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Litchfield Industries gathered the following information for the month ended June 30: The static budget volume is 3000 units: Overhead flexible budget: Litchfield Industries gathered the following information for the month ended June 30: The static budget volume is 3000 units: Overhead flexible budget: Actual production was 6500 units. Actual overhead costs were $22,000 for variable costs and $39,000 for fixed costs. Actual machine hours worked were 16,000 hours. What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.) A) $53,900 unfavorable B) $53,900 favorable C) $18,200 unfavorable D) $18,200 favorable Actual production was 6500 units. Actual overhead costs were $22,000 for variable costs and $39,000 for fixed costs. Actual machine hours worked were 16,000 hours. What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)


A) $53,900 unfavorable
B) $53,900 favorable
C) $18,200 unfavorable
D) $18,200 favorable

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

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Howard Industries' actual direct labor cost was $67,000 during the current period. Howard reported an unfavorable direct labor rate variance of $1,800 and a favorable direct labor efficiency variance of $2,900. What was the standard direct labor cost for actual output during the period?

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The managerial accountant at Space Right Office Cubicles calculates fixed overhead variances to complete the August report. The actual fixed overhead cost in the month of August was $62,100 and the budgeted fixed overhead cost was $63,300. The standard hours in August were 3300 and the standard rate per machine-hour was $19. Calculate the standard fixed overhead cost allocated to production, the fixed overhead budget variance, and the fixed overhead volume variance.


A) $63,300; $1800 F; $600 U
B) $62,100; $3332 F; $1200 U
C) $62,700; $1200 F; $600 U
D) $58,800; $600 F; $1200 U

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

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Trendy T's Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows: Trendy T's Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows: During the month of January, the company produced 1050 t-shirts. Related production data for the month follows: What is the direct labor rate variance for the month? A) $1480 favorable B) $1480 unfavorable C) $7040 favorable D) $7040 unfavorable During the month of January, the company produced 1050 t-shirts. Related production data for the month follows: Trendy T's Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows: During the month of January, the company produced 1050 t-shirts. Related production data for the month follows: What is the direct labor rate variance for the month? A) $1480 favorable B) $1480 unfavorable C) $7040 favorable D) $7040 unfavorable What is the direct labor rate variance for the month?


A) $1480 favorable
B) $1480 unfavorable
C) $7040 favorable
D) $7040 unfavorable

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

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Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: During the month of March, the company produced 1800 cars. Related production data for the month follows: What is the direct materials price variance for the month? A) $17,500 favorable B) $17,500 unfavorable C) $27,900 favorable D) $27,900 unfavorable During the month of March, the company produced 1800 cars. Related production data for the month follows: Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: During the month of March, the company produced 1800 cars. Related production data for the month follows: What is the direct materials price variance for the month? A) $17,500 favorable B) $17,500 unfavorable C) $27,900 favorable D) $27,900 unfavorable What is the direct materials price variance for the month?


A) $17,500 favorable
B) $17,500 unfavorable
C) $27,900 favorable
D) $27,900 unfavorable

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

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The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of products: The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of products: What is Perry's fixed manufacturing overhead budget variance? A) $900.00 unfavorable B) $1700.00 unfavorable C) $900.00 favorable D) $1700.00 favorable What is Perry's fixed manufacturing overhead budget variance?


A) $900.00 unfavorable
B) $1700.00 unfavorable
C) $900.00 favorable
D) $1700.00 favorable

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

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Squeaky Clean produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows: Squeaky Clean produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows: What is the direct material quantity variance for the bleach? A) $1571 favorable B) $1571 unfavorable C) $2891 favorable D) $2891 unfavorable What is the direct material quantity variance for the bleach?


A) $1571 favorable
B) $1571 unfavorable
C) $2891 favorable
D) $2891 unfavorable

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

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The following information describes a company's usage of direct labor in a recent period: The following information describes a company's usage of direct labor in a recent period: How much is the direct labor efficiency variance? A) $40,250 favorable B) $40,250 unfavorable C) $70,000 unfavorable D) $70,000 favorable How much is the direct labor efficiency variance?


