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Tout Corporation makes a product that has the following direct labor standards: Tout Corporation makes a product that has the following direct labor standards: The company budgeted for production of 6, 400 units in October, but actual production was 6, 500 units.The company used 610 direct labor-hours to produce this output.The actual direct labor rate was $21.80 per hour. The labor efficiency variance for October is: A) $872 F B) $872 U C) $880 U D) $880 F The company budgeted for production of 6, 400 units in October, but actual production was 6, 500 units.The company used 610 direct labor-hours to produce this output.The actual direct labor rate was $21.80 per hour. The labor efficiency variance for October is:


A) $872 F
B) $872 U
C) $880 U
D) $880 F

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

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Imrie Corporation makes a product that uses a material with the quantity standard of 9.5 grams per unit of output and the price standard of $5.00 per gram.In January the company produced 2, 900 units using 26, 940 grams of the direct material.During the month the company purchased 28, 900 grams of the direct material at $4.90 per gram.The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is:


A) $2, 755 U
B) $2, 890 F
C) $2, 890 U
D) $2, 755 F

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

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Pardoe, 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: Pardoe, 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 3, 000 units during the month. • A total of 8, 000 pounds of material were purchased at a cost of $23, 000. • There was no beginning inventory of materials on hand to start the month;at the end of the month, 2, 000 pounds of material remained in the warehouse. • During March, 1, 600 direct labor-hours were worked at a rate of $6.50 per hour. • Variable manufacturing overhead costs during March totaled $1, 800. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for March is: A) $5, 040 U B) $1, 200 U C) $1, 200 F D) $5, 040 F During March, the following activity was recorded by the company: • The company produced 3, 000 units during the month. • A total of 8, 000 pounds of material were purchased at a cost of $23, 000. • There was no beginning inventory of materials on hand to start the month;at the end of the month, 2, 000 pounds of material remained in the warehouse. • During March, 1, 600 direct labor-hours were worked at a rate of $6.50 per hour. • Variable manufacturing overhead costs during March totaled $1, 800. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for March is:


A) $5, 040 U
B) $1, 200 U
C) $1, 200 F
D) $5, 040 F

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

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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 labor rate variance for the period is: A) $3, 150 U B) $2, 700 F C) $2, 700 U D) $3, 150 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 labor rate variance for the period is: A) $3, 150 U B) $2, 700 F C) $2, 700 U D) $3, 150 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 labor rate variance for the period is:


A) $3, 150 U
B) $2, 700 F
C) $2, 700 U
D) $3, 150 F

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

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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 variable overhead efficiency variance for the period is: A) $1, 200 U B) $1, 440 U C) $1, 200 F D) $1, 440 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 variable overhead efficiency variance for the period is: A) $1, 200 U B) $1, 440 U C) $1, 200 F D) $1, 440 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 variable overhead efficiency variance for the period is:


A) $1, 200 U
B) $1, 440 U
C) $1, 200 F
D) $1, 440 F

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

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Galla Corporation makes a product with the following standard costs: Galla Corporation makes a product with the following standard costs: The company budgeted for production of 2, 400 units in June, but actual production was 2, 500 units.The company used 19, 850 pounds of direct material and 980 direct labor-hours to produce this output.The company purchased 21, 700 pounds of the direct material at $6.70 per pound.The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 efficiency variance for June is: A) $384 F B) $400 U C) $400 F D) $384 U The company budgeted for production of 2, 400 units in June, but actual production was 2, 500 units.The company used 19, 850 pounds of direct material and 980 direct labor-hours to produce this output.The company purchased 21, 700 pounds of the direct material at $6.70 per pound.The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 efficiency variance for June is:


A) $384 F
B) $400 U
C) $400 F
D) $384 U

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

Correct Answer

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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 materials quantity variance for May is: A) $1, 200 U B) $1, 200 F C) $1, 215 F D) $1, 215 U 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 materials quantity variance for May is: A) $1, 200 U B) $1, 200 F C) $1, 215 F D) $1, 215 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 May is:


A) $1, 200 U
B) $1, 200 F
C) $1, 215 F
D) $1, 215 U

E) A) and B)
F) B) 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 efficiency variance for February is: A) $2, 244 F B) $2, 244 U C) $2, 200 U D) $2, 200 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 efficiency variance for February is:


