Chapter 11 Standard Costs and Variance Analysis
11–21
118. Mohammed Company employs a standard cost system. Mohammed has established the
following standards for one unit of product:
Standard Quantity
Standard
Price
Standard
Cost
Direct materials
12.0 pounds
$ 7.00/pound
Direct labor
2.6 hours
$22.00/hour
During June, Mohammed planned to produce 24,000 units of product. It purchased
330,000 pounds of direct material at a total cost of $2,343,000. The total factory wages
for June were $1,440,000. Mohammed manufactured 25,000 units of product during
June using 302,000 pounds of direct material and 64,000 direct labor hours. How much
is the labor rate variance?
A. $32,000 unfavorable
B. $22,000 favorable
C. $10,000 favorable
D. $35,200 unfavorable
119. Mohammed Company employs a standard cost system. Mohammed has established the
following standards for one unit of product:
Standard Quantity
Standard
Price
Standard
Cost
Direct materials
12.0 pounds
$ 7.00/pound
Direct labor
2.6 hours
$22.00/hour
During June, Mohammed planned to produce 24,000 units of product. It purchased
330,000 pounds of direct material at a total cost of $2,343,000. The total factory wages
for June were $1,440,000. Mohammed manufactured 25,000 units of product during
June using 302,000 pounds of direct material and 64,000 direct labor hours. How much
is the labor efficiency variance?
A. $32,000 unfavorable
B. $22,000 favorable
C. $10,000 favorable
D. $35,200 unfavorable
120. Radical Company produces versascopes. It has a standard wage rate of $9.50 per hour.
It has determined that the standard time to assemble one versascope is 2.75 hours.
During August, the company’s employees assembled 600 versascopes, and they were
paid $15,974 for 1,630 hours of work. What is Radical’s labor efficiency variance?
A. $489 favorable
B. $299 favorable
C. $271 favorable
D. $190 favorable
121. Standard Tires’ labor standard for the production of one bicycle tire is 4.5 hours at $8.50
per hour. During October, the company’s employees produced 140,000 tires, using
610,000 hours at a total cost of $5,328,400. How much is Standard Tire’s labor
efficiency variance?
A. $143,400 unfavorable
B. $26,600 favorable
C. $170,000 favorable
D. $313,400 favorable
Test Bank to accompany Jiambalvo Managerial Accounting, 6th Edition
11–22
122. Barnes Company produces men’s ties. The following budgeted amounts were provided
by management for the current year:
Category
Standard Inputs
Standard Cost
Direct materials
1.1 yards per tie
$4.00 per yard
Direct labor
0.32 hours per tie
$9.00 per hour
Barnes produced and sold 4,000 ties during 2017. Actual performance for the year is:
Direct Materials
Direct Labor
Yards used in production
4,100
Labor hours incurred
1,240
Yards purchased
3,900
Actual cost per hour
$9.25
Actual cost per yard
$3.75
How much is the labor rate variance?
A. $310 unfavorable
B. $360 favorable
C. $50 favorable
D. $1,000 unfavorable
123. Barnes Company produces men’s ties. The following budgeted amounts were provided
by management for the current year:
Category
Standard Inputs
Standard Cost
Direct materials
1.1 yards per tie
$4.00 per yard
Direct labor
0.32 hours per tie
$9.00 per hour
Barnes produced and sold 4,000 ties during 2017. Actual performance for the year is:
Direct Materials
Direct Labor
Yards used in production
4,100
Labor hours incurred
1,240
Yards purchased
3,900
Actual cost per hour
$9.25
Actual cost per yard
$3.75
How much is the labor efficiency variance?
A. $310 unfavorable
B. $360 favorable
C. $50 favorable
D. $1,000 unfavorable
124. Capital Leather Company produces leather footballs. The standard cost for each football
is:
Direct material 2 feet of leather at $4.00 per foot
Direct labor 1.5 hours at $12.00 per hour
During February, 1,200 footballs were produced and 2,600 feet of leather were
purchased at $4.25 per foot. Production usage was 2,300 feet. Direct labor cost incurred
was $20,930 for 1,820 hours. How much is the direct material price variance?
