ACG CH.23

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a _____ variance.

quantity

The principle of exceptions allows managers to focus on correcting variances between

standard costs and actual costs

The total manufacturing cost variance is

the difference between total actual costs and total standard costs for the units produced

The unfavorable volume variance may be due to all of the following factors except

unexpected increases in the cost of utilities

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: Standard Costs Direct labor 7,500 hours at $11.80 Actual Costs Direct labor 7,400 hours at $11.40 The direct labor time variance is

$1,180 favorable actual hours- standard hours * standard price

The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00 per hour and standard costs for 5,000 hours at $23.70 per hour. The direct labor rate variance is

$1,650 unfavorable

The following data relate to direct labor costs for March: Rate: standard, $12.00; actual, $12.25 Hours: standard, 18,500; actual, 17,955 Units of production: 9,450 The total direct labor variance is

$2,051.25 favorable

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard CostsFixed overhead (based on 10,000 hours)3 hours per unit at $0.80 per hourVariable overhead3 hours per unit at $2.00 per hourActual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The variable factory overhead controllable variance is

$3,000 unfavorable

The following data are given for Harry Company: Budgeted production 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit8 Actual ounces purchased and used in production228,000 Actual price paid for materials$1,504,800Labor: Standard hourly labor rate$22.00 per hour Standard hours allowed per completed unit6.6 Actual labor hours worked183,000 Actual total labor costs$4,020,000Overhead: Actual and budgeted fixed overhead$1,029,600 Standard variable overhead rate$24.50 per standard labor hour Actual variable overhead costs$4,520,000 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor time variance is

$33,000 unfavorable

The following data relate to direct materials costs for February: Materials cost per yard: standard, $2.00; actual, $2.10 Yards per unit: standard, 4.5 yards; actual, 4.75 yards Units of production: 9,500 The direct materials price variance is

$4,512.50 unfavorable actual price- standard price * actual quantity

The following data are given for Stringer Company: Budgeted production26,000 unitsActual production27,500 unitsMaterials: Standard price per ounce$6.50 Standard ounces per completed unit8 Actual ounces purchased and used in production228,000 Actual price paid for materials$1,504,800Labor: Standard hourly labor rate$22 per hour Standard hours allowed per completed unit6.6 Actual labor hours worked183,000 Actual total labor costs$4,020,000Overhead: Actual and budgeted fixed overhead$1,029,600 Standard variable overhead rate$24.50 per standard labor hour Actual variable overhead costs$4,520,000 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct materials quantity variance is

$52,000 unfavorable

St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% of normal production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000, and actual variable overhead was $170,000. Actual production was 11,700 units. The fixed factory overhead volume variance is

$9,000 unfavorable

Jaxson Corporation has the following data related to direct labor costs for September: actual costs for 10,200 hours at $15.75 per hour and standard costs for 10,800 hours at $15.50 per hour. The direct labor time variance is

$9,300 favorable

The following data relate to direct labor costs for the current period: Standard costs 6,000 hours at $12.00 Actual costs 7,500 hours at $11.40 The direct labor rate variance is

4500 favorable actual price - standard price* actual hours

Which of the following conditions normally would not indicate that standard costs should be revised?

Actual costs differed from standard costs for the preceding week.

Accounting systems that use standards for product costs are called variable cost systems.

False

The direct materials price variance is the difference between the

actual costs and the actual quantity at the standard price costs

Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the

fixed factory overhead volume variance

Which of the following is not a reason for a direct materials quantity variance?

increased material cost per unit