1. Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (3,900 bars) are as follows:

Ingredient	Quantity		Price
Cocoa	630	lbs.	$0.40		per lb.
Sugar	180	lbs.	$0.60		per lb.
Milk	150	gal.	$1.50		per gal.

Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $_________per bar

2. Sana Rosa Furniture Company manufactures designer home furniture. Sana Rosa uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows:

Direct labor:	standard rate	$24.00 per hr.
	standard time per unit	2.00 hrs.
Direct materials (oak):	standard price	$9.00 per bd. ft.
	standard quantity	16 bd. ft.
Variable factory overhead:	standard rate	$2.40 per direct labor hr.
Fixed factory overhead:	standard rate	$1.20 per direct labor hr.

a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. $ _________per dining room table

b. A standard cost system provides Rosa Furniture management a cost control tool using the principle of_____ . Using this principle, ______________ cost deviations from standards can be investigated and corrected.

3. At the beginning of June, Kimber Toy Company budgeted 23,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:

Direct materials	$32,200
Direct labor	11,960
Total	$44,160

The standard materials price is $0.70 per pound. The standard direct labor rate is $13.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:

Actual direct materials	$29,600
Actual direct labor	11,000
Total	$40,600

There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Kimber Toy Company actually produced 20,500 units during June.

Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials quantity variance	$	U or F
Direct labor time variance	$	U or F

4. Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 10,000 hours of productive capacity in the department:

Variable overhead cost:
Indirect factory labor	$86,000
Power and light	4,100
Indirect materials	31,000
Total variable overhead cost		$121,100
Fixed overhead cost:
Supervisory salaries	$42,390
Depreciation of plant and equipment	26,640
Insurance and property taxes	16,950
Total fixed overhead cost		85,980
Total factory overhead cost		$207,080

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 8,000, 10,000, and 12,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours	8,000	10,000	12,000
Variable overhead cost:
Indirect factory labor	$	$	$
Power and light
Indirect materials
Total variable factory overhead	$	$	$
Fixed factory overhead cost:
Supervisory salaries	$	$	$
Depreciation of plant and equipment
Insurance and property taxes
Total fixed factory overhead	$	$	$
Total factory overhead cost	$	$	$

5. The following data relate to factory overhead cost for the production of 8,000 computers:

Actual:	Variable factory overhead	$223,100
	Fixed factory overhead	94,250
Standard:	8,000 hrs. at $36	288,000

If productive capacity of 100% was 13,000 hours and the total factory overhead cost budgeted at the level of 8,000 standard hours was $324,250, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $7.25 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variance	Amount	Favorable/Unfavorable
Variable factory overhead controllable variance	$
Fixed factory overhead volume variance
Total factory overhead cost variance	$

6. Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,400 units of product were as follows:

	Standard Costs		Actual Costs
Direct materials	5,700 lb. at $5.30		5,600 lb. at $5.20
Direct labor	1,100 hrs. at $16.50		1,130 hrs. at $16.90
Factory overhead	Rates per direct labor hr.,
	based on 100% of normal
	capacity of 1,150 direct
	labor hrs.:
		Variable cost, $3.20	$3,480 variable cost
		Fixed cost, $5.10	$5,865 fixed cost

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials price variance	$	U or F
Direct materials quantity variance		U or F
Total direct materials cost variance	$	U or F

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct labor rate variance	$	U or F
Direct labor time variance		U or F
Total direct labor cost variance	$	U or F

c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variable factory overhead controllable variance	$	U or F
Fixed factory overhead volume variance		U or F
Total factory overhead cost variance	$	U or F