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Milar Corporation makes a product with the following standard costs: Milar Corporation makes a product with the following standard costs: In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is: A) $2,640 U B) $2,574 F C) $2,640 F D) $2,574 U In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:


A) $2,640 U
B) $2,574 F
C) $2,640 F
D) $2,574 U

E) B) and D)
F) B) and C)

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Dirickson Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Dirickson Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for July: The labor efficiency variance for the month is closest to: A) $1,080 F B) $1,176 F C) $1,080 U D) $1,176 U The company has reported the following actual results for the product for July: Dirickson Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for July: The labor efficiency variance for the month is closest to: A) $1,080 F B) $1,176 F C) $1,080 U D) $1,176 U The labor efficiency variance for the month is closest to:


A) $1,080 F
B) $1,176 F
C) $1,080 U
D) $1,176 U

E) A) and C)
F) A) and B)

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Descamps Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Descamps Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for July: The variable overhead efficiency variance for the month is closest to: A) $366 F B) $372 U C) $372 F D) $366 U The company has reported the following actual results for the product for July: Descamps Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for July: The variable overhead efficiency variance for the month is closest to: A) $366 F B) $372 U C) $372 F D) $366 U The variable overhead efficiency variance for the month is closest to:


A) $366 F
B) $372 U
C) $372 F
D) $366 U

E) A) and B)
F) B) and C)

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The following labor standards have been established for a particular product: The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month? A) $8,910 U B) $12,555 F C) $12,555 U D) $8,640 U The following data pertain to operations concerning the product for the last month: The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month? A) $8,910 U B) $12,555 F C) $12,555 U D) $8,640 U What is the labor efficiency variance for the month?


A) $8,910 U
B) $12,555 F
C) $12,555 U
D) $8,640 U

E) A) and B)
F) A) and C)

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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 direct labor-hours. 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 direct labor-hours. The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month? A) $11,076 U B) $11,037 F C) $11,037 U D) $216 U The following data pertain to operations for the last month: 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 direct labor-hours. The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month? A) $11,076 U B) $11,037 F C) $11,037 U D) $216 U What is the variable overhead efficiency variance for the month?


A) $11,076 U
B) $11,037 F
C) $11,037 U
D) $216 U

E) B) and D)
F) B) and C)

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Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for April: Required: a. Compute the materials price variance for April. b. Compute the materials quantity variance for April. c. Compute the labor rate variance for April. d. Compute the labor efficiency variance for April. e. Compute the variable overhead rate variance for April. f. Compute the variable overhead efficiency variance for April. The company has reported the following actual results for the product for April: Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for April: Required: a. Compute the materials price variance for April. b. Compute the materials quantity variance for April. c. Compute the labor rate variance for April. d. Compute the labor efficiency variance for April. e. Compute the variable overhead rate variance for April. f. Compute the variable overhead efficiency variance for April. Required: a. Compute the materials price variance for April. b. Compute the materials quantity variance for April. c. Compute the labor rate variance for April. d. Compute the labor efficiency variance for April. e. Compute the variable overhead rate variance for April. f. Compute the variable overhead efficiency variance for April.

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a. Materials price variance = (AQ × AP) ...

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Klacic Corporation makes a product with the following standard costs: Klacic Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. The company reported the following results concerning this product in May. Klacic Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance.

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a. SQ = 2,700 units × 8.7 grams per unit...

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Doogan Corporation makes a product with the following standard costs: Doogan Corporation makes a product with the following standard costs: The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is: A) $13,320 U B) $13,320 F C) $11,544 F D) $11,544 U The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is:


A) $13,320 U
B) $13,320 F
C) $11,544 F
D) $11,544 U

E) All of the above
F) A) and B)

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A quantity standard indicates how much of an input should be used to make a unit of product or provide a unit of service.

