91. If actual fixed manufacturing overhead was $55,000 and there was a $1,400 unfavorable spending variance
and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been
92. Fixed manufacturing overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If
the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000
unfavorable, fixed manufacturing overhead applied must be
93. Fixed manufacturing overhead was budgeted at $105,000, and 25,000 direct labor hours were budgeted. If
the fixed overhead volume variance was $4,000 unfavorable and the fixed overhead spending variance was
$1,500 favorable, fixed manufacturing overhead applied must be
94. The formula for the fixed overhead spending variance is:
95. Figure 9-3
Alumni Manufacturing Company has the following information pertaining to a normal monthly activity of
10,000 units:
Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit.
Standard factory overhead rates per direct labor hour are:
Fixed
$ 6.00
Variable
10.00
$16.00
Units actually produced in current month
9,000 units
Actual factory overhead costs incurred
(includes $70,000 fixed)
$156,000
Actual direct labor hours
9,000 hours
Refer to Figure 9-3. What is the variable overhead spending variance for Alumni?
96. Figure 9-3
Alumni Manufacturing Company has the following information pertaining to a normal monthly activity of
10,000 units:
Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit.
Standard factory overhead rates per direct labor hour are:
Fixed
$ 6.00
Variable
10.00
$16.00
Units actually produced in current month
9,000 units
Actual factory overhead costs incurred
(includes $70,000 fixed)
$156,000
Actual direct labor hours
9,000 hours
Refer to Figure 9-3. What is the fixed overhead spending variance for Alumni?
97. Figure 9-3
Alumni Manufacturing Company has the following information pertaining to a normal monthly activity of
10,000 units:
Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit.
Standard factory overhead rates per direct labor hour are:
Fixed
$ 6.00
Variable
10.00
$16.00
Units actually produced in current month
9,000 units
Actual factory overhead costs incurred
(includes $70,000 fixed)
$156,000
Actual direct labor hours
9,000 hours
Refer to Figure 9-3. What is the fixed overhead volume variance for Alumni?
98. Formidable Company collected the following information:
Standard costs per unit:
Variable overhead
4 machine hours @ $6 per machine hour
Fixed overhead
4 machine hours @ $10 per machine hour
Actual output
20,000 units
Denominator (normal capacity) output
21,000 units
Actual machine hours
79,000 machine hours
Actual variable overhead cost
$540,000
Actual fixed overhead cost
$810,000
Using the two variance method, what is the budget variance?
99. Formidable Company collected the following information:
Standard costs per unit:
Variable overhead
4 machine hours @ $6 per machine hour
Fixed overhead
4 machine hours @ $10 per machine hour
Actual output
20,000 units
Denominator (normal capacity) output
21,000 units
Actual machine hours
79,000 machine hours
Actual variable overhead cost
$540,000
Actual fixed overhead cost
$810,000
Using the two variance method, what is the total variance?
100. Formidable Company collected the following information:
Standard costs per unit:
Variable overhead
4 machine hours @ $6 per machine hour
Fixed overhead
4 machine hours @ $10 per machine hour
Actual output
20,000 units
Denominator (normal capacity) output
21,000 units
Actual machine hours
79,000 machine hours
Actual variable overhead cost
$540,000
Actual fixed overhead cost
$810,000
Using the two variance method, what is the volume variance?
101. Formidable Company collected the following information:
Standard costs per unit:
Variable overhead
4 machine hours @ $6 per machine hour
Fixed overhead
4 machine hours @ $10 per machine hour
20,000 units
21,000 units
79,000 machine hours
$540,000
$810,000
Using the three variance method, what is the spending variance?
102. Formidable Company collected the following information:
Standard costs per unit:
Variable overhead
4 machine hours @ $6 per machine hour
Fixed overhead
4 machine hours @ $10 per machine hour
Actual output
20,000 units
Denominator (normal capacity) output
21,000 units
Actual machine hours
79,000 machine hours
Actual variable overhead cost
$540,000
Actual fixed overhead cost
$800,000
Using the three variance method, what is the budget variance?
103. A mix variance is
104. Figure 9-4
San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the
following standards:
Material
Standard Mix
Standard Unit Price
Standard Cost
X
3,500 units
$1.00 per unit
$3,500
Y
1,500 units
3.00 per unit
$4,500
Yield
4,000 units
During April, the following actual production information was provided:
Material
Actual Mix
X
30,000 units
Y
20,000 units
Yield
36,000 units
Refer to Figure 9-4. What is the materials mix variance?
