The following standards for variable overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: -What is the variable overhead rate variance for the month?

The Alpha Company produces toys for national distribution.Standards for a particular toy are: Materials: 12 ounces per unit at 56'per ounce. Labor: 2 hours per unit at $2.75 per hour. During the month of December,the company produced 1,000 units.Information for the month follows: Materials: 14,000 ounces were purchased and used at a total cost of $7,140. Labor: 2,500 hours worked at a total cost of $8,000. -The labor rate variance is:

Which of the following statements concerning practical standards is incorrect?

If the actual labor hours worked exceed the standard labor hours allowed,what type of variance will occur?

Hutton Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: The throughput time was:

Massie Corporation,which produces commercial safes,has provided the following data: -The variable overhead efficiency variance for supplies is:

Osier Corporation,which produces cellular transmission towers,has provided the following data: -The variable overhead efficiency variance for indirect labor is:

Spence Corporation,which makes skylights,has provided the following data for December: Required: Compute the rate variances and the efficiency variances for indirect labor and power and indicate whether they are favorable or unfavorable.

Dennehy Corporation,which makes sophisticated industrial valves,has provided the following data from its standard costing system and for its actual operations in November: Required: Compute the variable overhead rate variances for indirect labor and for power for November.Indicate whether each of the variances is favorable (F) or unfavorable (U).Show your work!

Harnish Corporation is developing standards for its products.One product requires an input that is purchased for $55.00 per kilogram from the supplier.By paying cash,the company gets a discount of 8% off this purchase price.Shipping costs from the supplier's warehouse amount to $5.17 per kilogram.Receiving costs are $0.28 per kilogram.Each unit of output of the product requires 0.75 kilogram of this input.The allowance for waste and spoilage is 0.04 kilogram of this input for each unit of output.The allowance for rejects is 0.11 kilogram of this input for each unit of output. -The standard quantity in kilograms of this input per unit of output should be: