Epley Corporation makes a product with the following standard costs: In July the company produced 3,300 units using 12,240 pounds of the direct material and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the actual…
Read MoreThe following labor standards have been established for a particular product. The following data pertain to operations concerning the product for the last month: What is the labor rate variance for the month? $4,246 U $4,246 F $2,877 F $1,295 F Answer: AH × AR = $50,690 Labor rate variance = (AH × AR) –…
Read MoreBerends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is: $8,430 F $8,430 U…
Read MoreWall Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead. The variable overhead efficiency variance for supplies is closest to: $3,096 F $52,966 U $52,966 F $3,096 U Answer: SH = 9,500 units × 8.00 hours per unit = 76,000 hours Variable overhead efficiency variance…
Read MoreBeakins Corporation produces a single product. The standard cost card for the product follows Answer
Beakins Corporation produces a single product. The standard cost card for the product follows: During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied…
Read MorePardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: During March, the following activity was recorded by the company: • The company produced 3,000 units during…
Read MorePardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: During March, the following activity was recorded by the company: • The company produced 3,000 units during…
Read MoreDog Up! Franks is looking at a new sausage system with an installed cost of $460,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $66,000. The sausage system will save the firm $230,000 per year in pretax operating…
Read MoreWhich of the following equations measures the direct labor rate variance? a. (SR * AH) – (SR * SH) b. (AR * SH) – (SR * AH) c. (AR * AH) – (SR * AH) d. none of the above ANS: C 42. Direct labor variances: a. are largely determined by external forces such…
Read MoreThe _______________ is the standard plus the allowable deviation. a. upper control limit b. standard price c. standard quantity d. total budget variance ANS: A 37. A materials price variance would NOT be caused by a. ordering the wrong quality of materials. b. ordering from the wrong supplier. c. not taking a quantity discount.…
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