105. Figure 9-4
San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the
following standards:
Material
Standard Mix
Standard Unit Price
Standard Cost
X
3,500 units
$1.00 per unit
$3,500
Y
1,500 units
3.00 per unit
$4,500
Yield
4,000 units
During April, the following actual production information was provided:
Material
Actual Mix
X
30,000 units
Y
20,000 units
Yield
36,000 units
Refer to Figure 9-4. What is the materials usage variance?
106. Figure 9-4
San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the
following standards:
Material
Standard Mix
Standard Unit Price
Standard Cost
X
3,500 units
$1.00 per unit
$3,500
Y
1,500 units
3.00 per unit
$4,500
Yield
4,000 units
During April, the following actual production information was provided:
Material
Actual Mix
X
30,000 units
Y
20,000 units
Yield
36,000 units
Refer to Figure 9-4. What is the materials yield variance?
107. The San Jose Corporation uses two materials in the production of its product. The materials, G and H, have
the following standards:
Material
Standard Mix
Standard Unit Price
Standard Cost
G
5,250 units
$1.50 per unit
$7,875
H
2,250 units
4.50 per unit
$10,125
Yield
6,000 units
During June, the following actual production information was provided:
Material
Actual Mix
G
45,000 units
H
30,000 units
Yield
54,000 units
What is the materials mix variance?
108. The San Jose Corporation uses two materials in the production of its product. The materials, G and H, have
the following standards:
Material
Standard Mix
Standard Unit Price
Standard Cost
G
5,250 units
$1.50 per unit
$ 7,875
H
2,250 units
4.50 per unit
$10,125
Yield
6,000 units
During June, the following actual production information was provided:
Material
Actual Mix
G
45,000 units
H
30,000 units
Yield
54,000 units
What is the materials yield variance?
109. Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the
following standards:
Material
Standard Mix
Standard Unit Price
Standard Cost
L
1,750 units
$0.50 per unit
$ 875
M
750 units
1.50 per unit
$1,125
Yield
2,000 units
During January, the following actual production information was provided:
Material
Actual Mix
L
15,000 units
M
10,000 units
Yield
18,000 units
What is the materials mix variance?
110. Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the
following standards:
Material
Standard Mix
Standard Unit Price
Standard Cost
L
1,750 units
$0.50 per unit
$ 875
M
750 units
1.50 per unit
$1,125
Yield
2,000 units
During January, the following actual production information was provided:
Material
Actual Mix
L
15,000 units
M
10,000 units
Yield
18,000 units
What is the materials yield variance?
111. The following information is provided about three materials utilized in the production of a product:
Material
Standard Mix
Standard Unit Price
Standard Cost
X
1,250 units
$3.00 per unit
$3,750
Y
750 units
5.00 per unit
$3,750
Z
500 units
4.00 per unit
$2,000
Yield 2,250 units
During May, the following actual production information was provided:
Material
Actual Mix
X
10,000 units
Y
5,000 units
Z
2,500 units
Yield 15,000 units
Calculate the Material mix variance.
112. The following information is provided about three materials utilized in the production of a product:
Material
Standard Mix
Standard Unit Price
Standard Cost
X
1,250 units
$3.00 per unit
$3,750
Y
750 units
5.00 per unit
$3,750
Z
500 units
4.00 per unit
$2,000
Yield 2,250 units
During May, the following actual production information was provided:
Material
Actual Mix
X
10,000 units
Y
5,000 units
Z
2,500 units
Yield 15,000 units
What is the Material yield variance.
113. Montecino Corporation uses two different types of labor to manufacture its product. The types of labor,
Cutting and Setup, have the following standards:
Labor Type
Standard Mix
Standard Unit Price
Standard Cost
Cutting
500 hours
$7.50 per unit
$3,750
Setup
125 hours
5.00 per unit
$ 625
Yield 3,125 units
During July, the following actual production information was provided:
Labor Type
Actual Mix
Cutting
4,375 hours
Setup
1,875 hours
Yield 28,125 units
What is the Labor mix variance?
114. How are standards developed? What is the difference between ideal and currently attainable standards?
115. The Awesome Systems Company, which uses direct labor hours to assign overhead costs to products,
developed the following standard cost for one of their products:
STANDARD COST CARD PER UNIT
Materials: 10 pounds ´ $8 per pound
$80.00
Direct labor: 3 hours ´ $32 per hour
96.00
Variable manufacturing overhead: $20 per direct labor hour
?
Fixed manufacturing overhead
?
Total standard cost per unit
?
The following information is available regarding the company’s operations for the period:
Units produced:
15,000
Materials purchased:
180,000 pounds @ $7.20 per pound
Materials used:
160,000 pounds
Direct labor:
18,000 hours @ $37.00 per hour
Manufacturing overhead incurred:
Variable
$880,000
Fixed
$2,560,000
Budgeted fixed manufacturing overhead for the period is $4,800,000, and expected capacity for the period is 60,000 direct labor hours.
