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At Cady Corporation, maintenance is a variable overhead cost that is based on machine-hours.The performance report for June showed that actual maintenance costs totaled $9, 600 and that the associated rate variance was $400 unfavorable.If 8, 000 machine-hours were actually worked during June, the standard maintenance cost per machine-hour was:


A) $1.30 per MH
B) $1.25 per MH
C) $1.20 per MH
D) $1.15 per MH

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

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Zacher Corporation makes a product with the following standards for direct labor and variable overhead: Zacher Corporation makes a product with the following standards for direct labor and variable overhead: In February the company's budgeted production was 6, 900 units, but the actual production was 7, 000 units.The company used 1, 980 direct labor-hours to produce this output.The actual variable overhead cost was $10, 296.The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for February is: A) $420 U B) $420 F C) $396 F D) $396 U In February the company's budgeted production was 6, 900 units, but the actual production was 7, 000 units.The company used 1, 980 direct labor-hours to produce this output.The actual variable overhead cost was $10, 296.The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for February is:


A) $420 U
B) $420 F
C) $396 F
D) $396 U

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

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Beakins Corporation produces a single product.The standard cost card for the product follows: Beakins Corporation produces a single product.The standard cost card for the product follows: During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials quantity variance for the period is: A) $950 U B) $5, 000 F C) $1, 000 U D) $6, 000 F During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below: Beakins Corporation produces a single product.The standard cost card for the product follows: During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials quantity variance for the period is: A) $950 U B) $5, 000 F C) $1, 000 U D) $6, 000 F The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials quantity variance for the period is:


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

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

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The standard price per unit for direct materials should not include the cost of delivering the materials.

A) True
B) False

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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) None 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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Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost.Jackson has established the following standards for one unit of product. Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost.Jackson has established the following standards for one unit of product. During May, Jackson purchased 125, 000 pounds of direct material at a total cost of $475, 000.The total factory wages for May were $364, 000, 90 percent of which were for direct labor.Jackson manufactured 22, 000 units of product during May using 108, 000 pounds of direct material and 28, 000 direct labor-hours. The materials quantity variance for May is: A) $7, 200 Unfavorable B) $7, 600 Favorable C) $5, 850 Unfavorable D) $7, 200 Favorable During May, Jackson purchased 125, 000 pounds of direct material at a total cost of $475, 000.The total factory wages for May were $364, 000, 90 percent of which were for direct labor.Jackson manufactured 22, 000 units of product during May using 108, 000 pounds of direct material and 28, 000 direct labor-hours. The materials quantity variance for May is:


A) $7, 200 Unfavorable
B) $7, 600 Favorable
C) $5, 850 Unfavorable
D) $7, 200 Favorable

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

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Ortman Corporation makes a product with the following standard costs: Ortman Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. 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 May is: A) $27 F B) $27 U C) $30 U D) $30 F The company reported the following results concerning this product in May. Ortman Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. 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 May is: A) $27 F B) $27 U C) $30 U D) $30 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 efficiency variance for May is:


A) $27 F
B) $27 U
C) $30 U
D) $30 F

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

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Oddo Corporation makes a product with the following standard costs: Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. 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 price variance for December is: A) $2, 520 U B) $2, 520 F C) $2, 900 F D) $2, 900 U The company reported the following results concerning this product in December. Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. 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 price variance for December is: A) $2, 520 U B) $2, 520 F C) $2, 900 F D) $2, 900 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 materials price variance for December is:


A) $2, 520 U
B) $2, 520 F
C) $2, 900 F
D) $2, 900 U

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

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The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours.The following data are available for July: • Actual variable manufacturing overhead cost incurred: $22, 620 • Actual machine-hours worked: 1, 600 hours • Variable overhead rate variance: $3, 420 Unfavorable • Total variable overhead spending variance: $4, 620 Unfavorable The standard number of machine-hours allowed for July production is:


A) 1, 500 hours
B) 1, 600 hours
C) 1, 700 hours
D) 2, 270 hours

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

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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 price variance for September is: A) $11, 020 F B) $9, 912 U C) $9, 912 F D) $11, 020 U 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 price variance for September is:


A) $11, 020 F
B) $9, 912 U
C) $9, 912 F
D) $11, 020 U

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

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Krizum Industries makes heavy construction equipment.The standard for a particular crane calls for 24 direct labor-hours at $16 per direct labor-hour.During a recent period 850 cranes were made.The labor rate variance was zero and the labor efficiency variance was $8, 800 unfavorable.How many actual direct labor-hours were worked?


A) 19, 850
B) 20, 400
C) 20, 950
D) 35, 200

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

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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: What is the materials price variance for the month? A) $2, 250 F B) $7, 540 U C) $24, 317 U D) $7, 660 U 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: What is the materials price variance for the month? A) $2, 250 F B) $7, 540 U C) $24, 317 U D) $7, 660 U What is the materials price variance for the month?


A) $2, 250 F
B) $7, 540 U
C) $24, 317 U
D) $7, 660 U

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

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Purchase of poor quality materials may cause a favorable materials price variance and an unfavorable labor efficiency variance.

A) True
B) False

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Oddo Corporation makes a product with the following standard costs: Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. 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 December is: A) $1, 540 U B) $1, 496 F C) $1, 540 F D) $1, 496 U The company reported the following results concerning this product in December. Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. 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 December is: A) $1, 540 U B) $1, 496 F C) $1, 540 F D) $1, 496 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 materials quantity variance for December is:


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

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

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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 efficiency variance for May is: A) $600 F B) $600 U C) $515 U D) $515 F 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 efficiency variance for May is:


A) $600 F
B) $600 U
C) $515 U
D) $515 F

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

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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 lubricants is closest to: A) $1, 376 F B) $516 U C) $860 F D) $1, 376 U Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for lubricants is closest to:


A) $1, 376 F
B) $516 U
C) $860 F
D) $1, 376 U

E) A) and D)
F) A) 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 materials quantity variance for July was:


A) $22, 960 Unfavorable
B) $22, 400 Unfavorable
C) $9, 600 Unfavorable
D) $9, 840 Unfavorable

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

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A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead.Variable manufacturing overhead standards are based on machine-hours. A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead.Variable manufacturing overhead standards are based on machine-hours. The following data pertain to operations for the last month: What is the variable overhead rate variance for the month? A) $1, 739 U B) $595 F C) $595 U D) $1, 739 F The following data pertain to operations for the last month: A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead.Variable manufacturing overhead standards are based on machine-hours. The following data pertain to operations for the last month: What is the variable overhead rate variance for the month? A) $1, 739 U B) $595 F C) $595 U D) $1, 739 F What is the variable overhead rate variance for the month?


A) $1, 739 U
B) $595 F
C) $595 U
D) $1, 739 F

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

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Berends Corporation makes a product with the following standard costs: Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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) $8, 430 U B) $8, 430 F C) $7, 868 U D) $7, 868 F The company reported the following results concerning this product in April. Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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) $8, 430 U B) $8, 430 F C) $7, 868 U D) $7, 868 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 materials quantity variance for April is:


A) $8, 430 U
B) $8, 430 F
C) $7, 868 U
D) $7, 868 F

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

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