208) The Maxit Corporation has a standard costing system in which variable manufacturing
overhead is assigned to production on the basis of standard machine-hours. The following data are
available for July:
• Actual variable manufacturing overhead cost incurred: $11,310
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $1,710 U
• Total variable overhead spending variance: $2,310 U
The variable overhead efficiency variance for July is:
A) $600 U
B) $540 U
C) $540 F
D) $600 F
209) The Maxit Corporation has a standard costing system in which variable manufacturing
overhead is assigned to production on the basis of standard machine-hours. The following data are
available for July:
• Actual variable manufacturing overhead cost incurred: $11,310
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $1,710 U
• Total variable overhead spending variance: $2,310 U
The standard number of machine-hours allowed for July production is closest to:
A) 1,600 hours
B) 1,700 hours
C) 1,300 hours
D) 1,500 hours
210) Valera Corporation makes a product with the following standards for labor and variable
overhead:
Standard Quantity
or Hours
Standard Price or Rate
Standard Cost
Per Unit
Direct labor
0.4
hours
$
21.00
per hour
8.40
Variable overhead
0.4
hours
$
6.00
per hour
2.40
–
The company budgeted for production of 5,300 units in July, but actual production was 5,400
units. The company used 2,130 direct labor-hours to produce this output. The actual variable
overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct
labor-hours.
The variable overhead efficiency variance for July is:
A) $183 F
B) $180 U
C) $180 F
D) $183 U
211) Valera Corporation makes a product with the following standards for labor and variable
overhead:
Standard Quantity
or Hours
Standard Price or Rate
Standard Cost
Per Unit
Direct labor
0.4
hours
$
21.00
per hour
8.40
Variable overhead
0.4
hours
$
6.00
per hour
2.40
–
The company budgeted for production of 5,300 units in July, but actual production was
5,400 units. The company used 2,130 direct labor-hours to produce this output. The
actual variable overhead rate was $6.10 per hour. The company applies variable
overhead on the basis of direct labor-hours.
The variable overhead rate variance for July is:
A) $213 F
B) $216 F
C) $216 U
D) $213 U
212) Geschke Corporation, which produces commercial safes, has provided the following data:
Budgeted production
8,500
safes
Standard machine-hours per safe
9.1
machine-hours
Standard supplies cost
$
1.70
per machine-hour
Actual production
8,700
safes
Actual machine-hours
79,100
machine-hours
Actual supplies cost
$
123,642
–
Supplies cost is an element of variable manufacturing overhead.
The variable overhead rate variance for supplies is closest to:
A) $10,828 F
B) $10,947 U
C) $10,828 U
D) $10,947 F
213) Geschke Corporation, which produces commercial safes, has provided the following data:
Budgeted production
8,500
safes
Standard machine-hours per safe
9.1
machine-hours
Standard supplies cost
$
1.70
per machine-hour
Actual production
8,700
safes
Actual machine-hours
79,100
machine-hours
Actual supplies cost
$
123,642
–
Supplies cost is an element of variable manufacturing overhead.
The variable overhead efficiency variance for supplies is closest to:
A) $10,947 F
B) $119 U
C) $10,947 U
D) $119 F
188
214) The following standards have been established for a raw material used to make product O84:
Standard quantity of the material per unit of output
7.1
meters
Standard price of the material
$
18.30
per meter
The following data pertain to a recent month’s operations:
Actual material purchased
3,400
meters
Actual cost of material purchased
$
64,090
Actual material used in production
3,100
meters
Actual output
500
units of product O84
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
215) Camps Inc. has a standard cost system. The standards for direct materials for one of its
products specify 4.4 ounces of a particular input per unit of output at a standard cost of $6.40 per
ounce. The company has reported the following actual results for the product for May:
Actual output
2,900
units
Raw materials purchased
14,600
ounces
Actual cost of raw materials purchased
$86,140
Raw materials used in production
12,770
ounces
Required:
a. Compute the materials price variance for this input for May.
b. Compute the materials quantity variance for this input for May.
216) The standards for product V28 call for 7.5 pounds of a raw material that costs $18.10 per
pound. Last month, 1,400 pounds of the raw material were purchased for $24,990. The actual
output of the month was 160 units of product V28. A total of 1,300 pounds of the raw material
were used to produce this output.