A. $650 favorable
B. $650 unfavorable
C. $575 favorable
D. $575 unfavorable
Chapter 11 Standard Costs and Variance Analysis
11–23
125. Capital Leather Company produces leather footballs. The standard cost for each football
is:
Direct material 2 feet of leather at $4.00 per foot
Direct labor 1.5 hours at $12.00 per hour
During February, 1,200 footballs were produced and 2,600 feet of leather were
purchased at $4.25 per foot. Production usage was 2,300 feet. Direct labor cost incurred
was $20,930 for 1,820 hours. How much is the direct material quantity variance?
A. $100 unfavorable
B. $400 favorable
C. $800 favorable
D. $800 unfavorable
126. Capital Leather Company produces leather footballs. The standard cost for each football
is:
Direct material 2 feet of leather at $4.00 per foot
Direct labor 1.5 hours at $12.00 per hour
During February, 1,200 footballs were produced and 2,600 feet of leather were
purchased at $4.25 per foot. Production usage was 2,300 feet. Direct labor cost incurred
was $20,930 for 1,820 hours. How much is the direct labor rate variance?
A. $900 favorable
B. $900 unfavorable
C. $910 favorable
D. $910 unfavorable
127. Capital Leather Company produces leather footballs. The standard cost for each football
is:
Direct material 2 feet of leather at $4.00 per foot
Direct labor 1.5 hours at $12.00 per hour
During February, 1,200 footballs were produced and 2,600 feet of leather were
purchased at $4.25 per foot. Production usage was 2,300 feet. Direct labor cost incurred
was $20,930 for 1,820 hours. How much is the direct labor efficiency variance?
A. $20 unfavorable
B. $240 unfavorable
C. $360 unfavorable
D. $360 favorable
Test Bank to accompany Jiambalvo Managerial Accounting, 6th Edition
11–24
128. Standard Gears produces lawn mower gears. It uses units as the cost driver for
overhead. The following information was provided concerning its standard cost system:
Actual Data
Budgeted and Standard Data
Produced
12,400 units
Budgeted units
12,500 units
Materials
purchased
4,650 lbs. for a total cost
of $32,550
Budgeted materials
0.40 lb. @ $7.10 per lb.
Materials used
4,700 lbs.
Budgeted labor
36 minutes @ $11.00 per
hour
Labor worked
7,460 hrs. costing
$79,822
Budgeted variable
overhead
$35,625
Actual overhead
Fixed: $84,800
Variable $36,100
Budgeted fixed
overhead
$85,500
How much is the standard cost of each lawn mower gear?
A. $25.59
B. $19.13
C. $9.44
D. $19.28
129. Standard Gears produces lawn mower gears. It uses units as the cost driver for
overhead. The following information was provided concerning its standard cost system:
Actual Data
Budgeted and Standard Data
Produced
12,400 units
Budgeted units
12,500 units
Materials
purchased
4,650 lbs. for a total cost
of $32,550
Budgeted materials
0.40 lb. @ $7.10 per lb.
Materials used
4,700 lbs.
Budgeted labor
36 minutes @ $11.00 per
hour
Labor worked
7,460 hrs. costing
$79,822
Budgeted variable
overhead
$35,625
Actual overhead
Fixed: $84,800
Variable $36,100
Budgeted fixed
overhead
$85,500
How much is the direct material price variance?
A. $465 favorable
B. $1,846 favorable
C. $470 favorable
D. $2,201 favorable
Chapter 11 Standard Costs and Variance Analysis
11–25
130. Standard Gears produces lawn mower gears. It uses units as the cost driver for
overhead. The following information was provided concerning its standard cost system:
Actual Data
Budgeted and Standard Data
Produced
12,400 units
Budgeted units
12,500 units
Materials
purchased
4,650 lbs.; total cost
$32,550
Budgeted materials
0.40 lb. @ $7.10 per lb.
Materials used
4,700 lbs.
Budgeted labor
36 minutes @
$11.00/hour
Labor worked
7,460 hrs. costing $79,822
Budgeted variable
overhead
$35,625
Actual overhead
Fixed: $84,800
Variable $36,100
Budgeted fixed overhead
$85,500
What is the direct material quantity variance?
A. $465 favorable
B. $1,846 favorable
C. $470 favorable
D. $2,201 favorable
131. Billy Bob Subs has the following standard cost to produce a king size party sub
sandwich.
Direct materials = 4 pounds @ $3.00 per pound = $12.00 per sub
Direct labor = 1/2 hour @ $8.00 per hour = $4.00 per sub
During December, the company produced 1,000 party subs, bought 4,300 pounds and
used 4,100 pounds of meat at $3.20 per pound, and used 490 hours of labor at a total
cost of $4,018. How much is the direct labor rate variance?
A. $98 unfavorable
B. $18 unfavorable
C. $80 favorable
D. $178 unfavorable
132. Billy Bob Subs has the following standard cost to produce a king size party sub
sandwich.
Direct materials = 4 pounds @ $3.00 per pound = $12.00 per sub
Direct labor = 1/2 hour @ $8.00 per hour = $4.00 per sub
During December, the company produced 1,000 party subs, bought 4,300 pounds and
used 4,100 pounds of meat at $3.20 per pound, and used 490 hours of labor at a total
cost of $4,018. How much is the direct labor efficiency variance?
A. $80 favorable
B. $18 unfavorable
C. $98 unfavorable
D. $178 unfavorable
Test Bank to accompany Jiambalvo Managerial Accounting, 6th Edition
11–26
133. When Walston Corporation prepared its budget for 2017, it estimated fixed overhead of
$540,000 ($45,000 per month) and variable overhead at $3.00 per unit produced. The
company planned to produce 48,000 units during the year at a rate of 4,000 units each
month. During April, the company produced 3,800 units and total overhead costs were
$59,000. How much is the amount of overhead in the flexible budget for April’s level of
production?
A. $57,000
B. $45,000
C. $46,000
D. $56,400
134. When Walston Corporation prepared its budget for 2017, it estimated fixed overhead of
$540,000 ($45,000 per month) and variable overhead at $3.00 per unit produced. The
company planned to produce 48,000 units during the year at a rate of 4,000 units each
month. During April, the company produced 3,800 units and total overhead costs were
$59,000. How much is the controllable overhead variance for April?
A. $2,000 unfavorable
B. $2,600 unfavorable
C. $600 favorable
D. $2,250 unfavorable
135. When Walston Corporation prepared its budget for 2017, it estimated fixed overhead of
$540,000 ($45,000 per month) and variable overhead at $3.00 per unit produced. The
company planned to produce 48,000 units during the year at a rate of 4,000 units each
month. During April, the company produced 3,800 units and total overhead costs were
$59,000. How much is the overhead volume variance for April?
A. $2,250 unfavorable
B. $2,850 unfavorable
C. $1,000 unfavorable
D. $1,600 unfavorable
136. Haley Fans manufactures and distributes circulators. The standard and actual costs for
the manufacture of circulators are as follows:
Standard Costs
Actual Costs
Variable cost, $24 per unit
Total variable cost, $12,300
Fixed cost, $40 per unit
Total fixed cost, $19,250
Budgeted factory overhead was $32,000. Overhead applied is based on the number of
circulator units produced. The company estimated that 500 circulators would be
produced, however only 480 were produced. How much is budgeted fixed overhead for
the year?
A. $30,720
B. $19,200
C. $20,000
D. $12,000
Chapter 11 Standard Costs and Variance Analysis
11–27
137. Haley Fans manufactures and distributes circulators. The standard and actual costs for
the manufacture of circulators are as follows:
Standard Costs
Actual Costs
Variable cost, $24 per unit
Total variable cost, $12,300
Fixed cost, $40 per unit
Total fixed cost, $19,250
Budgeted factory overhead was $32,000. Overhead applied is based on the number of
circulator units produced. The company estimated that 500 circulators would be
produced, however only 480 were produced. How much is Haley’s controllable overhead
variance?
A. $800 unfavorable
B. $830 favorable
C. $450 favorable
D. $30 unfavorable
138. Scotch Brand Products produces packaging tape and has determined the following to be
its standard cost of producing one case of budget packaging tape:
Material (3.50 ounces at $1.30 per ounce) $4.55
Labor (0.30 hour at $12.00 per hour) 3.60
Overhead 2.20
Total $10.35
At the start of 2017, Scotch Brand planned to produce 80,000 cases of tape during the
year. Overhead is allocated based on the number of cases of tape produced. Annual
fixed overhead is budgeted at $56,000 and the standard for variable overhead is $1.50
per case. The following information summarizes the results for 2017:
• Actual production, 75,000 cases
• Purchased 275,000 ounces of material at a total cost of $343,750
• Used 266,250 ounces of material in production
• Employees worked 22,000 hours, total labor cost $275,000
• Actual overhead incurred, $175,000
What is the material price variance for 2017?
A. $4,875 unfavorable
B. $13,750 favorable
C. $13,313 favorable
D. $8,875 favorable
Test Bank to accompany Jiambalvo Managerial Accounting, 6th Edition
11–28
139. Scotch Brand Products produces packaging tape and has determined the following to be
its standard cost of producing one case of budget packaging tape:
Material (3.50 ounces at $1.30 per ounce) $4.55
Labor (0.30 hour at $12.00 per hour) 3.60
Overhead 2.20
Total $10.35
At the start of 2017, Scotch Brand planned to produce 80,000 cases of tape during the
year. Overhead is allocated based on the number of cases of tape produced. Annual
fixed overhead is budgeted at $56,000 and variable overhead costs are budgeted at
$1.50 per case. The following information summarizes the results for 2017:
• Actual production, 75,000 cases
• Purchased 275,000 ounces of material at a total cost of $343,750
• Used 266,250 ounces of material in production
• Employees worked 22,000 hours, total labor cost $275,000
• Actual overhead incurred, $175,000
How much is the material quantity variance for 2017?
A. $4,875 unfavorable
B. $8,875 favorable
C. $$14,750 favorable
D. $13,750 favorable
140. Scotch Brand Products produces packaging tape and has determined the following to be
its standard cost of producing one case of budget packaging tape:
Material (3.50 ounces at $1.30 per ounce) $4.55
Labor (0.30 hour at $12.00 per hour) 3.60
Overhead 2.20
Total $10.35
At the start of 2017, Scotch Brand planned to produce 80,000 cases of tape during the
year. Overhead is allocated based on the number of cases of tape produced. Annual
fixed overhead is budgeted at $56,000 and variable overhead costs are budgeted at
$1.50 per case. The following information summarizes the results for 2017:
• Actual production, 75,000 cases
• Purchased 275,000 ounces of material at a total cost of $343,750
• Used 266,250 ounces of material in production
• Employees worked 22,000 hours, total labor cost $275,000
• Actual overhead incurred, $175,000
How much is the labor rate variance for 2017?
A. $6,000 favorable
B. $5,000 unfavorable
C. $24,000 favorable
D. $11,000 unfavorable
Chapter 11 Standard Costs and Variance Analysis
11–29
141. Scotch Brand Products produces packaging tape and has determined the following to be
its standard cost of producing one case of budget packaging tape:
Material (3.50 ounces at $1.30 per ounce) $4.55
Labor (0.30 hour at $12.00 per hour) 3.60
Overhead 2.20
Total $10.35
At the start of 2017, Scotch Brand planned to produce 80,000 cases of tape during the
year. Overhead is allocated based on the number of cases of tape produced. Annual
fixed overhead is budgeted at $56,000 and variable overhead costs are budgeted at
$1.50 per case. The following information summarizes the results for 2017:
• Actual production, 75,000 cases
• Purchased 275,000 ounces of material at a total cost of $343,750
• Used 266,250 ounces of material in production
• Employees worked 22,000 hours, total labor cost $275,000
• Actual overhead incurred, $175,000
How much is the labor efficiency variance for 2017?
A. $11,000 unfavorable
B. $5,000 unfavorable
C. $6,000 favorable
D. $24,000 favorable
142. Scotch Brand Products produces packaging tape and has determined the following to be
its standard cost of producing one case of budget packaging tape:
Material (3.50 ounces at $1.30 per ounce) $4.55
Labor (0.30 hour at $12.00 per hour) 3.60
Overhead 2.20
Total $10.35
At the start of 2017, Scotch Brand planned to produce 80,000 cases of tape during the
year. Overhead is allocated based on the number of cases of tape produced. Annual
fixed overhead is budgeted at $56,000 and the variable overhead costs are budgeted at
$1.50 per case. The following information summarizes the results for 2017:
• Actual production, 75,000 cases
• Purchased 275,000 ounces of material at a total cost of $343,750
• Used 266,250 ounces of material in production
• Employees worked 22,000 hours, total labor cost $275,000
• Actual overhead incurred, $175,000
How much is the controllable overhead variance for 2017?
