1 Introduction To Managerial Accounting 2 Basic Managerial Accounting Concepts 3 Cost Behavior And Cost Forecasting 4 Job-order Costing And Overhead Application 5 Activity-based Costing And Management 6 Process Costing 7 Cost-volume-profit Analysis 8 Tactical Decision-making And Relevant Analysis 9 Profit Planning And Flexible Budgets 10 Standard Costing And Variance Analysis 11 Performance Evaluation And Decentralization 12 Capital Investment Decisions 13 Emerging Topics In Managerial Accounting 14 Statement Of Cash Flows 15 Financial Statement Analysis Chapter10: Standard Costing And Variance Analysis
Chapter Questions Section: Chapter Questions
Problem 1DQ: Discuss the dirrerence between budgets and standard costs. Problem 2DQ: Describe the relationship that unit standards have with flexible budgeting. Problem 3DQ: Why is historical experience often a poor basis for establishing standards? Problem 4DQ Problem 5DQ: Explain why standard costing systems adopted. Problem 6DQ: How does standard costing improve the control function? Problem 7DQ: Discuss the differences among actual costing, normal costing, and standard costing. Problem 8DQ Problem 9DQ: The budget variance for variable production costs is broken down into quantity and price variances.... Problem 10DQ: When should a standard cost variance be investigated? Problem 11DQ: What are control limits, and how are they set? Problem 12DQ: Explain why the materials price variance is often computed at the point of purchase rather than at... Problem 13DQ: The materials usage variance is always the responsibility of the production supervisor. Do you agree... Problem 14DQ: The labor rate variance is never controllable. Do you agree or disagree? Why? Problem 15DQ Problem 16DQ: What is kaizen costing? On which part of the value chain does kaizen costing focus? Problem 17DQ: What is target costing? Describe how costs are reduced so that the target cost can be met. Problem 18DQ Problem 19DQ: The variable overhead efficiency variance has nothing to do with efficient use of variable overhead.... Problem 20DQ: Describe the difference between the variable overhead efficiency variance and the labor efficiency... Problem 21DQ: What is the cause of an unfavorable volume variance? Problem 22DQ: Does the volume variance convey any meaningful information to managers? Problem 23DQ: Which do you think is more important for control of fixed overhead costs: the spending variance or... Problem 1MCQ Problem 2MCQ: A currently attainable standard is one that a. relies on maximum efficiency. b. uses only historical... Problem 3MCQ: An ideal standard is one that a. uses only historical experience. b. relies on maximum efficiency.... Problem 4MCQ: The underlying details for the standard cost per unit are provided in a. the standard... Problem 5MCQ: The standard quantity of materials allowed is computed as a. Unit Quantity Standard Standard... Problem 6MCQ: The standard direct labor hours allowed is computed as a. Unit Labor Standard Actual Output. b.... Problem 7MCQ: Investigating variances from standard is a. always done. b. done if the variance is inside an... Problem 8MCQ Problem 9MCQ: The materials price variance is usually computed a. when goods are finished. b. when materials are... Problem 10MCQ: Responsibility for the materials usage variance is usually assigned to a. the chief executive... Problem 11MCQ: Responsibility for the labor rate variance typically is assigned to a. production. b. labor markets.... Problem 12MCQ: Responsibility for the labor efficiency variance typically is assigned to a. labor unions. b.... Problem 13MCQ: (Appendix 10A) Which of the following items describes practices surrounding the recording of... Problem 14MCQ: (Appendix 10A) Which of the following is true concerning labor variances that are not material in... Problem 15MCQ: The total variable overhead variance is the difference between a. the budgeted variable overhead and... Problem 16MCQ: A variable overhead spending variance can occur because a. prices for individual overhead items have... Problem 17MCQ: The total variable overhead variance can be expressed as the sum of a. the underapplied variable... Problem 18MCQ: The total fixed overhead variance is a. the difference between actual and applied fixed overhead... Problem 19MCQ: The total fixed overhead variance can be expressed as the sum of a. the spending and efficiency... Problem 20MCQ: An unfavorable volume variance can occur because a. too much finished goods inventory was held. b.... Problem 21BEA Problem 22BEA: Control Limits During the last 6 weeks, the actual costs of materials for Brennen Company were as... Problem 23BEA: Use the following information to complete Brief Exercises 10-23 and 10-24: Krumple Inc. produces... Problem 24BEA: Use the following information to complete Brief Exercises 10-23 and 10-24: Krumple Inc. produces... Problem 25BEA: Use the following information to complete Brief Exercises 10-25 and 10-26: Tico Inc. produces... Problem 26BEA: Use the following information to complete Brief Exercises 10-25 and 10-26: Tico Inc. produces... Problem 27BEA: Rath Company showed the following information for the year: Required: 1. Calculate the standard... Problem 28BEA: Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Rath Company... Problem 29BEA: Performance Report for Variable Variances Humo Company provided the following information: Required:... Problem 30BEA: Total Fixed Overhead Variance Bradshaw Company provided the following data: Required: 1. Calculate... Problem 31BEA: Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches Branch Company... Problem 32BEB Problem 33BEB: Control Limits During the last 6 weeks, the actual costs of labor for Solsana Company were as... Problem 34BEB Problem 35BEB: Use the following information to complete Brief Exercises 10-34 and 10-35: Young Inc. produces... Problem 36BEB: Use the following information to complete Brief Exercises 10-36 and 10-37: Ambient Inc. produces... Problem 37BEB: Use the following information to complete Brief Exercises 10-36 and 10-37: Ambient Inc. produces... Problem 38BEB: Mulliner Company showed the following information for the year: Required: 1. Calculate the standard... Problem 39BEB: Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Aretha Company... Problem 40BEB: Performance Report for Variable Variances Potter Company provided the following information:... Problem 41BEB: Bulger Company provided the following data: Required: 1. Calculate the standard hours allowed for... Problem 42BEB: Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches Corey Company provided... Problem 43E: Standard Quantities of Labor and Materials Stillwater Designs rebuilds defective units of its S12L7... Problem 44E: Sommers Company uses the following rule to determine whether materials usage variances should be... Problem 45E: Use the following information for Exercises 10-45 through 10-47: Cinturon Corporation produces... Problem 46E: Refer to the information for Cinturon Corporation on the previous page. Required: 1. Break down the... Problem 47E: Refer to the information for Cinturon Corporation on the previous page. Required: 1. Break down the... Problem 48E: Materials Variances Manzana Company produces apple juice sold in gallons. Recently, the company... Problem 49E: Labor Variances Verde Company produces wheels for bicycles. During the year, 660,000 wheels were... Problem 50E: At the beginning of the year, Craig Company had the following standard cost sheet for one of its... Problem 51E: Jackie Iverson was furious. She was about ready to fire Tom Rich, her purchasing agent. Just a month... Problem 52E: 10-52 Materials and Labor Variances Refer to the information for Deporte Company above. Required:... Problem 53E: Refer to the information for Deporte Company above. Required: 1. Prepare a journal entry for the... Problem 54E: Esteban Products produces instructional aids, including white boards, which use colored markers... Problem 55E: Escuchar Products, a producer of DVD players, has established a labor standard for its productdirect... Problem 56E: Use the following information for Exercises 10-56 and 10-57: Rostand Inc. operates a delivery... Problem 57E: Refer to the information for Rostand Inc. above. Assume that the actual fixed overhead was 403,400.... Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its... Problem 59E: Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses... Problem 60E: Last year, Gladner Company had planned to produce 140,000 units. However, 143,000 units were... Problem 61E: Anker Company had the data below for its most recent year, ended December 31: Required: Prepare a... Problem 62P: Cabanarama Inc. designs and manufactures easy-to-set-up beach cabanas that families can set up for... Problem 63P: Basuras Waste Disposal Company has a long-term contract with several large cities to collect garbage... Problem 64P: Tom Belford and Tony Sorrentino own a small business devoted to kitchen and bath granite... Problem 65P: Mantenga Company provides routine maintenance services for heavy moving and transportation vehicles.... Problem 67P: Buenolorl Company produces a well-known cologne. The standard manufacturing cost of the cologne is... Problem 68P: The management of Golding Company has determined that the cost to investigate a variance produced by... Problem 69P: Phono Company manufactures a plastic toy cell phone. The following standards have been established... Problem 70P: Botella Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The... Problem 71P: The Lubbock plant of Morrils Small Motor Division produces a major subassembly for a 6.0 horsepower... Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production... Problem 73P: The Lubbock plant of Morrils Small Motor Division produces a major subassembly for a 6.0 horsepower... Problem 74P: Extrim Company produces monitors. Extrims plant in San Antonio uses a standard costing system. The... Problem 75P: Lynwood Company produces surge protectors. To help control costs, Lynwood employs a standard costing... Problem 76P: Shumaker Company manufactures a line of high-top basketball shoes. At the beginning of the year, the... Problem 77C: Paul Golding and his wife, Nancy, established Crunchy Chips in 1938. Over the past 60 years, the... Problem 79C Problem 1MTC Problem 2MTC: The Two Cost Systems Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which... Problem 3MTC Problem 4MTC Problem 5MTC: The Two Cost Systems Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which... Problem 6MTC Problem 7MTC Problem 8MTC Problem 9MTC Problem 10MTC: Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which relate to its two biggest... Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...
Related questions
The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product:
Actual Costs
Standard Costs
Direct Material
6,200 lb. @ $3.90
6,000 lb. @ $4.00
Direct Labor
4,300 hrs. @ $14.70
4,000 hrs. @ $15.00
Determine the labor efficiency variance.
Select one:
a. $4,410 U
b. $4,410 F
c. $4,500 F
d.
e.
Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.
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