Required:
a.
Calculate the standard fixed manufacturing overhead rate.
b.
Complete the standard cost card for the product.
$80 per DLH
$4,800,000/60,000
b.
STANDARD COST CARD PER UNIT
Material: 10 pounds ´ $8/pound
$ 80.00
Direct labor: 3 hours ´ $32/hour
96.00
Variable overhead: 3 hours ´ $20/hour
60.00
Manufacturing overhead: 3 hours ´ $80/hour
240.00
Total standard cost per unit
$476.00
116. The following standard costs were developed for one of the products of Razzmatazz Corporation:
$ 57.00
80.00
64.00
96.00
$297.00
The following information is available regarding the company’s operations for the period:
11,000
52,000 feet @ $13.95 per foot
40,000 feet
84,000 hours costing $840,000
$756,000
$1,000,000
Budgeted fixed manufacturing overhead for the period is $960,000, and the standard fixed overhead rate is based on expected capacity of 80,000
direct labor hours.
Required:
a.
Calculate the materials price variance.
b.
Calculate the materials usage variance.
c.
Calculate the direct labor rate variance.
d.
Calculate the direct labor efficiency variance.
e.
Calculate the variable manufacturing overhead spending variance.
f.
Calculate the variable manufacturing overhead efficiency variance.
g.
Calculate the fixed manufacturing overhead spending variance.
h.
Calculate the fixed manufacturing overhead volume variance.
a.
$15,600 F
52,000 ´ ($13.95 – $14.25)
b.
$57,000 F
(40,000 ´ $14.25) – (11,000 ´ 4 ´ $14.25)
c.
$-0-
$840,000 – (84,000 ´ $10)
d.
$40,000 F
(84,000 ´ $10) – (11,000 ´ 8 ´ $10)
e.
$84,000 U
$756,000 – (84,000 ´ $8)
f.
$32,000 F
(84,000 ´ $8) – (11,000 ´ 8 ´ $8)
g.
$40,000 U
($1,000,000 – $960,000)
h.
$96,000 F
$960,000 – (11,000 ´ 8 ´ $12)
117. Sparingly Manufacturing has developed the following standards for one of its products.
STANDARD VARIABLE COST CARD
One Unit of Product
Materials: 5 yards ´ $6 per yard
$30.00
Direct labor: 2 hours ´ $8 per hour
16.00
Variable manufacturing overhead: 2 hours ´ $5 per hour
10.00
Total standard variable cost per unit
$56.00
The company records materials price variances at the time of purchase.
The following activity occurred during the month of December:
Materials purchased:
5,200 yards costing $29,900
Materials used:
4,750 yards
Units produced:
1,000 units
Direct labor:
2,100 hours costing $17,850
Required:
a.
Calculate the direct materials price variance.
b.
Calculate the direct materials usage variance.
c.
Calculate the direct labor rate variance.
d.
Calculate the direct labor efficiency variance.
a.
$1,300 F $29,900 – (5,200 ´ $6)
b.
$1,500 F $6 ´ (4,750 – 1,000 ´ 5 )
c.
$1,050 U $17,850 – (2,100 ´ $8)
d.
$800 U $8 ´ (2,100 – 1,000 ´ 2)
118. Barbaro Production Company has developed the following standards for one of its products.
STANDARD VARIABLE COST CARD
One Unit of Product
Materials: 30 square feet ´ $5 per square foot
$150.00
Direct labor: 16 hours ´ $7 per hour
112.00
Variable manufacturing overhead: 16 direct labor hours ´ $5 per hour
80.00
Total standard variable cost per unit
$342.00
The company records materials price variances at the time of purchase. The following activity occurred during the month of April:
Materials purchased:
80,000 sq. feet at $5.30 per sq. foot
Materials used:
74,000 square feet
Units produced:
2,500 units
Direct labor:
42,000 hours at $6.70 per hour
Actual variable manufacturing overhead:
$228,000
Required:
a.
Calculate the direct materials price variance.
b.
Calculate the direct materials usage variance.
c.
Calculate the direct labor rate variance.
d.
Calculate the direct labor efficiency variance.
e.
Calculate the variable overhead spending variance.
f.
Calculate the variable overhead efficiency variance.
a.
$24,000 U
80,000 ´ ($5.30 – $5.00)
b.
$5,000 F
c.
$12,600 F
42,000 ´ ($6.70 – $7.00)
d.
$14,000 U
e.
$18,000 U
$228,000 – (42,000 ´ $5)
f.
$10,000 U