A) $40,250 favorable
B) $40,250 unfavorable
C) $70,000 unfavorable
D) $70,000 favorable

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

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How is the variable manufacturing overhead efficiency variance calculated?


A) The difference between the actual overhead rate and the standard overhead rate multiplied by the standard overhead rate
B) The difference between the standard hours allowed and the actual hours used multiplied by the standard overhead rate
C) The difference between the standard hours allowed and the actual hours used
D) The difference between the standard hours allowed and the actual hours used multiplied by the actual overhead rate

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

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Keegan Inc. budgeted 10,800 pounds of direct materials costing $16.50 per pound to make 5100 units of product. The company actually purchased 10,900 pounds of direct materials costing $25.00 per pound to make the 5100 units. What is the direct materials quantity variance?


A) $2500 favorable
B) $1650 favorable
C) $1650 unfavorable
D) $2500 unfavorable

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

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Monty Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Monty's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Monty's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 35 slides. Budgeted and actual production data follows: Monty Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Monty's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Monty's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 35 slides. Budgeted and actual production data follows: What is the fixed manufacturing overhead budget variance in this period? A) $28,030 unfavorable B) $18,270 unfavorable C) $28,030 favorable D) $18,270 favorable What is the fixed manufacturing overhead budget variance in this period?


A) $28,030 unfavorable
B) $18,270 unfavorable
C) $28,030 favorable
D) $18,270 favorable

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

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A price variance for production inputs is the difference between the actual unit price of an input and the standard unit price of the input, multiplied by the actual input quantity.

A) True
B) False

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Standards should be reviewed and adjusted at least


A) yearly.
B) monthly.
C) weekly.
D) daily.

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

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The standard cost of direct materials per unit is calculated by


A) multiplying the standard quantity of direct materials by the standard price of direct materials.
B) dividing the standard quantity of direct materials by the standard price of direct materials.
C) adding the standard quantity of direct materials to the standard price of direct materials.
D) multiplying the actual quantity of direct materials by the standard price of direct materials.

E) None of the above
F) All of the above

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Which variance is directly impacted if the employees who build the product go on strike and temporary workers who are slower and not as skilled are hired?


A) Direct materials price variance
B) Direct materials quantity variance
C) Direct labor efficiency variance
D) Direct labor rate variance

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

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The Southside Corporation budgeted 4600 pounds of direct materials to make 2700 units of product. The company actually used 5700 pounds of direct materials to make the 2700 units. The direct materials quantity variance is $1200 unfavorable. What is the Standard Price (SP) per pound of direct materials?


A) $0.44
B) $2.25
C) $4.75
D) $1.09

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

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Dozen Bakery makes cupcakes and cookies. Dozen gathered the following information for the current year regarding its use of flour and butter (flour is a direct material for cupcakes and butter is a direct material for cookies) : Dozen Bakery makes cupcakes and cookies. Dozen gathered the following information for the current year regarding its use of flour and butter (flour is a direct material for cupcakes and butter is a direct material for cookies) : The actual direct material quantity used per batch for Cupcakes may be closest to A) 0) 2 lb. B) 1) 6 lbs. C) 2227.0 lbs. D) 0) 6 lbs. The actual direct material quantity used per batch for Cupcakes may be closest to


A) 0) 2 lb.
B) 1) 6 lbs.
C) 2227.0 lbs.
D) 0) 6 lbs.

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

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A(n) ________ "arises because the number of units actually sold differs from the static budget units."


A) flexible budget
B) sales volume variance
C) benchmarking
D) overhead flexible budget variance

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

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Work in process inventory is debited for which of the following when recording the use of direct materials in the production process?


A) Standard quantity of Direct Materials Used (AQU) for actual production output times actual cost per pound
B) Standard quantity of Direct Materials Used (AQU) for actual production output times standard cost per pound
C) Actual quantity (AQ) of Direct Materials Used (AQU) times standard cost per pound
D) Actual quantity (AQ) of Direct Materials Used (AQU) times actual cost per pound

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

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The variable manufacturing overhead (MOH)efficiency variance is calculated as Actual Hours × (Actual Rate - Standard Rate).

A) True
B) False

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