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The following data have been provided by Mathews Corporation: The following data have been provided by Mathews Corporation: Lubricants and supplies are both elements of variable manufacturing overhead. -The variable overhead rate variance for supplies is closest to: A) $430 U B) $736 F C) $306 U D) $736 U Lubricants and supplies are both elements of variable manufacturing overhead. -The variable overhead rate variance for supplies is closest to:


A) $430 U
B) $736 F
C) $306 U
D) $736 U

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

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The following standards for variable overhead have been established for a company that makes only one product: The following standards for variable overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: Required: a. What is the variable overhead rate variance for the month? b. What is the variable overhead efficiency variance for the month? The following data pertain to operations for the last month: The following standards for variable overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: Required: a. What is the variable overhead rate variance for the month? b. What is the variable overhead efficiency variance for the month? Required: a. What is the variable overhead rate variance for the month? b. What is the variable overhead efficiency variance for the month?

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a. Variable overhead rate variance = (AH...

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Melrose Corporation makes a product that uses a material with the following standards: Melrose Corporation makes a product that uses a material with the following standards: The company budgeted for production of 5,800 units in September, but actual production was 5,900 units. The company used 50,210 pounds of direct material to produce this output. The company purchased 55,100 pounds of the direct material at $5.80 per pound. The direct materials purchases variance is computed when the materials are purchased. -The materials quantity variance for September is: A) $3,770 F B) $3,900 U C) $3,770 U D) $3,900 F The company budgeted for production of 5,800 units in September, but actual production was 5,900 units. The company used 50,210 pounds of direct material to produce this output. The company purchased 55,100 pounds of the direct material at $5.80 per pound. The direct materials purchases variance is computed when the materials are purchased. -The materials quantity variance for September is:


A) $3,770 F
B) $3,900 U
C) $3,770 U
D) $3,900 F

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

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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 efficiency variance for September is:


A) $51 U
B) $50 U
C) $51 F
D) $50 F

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

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Welcome Corporation produces metal telephone poles. In the most recent month, the company budgeted production of 4,100 poles. Actual production was 4,400 poles. According to standards, each pole requires 7.0 machine-hours. The actual machine-hours for the month were 31,140 machine-hours. The standard variable manufacturing overhead rate is $2.50 per machine-hour. The actual variable manufacturing overhead cost for the month was $83,787. The variable overhead efficiency variance is:


A) $6,787 F
B) $6,787 U
C) $850 F
D) $850 U

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

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In a company's standard costing system direct labor-hours are used as the base for applying variable manufacturing overhead costs. The standard direct labor rate is twice the variable overhead rate. Last period the labor efficiency variance was unfavorable. From this information one can conclude that last period the variable overhead efficiency variance was:


A) unfavorable and half the labor efficiency variance.
B) favorable and half the labor efficiency variance.
C) unfavorable and twice the labor efficiency variance.
D) favorable and twice the labor efficiency variance.

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

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The Hanson Corporation employs a standard costing system. The following data are available for February: The Hanson Corporation employs a standard costing system. The following data are available for February: The actual direct labor rate for February is: A) $7.60 per hour B) $8.40 per hour C) $8.00 per hour D) $2.50 per hour The actual direct labor rate for February is:


A) $7.60 per hour
B) $8.40 per hour
C) $8.00 per hour
D) $2.50 per hour

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

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The Collins Corporation uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes: • Direct materials: 4 gallons at $8 per gallon • Direct labor: 1 hour at $16 per hour During July, the company made 6,000 units of product and incurred the following costs: • Direct materials purchased: 26,800 gallons at $8.20 per gallon • Direct materials used: 25,200 gallons • Direct labor used: 5,600 hours at $15.30 per hour The direct materials purchases variance is computed when the materials are purchased. -The labor rate variance for July was:


A) $3,920 Unfavorable
B) $6,120 Unfavorable
C) $1,120 Favorable
D) $3,920 Favorable

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

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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) $19,017 F B) $19,017 U C) $16,029 F D) $16,577 F 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) $19,017 F B) $19,017 U C) $16,029 F D) $16,577 F What is the labor efficiency variance for the month?