A. $3,000 unfavorable
B. $10,000 unfavorable
C. $6,500 unfavorable
D. $3,500 unfavorable
Test Bank to accompany Jiambalvo Managerial Accounting, 6th Edition
11–30
143. Scotch Brand Products produces packaging tape and has determined the following to be
its standard cost of producing one case of budget packaging tape:
Material (3.50 ounces at $1.30 per ounce) $4.55
Labor (0.30 hour at $12.00 per hour) 3.60
Overhead 2.20
Total $10.35
At the start of 2017, Scotch Brand planned to produce 80,000 cases of tape during the
year. Overhead is allocated based on the number of cases of tape produced. Annual
fixed overhead is budgeted at $56,000 and the variable overhead costs are budgeted at
$1.50 per case. The following information summarizes the results for 2017:
• Actual production, 75,000 cases
• Purchased 275,000 ounces of material at a total cost of $343,750
• Used 266,250 ounces of material in production
• Employees worked 22,000 hours, total labor cost $275,000
• Actual overhead incurred, $175,000
How much is the overhead volume variance for 2017?
A. $6,500 unfavorable
B. $3,500 unfavorable
C. $10,000 unfavorable
D. $3,000 unfavorable
144. Haley Fans manufactures and distributes circulators. The standard and actual costs for
the manufacture of circulators follows:
Standard Costs
Actual Costs
Variable cost, $24 per unit
Total variable cost, $12,300
Fixed cost, $40 per unit
Total fixed cost, $19,250
Budgeted factory overhead was $32,000. Overhead applied is based on the number of
circulator units produced. The company estimated that 500 circulators would be
produced, however only 480 were produced. How much is Haley’s overhead volume
variance for 2017?
A. $800 unfavorable
B. $830 favorable
C. $450 favorable
D. $50 unfavorable
Chapter 11 Standard Costs and Variance Analysis
11–31
145. Eminem, Inc. manufactures music CDs. At the start of 2017, Eminem planned to
produce 108,000 CDs for which the standard cost for each CD is:
Plastic (0.25 pounds at $6.00 per pound)
$1.50
Labor (0.10 hour at $12.00 per hour)
1.20
Overhead ($0.80 fixed and $0.60
variable)
1.40
Total
$4.10
Overhead is allocated based on the number of units produced. Eminem isolates material
purchase variances at the point of purchase. The following information summarizes
Eminem’s results for 2017:
Actual production
110,000 CDs
Actual variable overhead
$65,000
Actual fixed overhead
$83,000
How much is the budgeted fixed overhead for 2017?
A. $86,400
B. $83,000
C. $88,000
D. $66,400
146. Eminem, Inc. manufactures music CDs. At the start of 2017, Eminem planned to
produce 108,000 CDs for which the standard cost for each CD is:
Plastic (0.25 pounds at $6.00 per pound)
$1.50
Labor (0.10 hour at $12.00 per hour)
1.20
Overhead ($0.80 fixed and $0.60 variable)
1.40
Total
$4.10
Overhead is allocated based on the number of units produced. Eminem isolates material
purchase variances at the point of purchase. The following information summarizes
Eminem’s results for 2017:
Actual production
110,000 CDs
Actual variable overhead
$65,000
Actual fixed overhead
$83,000
How much is the controllable overhead variance for 2017?
A. $4,400 favorable
B. $1,600 favorable
C. $6,000 favorable
D. $5,000 favorable
Test Bank to accompany Jiambalvo Managerial Accounting, 6th Edition
11–32
147. Eminem, Inc. manufactures music CDs. At the start of 2017, Eminem planned to
produce 108,000 CDs for which the standard cost for each CD is:
Plastic (0.25 pounds at $6.00 per pound)
$1.50
Labor (0.10 hour at $12.00 per hour)
1.20
Overhead ($0.80 fixed and $0.60 variable)
1.40
Total
$4.10
Overhead is allocated based on the number of units produced. Eminem isolates material
purchase variances at the point of purchase. The following information summarizes
Eminem’s results for 2017:
Actual production
110,000 CDs
Actual variable overhead
$65,000
Actual fixed overhead
$83,000
How much is the overhead volume variance for 2017?
