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Exam 7: Performance Evaluation Using Variances From Standard Costs

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Question 91

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Define nonfinancial performance measures.What are they used for and what are some common examples?

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Nonfinancial performance measures evalua...

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Question 92

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Match the following descriptions with the term a-e it describes: -theoretical standard

A) Ideal standard
B) Nonfinancial performance measure
C) Currently attainable standard
D) Unfavorable cost variance
E) Favorable cost variance

F) All of the above
G) None of the above

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Question 93

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The formula to compute the direct material quantity variance is to calculate the difference between

Accounting systems that use standards for product costs are called standard cost systems.

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12, the direct materials price variance was $800 unfavorable.

The fixed factory overhead controllable variance is

Match the following formulas or descriptions with the term a-e it defines. -Actual rate per hour - Standard rate per hour × Actual hours

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

Titus Company purchased and used 650 pounds of tomatoes direct materials to produce a taco sauce with a 635 pound standard direct materials requirement.The standard materials price is $22.40 per pound.The actual price of the tomatoes was $22.20 per pound.Prepare the journal entries to record 1 the purchase of the tomatoes and 2 the tomatoes entering production.Titus records standards and variances in the general ledger.

If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual was 500 hours at $15, the time variance was $1,500 unfavorable.

Compute the direct labor rate and time variances for Taylor Company.

Standard costs serve as a device for measuring efficiency.

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: The direct labor time variance is

The fixed factory overhead volume variance is

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound. What is the direct materials quantity variance?