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
29–48
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