A) $2, 244 F
B) $2, 244 U
C) $2, 200 U
D) $2, 200 F

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

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Rardin Corporation makes a product with the following standard costs: Rardin 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. Required: a.Compute the materials quantity variance. b.Compute the materials price variance. c.Compute the labor efficiency variance. d.Compute the labor rate variance. e.Compute the variable overhead efficiency variance. f.Compute the variable overhead rate variance. The company reported the following results concerning this product in July. Rardin 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. Required: a.Compute the materials quantity variance. b.Compute the materials price variance. c.Compute the labor efficiency variance. d.Compute the labor rate variance. e.Compute the variable overhead efficiency variance. f.Compute the variable overhead rate variance. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. Required: a.Compute the materials quantity variance. b.Compute the materials price variance. c.Compute the labor efficiency variance. d.Compute the labor rate variance. e.Compute the variable overhead efficiency variance. f.Compute the variable overhead rate variance.

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a.SQ = 2, 200 units × 7.4 ounces per uni...

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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 variable overhead rate variance for December is: A) $316 F B) $294 F C) $316 U D) $294 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 variable overhead rate variance for December is: A) $316 F B) $294 F C) $316 U D) $294 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 rate variance for December is:


A) $316 F
B) $294 F
C) $316 U
D) $294 U

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

Correct Answer

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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 price variance for the period is: A) $1, 250 F B) $1, 500 F C) $1, 250 U D) $1, 500 U 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 price variance for the period is: A) $1, 250 F B) $1, 500 F C) $1, 250 U D) $1, 500 U 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 price variance for the period is:


A) $1, 250 F
B) $1, 500 F
C) $1, 250 U
D) $1, 500 U

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

Correct Answer

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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 labor efficiency variance for May is: A) $483 U B) $510 U C) $483 F D) $510 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 labor efficiency variance for May is: A) $483 U B) $510 U C) $483 F D) $510 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 efficiency variance for May is:


A) $483 U
B) $510 U
C) $483 F
D) $510 F

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

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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 rate variance for the month? A) $1, 295 F B) $2, 877 F C) $4, 246 F D) $4, 246 U 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 rate variance for the month? A) $1, 295 F B) $2, 877 F C) $4, 246 F D) $4, 246 U What is the labor rate variance for the month?


A) $1, 295 F
B) $2, 877 F
C) $4, 246 F
D) $4, 246 U

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

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A direct materials quantity standard generally includes an allowance for waste.

A) True
B) False

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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 labor rate variance for May is: A) $1, 008 F B) $981 U C) $981 F D) $1, 008 U 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 labor rate variance for May is: A) $1, 008 F B) $981 U C) $981 F D) $1, 008 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 labor rate variance for May is:


A) $1, 008 F
B) $981 U
C) $981 F
D) $1, 008 U

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

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Sholette Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $5.00 per MH.During the month, the actual total variable manufacturing overhead was $22, 540 and the actual level of activity for the period was 4, 600 MHs.What was the variable overhead rate variance for the month?


A) $92 Favorable
B) $92 Unfavorable
C) $460 Unfavorable
D) $460 Favorable

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

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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) B) and C)

Correct Answer

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The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead rate variance for the month? A) $112 F B) $130 U C) $4, 450 U D) $4, 338 U The following data pertain to operations for the last month: The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead rate variance for the month? A) $112 F B) $130 U C) $4, 450 U D) $4, 338 U What is the variable overhead rate variance for the month?


A) $112 F
B) $130 U
C) $4, 450 U
D) $4, 338 U

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

Correct Answer

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Pearle Corporation makes automotive engines.For the most recent month, budgeted production was 3, 300 engines.The standard power cost is $9.20 per machine-hour.The company's standards indicate that each engine requires 2.1 machine-hours.Actual production was 3, 400 engines.Actual machine-hours were 7, 160 machine-hours.Actual power cost totaled $61, 815. Required: Determine the rate and efficiency variances for the variable overhead item power cost and indicate whether those variances are unfavorable or favorable.Show your work!

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Variable overhead rate variance = (AH × ...

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A quantity standard indicates how much output should have been produced.

A) True
B) False

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