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    Standard Costing Ang Variance Analysis

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    Lhorene Hope Dueñas
    The document discusses standard costing and variance analysis using examples from multiple companies. It provides information on standard overhead rates, actual overhead costs, budgeted vs actual production levels, and variances calculated using 1, 2, or 3-way analysis methods. Multiple choice questions test the reader's ability to calculate different types of variances such as spending, efficiency, volume, and total overhead variances based on the information given.

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    Standard Costing Ang Variance Analysis

    Uploaded by

    Lhorene Hope Dueñas
    167 views3 pages
    The document discusses standard costing and variance analysis using examples from multiple companies. It provides information on standard overhead rates, actual overhead costs, budgeted vs actual production levels, and variances calculated using 1, 2, or 3-way analysis methods. Multiple choice questions test the reader's ability to calculate different types of variances such as spending, efficiency, volume, and total overhead variances based on the information given.

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    The document discusses standard costing and variance analysis using examples from multiple companies. It provides information on standard overhead rates, actual overhead costs, budgeted vs actual production levels, and variances calculated using 1, 2, or 3-way analysis methods. Multiple choice questions test the reader's ability to calculate different types of variances such as spending, efficiency, volume, and total overhead variances based on the information given.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    167 views3 pages

    Standard Costing Ang Variance Analysis

    Uploaded by

    Lhorene Hope Dueñas
    The document discusses standard costing and variance analysis using examples from multiple companies. It provides information on standard overhead rates, actual overhead costs, budgeted vs actual production levels, and variances calculated using 1, 2, or 3-way analysis methods. Multiple choice questions test the reader's ability to calculate different types of variances such as spending, efficiency, volume, and total overhead variances based on the information given.

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    © All Rights Reserved
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    of 3

    Standard Costing and Variance Analysis

    Ponc Company uses a standard cost accounting system. The following overhead costs and production data are
    available for September:

    Standard fixed OH rate per DLH $1


    Standard variable OH rate per DLH $4
    Budgeted monthly DLHs 40,000
    Actual DLHs worked 39,500
    Standard DLHs allowed for actual production 39,000
    Overall OH variance-favorable $2,000

    The total applied manufacturing overhead for September should be


    a. $195,000.
    b. $197,000.
    c. $197,500.
    d. $199,500.
    ANS: A

    Lutr Manufacturing Company uses a standard cost system and prepared the following budget at
    normal capacity for October:

    Direct labor hours 24,000


    Variable OH $48,000
    Fixed OH $108,000
    Total OH per DLH $6.50

    Actual data for October were as follows:


    Direct labor hours worked 22,000
    Total OH $147,000
    Standard DLHs allowed for capacity attained 21,000

    Using the two-way analysis of overhead variances, what is the controllable variance for October?
    a. $3,000 F
    b. $5,000 F
    c. $9,000 F
    d. $10,500 U
    ANS: A

    The following information is available from the Fitz Company:

    Actual OH $15,000
    Fixed OH expenses, actual $7,200
    Fixed OH expenses, budgeted $7,000
    Actual hours 3,500
    Standard hours 3,800
    Variable OH rate per DLH $2.50

    Assuming that Fitz uses a three-way analysis of overhead variances, what is the overhead spending
    variance?
    a. $750 F
    b. $750 U
    c. $950 F
    d. $1,500 U
    ANS: A

    107. Norr Company uses a two-way analysis of overhead variances. Selected data for the March production
    activity are as follows:

    Actual variable OH incurred $196,000


    Variable OH rate per MH $6
    Standard MHs allowed 33,000
    Actual MHs 32,000

    Assuming that budgeted fixed overhead costs are equal to actual fixed costs, the controllable variance
    for March is
    a. $2,000 F.
    b. $4,000 U.
    c. $4,000 F.
    d. $6,000 F.
    ANS: A

    Super Company uses a standard cost system. Overhead cost information for January is as follows:

    Total actual overhead incurred $12,600


    Fixed overhead budgeted $3,300
    Total standard overhead rate per MH $4
    Variable overhead rate per MH $3
    Standard MHs allowed for actual production 3,500

    What is the total overhead variance?


    a. $1,200 F
    b. $1,200 U
    c. $1,400 F
    d. $1,400 U
    ANS: C

    Toy Company has developed standard overhead costs based on a capacity of 180,000 machine hours
    as follows:

    Standard costs per unit:


    Variable portion 2 hours @ $3 = $ 6
    Fixed portion 2 hours @ $5 = 10
    $16

    During November, 85,000 units were scheduled for production, but only 80,000 units were actually
    produced. The following data relate to November:

    Actual machine hours used were 165,000.


    Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed).
    All inventories are carried at standard cost.
    Refer to Toy Company. The variable overhead spending variance for November was
    a. $15,000 U.
    b. $23,000 U.
    c. $38,000 F.
    d. $38,000 U.
    ANS: B

    Refer to Toy Company. The variable overhead efficiency variance for November was
    a. $15,000 U.
    b. $23,000 U.
    c. $38,000 F.
    d. $38,000 U.
    ANS: A

    Refer to Toy Company. The fixed overhead volume variance for November was
    a. $60,000 U.
    b. $60,000 F.
    c. $100,000 F.
    d. $100,000 U.
    ANS: D

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