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Irving Corporation makes a product with the following standards for direct labor and variable overhead: Irving Corporation makes a product with the following standards for direct labor and variable overhead: In November the company's budgeted production was 5,300 units, but the actual production was 5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual variable overhead cost was $7,590. The company applies variable overhead on the basis of direct labor-hours. -The variable overhead efficiency variance for November is: A) $552 U B) $600 U C) $600 F D) $552 F In November the company's budgeted production was 5,300 units, but the actual production was 5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual variable overhead cost was $7,590. The company applies variable overhead on the basis of direct labor-hours. -The variable overhead efficiency variance for November is:


A) $552 U
B) $600 U
C) $600 F
D) $552 F

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

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Bailey Corporation manufactures orange safety suits for road workers.The following information relates to the corporation's purchases and use of material for April: Bailey Corporation manufactures orange safety suits for road workers.The following information relates to the corporation's purchases and use of material for April: The company's materials price variance for April was $3,000 Favorable.Its materials quantity variance for April was $5,000 Favorable.What does the company use as a standard price per yard of material for its safety suits? A) $5.75 per yard B) $6.50 per yard C) $6.25 per yard D) $6.00 per yard The company's materials price variance for April was $3,000 Favorable.Its materials quantity variance for April was $5,000 Favorable.What does the company use as a standard price per yard of material for its safety suits?


A) $5.75 per yard
B) $6.50 per yard
C) $6.25 per yard
D) $6.00 per yard

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

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Wolery Inc. has provided the following data concerning one of the products in its standard cost system. Wolery Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for April: -The labor rate variance for the month is closest to: A) $2,576 U B) $2,816 U C) $2,816 F D) $2,576 F The company has reported the following actual results for the product for April: Wolery Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for April: -The labor rate variance for the month is closest to: A) $2,576 U B) $2,816 U C) $2,816 F D) $2,576 F -The labor rate variance for the month is closest to:


A) $2,576 U
B) $2,816 U
C) $2,816 F
D) $2,576 F

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

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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 raw materials price variance for the month is closest to: A) $15,060 U B) $14,016 F C) $15,060 F D) $14,016 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 raw materials price variance for the month is closest to: A) $15,060 U B) $14,016 F C) $15,060 F D) $14,016 U -The raw materials price variance for the month is closest to:


A) $15,060 U
B) $14,016 F
C) $15,060 F
D) $14,016 U

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

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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 labor rate variance for January is: A) $1,666 F B) $1,820 F C) $1,666 U D) $1,820 U 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 labor rate variance for January is:


A) $1,666 F
B) $1,820 F
C) $1,666 U
D) $1,820 U

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

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Devoto Inc. has provided the following data concerning one of the products in its standard cost system. Devoto Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for June: -The raw materials quantity variance for the month is closest to: A) $77 U B) $85 F C) $85 U D) $77 F The company has reported the following actual results for the product for June: Devoto Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for June: -The raw materials quantity variance for the month is closest to: A) $77 U B) $85 F C) $85 U D) $77 F -The raw materials quantity variance for the month is closest to:


A) $77 U
B) $85 F
C) $85 U
D) $77 F

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

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Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below: Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below: The original budget was based on 4,200 machine-hours.The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours.What was the overall variable overhead efficiency variance for the month? A) $130 Unfavorable B) $950 Favorable C) $1,310 Favorable D) $1,440 Unfavorable The original budget was based on 4,200 machine-hours.The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours.What was the overall variable overhead efficiency variance for the month?


A) $130 Unfavorable
B) $950 Favorable
C) $1,310 Favorable
D) $1,440 Unfavorable

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

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Miguez Corporation makes a product with the following standard costs: Miguez Corporation makes a product with the following standard costs: The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 labor rate variance for September is: A) $3,675 F B) $3,528 U C) $3,528 F D) $3,675 U The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 labor rate variance for September is:


A) $3,675 F
B) $3,528 U
C) $3,528 F
D) $3,675 U

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

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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) $4,769 F B) $5,120 U C) $5,120 F D) $4,769 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) $4,769 F
B) $5,120 U
C) $5,120 F
D) $4,769 U

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

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Grub Chemical Corporation has developed cost standards for the production of its new cologne, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO: Grub Chemical Corporation has developed cost standards for the production of its new cologne, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO: Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual results for last month were as follows: -What is ChocO's labor rate variance? A) $902 Favorable B) $2,880 Favorable C) $3,782 Favorable D) $14,432 Favorable Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual results for last month were as follows: Grub Chemical Corporation has developed cost standards for the production of its new cologne, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO: Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual results for last month were as follows: -What is ChocO's labor rate variance? A) $902 Favorable B) $2,880 Favorable C) $3,782 Favorable D) $14,432 Favorable -What is ChocO's labor rate variance?


