Chapter 10 Standard Costs and Variances
34. Borden Enterprises uses standard costing. For the month of April, the company reported
the following data:
• Standard direct labor rate: $10 per hour
• Standard hours allowed for actual production: 8,000 hours
• Actual direct labor rate: $9.50 per hour
• Labor efficiency variance: $4,800 Favorable
The labor rate variance for April is:
Chapter 10 Standard Costs and Variances
35. Furson Corporation makes a single product. In a recent period 6,500 units were made and
there was an unfavorable labor efficiency variance of $26,000. Direct labor workers were paid
$8 per hour and total wages were $182,000. The labor rate variance was zero. The standard
labor-hours per unit of output is closest to:
Chapter 10 Standard Costs and Variances
36. The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
The following data pertain to operations for the last month:
What is the variable overhead efficiency variance for the month?
Chapter 10 Standard Costs and Variances
37. The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
The following data pertain to operations for the last month:
What is the variable overhead rate variance for the month?
Chapter 10 Standard Costs and Variances
38. Millonzi Corporation has a standard cost system in which it applies manufacturing
overhead to products on the basis of standard machine-hours (MHs). The company has
provided the following data for the most recent month:
What was the variable overhead rate variance for the month?
Chapter 10 Standard Costs and Variances
39. Lafountaine Manufacturing Corporation has a standard cost system in which it applies
manufacturing overhead to products on the basis of standard machine-hours (MHs). The
company’s cost formula for variable manufacturing overhead is $4.70 per MH. During the
month, the actual total variable manufacturing overhead was $20,210 and the actual level of
activity for the period was 4,700 MHs. What was the variable overhead rate variance for the
month?
Chapter 10 Standard Costs and Variances
40. Dowen Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. For the most recent month, the company based its budget on 4,400 machine-
hours. Budgeted and actual overhead costs for the month appear below:
The company actually worked 4,460 machine-hours during the month. The standard hours
allowed for the actual output were 4,310 machine-hours for the month. What was the overall
variable overhead efficiency variance for the month?
Chapter 10 Standard Costs and Variances
41. Ruston Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
The original budget was based on 4,500 machine-hours. The company actually worked 4,590
machine-hours during the month and the standard hours allowed for the actual output were
4,700 machine-hours. What was the overall variable overhead efficiency variance for the
month?
Chapter 10 Standard Costs and Variances
42. Tavorn Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The company’s standard variable manufacturing overhead rate is $1.80 per
machine-hour. The actual variable manufacturing overhead cost for the month was $13,080.
The original budget for the month was based on 7,100 machine-hours. The company actually
worked 7,210 machine-hours during the month. The standard hours allowed for the actual
output of the month totaled 7,070 machine-hours. What was the variable overhead efficiency
variance for the month?
Chapter 10 Standard Costs and Variances
43. Kornfeld Corporation produces metal telephone poles. In the most recent month, the
company budgeted production of 2,800 poles. Actual production was 3,200 poles. According
to standards, each pole requires 2.2 machine-hours. The actual machine-hours for the month
were 6,890 machine-hours. The standard variable manufacturing overhead rate is $9.20 per
machine-hour. The actual variable manufacturing cost for the month was $67,020. The
variable overhead efficiency variance is:
Chapter 10 Standard Costs and Variances
44. Acri Corporation produces large commercial doors for warehouses and other facilities. In
the most recent month, the company budgeted production of 6,900 doors. Actual production
was 7,300 doors. According to standards, each door requires 5.6 machine-hours. The actual
machine-hours for the month were 40,360 machine-hours. The standard supplies cost, and
element of variable manufacturing overhead, is $4.20 per machine-hour. The actual supplies
cost for the month was $168,251. The variable overhead efficiency variance for supplies cost
is:
Chapter 10 Standard Costs and Variances
45. The following data have been provided by Spraglin Corporation, a company that produces
forklift trucks:
Supplies cost is an element of variable manufacturing overhead. The variable overhead
efficiency variance for supplies cost is:
Chapter 10 Standard Costs and Variances
The Litton Company has established standards as follows:
Direct material: 3 pounds per unit @ $4 per pound = $12 per unit
Direct labor: 2 hours per unit @ $8 per hour = $16 per unit
Variable manufacturing overhead: 2 hours per unit @ $5 per hour = $10 per unit
Actual production figures for the past year are given below. The company records the
materials price variance when materials are purchased.
The company applies variable manufacturing overhead to products on the basis of standard
direct labor-hours.
46. The materials price variance is:
Chapter 10 Standard Costs and Variances
47. The materials quantity variance is:
48. The labor rate variance is:
Chapter 10 Standard Costs and Variances
49. The labor efficiency variance is:
50. The variable overhead rate variance is:
Chapter 10 Standard Costs and Variances
10–40
51. The variable overhead efficiency variance is:
Cox Engineering performs cement core tests in its laboratory. The following standards have
been set for each core test performed:
During March, the laboratory performed 2,000 core tests. On March 1 no direct materials
(sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of
standard direct labor-hours. The following events occurred during March:
• 8,600 pounds of sand were purchased at a cost of $7,310.
• 7,200 pounds of sand were used for core tests.
• 840 actual direct labor-hours were worked at a cost of $8,610.
• Actual variable manufacturing overhead incurred was $3,200.
Chapter 10 Standard Costs and Variances
52. The materials price variance for March is:
53. The materials quantity variance for March is:
Chapter 10 Standard Costs and Variances
54. The labor rate variance for March is:
55. The labor efficiency variance for March is:
Chapter 10 Standard Costs and Variances
10–43
56. The variable overhead efficiency variance for March is:
Hurren Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in June.
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Chapter 10 Standard Costs and Variances
57. The materials quantity variance for June is:
58. The materials price variance for June is: