Standard Costing

1. Information on the Ryder Company's direct materials costs is as follows:

Standard price per unit

$7.20

Actual quantity purchased

1,600

Standard quality allowed for actual production

1,450

Material price variance for units purchased - favorable

$480

Calculate The actual purchases price per unit: ($6.90)

2. Information on the Shields Company's direct labor costs for the month of June is as

follows.

Actual direct labor rate

$7.50

Standard direct labor hours allowed

11,000

Actual direct labor hours

10,000

Direct labor rate variance - favorable

$5,500

What was the standard direct labor rate used during June? ($ 8.05)

3 .The Davis Company uses a standard cost system. Direct labor information for the

month of September is as follows:

Standard labor rate

$6.00 per hour

Actual labor rate paid

$6.10 per hour

Standard hours allowed for actual production

1,500

Labor efficiency variance - unfavorable

$600

What were the actual hours worked? (AHrs 16,00)

4. The Johnson Manufacturing Company's direct labor costs for April are as follows:

Standard direct labor hours

42,000

Actual direct labor hours

40,000

Standard direct labor rate per hour

6.30

Direct labor rate variance - favorable

$8,400

What was Johnson's total direct labor cost for April? ($243,600)

5. JSH Inc. makes a unit called CC. CC has a standard of 2 yards of fabric for each CC. The

standard price per yard of fabric is $3. During the period, JSH made 6,000 CCs. JSH

purchased and used 11,600 yards of fabric and incurred an actual cost of $ 34,500 the

fabric.

a) What was the direct material price variance for the current period? - $300 F

b) What was the direct material usage variance for the current period? -$1,200 F

6.CC corp. makes a product called LR. The standard time allowed for each unit of LR is

1.2 hours. The standard labor rate per hour is $8. During the current period, CC

made 8,000 units of LR, incurring 9,500 hours of labor at a total cost of $75,000.

What is the direct labor efficiency variance for the current period. - $800 F

7. CC corp. makes a product called LR. The standard time allowed for each unit of LR is

1.2 hours. The standard labor rate per hour is $8. During the current period, CC made

8,000 units of LR, incurring 9,500 hours of labor at a total cost of $77,000.

What is the direct labor rate variance for the current period? - $1,000 U

8. The Porter Company has a standard cost system. In July, the company purchased

and used 22,500 kilograms of direct material at an actual cost of $53,000, the

materials quantity variance was $1,875 unfavorable, and the standard quantity of

materials allowed for July production was 21,750 kilograms. What was the material

price variance for July? - $3,250

9. The Clark Company makes a single product and uses standard costing. Some data

concerning this product for the month of May follow:

Labor rate variance

$7,000 F

Labor efficiency variance

$12,000 F

Variable overhead variance

$4,000 F

Number of units produced

10,000

Standard labor rate per direct labor hour

$12.00

Standard variable overhead rate per direct labor hour

$4.00

Actual labor hours used

14,000

Actual variable manufacturing overhead costs

$58,289

a) What was the actual labor rate for May in dollars per hour? - $11.50

b) What was the total standard cost for direct labor for May? - $180,000

10. Chit co produces salad bowls. The following information is available for January

Standard

Material:1 pound per unit at $2 per pound

Labor:1 hour per unit at $5 per hour

Actual

Material purchased:3,500 pounds at $2.10 per pound

Material used:3,100 pounds

Direct labor:3,200 hours at $4.95 per hour

Units produced:3,000 bowls

If calculated at point of purchase, what is the material price variance? - $350 U

11. The following information is available for March for Joshua Corporation.

Standard

Material 2 pounds per unit at $3.50 per pound

Labor 4 hours per unit at $8.25 per hour

Actual

Material purchases 10,500 pounds at $3.40 per pound

Material used 7,800 pounds

Direct Labor 16,700 hours at $8.30 per hour

Units produced in May 4,000.

a) What is the labor rate variance? $835 U

b) How many standard direct labor hours are allowed for March? -16,000

12. JSH Inc. makes a unit called CC. CC has a standard of2 yards of fabric for each CC.

The standard price per yard of fabric is $ 3. During the period, JSH made 6,000 CCs.

JSH purchased and used 11,600 yards of fabric and incurred an actual cost of $

34,500 for the fabric.

What was direct material price variance for the current period? -300 F

13. CC Corp makes a product called LR. The standard time allowed for each unit of LR is

1.2 hours. The standard labor rate per hour is $ 8. During the current period, Cmade

8,000 units of LR, incurring 9,500 hours of labor at a total cost of $ 77,000.

What is the direct labor rate variance for the current period? - 1,000 U