Chapter 10 Standard Costs and Variances
Cuda Corporation makes a product that uses a material with the following standards:
The company budgeted for production of 3,500 units in November, but actual production was
3,300 units. The company used 23,050 pounds of direct material to produce this output. The
company purchased 26,000 pounds of the direct material at a total cost of $158,600. The
direct materials purchases variance is computed when the materials are purchased.
124. The materials quantity variance for November is:
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125. The materials price variance for November is:
Carskadon Corporation makes a product that uses a material with the following direct
material standards:
The company produced 3,000 units in December using 6,270 pounds of the material. During
the month, the company purchased 7,100 pounds of the direct material at a total cost of
$13,490. The direct materials purchases variance is computed when the materials are
purchased.
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126. The materials quantity variance for December is:
127. The materials price variance for December is:
The auto repair shop of Empire Motor Sales uses standards to control labor time and labor
cost in the shop. The standard time for a motor tune-up is 2.5 hours. The record showing time
spent in the shop last week on tune-ups has been misplaced; however, the shop supervisor
recalls that 50 tune-ups were completed during the week and the controller recalls that the
labor rate variance on tune-ups was $87, favorable. The shop has a set standard labor rate of
$9 per hour for tune-up work. The total labor variance for the week on tune-up work was $93,
unfavorable.
Chapter 10 Standard Costs and Variances
128. The number of actual hours spent on tune-up work last week was:
129. The actual hourly rate of pay for tune-up work last week was:
Chapter 10 Standard Costs and Variances
The following labor standards have been established for a particular product:
The following data pertain to operations concerning the product for the last month:
130. What is the labor rate variance for the month?
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131. What is the labor efficiency variance for the month?
Bonnot Corporation makes a product that has the following direct labor standards:
The company budgeted for production of 2,100 units in October, but actual production was
1,900 units. The company used 410 direct labor-hours to produce this output. The actual
direct labor rate was $20.60 per hour.
Chapter 10 Standard Costs and Variances
132. The labor efficiency variance for October is:
133. The labor rate variance for October is:
Chapter 10 Standard Costs and Variances
Davidson Corporation makes a product that has the following direct labor standards:
In September the company produced 4,900 units using 2,210 direct labor-hours. The actual
direct labor rate was $22.40 per hour.
134. The labor efficiency variance for September is:
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135. The labor rate variance for September is:
Pikus Corporation makes a product that has the following direct labor standards:
In January the company’s budgeted production was 3,400 units, but the actual production was
3,500 units. The company used 640 direct labor-hours to produce this output. The actual
direct labor cost was $8,960.
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136. The labor efficiency variance for January is:
137. The labor rate variance for January is:
Fabiano Corporation makes a product whose direct labor standards are 0.5 hours per unit and
$23.00 per hour. In February the company produced 3,300 units using 1,640 direct labor-
hours. The actual direct labor cost was $38,540.
Chapter 10 Standard Costs and Variances
138. The labor efficiency variance for February is:
139. The labor rate variance for February is:
Chapter 10 Standard Costs and Variances
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:
140. What is the variable overhead rate variance for the month?
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141. What is the variable overhead efficiency variance for the month?
The Richie Company uses a standard costing system in which variable manufacturing
overhead is assigned to production on the basis of the number of machine setups. Data for the
month of October include the following:
• Variable manufacturing overhead cost incurred: $42,750
• Total variable manufacturing overhead variance: $5,430 favorable
• Standard machine setups allowed for actual production: 2,920 setups
• Actual machine setups incurred: 2,850 setups
Chapter 10 Standard Costs and Variances
142. The standard variable overhead rate per machine setup is:
143. The variable overhead rate variance is:
Chapter 10 Standard Costs and Variances
A manufacturing company that has only one product has established the following standards
for its variable manufacturing overhead. The company bases its variable manufacturing
overhead standards on machine-hours.
The following data pertain to operations for the last month:
144. What is the variable overhead rate variance for the month?
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145. What is the variable overhead efficiency variance for the month?
The following data have been provided by Augustave Corporation:
Indirect labor and power are both elements of variable manufacturing overhead.
Chapter 10 Standard Costs and Variances
146. The variable overhead rate variance for indirect labor is closest to:
147. The variable overhead rate variance for power is closest to:
Chapter 10 Standard Costs and Variances
The following data have been provided by Pollo Corporation:
Lubricants and supplies are both elements of variable manufacturing overhead.
148. The variable overhead rate variance for lubricants is closest to:
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149. The variable overhead rate variance for supplies is closest to:
Hickory Corporation, which produces commercial safes, has provided the following data:
Supplies cost is an element of variable manufacturing overhead.
Chapter 10 Standard Costs and Variances
150. The variable overhead rate variance for supplies is closest to:
151. The variable overhead efficiency variance for supplies is closest to: