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Longview Hospital performs blood tests in its laboratory.The following standards have been set for each blood test performed: Longview Hospital performs blood tests in its laboratory.The following standards have been set for each blood test performed: During May, the laboratory performed 1, 500 blood tests.On May 1 there were no direct materials (plates) on hand;after a plate is used for a blood test it is discarded.Variable overhead is assigned to blood tests on the basis of standard direct labor-hours.The following events occurred during May: • 3, 600 plates were purchased for $9, 540 • 3, 200 plates were used for blood tests • 340 actual direct labor-hours were worked at a cost of $5, 550 The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for May is: A) $225 F B) $225 U C) $450 F D) $450 U During May, the laboratory performed 1, 500 blood tests.On May 1 there were no direct materials (plates) on hand;after a plate is used for a blood test it is discarded.Variable overhead is assigned to blood tests on the basis of standard direct labor-hours.The following events occurred during May: • 3, 600 plates were purchased for $9, 540 • 3, 200 plates were used for blood tests • 340 actual direct labor-hours were worked at a cost of $5, 550 The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for May is:


A) $225 F
B) $225 U
C) $450 F
D) $450 U

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

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The following data for March have been provided by Fickling Corporation, a producer of precision drills for oil exploration: The following data for March have been provided by Fickling Corporation, a producer of precision drills for oil exploration: Required: Compute the variable overhead rate variances for indirect labor and for power for March.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 March.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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Stewart Corporation makes a product with the following standard costs: Stewart Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. 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 August. Stewart Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. 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 = 3, 100 units × 9.3 pounds per unit = 28, 830 pounds Materials quantity variance = (AQ - SQ)× SP = (30, 370 pounds - 28, 830 pounds)× $8.00 per pound = (1, 900 pounds)× $8.00 per pound = $12, 320 U b.Materials price variance = (AQ × AP)- (AQ × SP) = ($264, 420)- (33, 900 pounds × $8.00 per pound) = $264, 420 - $271, 200 = $6, 780 F c.SH = 3, 100 units × 0.4 hours per unit = 1, 240 hours Labor efficiency variance = (AH - SH)× SR = (1, 340 hours - 1, 240 hours)× $19.00 per hour = (100 hours)× $19.00 per hour = $1, 900 U d.Labor rate variance = (AH × AR)- (AH × SR) = $27, 872 - (1, 340 hours × $19.00 per hour) = $27, 872 - $25, 460 = $2, 412 U e.SH = 3, 100 units × 0.4 hours per unit = 1, 240 hours Variable overhead efficiency variance = (AH - SH)× SR = (1, 340 hours - 1, 240 hours)× $7.00 per hour = (100 hours)× $7.00 per hour = $700 U f.Variable overhead rate variance = (AH × AR)- (AH × SR) = $8, 844 - (1, 340 hours × $7.00 per hour) = $8, 844 - $9, 380 = $536 F

Canevari Corporation makes a product that uses a material with the following standards: Canevari Corporation makes a product that uses a material with the following standards: The company budgeted for production of 1, 300 units in April, but actual production was 1, 200 units.The company used 3, 750 kilos of direct material to produce this output.The company purchased 4, 100 kilos of the direct material at a total cost of $8, 610.The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is: A) $315 F B) $300 U C) $300 F D) $315 U The company budgeted for production of 1, 300 units in April, but actual production was 1, 200 units.The company used 3, 750 kilos of direct material to produce this output.The company purchased 4, 100 kilos of the direct material at a total cost of $8, 610.The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is:


A) $315 F
B) $300 U
C) $300 F
D) $315 U

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

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Beakins Corporation produces a single product.The standard cost card for the product follows: Beakins Corporation produces a single product.The standard cost card for the product follows: During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The labor efficiency variance for the period is: A) $3, 000 U B) $2, 550 U C) $2, 550 F D) $3, 000 F During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below: Beakins Corporation produces a single product.The standard cost card for the product follows: During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The labor efficiency variance for the period is: A) $3, 000 U B) $2, 550 U C) $2, 550 F D) $3, 000 F The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The labor efficiency variance for the period is:


A) $3, 000 U
B) $2, 550 U
C) $2, 550 F
D) $3, 000 F

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

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Pardoe, Inc. , manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours.The company uses a standard cost system and has established the following standards for one unit of product: Pardoe, Inc. , manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours.The company uses a standard cost system and has established the following standards for one unit of product: During March, the following activity was recorded by the company: • The company produced 3, 000 units during the month. • A total of 8, 000 pounds of material were purchased at a cost of $23, 000. • There was no beginning inventory of materials on hand to start the month;at the end of the month, 2, 000 pounds of material remained in the warehouse. • During March, 1, 600 direct labor-hours were worked at a rate of $6.50 per hour. • Variable manufacturing overhead costs during March totaled $1, 800. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: A) $200 U B) $600 U C) $600 F D) $200 F During March, the following activity was recorded by the company: • The company produced 3, 000 units during the month. • A total of 8, 000 pounds of material were purchased at a cost of $23, 000. • There was no beginning inventory of materials on hand to start the month;at the end of the month, 2, 000 pounds of material remained in the warehouse. • During March, 1, 600 direct labor-hours were worked at a rate of $6.50 per hour. • Variable manufacturing overhead costs during March totaled $1, 800. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is:


A) $200 U
B) $600 U
C) $600 F
D) $200 F

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

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Berends Corporation makes a product with the following standard costs: Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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 April is: A) $1, 232 F B) $1, 360 F C) $1, 360 U D) $1, 232 U The company reported the following results concerning this product in April. Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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 April is: A) $1, 232 F B) $1, 360 F C) $1, 360 U D) $1, 232 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 April is:


A) $1, 232 F
B) $1, 360 F
C) $1, 360 U
D) $1, 232 U

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

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During a recent lengthy strike at Morell Manufacturing Company, management replaced striking assembly line workers with office workers.The assembly line workers had been paid $18 per hour while the office workers are only paid $10 per hour.What is the most likely effect on the labor variances in the first month of this strike? During a recent lengthy strike at Morell Manufacturing Company, management replaced striking assembly line workers with office workers.The assembly line workers had been paid $18 per hour while the office workers are only paid $10 per hour.What is the most likely effect on the labor variances in the first month of this strike? A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

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

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Novelli Corporation makes a product whose variable overhead standards are based on direct labor-hours.The quantity standard is 0.6 hours per unit.The variable overhead rate standard is $5.00 per hour.In September the company produced 1, 600 units using 950 direct labor-hours.The actual variable overhead rate was $5.10 per hour. The variable overhead rate variance for September is:


A) $95 F
B) $96 U
C) $95 U
D) $96 F

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

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The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month? A) $17, 397 U B) $16, 817 U C) $312 F D) $17, 085 U The following data pertain to operations for the last month: The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month? A) $17, 397 U B) $16, 817 U C) $312 F D) $17, 085 U What is the variable overhead efficiency variance for the month?


A) $17, 397 U
B) $16, 817 U
C) $312 F
D) $17, 085 U

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

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Jurczyk Corporation makes a product that has the following direct labor standards: Jurczyk Corporation makes a product that has the following direct labor standards: In December the company's budgeted production was 4, 600 units, but the actual production was 4, 400 units.The company used 1, 330 direct labor-hours to produce this output.The actual direct labor cost was $14, 364. The labor efficiency variance for December is: A) $110 U B) $108 F C) $110 F D) $108 U In December the company's budgeted production was 4, 600 units, but the actual production was 4, 400 units.The company used 1, 330 direct labor-hours to produce this output.The actual direct labor cost was $14, 364. The labor efficiency variance for December is:


A) $110 U
B) $108 F
C) $110 F
D) $108 U

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

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The materials price variance is computed by multiplying the difference between the actual price and the standard price by the actual quantity of materials purchased.

