(CONTEXT TO QUESTIONS)

Rogen uses the standard cost system. The Static original budgeted production was 5,000 units for October. The Input standards were:

Std Quantity x Std Price per input = Std Cost per Output

Direct materials 1 lb./Output unit x $7 /lb. = $7 per output unit

Direct labor 1.6 hrs. /Output unit x $12 /hr. = $19.20 per unit

Variable manufacturing overhead 1.6 hrs. x $7.50 per hr = $12 per unit

Fixed mfg. overhead [Budget $20,000] 1.6 hrs.. x $2.50 per hr = $4 per unit

Actual Units produced were 4,800. It Applied the standard costs to the Actual Production throughout the period. As of the end of the period, a Flexible budget was prepared, [1] to compute Production volume variance, and [2] the Quantity Usage efficiency variances for Material and Labor, given Direct materials used = 5,100 lbs and Direct labor worked 7,400 hours.

When all Actual Costs are known a few weeks later, it retroactively [3] calculated Material Purchase Price and Labor Rate [or Price] variances; and Overhead Controllable variances.

Rogen gathered the following actual results for October:

Direct materials purchased (5,100 lbs.) $36,720

Direct labor cost (7,400 hours actual) $92,500

Manufacturing overhead costs incurred: Variable $59,700 and Fixed $21,000.

Quiz 11.2. Fill in the space provided for each of the following 10 questions.

(ACTUAL QUESTIONS)

Q1. To apply direct labor costs to production, the journal entry should include: _____

A) Credited for standard quantity usage of direct labor for actual production times actual price per hour

B) Debited for actual quantity of direct labor times standard price per hour

C) Credited for standard quantity of direct labor allowed for actual production times standard price per hour

D) Debited for standard quantity of direct labor allowed for actual production times standard price per hour.

For help check the attached Sol worksheet.

Q2. What is the fixed overhead [or production] volume variance amount? _$ ______( ) Write U if unfavorable, or F if favorable in the bracket. For help check the attached Sol worksheet.

Q3. Which manager or who is most likely responsible for production-volume variances? _B

A. Purchasing. B. Marketing. C. Production. D. Controller. For help check the attached Sol worksheet.

Q4. The direct labor efficiency variance? _$ ______( ) Write U if unfavorable, or F if favorable in the bracket. For help check the attached Sol worksheet.

Q5. The direct material efficiency variance? _$ ______( ) Write U if unfavorable, or F if favorable in the bracket. For help check the attached Sol worksheet.

Q6. Given the info above, what is the direct labor rate variance? _$ ______( ) Write U if unfavorable, or F if favorable in the bracket. For help check the attached Sol worksheet.

Q7. Given the info above, the fixed overhead controllable variance is: _$ ______( ) Write U if unfavorable, or F if favorable in the bracket. For help check the attached Sol worksheet.

Q8. What is the variable overhead controllable variance? _$ ______( ) Write U if unfavorable, or F if favorable in the bracket. For help check the attached Sol worksheet.

Q9. Your company haspurchasingmanager,productionmanager,marketingmanager,personnelmanager, andCEO. Which manager is responsible forthe material [purchase] pricevariance? __________

For help: Check the Xonic Tonic case solution in the Ch 11 Power Point file.

Q10. Your company haspurchasingmanager,productionmanager,marketingmanager,personnelmanager, andCEO. Which manager is responsible formaterial quantity [orefficiency] variances? ____________

For help: Check the Xonic Tonic case solution in the Ch 11 Power Point file.