quiz chapter 10 1 generally speaking it is the responsibility of the production 382713

Quiz Chapter 10 1. Generally speaking, it is the responsibility of the production department to see that material usage is kept in line with standards. A) True B) False 2. Standard costs greatly increase the complexity of the bookkeeping process. A) True B) False 3. Hickory Corporation, which produces commercial safes, has provided the following data: Picture Supplies cost is an element of variable manufacturing overhead. The variable overhead efficiency variance for supplies is closest to: A) $47,251 U B) $4,350 U C) $4,350 F D) $47,251 F 4. The following standards for variable manufacturing overhead have been established for a company that makes only one product: Picture The following data pertain to operations for the last month: Picture What is the variable overhead rate variance for the month? A) $1,200 F B) $9,625 F C) $8,425 F D) $990 U 5. The Thompson Company uses standard costing and has established the following direct material and direct labor standards for each unit of Lept. Direct materials: 2 gallons at $4 per gallon Direct labor: 0.5 hours at $8 per hour During September, the company made 6,000 Lepts and incurred the following costs: Direct materials purchased: 13,400 gallons at $4.10 per gallon Direct materials used: 12,600 gallons Direct labor used: 2,800 hours at $7.65 per hour The materials quantity variance for September was: A) $2,460 unfavorable B) $5,600 unfavorable C) $2,400 unfavorable D) $5,740 unfavorable 6. Gentile Corporation makes a product with the following standard costs: Picture The company produced 6,000 units in May using 36,970 kilos of direct material and 4,340 direct labor hours. During the month, the company purchased 40,400 kilos of the direct material at $4.70 per kilo. The actual direct labor rate was $13.70 per hour and the actual variable overhead rate was $2.70 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 May is: A) $1,440 U B) $1,302 F C) $1,302 U D) $1,440 F 7. Landram Corporation makes a product with the following standard costs: Picture In March the company produced 4,700 units using 10,230 kilos of the direct material and 2,210 direct labor hours. During the month, the company purchased 10,800 kilos of the direct material at a cost of $76,680. The actual direct labor cost was $38,233 and the actual variable overhead cost was $11,934. 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 March is: A) $3,757 U B) $3,757 F C) $3,995 U D) $3,995 F 8. Landram Corporation makes a product with the following standard costs: Picture In March the company produced 4,700 units using 10,230 kilos of the direct material and 2,210 direct labor hours. During the month, the company purchased 10,800 kilos of the direct material at a cost of $76,680. The actual direct labor cost was $38,233 and the actual variable overhead cost was $11,934. 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 March is: A) $884 U B) $884 F C) $940 U D) $940 F 9. The Thompson Company uses standard costing and has established the following direct material and direct labor standards for each unit of Lept. Direct materials: 2 gallons at $4 per gallon Direct labor: 0.5 hours at $8 per hour During September, the company made 6,000 Lepts and incurred the following costs: Direct materials purchased: 13,400 gallons at $4.10 per gallon Direct materials used: 12,600 gallons Direct labor used: 2,800 hours at $7.65 per hour The labor efficiency variance for September was: A) $33,600 favorable B) $1,600 favorable C) $22,400 favorable D) $3,200 favorable 10. The following labor standards have been established for a particular product: Picture The following data pertain to operations concerning the product for the last month: Picture What is the labor rate variance for the month? A) $1,325 U B) $1,780 F C) $430 F D) $430 U