Chapter 9: Standard Costing

¡Supera tus tareas y exámenes ahora con Quizwiz!

standard quantity of materials allowed, standard hours allowed

A manager should be able to compute the __ __ __ __ __ (SQ) and the __ __ __ (SH) for the actual output.

Actual price per unit

AP = __ __ __ __

Actual quantity of direct material used in production

AQ = __ __ __ __ __ __ __ __

Unfavorable (U)

An __ variance occurs whenever actual prices or usage of inputs are greater than standard prices or usage.

attainable standards

Currently __ __ can be achieved under efficient operating conditions.

b

Exercise 9.24 (2011 CPA Exam) A company has gathered the following information from a recent production run: Standard variable overhead rate $10 Actual variable overhead rate 8 Standard process hours 20 Actual process hours 25 What is the company's variable overhead spending variance? a. $50 unfavorable b. $50 favorable c. $40 unfavorable d. $40 favorable

c

Exercise 9.25 A company uses a standard costing system. At the end of the current year, the company provides the following overhead information. Actual overhead incurred Variable $86,000 Fixed $64,500 Budgeted fixed overhead $65,000 Fixed overhead rate (per direct labor hour) $ 5 Standard hours allowed for actual production 12,000 Actual labor hours used 11,000 What amount is the volume variance? a. $2,500 favorable b. $2,500 unfavorable c. $5,000 unfavorable d. $5,000 favorable

d

Exercise 9.26 (2010 CPA Exam) Relevant information for material A follows: Actual quantity purchased and used 6,500 lbs. Actual price $ 3.80 Standard quantity allowed 6,000 Standard price $ 4.00 What was the direct material quantity variance for material A? a. $2,000 favorable b. $1,900 favorable c. $1,900 unfavorable d. $2,000 unfavorable

b

Exercise 9.27 (2010 CPA Exam) Management has reviewed the standard cost variance analysis and is trying to explain an unfavorable labor efficiency variance of $8,000. Which of the following is the most likely cause of the variance? a. The new labor contract increased wages. b. The maintenance of machinery has been inadequate for these last few months. c. The department manager has chosen to use highly skilled workers. d. The quality of raw materials has improved greatly.

Dr. Materials SP x AQ, Dr. Direct Materials Price Variance (AP - SP)AQ, Cr. Accounts Payable AP x AQ

For the Helado Company example, the entry pertaining to the acquisition of yogurt would be:

(AR - SR)AH

Labor Rate Variance =

(AH - SH)SR

Labor efficiency variance =

AP, AQ, SP, AQ, AP, SP, AQ

MPV = (__ × __) - (__ × __) or (__ - __)__

Materials price variance

MPV = __ __ __

SP, AQ, SP, SQ, AQ, SQ, SP

MUV = (__ × __) - (__ × __) or (__ - __)__

Materials usage variance

MUV = __ __ __

Standard price per unit

SP = __ __ __ __

Standard quantity of input for actual quantity of output

SQ = __ __ __ __ __ __ __ __ __

direct materials usage variance (MUV)

The __ __ __ __ is the difference between the amount of materials actually used and what should have been used for the actual quantity of units produced multiplied by the standard price

direct materials price variance (MPV)

The __ __ __ __ is the difference between what was actually paid for direct materials and what would have been paid for the actual quantity bought if it had been bought at the standard price.

unit standard cost

The __ __ __ is defined as the product of these two standards: Standard price × Standard quantity or (SP × SQ).

total budget variance

The __ __ __ is the difference between the actual cost of the input and its standard cost:

standard cost sheet

The __ __ __ provides the detail underlying the standard unit cost.

Dr. Work in Process SQ × SP, Direct Materials Usage Variance (AQ - SQ)SP, Materials AQ × SP

The entry to record Helado's usage of yogurt during the first week of May is as follows:

control limits

The top and bottom measures of the allowable range are called the __ __.

price, usage

The total budget variance can be broken down into __ and __ variances

AP, AQ, SP, SQ

Total budget variance = (__ × __) - (__ × __)

a

Which of the following types of variances would a purchasing manager most likely influence? a. Direct materials price b. Direct materials quantity c. Direct labor rate d. Direct labor efficiency

Usage variance

__ __ (efficiency) is the difference between the actual and standard quantity of input multiplied by the standard unit price of the input.

Price variance

__ __ (rate) is the difference between the actual and standard unit prices of an input multiplied by the actual quantity of input.

Ideal standards

__ __ demand maximum efficiency and can be achieved only if everything operates perfectly.

Quantity standards

__ __ specify how much of the input should be used per unit of output.

Price standards

__ __ specify how much should be paid for the quantity of the input to be used.

Kaizen

__ standards are continuous improvement standards


Conjuntos de estudio relacionados

Construction Management Final Review

View Set

Chapter 9 Motivating Employees Vocabulary

View Set

CompTIA A+ Certification Exam 220-1101 Practice Test 1

View Set

US History Exit Review Chapter 20

View Set