A. $4,400 favorable
B. $1,600 favorable
C. $1,200 unfavorable
D. $3,200 favorable
148. Eminem, Inc. manufactures music CDs. At the start of 2017, Eminem planned to
produce 108,000 CDs for which the standard cost for each CD is:
Plastic (0.25 pounds at $6.00 per pound)
$1.50
Labor (0.10 hour at $12.00 per hour)
1.20
Overhead ($0.80 fixed and $0.60 variable)
1.40
Total
$4.10
Overhead is allocated based on the number of units produced. Eminem isolates material
purchase variances at the point of purchase. The following information summarizes
Eminem’s results for 2017:
Actual production
110,000 CDs
Actual variable overhead
$65,000
Actual fixed overhead
$83,000
How much is under or overapplied overhead for 2017?
A. $6,000 overapplied
B. $4,400 overapplied
C. $1,600 overapplied
D. $3,200 underapplied
149. Rumington Popcorn uses a standard cost system and applies overhead on a per unit
basis. The company estimated that 30,000 units would be produced in 2017 and uses
this quantity to establish its standard overhead cost per unit. The cost formula for
overhead costs used to develop the standard overhead cost per unit was:
Overhead = $120,000 + $6 per unit
During the year, actual overhead cost was $340,000. Actual units produced were
32,000. How much is the controllable overhead variance for 2017?
A. $20,000 favorable
B. $20,000 unfavorable
C. $28,000 favorable
D. $28,000 unfavorable
Chapter 11 Standard Costs and Variance Analysis
11–33
150. Rumington Popcorn uses a standard cost system and applies overhead on a per unit
basis. The company estimated that 30,000 units would be produced in 2017 and uses
this quantity to establish its standard overhead cost per unit. The cost formula for
overhead costs used to develop the standard overhead cost per unit was:
Overhead = $120,000 + $6 per unit
During the year, actual overhead cost was $340,000. Actual units produced were
32,000. How much is the amount of under or over applied overhead for 2017?
A. $20,000 overapplied
B. $20,000 underapplied
C. $28,000 overapplied
D. $28,000 underapplied
151. Rumington Popcorn uses a standard cost system and applies overhead on a per unit
basis. The company estimated that 30,000 units would be produced in 2017 and uses
this quantity to establish its standard overhead cost per unit. The cost formula for
overhead costs used to develop the standard overhead cost per unit was:
Overhead = $120,000 + $6 per unit
During the year, actual overhead cost was $340,000. Actual units produced were
32,000. How much is the overhead volume variance for 2017?
A. $2,000 favorable
B. $28,000 unfavorable
C. $8,000 favorable
D. $28,000 favorable
152. Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system for 2017:
Budgeted and Standard Data
Actual Data
Material
1/4 lb. @ $14 per pound
Produced
6,200 units
Labor
1.4 hrs. @ $16 per hour
Materials
purchased
1,600 lbs. for $13.70/ pound
Total fixed overhead
$84,000
Materials used
1,520 lbs.
Variable overhead
$6.50 per unit
Labor worked
8,740 hrs. at $15.90/hour
Production
6,000 units
Total overhead
$122,000
How much is the standard cost of white sauce?
A. $50.50
B. $25.90
C. $45.95
D. $46.40
Test Bank to accompany Jiambalvo Managerial Accounting, 6th Edition
11–34
153. Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system for 2017:
Budgeted and Standard Data
Actual Data
Material
1/4 lb. @ $14 per pound
Produced
6,200 units
Labor
1.4 hrs. @ $16 per hour
Materials
purchased
1,600 lbs. for $13.70/pound
Total fixed overhead
$84,000
Materials used
1,520 lbs.
Variable overhead
$6.50 per unit
Labor worked
8,740 hrs. at $15.90/hour
Production
6,000 units
Total overhead
$122,000
How much is the flexible budget for overhead for 2017?
A. $122,000
B. $123,000
C. $127,100
D. $124,300
154. Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system for 2017:
Budgeted and Standard Data
Actual Data
Material
1/4 lb. @ $14 per pound
Produced
6,200 units
Labor
1.4 hrs. @ $16 per hour
Materials
purchased
1,600 lbs. for $13.70/pound
Total fixed overhead
$84,000
Materials used
1,520 lbs.
