Question 1

A company has established 5 pounds of Material M at $2 per pound as the standard for the material in its Product A.The company has just produced 1,000 units of this product,using 5,200 pounds of Material M that cost $9,880.The direct materials price variance is:

Accepted Answer

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Question 2

A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000.The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units.The total controllable cost variance is:

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The answer of A company's flexible budget for 48,000 units...

Question 3

Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units.The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units.What is the direct materials price variance?

Accepted Answer

The direct materials price variance is calculated as follows:

Actual Quantity (AQ) x (Actual Price (AP) - Standard Price (SP))

AQ = 4,500 pounds
AP = $5.10 per pound
SP = $5.00 per pound

4,500 x ($5.10 - $5.00) = $450 unfavorable variance.

Therefore, the correct answer is B, $450 unfavorable.

Question 4

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour.The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.What is the total labor cost variance?

Accepted Answer

The budgeted labor cost for the job would be:
3 hours/unit x 8,000 units x $8.00/hour = $192,000
The actual labor cost was $198,000, so there was an unfavorable labor cost variance of:
$198,000 - $192,000 = $6,000 (C)

Question 5

A company uses the following standard costs to produce a single unit of output. $$\begin{array} { l l l l } 
\text { Direct materals } & 6 \text { pourds at } \$ 0.90 \text { per pound } & = & \$ 5.40 \
\text { Direct labor } & 0.5 \text { hour at } \$ 12.00 \text { per hour } & = & \$ 6.00 \
\text { Marufacturing overhead } & 0.5 \text { hour at } \$ 4.80 \text { per hour } & = &\$ 2.40
\end{array}$$ During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct materials quantity variance for the month was:

Accepted Answer

The answer of A company uses the following standard costs...

Question 6

Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units.The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units.What is the direct materials quantity variance?

Accepted Answer

The answer of Bradford Company budgeted 4,000 pounds of material...

Question 7

Overhead cost variance is:

Accepted Answer

Overhead cost variance is the difference between the actual overhead incurred during a period and the standard overhead applied. This variance measures the efficiency of a company's operations with respect to overhead costs.

Question 8

The following company information is available.The direct materials quantity variance is:

Accepted Answer

The direct materials quantity variance is calculated as: AQ x (SQ - SP). We do not have the values of AQ, SQ, or SP in the given information. Therefore, we cannot calculate the variance. None of the answer choices is correct.

Question 9

A company has established 5 pounds of Material M at $2 per pound as the standard for the material in its Product A.The company has just produced 1,000 units of this product,using 5,200 pounds of Material M that cost $9,880.The direct materials quantity variance is:

Accepted Answer

The answer of A company has established 5 pounds of...

Question 10

A company uses the following standard costs to produce a single unit of output. $$\begin{array} { l l l l } 
\text { Direct materals } & 6 \text { pourds at } \$ 0.90 \text { per pound } & = & \$ 5.40 \
\text { Direct labor } & 0.5 \text { hour at } \$ 12.00 \text { per hour } & = & \$ 6.00 \
\text { Marufacturing overhead } & 0.5 \text { hour at } \$ 4.80 \text { per hour } & = \$ 2.40
\end{array}$$ During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct labor efficiency variance for the month was:

Accepted Answer

The direct labor efficiency variance is calculated as the difference between the actual direct labor hours used and the standard direct labor hours allowed, multiplied by the standard direct labor rate. In this case, the actual direct labor hours used were 4,900, the standard direct labor hours allowed were 5,000 (10,000 units * 0.5 hour per unit), and the standard direct labor rate was $12.00 per hour. Therefore, the direct labor efficiency variance is (4,900 - 5,000) * $12.00 = $1,200 favorable.

Question 11

A company uses the following standard costs to produce a single unit of output. $$\begin{array} { l l l l } 
\text { Direct materals } & 6 \text { pourds at } \$ 0.90 \text { per pound } & = & \$ 5.40 \
\text { Direct labor } & 0.5 \text { hour at } \$ 12.00 \text { per hour } & = & \$ 6.00 \
\text { Marufacturing overhead } & 0.5 \text { hour at } \$ 4.80 \text { per hour } & = &\$ 2.40
\end{array}$$ During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct materials price variance for the month was:

Accepted Answer

The answer of A company uses the following standard costs...

