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Exam 29: Controlling Manufacturing Costs: Standard Costs

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Question 51

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Prepare a budget for manufacturing costs for Nacelle Manufacturing for the month of July 2016 from the following information.Direct materials are estimated to be $480,000 for the year and direct labor is estimated to be $96,000.The direct labor per hour average is $13 and the budgeted level of activity for the month is 1,200 hours.

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Question 52

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To measure manufacturing efficiency,it is necessary to first identify cost behavior and separate cost into their components.

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Question 53

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Material budgets are computed by multiplying units to be produced by the unit cost of direct materials.

The labor standard for a product was five hours at a wage rate of $8 per hour.The firm produced 900 units of the item.Labor costs totaled $35,250 and 4,700 hours of labor were used.An analysis of labor costs would indicate

The Costmore Company uses standard costing and has established the following standards for direct materials and direct labor for each unit it makes: During July,the company made 4,000 units of product and used 13,000 gallons.The actual price paid for materials was $5.20 per gallon. Direct Labor used was 3,600 hours and workers were paid $11.75 per hour. An analysis would indicate

The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

A flexible budget shows budgeted costs at several different levels of activity.

Petersen Company produces a single product with the following production and average cost data: The best estimate of total cost at an activity level of 7,250 units is:

The ____________________ cost per unit does not change as output changes.

Which variance is controllable by the production manager?

The cost per unit of direct materials changes as output changes.

One element that is NOT part of the standard cost is

Complete the Budget Performance Report for Soville Manufacturing using the information given.Comment on the results.

Usually,a well-run manufacturing company prepares only annual manufacturing cost budgets.

A simple method used to analyze the fixed and variable components in semi-variable costs is called the ____________________ point method.

Use the high-low point method to determine total fixed cost:

The labor standard for a product was five hours at a wage rate of $8 per hour.The firm produced 900 units of the item.Labor costs totaled $35,250 and 4,700 hours of labor were used.An analysis of labor costs would indicate

Explain the process for establishing standard costs for manufactured products.Identify the parties responsible and accountable for the standard.

Semi-variable costs are sometimes called mixed costs.

Deducting the total variable cost from the total cost results in the