A) True
B) False

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Longview Hospital performs blood tests in its laboratory.The following standards have been set for each blood test performed: Longview Hospital performs blood tests in its laboratory.The following standards have been set for each blood test performed: During May, the laboratory performed 1, 500 blood tests.On May 1 there were no direct materials (plates) on hand;after a plate is used for a blood test it is discarded.Variable overhead is assigned to blood tests on the basis of standard direct labor-hours.The following events occurred during May: • 3, 600 plates were purchased for $9, 540 • 3, 200 plates were used for blood tests • 340 actual direct labor-hours were worked at a cost of $5, 550 The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for May is: A) $1, 650 F B) $1, 650 U C) $550 U D) $720 F During May, the laboratory performed 1, 500 blood tests.On May 1 there were no direct materials (plates) on hand;after a plate is used for a blood test it is discarded.Variable overhead is assigned to blood tests on the basis of standard direct labor-hours.The following events occurred during May: • 3, 600 plates were purchased for $9, 540 • 3, 200 plates were used for blood tests • 340 actual direct labor-hours were worked at a cost of $5, 550 The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for May is:


A) $1, 650 F
B) $1, 650 U
C) $550 U
D) $720 F

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

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Hien, Inc.uses machine-hours as the base to apply its manufacturing overhead.The following information relates to variable manufacturing overhead standards at Hien: Standard rate per machine-hour: $50 Total standard machine-hours allowed for units produced during September: 4, 000 Hien's variable overhead rate variance for September was $800 favorable.Its variable overhead efficiency variance was $3, 600 unfavorable.How many machine-hours did Hien actually use during September?


A) 3, 928
B) 3, 944
C) 4, 056
D) 4, 072

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

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The following standards have been established for a raw material used to make product I92: The following standards have been established for a raw material used to make product I92: The following data pertain to a recent month's operations: The direct materials purchases variance is computed when the materials are purchased. Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month? The following data pertain to a recent month's operations: The following standards have been established for a raw material used to make product I92: The following data pertain to a recent month's operations: The direct materials purchases variance is computed when the materials are purchased. Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month? The direct materials purchases variance is computed when the materials are purchased. Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month?

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

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Poor quality materials could have an unfavorable effect on which of the following variances? Poor quality materials could have an unfavorable effect on which of the following variances? A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

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

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Holiday Chemical Corporation uses a standard cost system to collect costs related to the production of its "bowling ball" fruitcakes.The direct labor standard for each fruitcake is 1.25 hours at a standard cost of $11.00 per hour.During the month of November, Holiday's fruitcake production used 9, 820 direct labor-hours at a total direct labor cost of $106, 547.This resulted in production of 8, 500 fruitcakes for November. What is Holiday's labor rate variance for November?


A) $8, 855 Favorable
B) $1, 473 Favorable
C) $13, 047 Unfavorable
D) $14, 520 Unfavorable

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

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B

Epley Corporation makes a product with the following standard costs: Epley Corporation makes a product with the following standard costs: In July the company produced 3, 300 units using 12, 240 pounds of the direct material and 2, 760 direct labor-hours.During the month, the company purchased 13, 000 pounds of the direct material at a cost of $35, 100.The actual direct labor cost was $51, 612 and the actual variable overhead cost was $20, 148. 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 rate variance for July is: A) $828 F B) $828 U C) $792 U D) $792 F In July the company produced 3, 300 units using 12, 240 pounds of the direct material and 2, 760 direct labor-hours.During the month, the company purchased 13, 000 pounds of the direct material at a cost of $35, 100.The actual direct labor cost was $51, 612 and the actual variable overhead cost was $20, 148. 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 rate variance for July is:


A) $828 F
B) $828 U
C) $792 U
D) $792 F

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

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A

Berends Corporation makes a product with the following standard costs: Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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 April is: A) $17, 180 U B) $16, 192 F C) $16, 192 U D) $17, 180 F The company reported the following results concerning this product in April. Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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 April is: A) $17, 180 U B) $16, 192 F C) $16, 192 U D) $17, 180 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 materials price variance for April is:


A) $17, 180 U
B) $16, 192 F
C) $16, 192 U
D) $17, 180 F

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

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Which of the following would produce a materials price variance?


A) An excess quantity of materials used.
B) An excess number of direct labor-hours worked in completing a job.
C) Shipping materials to the plant by air freight rather than by truck.
D) Breakage of materials in production.

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

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