Question 12

A company uses the following standard costs to produce a single unit of output. $$\begin{array} { l l l l } 
\text { Direct materals } & 6 \text { pourds at } \$ 0.90 \text { per pound } & = & \$ 5.40 \
\text { Direct labor } & 0.5 \text { hour at } \$ 12.00 \text { per hour } & = & \$ 6.00 \
\text { Marufacturing overhead } & 0.5 \text { hour at } \$ 4.80 \text { per hour } & = &\$ 2.40
\end{array}$$ During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct labor rate variance for the month was:

Accepted Answer

The answer of A company uses the following standard costs...

Question 13

Use the following data to find the direct labor cost variance. $$\begin{array} { l l } 
\text { Direct labor standard (4 hrs. @ \$7hr) } & \$ 28 \text { per urit } \
\text { Actual hours worked per urit } & 3.5 \text { hours } \
\text { Actual urits produced } & 3,500 \text { urits } \
\text { Actual rate per hour } & \$ 7.50
\end{array}$$

Accepted Answer

The answer of Use the following data to find the...

Question 14

The following company information is available for January.The direct materials price variance is:

Accepted Answer

The answer of The following company information is available for...

Question 15

The difference between the total budgeted fixed overhead cost and the fixed overhead applied to production using the predetermined overhead rate is the:

Accepted Answer

The difference between the total budgeted fixed overhead cost and the fixed overhead applied to production using the predetermined overhead rate is known as the volume variance. This variance occurs because the actual production volume differs from the expected (or standard) production volume used to calculate the predetermined overhead rate.

Question 16

Adams Co.uses the following standard to produce a single unit of its product: variable overhead (2 hrs.@ $3/hr.)$6.Actual data for the month show variable overhead costs of $150,000,and 24,000 units produced.The total variable overhead variance is:

Accepted Answer

The total variable overhead variance is calculated as the difference between the actual variable overhead costs and the standard variable overhead costs for the actual production. The standard variable overhead cost per unit is $6 (2 hours @ $3/hour). For 24,000 units, the standard cost is 24,000 units * $6/unit = $144,000. The actual variable overhead costs are $150,000. Therefore, the total variable overhead variance is $150,000 - $144,000 = $6,000 Unfavorable (U), because the actual costs were higher than the standard costs.

Question 17

The following information describes a company's usage of direct labor in a recent period.The direct labor efficiency variance is:

Accepted Answer

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Question 18

The sum of the variable overhead spending variance,the variable overhead efficiency variance,and the fixed overhead spending variance is the:

Accepted Answer

The sum of the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance is known as the controllable variance. This is because these variances are typically within the control of management, reflecting the difference between the actual costs incurred and the budgeted costs.

Question 19

The following information describes a company's usage of direct labor in a recent period.The direct labor rate variance is:

Accepted Answer

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Question 20

The standard materials cost to produce 1 unit of Product M is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the total direct materials cost variance?

Accepted Answer

The answer of The standard materials cost to produce 1...

Quiz 23: Flexible Budgets and Standard Costs

A company has established 5 pounds of Material M at $2 per pound as the standard for the material in its Product A.The company has just produced 1,000 units of this product,using 5,200 pounds of Material M that cost $9,880.The direct materials price variance is:

A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000.The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units.The total controllable cost variance is:

Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units.The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units.What is the direct materials price variance?

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour.The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.What is the total labor cost variance?

Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units.The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units.What is the direct materials quantity variance?

Overhead cost variance is:

The following company information is available.The direct materials quantity variance is:

A company has established 5 pounds of Material M at $2 per pound as the standard for the material in its Product A.The company has just produced 1,000 units of this product,using 5,200 pounds of Material M that cost $9,880.The direct materials quantity variance is:

The following company information is available for January.The direct materials price variance is:

The difference between the total budgeted fixed overhead cost and the fixed overhead applied to production using the predetermined overhead rate is the:

Adams Co.uses the following standard to produce a single unit of its product: variable overhead (2 hrs.@ $3/hr.) $6.Actual data for the month show variable overhead costs of $150,000,and 24,000 units produced.The total variable overhead variance is:

The following information describes a company's usage of direct labor in a recent period.The direct labor efficiency variance is:

The sum of the variable overhead spending variance,the variable overhead efficiency variance,and the fixed overhead spending variance is the:

The following information describes a company's usage of direct labor in a recent period.The direct labor rate variance is:

The standard materials cost to produce 1 unit of Product M is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the total direct materials cost variance?