FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 29: Controlling Manufacturing Costs: Standard Costs

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

Variance analysis is a tool used by management to pinpoint inefficiencies in the manufacturing process.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Petersen Company produces a single product with the following production and average cost data: The best estimate of the variable cost per unit is:

A) $36.00 per unit
B) $57.00 per unit
C) $15.00 per unit
D) $42.00 per unit

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

Correct Answer

verified

Show Answer

Question 23

Essay

Review LaterAdd Note

Develop the standard costs from the information given.Morlee Corporation makes three models of storage sheds.Model JB102 a 10' by 12' model that looks Victorian with windows,shutters and gingerbread along the roof line,is Morlee's most popular model.Direct materials for the JB102 consists of $66.00 for 7 sheets of pressed board,$59.00 for 2 × 4's for framing,$22.00 for roofing shingles,and $17.00 for aluminum siding.The nails,glue and other indirect materials for the company total $38,880 per year and are applied based on direct labor hours.The total direct labor hours for Morlee for one year are estimated to be 8,000 per year.Direct labor for each JB102 is estimated to be 7 hours.The average hourly rate at Morelee is $14.50.Prepare a standard cost card for Model JB102.Units and per unit amount for material can be omitted.

Which of the following costs are generally semi-variable?

The range of activity at which the factory is likely to operate is referred to as the ____________________ range of activity.

The Costmore Company uses standard costing and has established the following standards for direct materials and direct labor for each unit it makes: During July,the company made 4,000 units of product and used 13,000 gallons.The actual price paid for materials was $5.20 per gallon. Direct Labor used was 3,600 hours and workers were paid $11.75 per hour. An analysis would indicate

A key purpose of a manufacturing cost budget is to provide a basis for measuring performance.

To separate the semi-variable costs into their fixed and variable components,one can use which of the following methods?

Which variance is controllable by the purchasing manager?

Canine Cottage Industries makes several specially designed doghouses.The Standard Cost Card for The Gables model is shown.A customer ordered three of this model for their Labrador retrievers.The Job Cost Sheet is shown. From the information given for Canine Cottage Industries,compute the materials,quantity and price variances.

Standard costs reflect what costs should be for the units of product manufactured during the period under the normal efficient operating conditions.

As the volume of output decreases,the fixed cost per unit of output increases.

Reelmates manufactures fishing poles.In a recent month,the company budgeted production of 2,000 poles.Actual production was 2,200.According to the standard cost card,each pole requires 3 feet of fiberglass rod at a cost of $9 per foot.Reelmates used 6,500 feet of rod at a net cost of $65,000 for the period. The total material variance was:

If the standard cost for an item exceeds the actual cost,the variance is favorable.

An increase in activity level will result in:

The materials price variance for an item is the difference between its actual price and its standard cost

Complete the flexible budget for Cullville Industries for April 2016.Overhead is based on direct labor hours.

Better Blankets,Inc.makes a SnuggieBlank using flannel material and trim binding.They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need.The Standard Cost Card for The SnuggieBlank model is shown. The company reported the following results concerning January results: The material quantity variance for Flannel used in January is:

As the level of activity increases,the variable cost per unit of activity

Costs that do not vary in total during a period even though the volume of manufacturing activity changes are called ____________________ costs.