Variable overhead
$6.50 per unit
Labor worked
8,740 hrs. at $15.90/hour
Production
6,000 units
Total overhead
$122,000
How much is the overhead volume variance for 2017?
A. $2,300 favorable
B. $2,800 favorable
C. $0
D. $5,100 favorable
155. Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system for 2017:
Budgeted and Standard Data
Actual Data
Material
1/4 lb. @ $14 per pound
Produced
6,200 units
Labor
1.4 hrs. @ $16 per hour
Materials
purchased
1,600 lbs. for $13.70/pound
Total fixed overhead
$84,000
Materials used
1,520 lbs.
Variable overhead
$6.50 per unit
Labor worked
8,740 hrs. at $15.90/hour
Production
6,000 units
Total overhead
$122,000
How much is the overhead controllable variance for 2017?
A. $2,300 favorable
B. $2,800 favorable
C. $500 favorable
D. $5,100 favorable
Chapter 11 Standard Costs and Variance Analysis
11–35
156. Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system for 2017:
Budgeted and Standard Data
Actual Data
Material
1/4 lb. @ $14 per pound
Produced
6,200 units
Labor
1.4 hrs. @ $16 per hour
Materials
purchased
1,600 lbs. for $13.70/pound
Total fixed overhead
$84,000
Materials used
1,520 lbs.
Variable overhead
$6.50 per unit
Labor worked
8,740 hrs. at $15.90/hour
Production
6,000 units
Total overhead
$122,000
How much is the direct labor rate variance for 2017?
A. $874 favorable
B. $86 unfavorable
C. $960 unfavorable
D. $5,440 unfavorable
157. Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system for 2017:
Budgeted and Standard Data
Actual Data
Material
1/4 lb. @ $14 per pound
Produced
6,200 units
Labor
1.4 hrs. @ $16 per hour
Materials
purchased
1,600 lbs. for $13.70/pound
Total fixed overhead
$84,000
Materials used
1,520 lbs.
Variable overhead
$6.50 per unit
Labor worked
8,740 hrs. costing
$15.90/hour
Production
6,000 units
Total overhead
$122,000
How much the direct labor efficiency variance for 2017?
A. $874 favorable
B. $86 unfavorable
C. $960 unfavorable
D. $5,440 unfavorable
158. Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system for 2017:
Budgeted and Standard Data
Actual Data
Material
1/4 lb. @ $14 per pound
Produced
6,200 units
Labor
1.4 hrs. @ $16 per hour
Materials
purchased
1,600 lbs. for $13.70/pound
Total fixed overhead
$84,000
Materials used
1,520 lbs.
Variable overhead
$6.50 per unit
Labor worked
8,740 hrs. costing
$15.90/hour
Production
6,000 units
Total overhead
$122,000
How much the direct material price variance for 2017?
A. $456 favorable
B. $480 favorable
C. $900 favorable
D. $420 favorable
Test Bank to accompany Jiambalvo Managerial Accounting, 6th Edition
11–36
159. Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system for 2017:
Budgeted and Standard Data
Actual Data
Material
1/4 lb. @ $14 per pound
Produced
6,200 units
Labor
1.4 hrs. @ $16 per hour
Materials
purchased
1,600 lbs. for $13.70/pound
Total fixed overhead
$84,000
Materials used
1,520 lbs.
Variable overhead
$6.50 per unit
Labor worked
8,740 hrs. costing
$15.90/hour
Production
6,000 units
Total overhead
$122,000
How much the direct material quantity variance for 2017?
A. $456 favorable
B. $480 favorable
C. $900 favorable
D. $420 favorable
*160. Eli uses a standard costing system. At the end of the fiscal year, only the following
variance accounts had balances:
Material Price Variance $260 (debit)
Material Quantity Variance $35 (credit)
Labor Efficiency Variance $65 (credit)
Assuming these amounts are not considered significant, which one of the following will
be part of the journal entry to close these accounts?
A. Credit to Cost of Goods Sold for $160
B. Debit to Manufacturing Overhead Variances for $260
C. Debit to Cost of Goods Sold for $160
D. Credit to Manufacturing Overhead Control for $160
Material from the appendix to the chapter is marked with an asterisk (*).