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Ravena Labs., Inc. makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: ∙\bullet 3,750 units of compound were produced during the month. ∙\bullet There was no beginning direct materials inventory. ∙\bullet Direct materials purchased: 12,000 ounces for $225,000. ∙\bullet The ending direct materials inventory was 2,000 ounces. ∙\bullet Direct labor-hours worked: 5,600 hours at a cost of $67,200. ∙\bullet Variable manufacturing overhead costs incurred amounted to $18,200. ∙\bullet Variable manufacturing overhead applied to products: $18,375. The variable overhead efficiency variance for October is:


A) $1,400 Favorable
B) $1,225 Unfavorable
C) $1,900 Unfavorable
D) $2,700 Favorable

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

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Tharaldson Corporation makes a product with the following standard costs: Tharaldson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. 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 efficiency variance for June is: A) $372 F B) $372 U C) $360 F D) $360 U The company reported the following results concerning this product in June. Tharaldson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. 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 efficiency variance for June is: A) $372 F B) $372 U C) $360 F D) $360 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 variable overhead efficiency variance for June is:


A) $372 F
B) $372 U
C) $360 F
D) $360 U

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

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The standard price per unit for direct materials should reflect the final, delivered cost of the materials.

A) True
B) False

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Thyne Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Thyne Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The actual output for the period was 3,900 units. The total standard cost per unit is closest to: A) $85.80 per unit B) $84.22 per unit C) $82.56 per unit D) $90.70 per unit The actual output for the period was 3,900 units. The total standard cost per unit is closest to:


A) $85.80 per unit
B) $84.22 per unit
C) $82.56 per unit
D) $90.70 per unit

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

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Puvo, 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: Puvo, 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 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: A) $4,796 F B) $5,120 U C) $5,120 F D) $4,796 U During March, the following activity was recorded by the company: The company produced 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is:


A) $4,796 F
B) $5,120 U
C) $5,120 F
D) $4,796 U

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

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Doogan Corporation makes a product with the following standard costs: Doogan Corporation makes a product with the following standard costs: The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 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 efficiency variance for January is: A) $1,496 F B) $1,496 U C) $1,540 U D) $1,540 F The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 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 efficiency variance for January is:


A) $1,496 F
B) $1,496 U
C) $1,540 U
D) $1,540 F

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

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Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: In August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable overhead cost was $15,096. The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for August is: A) $520 U B) $481 U C) $481 F D) $520 F In August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable overhead cost was $15,096. The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for August is:


A) $520 U
B) $481 U
C) $481 F
D) $520 F

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

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Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups. The following data pertain to one month's operations: ∙\bullet Variable manufacturing overhead cost incurred: $70,000 ∙\bullet Total variable manufacturing overhead variance: $4,550 Favorable ∙\bullet Standard machine setups allowed for actual production: 3,550 ∙\bullet Actual machine setups incurred: 3,500 The standard variable overhead rate per machine setup is:


A) $20.00
B) $21.30
C) $18.44
D) $21.00

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

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If variable manufacturing overhead is applied on the basis of direct labor-hours and the variable overhead rate variance is favorable, then:


A) the actual variable overhead rate exceeded the standard rate.
B) the standard variable overhead rate exceeded the actual rate.
C) the actual direct labor-hours exceeded the standard direct labor-hours allowed for the actual output.
D) the standard direct labor-hours allowed for the actual output exceeded the actual hours.

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

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Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the labor efficiency variance is favorable, the variable overhead efficiency variance will be:


A) favorable.
B) unfavorable.
C) zero.
D) either favorable or unfavorable.

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

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A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920. The materials price variance was $1,370 favorable. The standard price per kilogram for the raw material must be:


A) $0.20
B) $3.00
C) $3.20
D) $3.40

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

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Puvo, 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: Puvo, 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 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for March is: A) $1,940 U B) $1,940 F C) $1,750 F D) $1,750 U During March, the following activity was recorded by the company: The company produced 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for March is:


A) $1,940 U
B) $1,940 F
C) $1,750 F
D) $1,750 U

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

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Milar Corporation makes a product with the following standard costs: Milar Corporation makes a product with the following standard costs: In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. 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 January is: A) $84 U B) $80 F C) $84 F D) $80 U In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. 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 January is:


A) $84 U
B) $80 F
C) $84 F
D) $80 U

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

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Bulluck Corporation makes a product with the following standard costs: Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. 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) $764 F B) $764 U C) $840 U D) $840 F The company reported the following results concerning this product in July. Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. 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) $764 F B) $764 U C) $840 U D) $840 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 labor rate variance for July is:


A) $764 F
B) $764 U
C) $840 U
D) $840 F

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

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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) $9,790 F B) $11,095 U C) $9,955 F D) $11,095 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) $9,790 F B) $11,095 U C) $9,955 F D) $11,095 F What is the labor efficiency variance for the month?


A) $9,790 F
B) $11,095 U
C) $9,955 F
D) $11,095 F

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

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Gipple Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24,870 grams of the direct material. During the month the company purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is:


A) $2,482 F
B) $2,740 U
C) $2,482 U
D) $2,740 F

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

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Milar Corporation makes a product with the following standard costs: Milar Corporation makes a product with the following standard costs: In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. 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 efficiency variance for January is: A) $36 U B) $40 F C) $36 F D) $40 U In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. 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 efficiency variance for January is:


A) $36 U
B) $40 F
C) $36 F
D) $40 U

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

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Majer Corporation makes a product with the following standard costs: Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February. 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 February is: A) $191 U B) $191 F C) $196 U D) $196 F The company reported the following results concerning this product in February. Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February. 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 February is: A) $191 U B) $191 F C) $196 U D) $196 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 variable overhead rate variance for February is:


A) $191 U
B) $191 F
C) $196 U
D) $196 F

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

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Suver Corporation has a standard costing system. The following data are available for June: Suver Corporation has a standard costing system. The following data are available for June: The actual price per pound of direct materials purchased in June was: A) $6.10 per pound B) $5.90 per pound C) $6.25 per pound D) $6.30 per pound The actual price per pound of direct materials purchased in June was:


A) $6.10 per pound
B) $5.90 per pound
C) $6.25 per pound
D) $6.30 per pound

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

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Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December: The labor rate variance for the month is closest to: A) $1,722 U B) $1,722 F C) $1,620 F D) $1,620 U The company has reported the following actual results for the product for December: Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December: The labor rate variance for the month is closest to: A) $1,722 U B) $1,722 F C) $1,620 F D) $1,620 U The labor rate variance for the month is closest to:


A) $1,722 U
B) $1,722 F
C) $1,620 F
D) $1,620 U

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

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