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Exam 29: Controlling Manufacturing Costs: Standard Costs

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Question 61

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The standard quantity of materials for a product was 40 pounds per unit at the standard price of $2.00 per pound.The actual price per pound of materials was $1.50,and the actual quantity used was 44 pounds.An analysis would indicate

A) a $20.00 favorable price variance.
B) a $22.00 favorable price variance.
C) a $6.00 unfavorable quantity variance.
D) a $18.00 favorable price variance.

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Question 62

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The difference between the total standard cost and the total actual cost is the

A) standard cost card amount.
B) labor rate variance.
C) materials price variance.
D) cost variance.

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Question 63

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

An unfavorable price variance for materials means that

The standard quantity of materials for a product was 40 pounds per unit at the standard price of $2.00 per pound.The actual price per pound of materials was $1.50,and the actual quantity used was 44 pounds.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.

The setting of standard wage rates is usually a function of the personnel department.

Management expresses its operating plan in monetary units when it completes a(n)____________________.

In a factory,the fixed costs are $6,000 when 600 units are produced.If 900 units are produced,the fixed costs per unit would be

Better Blankets,Inc.makes a SnuggieBlank using flannel material and trim binding.They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need.The Standard Cost Card for The SnuggieBlank model is shown. The company reported the following results concerning January results: The labor efficiency variance in January is:

The Costmore Company uses standard costing and has established the following standards for direct materials and direct labor for each unit it makes: During July,the company made 4,000 units of product and used 13,000 gallons.The actual price paid for materials was $5.20 per gallon. Direct Labor used was 3,600 hours and workers were paid $11.75 per hour. An analysis would indicate

Complete the Budget Performance Report for Soville Manufacturing.Create a flexible budget by adding a budget column at the actual number of labor hours.Compare the actual to the flexible budget numbers you calculated.

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are known as

A budget prepared using several differing levels of activity is a

The controllable overhead variance compares the actual overhead costs incurred with what the costs should have been for the units produced.

Use the high-low point method to determine total costs if 16,000 units are produced.

Direct materials and direct labor are examples of costs that tend to vary directly with the volume of output.

A fixed budget includes only fixed manufacturing costs.