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
217) The following materials standards have been established for a particular product:
Standard quantity per unit of output
9.4
pounds
Standard price
$16.90
per pound
The following data pertain to operations concerning the product for the last month:
Actual materials purchased
7,300
pounds
Actual cost of materials purchased
$116,435
Actual materials used in production
7,100
pounds
Actual output
740
units
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
218) Mcphail Inc. has a standard cost system. The standards for direct materials for one of its
products specify 6.6 grams of a particular input per unit of output at a standard cost of $7.40 per
gram. The company has reported the following actual results for the product for September:
Actual output
5,700
units
Raw materials purchased
41,900
grams
Actual price of raw materials
$7.80
per gram
Raw materials used in production
37,630
grams
Required:
a. Compute the materials price variance for this input for September.
b. Compute the materials quantity variance for this input for September.
219) Becka Inc. has provided the following data concerning one of the products in its standard cost
system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
Inputs
Standard Quantity or
Hours per Unit of Output
Standard Price or Rate
Direct materials
6.7 grams
$8.80 per gram
Direct labor
0.30 hours
$18.20 per hour
Variable manufacturing overhead
0.30 hours
$3.50 per hour
The company produced 2,300 units of this product in November.
Required:
a. What is the total standard cost of one unit of this product?
b. What was the standard grams allowed for the actual output of this product in November?
c. What was the standard hours allowed for the actual output of this product in November?
Hours
Standard
Cost
Direct materials
$8.80
Direct labor
0.30
hours
per hour
overhead
0.30
hours
$3.50
per hour
per unit
220) Jungman Inc. has provided the following data concerning one of the products in its standard
cost system. Variable manufacturing overhead is applied to products on the basis of direct
labor-hours.
Inputs
Standard Quantity or
Hours per Unit of Output
Standard Price or Rate
Direct materials
6.9 ounces
$8.40 per ounce
Direct labor
0.50 hours
$18.50 per hour
Variable manufacturing overhead
0.50 hours
$5.00 per hour
The company produced 4,600 units of this product in November.
Required:
a. What is the total standard cost of one unit of this product?
b. What was the standard ounces allowed for the actual output of this product in November?
c. What was the standard hours allowed for the actual output of this product in November?
Standard
Direct materials
$8.40
Direct labor
hours
overhead
hours
per unit
196
221) A partial standard cost card for the single product produced by Mercer Company is given
below:
Direct materials: 3 pounds @ $8 per pound
Direct labor: ? hours @ ? per hour
Last period the company produced 4,000 units of product. Cost and other data associated with this
production are given below:
Direct materials purchased and used, at cost
$103,320
Direct labor cost incurred (10,400 hours)
$120,640
Materials price variance
$2,520
Unfavorable
Labor efficiency variance
$4,800
Unfavorable
Total labor variance
$640
Unfavorable
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. Determine the number of pounds of direct materials purchased and used during the period.
b. Determine the materials quantity variance.
c. Determine the standard direct labor rate per direct labor hour.
d. Determine the standard hours allowed for the production of the period.
222) Sakelaris Corporation makes a product with the following standard costs:
Standard Quantity
or Hours
Standard Price
or Rate
Direct materials
8.6 kilos
$6.00 per kilo
Direct labor
0.4 hours
$11.00 per hour
Variable overhead
0.4 hours
$5.00 per hour
The company reported the following results concerning this product in August.
Actual output
8,400
units
Raw materials used in production
71,750
kilos
Purchases of raw materials
76,900
kilos
Actual direct labor-hours
3,320
hours
Actual cost of raw materials purchases
$469,090
Actual direct labor cost
$35,524
Actual variable overhead cost
$17,928
The company applies variable overhead on the basis of direct labor-hours. The direct materials
purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
200
223) Klacic Corporation makes a product with the following standard costs:
Standard Quantity
or Hours
Standard Price
or Rate
Standard Cost
Per Unit
Direct materials
8.7 grams
$7.00 per gram
$60.90
Direct labor
0.8 hours
$12.00 per hour
$9.60
Variable overhead
0.8 hours
$7.00 per hour
$5.60
The company reported the following results concerning this product in May.
Originally budgeted output
2,600
units
Actual output
2,700
units
Raw materials used in production
23,010
grams
Purchases of raw materials
25,300
grams
Actual direct labor-hours
1,980
hours
Actual cost of raw materials purchases
$169,510
Actual direct labor cost
$21,582
Actual variable overhead cost
$13,662
The company applies variable overhead on the basis of direct labor-hours. The direct materials
purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.