A) $19,017 F
B) $19,017 U
C) $16,029 F
D) $16,577 F

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

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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 B)
F) A) and C)

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Taccone Corporation makes a product that has the following direct labor standards: Taccone Corporation makes a product that has the following direct labor standards: In February the company produced 4,100 units using 1,120 direct labor-hours. The actual direct labor rate was $20.40 per hour. -The labor rate variance for February is: A) $448 U B) $448 F C) $492 U D) $492 F In February the company produced 4,100 units using 1,120 direct labor-hours. The actual direct labor rate was $20.40 per hour. -The labor rate variance for February is:


A) $448 U
B) $448 F
C) $492 U
D) $492 F

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

Correct Answer

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Wall Corporation, which produces commercial safes, has provided the following data: Wall Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead. -The variable overhead rate variance for supplies is closest to: A) $52,966 U B) $49,870 F C) $52,966 F D) $49,870 U Supplies cost is an element of variable manufacturing overhead. -The variable overhead rate variance for supplies is closest to:


A) $52,966 U
B) $49,870 F
C) $52,966 F
D) $49,870 U

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

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Machain Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's standard variable manufacturing overhead rate is $2.90 per machine-hour. The actual variable manufacturing overhead cost for the month was $15,270. The original budget for the month was based on 5,000 machine-hours. The company actually worked 5,090 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,200 machine-hours. What was the variable overhead efficiency variance for the month?


A) $580 Unfavorable
B) $190 Unfavorable
C) $509 Unfavorable
D) $319 Favorable

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

Correct Answer

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Desue Corporation makes a product with the following standards for labor and variable overhead: Desue Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours. -The variable overhead efficiency variance for December is: A) $140 F B) $128 F C) $128 U D) $140 U The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours. -The variable overhead efficiency variance for December is:


A) $140 F
B) $128 F
C) $128 U
D) $140 U

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

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The materials quantity variance for the period is:


A) $950 U
B) $5,000 F
C) $1,000 U
D) $6,000 F

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

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The following materials standards have been established for a particular product: The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: The direct materials purchases variance is computed when the materials are purchased. -What is the materials price variance for the month? A) $4,060 U B) $3,640 F C) $3,640 U D) $4,060 F The following data pertain to operations concerning the product for the last month: The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: The direct materials purchases variance is computed when the materials are purchased. -What is the materials price variance for the month? A) $4,060 U B) $3,640 F C) $3,640 U D) $4,060 F The direct materials purchases variance is computed when the materials are purchased. -What is the materials price variance for the month?


A) $4,060 U
B) $3,640 F
C) $3,640 U
D) $4,060 F

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

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Biery Corporation makes a product with the following standard costs: Biery Corporation makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 quantity variance for April is: A) $290 F B) $290 U C) $300 F D) $300 U The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 quantity variance for April is:


A) $290 F
B) $290 U
C) $300 F
D) $300 U

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

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The following data have been provided by Leason Corporation: The following data have been provided by Leason Corporation: Required: Compute the variable overhead rate variances for lubricants and for supplies. Indicate whether each of the variances is favorable (F) or unfavorable (U). Show your work! Required: Compute the variable overhead rate variances for lubricants and for supplies. Indicate whether each of the variances is favorable (F) or unfavorable (U). Show your work!

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Lubricants:
Variable overhead rate varia...

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The variance that is usually most useful in assessing the performance of the purchasing department manager is:


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

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

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Biery Corporation makes a product with the following standard costs: Biery Corporation makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 April is: A) $261 U B) $246 F C) $261 F D) $246 U The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 April is:


A) $261 U
B) $246 F
C) $261 F
D) $246 U

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

Correct Answer

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