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What is standard cost accounting?

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"When standard cost accounting is used, ...

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The standard cost of variable overhead is equal to the standard variable overhead application rate multiplied by the standard driver usage at the given level of production.

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SureFoot Shoes manufactures running shoes and other athletic apparel. This past month, management recorded the following information: SureFoot Shoes manufactures running shoes and other athletic apparel. This past month, management recorded the following information: What is the flexible budget variance for this month? What is the flexible budget variance for this month?

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Flexible budget variance = Act...

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Use the following information to answer Questions below. The following data relates to Camire Corporation's operations for the month. 3,000 finished units of product were produced and the normal monthly capacity is 4,800 direct labor hours. Use the following information to answer Questions below. The following data relates to Camire Corporation's operations for the month. 3,000 finished units of product were produced and the normal monthly capacity is 4,800 direct labor hours. -What is the labor rate variance? A) $420 U B) $450 U C) $420 F D) $450 F E) None of the above -What is the labor rate variance?


A) $420 U
B) $450 U
C) $420 F
D) $450 F
E) None of the above

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Use the following information to answer Questions below. The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product: Use the following information to answer Questions below. The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product: -Determine the labor rate variance. A) $1,200 F B) $1,200 U C) $1,290 F D) $1,290 U E) None of the above -Determine the labor rate variance.


A) $1,200 F
B) $1,200 U
C) $1,290 F
D) $1,290 U
E) None of the above

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In recording the accrual of Wages, if less-skilled workers are employed than were planned for, the entry would most likely include a:


A) CREDIT to Direct Labor Rate Variance
B) DEBIT to Direct Labor Rate Variance
C) DEBIT to Direct Labor Flexible Budget Variance
D) CREDIT to Direct Labor Efficiency Variance
E) None of the above

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Printers Inc. recorded the following information for this past month: Printers Inc. recorded the following information for this past month: What is the flexible budget variance? What is the flexible budget variance?

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Flexible budget variance = Act...

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Assuming that variable overhead is applied to each job as it is completed, when is the variable overhead spending variance recorded?


A) When each job is completed
B) When preparing period-end financial statements
C) When direct labor is recorded
D) When the variable overhead costs are incurred
E) None of the above

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Use the following information to answer Questions below: The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product: Use the following information to answer Questions below: The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product: -Determine the labor efficiency variance. A) $2,000 F B) $2,000 U C) $2,050 F D) $2,050 U E) None of the above -Determine the labor efficiency variance.


A) $2,000 F
B) $2,000 U
C) $2,050 F
D) $2,050 U
E) None of the above

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Use the following information to answer Questions below . The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours. Use the following information to answer Questions below . The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours. -What is the materials efficiency variance? A) $1,960 U B) $1,960 F C) $2,000 U D) $2,000 F E) None of the above -What is the materials efficiency variance?


A) $1,960 U
B) $1,960 F
C) $2,000 U
D) $2,000 F
E) None of the above

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Use the following information to answer Questions below. The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product: Use the following information to answer Questions below. The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product: -Determine the materials price variance. A) $1,200 F B) $1,200 U C) $1,155 U D) $1,155 F E) None of the above -Determine the materials price variance.


A) $1,200 F
B) $1,200 U
C) $1,155 U
D) $1,155 F
E) None of the above

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Use the following information to complete Problems below Clayton Company manufactures titanium molds and uses standard costing to account for its production line results. The company's standard costs and quantities are listed below: Use the following information to complete Problems below Clayton Company manufactures titanium molds and uses standard costing to account for its production line results. The company's standard costs and quantities are listed below: Actual costs and quantities are listed below: Assume that beginning Work in Process inventory was zero. -What is the reported Cost of Goods Sold? Actual costs and quantities are listed below: Use the following information to complete Problems below Clayton Company manufactures titanium molds and uses standard costing to account for its production line results. The company's standard costs and quantities are listed below: Actual costs and quantities are listed below: Assume that beginning Work in Process inventory was zero. -What is the reported Cost of Goods Sold? Assume that beginning Work in Process inventory was zero. -What is the reported Cost of Goods Sold?

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(See solutions for problems 1-3 for vari...

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Which of the following could be a variance that would be highlighted through standard costing?


A) Wage increases
B) Materials price increases
C) Excess overtime hours
D) Fixed cost reductions
E) All of the above

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Use the following information to answer Questions below. The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product: Use the following information to answer Questions below. The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product: -Determine the labor efficiency variance. A) $4,410 U B) $4,410 F C) $4,500 F D) $4,500 U E) None of the above -Determine the labor efficiency variance.


A) $4,410 U
B) $4,410 F
C) $4,500 F
D) $4,500 U
E) None of the above

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Which of the following accounts is always part of the closing entry for variances?


A) Wages Payable
B) Work in Process
C) Cost of Goods Sold
D) Finished Goods
E) Three of the above

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The Standard Cost Driver usage for variable overhead can be calculated as:


A) Split Cost / Actual Application Rate
B) Split Cost / Standard Application Rate
C) Actual Cost / Standard Application Rate
D) Standard Cost / Actual Application Rate
E) None of the above

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Paper Packaging Co. buys wood pulp from suppliers, which it then processes into various products. This month, Paper Packaging produced 6,000 batches of paper products. Each batch normally requires 3 lbs. of wood pulp. However, several machine malfunctions caused spoilage of some of the pulp, and the average direct materials usage was actually 3.5 lbs. /batch. The pulp was originally purchased at a special discount price of $0. 20/lb. Paper Products had planned to purchase all direct materials this year at $0.30/lb. What is the journal entry to record the requisition of direct materials into production?

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Actual quantity of direct materials:
3.5...

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Johnson Manufacturing Company's cost accounting department reported the following costs for the period, at an actual production level of 200 units: Johnson Manufacturing Company's cost accounting department reported the following costs for the period, at an actual production level of 200 units: Standard rates are as follows, for a budgeted production level of 250 units: What is the total flexible budget variance? Is it favorable or unfavorable? Standard rates are as follows, for a budgeted production level of 250 units: Johnson Manufacturing Company's cost accounting department reported the following costs for the period, at an actual production level of 200 units: Standard rates are as follows, for a budgeted production level of 250 units: What is the total flexible budget variance? Is it favorable or unfavorable? What is the total flexible budget variance? Is it favorable or unfavorable?

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Total actual costs incurred: $5,000 + $9...

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The difference between the Actual cost and the Standard cost for direct labor is called:


A) Direct Labor Rate Variance
B) Direct Labor Flexible Budget Variance
C) Direct Labor Efficiency Variance
D) Direct Labor Split Variance
E) None of the above

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A negative direct labor efficiency variance is considered favorable.

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