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Chapter 29 - Controlling Manufacturing Costs: Standard Costs
80. Complete the flexible budget of manufacturing costs for Lansome Industries for
September 2013. Overhead is based on direct labor hours.
Chapter 29 - Controlling Manufacturing Costs: Standard Costs
29-41
29-45
85. The Hoatzin Birdhouse Factory produced the following standard cost card. In July, the
company had an order for 500 birdhouses (Model: Wren) for Job No. CB32. Manufacturing
overhead is based on direct labor hours. The manufacturing overhead cost estimates for the
year total $32,400 and total direct labor hours are estimated at 9,000 for the year. Complete
the Standard Cost Card and Job Order Cost Sheet. Calculate the total cost variance.
29-46
Chapter 29 - Controlling Manufacturing Costs: Standard Costs
29-47
Canine Cottage Industries makes several specially designed doghouses. The Standard Cost
Card for The Gables model is shown. A customer ordered three of this model for their
Labrador retrievers. The Job Cost Sheet is shown.
Chapter 29 - Controlling Manufacturing Costs: Standard Costs
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29-51
88. Match the following descriptions with the appropriate term.
1. An operating plan expressed in monetary units
Budget performance
report
4
2. Used to determine the fixed and variable
components of a semivariable cost
Fixed budget
3
3. A budget representing only one level of activity
Budget
1
4. A comparison of actual costs and budgeted costs
Flexible budget
10
5. Costs that vary with, bust not in direct proportion
to, the volume of activity
Manufacturing cost
budget
6
6. A budget made for each manufacturing cost
Semi-variable costs
5
7. Costs that do not change in total as the level of
activity changes
Fixed costs
7
8. The different levels of activity at which a factory
is expected to operate
High-low point
method
2
9. Costs that vary in total in direct proportion to
changes in the level of activity
Relevant range of
activity
8
10. A budget that shows the budgeted costs at
various levels of activity
Variable costs
9