A) $902 Favorable
B) $2,880 Favorable
C) $3,782 Favorable
D) $14,432 Favorable

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

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The following direct labor standards have been established for product O64L: The following direct labor standards have been established for product O64L: The following data pertain to last month's operations: Required: a.What was the labor rate variance for the month? b.What was the labor efficiency variance for the month? The following data pertain to last month's operations: The following direct labor standards have been established for product O64L: The following data pertain to last month's operations: Required: a.What was the labor rate variance for the month? b.What was the labor efficiency variance for the month? Required: a.What was the labor rate variance for the month? b.What was the labor efficiency variance for the month?

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a.Labor rate variance = (AH × AR)− (AH ×...

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Lacrue 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. Lacrue 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 standard amount of materials allowed for the actual output is closest to: A) 23,310 ounces B) 23,300 ounces C) 22,687 ounces D) 23,940 ounces -The standard amount of materials allowed for the actual output is closest to:


A) 23,310 ounces
B) 23,300 ounces
C) 22,687 ounces
D) 23,940 ounces

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

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Miguez Corporation makes a product with the following standard costs: Miguez Corporation makes a product with the following standard costs: The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 price variance for September is: A) $1,150 U B) $1,150 F C) $1,160 F D) $1,160 U The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 price variance for September is:


A) $1,150 U
B) $1,150 F
C) $1,160 F
D) $1,160 U

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

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Pippin 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. Pippin 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 June: -The variable overhead rate variance for the month is closest to: A) $460 U B) $510 F C) $510 U D) $460 F The company has reported the following actual results for the product for June: Pippin 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 June: -The variable overhead rate variance for the month is closest to: A) $460 U B) $510 F C) $510 U D) $460 F -The variable overhead rate variance for the month is closest to:


A) $460 U
B) $510 F
C) $510 U
D) $460 F

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

Correct Answer

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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 efficiency variance for March is: A) $1,060 F B) $1,060 U C) $935 F D) $935 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 efficiency variance for March is:


A) $1,060 F
B) $1,060 U
C) $935 F
D) $935 U

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

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The following data for November have been provided by Hunn Corporation,a producer of precision drills for oil exploration: The following data for November have been provided by Hunn Corporation,a producer of precision drills for oil exploration: Required: Compute the variable overhead rate variances for indirect labor and for power for November.Indicate whether each of the variances is favorable (F)or unfavorable (U).Show your work! Required: Compute the variable overhead rate variances for indirect labor and for power for November.Indicate whether each of the variances is favorable (F)or unfavorable (U).Show your work!

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Indirect labor:
Variable overhead rate v...

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When the materials price variance is recorded at the time of purchase,raw materials are recorded as inventory at standard cost.

A) True
B) False

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Hardigree Corporation makes a product that has the following direct labor standards: Hardigree Corporation makes a product that has the following direct labor standards: In May the company's budgeted production was 8,900 units, but the actual production was 8,800 units. The company used 2,820 direct labor-hours to produce this output. The actual direct labor cost was $70,218. -The labor rate variance for May is: A) $5,016 U B) $5,358 U C) $5,016 F D) $5,358 F In May the company's budgeted production was 8,900 units, but the actual production was 8,800 units. The company used 2,820 direct labor-hours to produce this output. The actual direct labor cost was $70,218. -The labor rate variance for May is:


A) $5,016 U
B) $5,358 U
C) $5,016 F
D) $5,358 F

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

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Handerson Corporation makes a product with the following standard costs: Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. 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 August is: A) $10,980 F B) $11,346 U C) $10,980 U D) $11,346 F The company reported the following results concerning this product in August. Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. 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 August is: A) $10,980 F B) $11,346 U C) $10,980 U D) $11,346 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 August is:


A) $10,980 F
B) $11,346 U
C) $10,980 U
D) $11,346 F

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

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Sade 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. Sade 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: Required: a.Compute the variable overhead rate variance for December. b.Compute the variable overhead efficiency variance for December. The company has reported the following actual results for the product for December: Sade 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: Required: a.Compute the variable overhead rate variance for December. b.Compute the variable overhead efficiency variance for December. Required: a.Compute the variable overhead rate variance for December. b.Compute the variable overhead efficiency variance for December.

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

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