A) True
B) False

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A product's standard cost card specifies that a unit of the product requires 4 direct labor-hours. During September, 3,350 units were made, which was 150 units less than budgeted. The total budgeted direct labor cost for September was $117,600. The direct labor cost incurred during September was $111,850 and 13,450 direct labor-hours were worked. The labor rate variance for the month was:


A) $5,750 F
B) $5,750 U
C) $1,130 F
D) $1,130 U

E) A) and B)
F) A) and C)

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Bulluck Corporation makes a product with the following standard costs: Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for July is: A) $2,090 F B) $2,166 U C) $2,090 U D) $2,166 F The company reported the following results concerning this product in July. Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for July is: A) $2,090 F B) $2,166 U C) $2,090 U D) $2,166 F The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for July is:


A) $2,090 F
B) $2,166 U
C) $2,090 U
D) $2,166 F

E) B) and D)
F) None of the above

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Doogan Corporation makes a product with the following standard costs: Doogan Corporation makes a product with the following standard costs: The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for January is: A) $476 U B) $520 F C) $476 F D) $520 U The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for January is:


A) $476 U
B) $520 F
C) $476 F
D) $520 U

E) A) and C)
F) All of the above

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Ravena Labs., Inc. makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: ∙\bullet 3,750 units of compound were produced during the month. ∙\bullet There was no beginning direct materials inventory. ∙\bullet Direct materials purchased: 12,000 ounces for $225,000. ∙\bullet The ending direct materials inventory was 2,000 ounces. ∙\bullet Direct labor-hours worked: 5,600 hours at a cost of $67,200. ∙\bullet Variable manufacturing overhead costs incurred amounted to $18,200. ∙\bullet Variable manufacturing overhead applied to products: $18,375. The materials quantity variance for October is:


A) $52,500 Unfavorable
B) $52,500 Favorable
C) $12,500 Unfavorable
D) $12,500 Favorable

E) None of the above
F) A) and B)

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The following data have been provided by Moretta Corporation, a company that produces forklift trucks: The following data have been provided by Moretta 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: A) $135 U B) $135 F C) $966 U D) $966 F Supplies cost is an element of variable manufacturing overhead. The variable overhead efficiency variance for supplies cost is:


A) $135 U
B) $135 F
C) $966 U
D) $966 F

E) A) and D)
F) B) and D)

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Bressman Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Bressman Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for May: The variable overhead efficiency variance for the month is closest to: A) $268 U B) $268 F C) $276 F D) $276 U The company has reported the following actual results for the product for May: Bressman Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for May: The variable overhead efficiency variance for the month is closest to: A) $268 U B) $268 F C) $276 F D) $276 U The variable overhead efficiency variance for the month is closest to:


A) $268 U
B) $268 F
C) $276 F
D) $276 U

E) All of the above
F) B) and C)

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Majer Corporation makes a product with the following standard costs: Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for February is: A) $650 U B) $650 F C) $620 F D) $620 U The company reported the following results concerning this product in February. Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for February is: A) $650 U B) $650 F C) $620 F D) $620 U The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for February is:


A) $650 U
B) $650 F
C) $620 F
D) $620 U

E) B) and D)
F) A) and C)

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The following data for November have been provided by Hunn Corporation, a producer of precision drills for oil exploration: The following data for November have been provided by Hunn Corporation, a producer of precision drills for oil exploration: Required: Compute the variable overhead rate variances for indirect labor and for power for November. Indicate whether each of the variances is favorable (F) or unfavorable (U). Show your work! Required: Compute the variable overhead rate variances for indirect labor and for power for November. Indicate whether each of the variances is favorable (F) or unfavorable (U). Show your work!

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Indirect labor:
Variable overhead rate v...

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Motts Inc. has a standard cost system in which the standard direct labor for a particular product is 0.50 hours at the standard rate of $21.00 per hour. The company has reported the following actual results for the product for October: Motts Inc. has a standard cost system in which the standard direct labor for a particular product is 0.50 hours at the standard rate of $21.00 per hour. The company has reported the following actual results for the product for October: Required: a. Compute the labor rate variance for October. b. Compute the labor efficiency variance for October. Required: a. Compute the labor rate variance for October. b. Compute the labor efficiency variance for October.

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a. Labor rate variance = (AH × AR) − (AH...

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If skilled workers with high hourly rates of pay are given duties that require little skill and call for lower hourly rates of pay, this will result in a favorable labor rate variance.

A) True
B) False

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The standard cost card for one unit of a finished product shows the following: The standard cost card for one unit of a finished product shows the following: If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is: A) $2 B) $3 C) $4 D) $5 If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:


A) $2
B) $3
C) $4
D) $5

E) A) and C)
F) A) and D)

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