Principles of Cost Accounting 17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Edward J. Vanderbeck, Maria R. Mitchell
1 Introduction To Cost Accounting 2 Accounting For Materials 3 Accounting For Labor 4 Accounting For Factory Overhead 5 Process Cost Accounting—general Procedures 6 Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products 7 The Master Budget And Flexible Budgeting 8 Standard Cost Accounting—materials, Labor, And Factory Overhead 9 Cost Accounting For Service Businesses, The Balanced Scorecard, And Quality Costs 10 Cost Analysis For Management Decision Making Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Chapter Questions Section: Chapter Questions
Problem 1Q: How does a standard cost accounting system work, and why is it valuable to management? Problem 2Q: What is the difference between the standard cost and the actual cost of production? Problem 3Q Problem 4Q: What are the specific procedures on which a standard cost accounting system is based? Problem 5Q: How are standards for materials and labor costs determined? Problem 6Q: What is a variance? Problem 7Q: How do price and quantity variances relate to materials costs? Problem 8Q: How do rate and efficiency variances relate to labor costs? Problem 9Q Problem 10Q: How does a materials purchase price variance differ from a materials price variance. Problem 11Q Problem 12Q Problem 13Q: When a company uses a standard cost system, are the inventory accountsFinished Goods, Work in... Problem 14Q: What two factors must be considered when breaking down a variance into its components? Problem 15Q: What might cause the following materials variances?
An unfavorable materials price variance.
A... Problem 16Q: What might cause the following labor variances?
An unfavorable labor rate variance.
A favorable... Problem 17Q Problem 18Q Problem 19Q Problem 20Q Problem 21Q: When does a flexible-budget variance occur?
Problem 22Q: Why is it important to determine flexible-budget variances?
Problem 23Q Problem 24Q: What is the significance of a production-volume variance?
Problem 25Q: If production is more or less than the standard volume, is it possible that no flexible-budget or... Problem 26Q: At the end of the current fiscal year, the trial balance of Big Apple Inc. revealed the following... Problem 27Q: What variances from the four-variance method are included in the flexible-budget variance from the... Problem 28Q: What is the primary difference between the two-variance and three-variance methods of calculation?... Problem 29Q: What are the four variances in the four-variance method and what does each measure? (appendix)
Problem 1E: In all of the exercises involving variances, use F and U to designate favorable and unfavorable... Problem 2E Problem 3E Problem 4E Problem 5E Problem 6E: Computing materials variances D-List Calendar Co. specializes in manufacturing calendars that depict... Problem 7E: Computing labor variances LIFT Inc. manufactures garage doors for homes. The standard quantity of... Problem 8E: Standard cost summary; materials and labor cost variances Perkins Processors Inc. produces an... Problem 9E: Computing labor variances Fill in the missing figures for each of the following independent cases:... Problem 10E: Standard unit cost and journal entries The normal capacity of Algonquin Adhesives Inc. is 40,000... Problem 11E: Making journal entries Assume that during the month of April the production report of Algonquin... Problem 12E: Using variance analysis and interpretation Last year, Endicott Corp. adopted a standard cost system.... Problem 13E: Using variance analysis and interpretation Last year, Wrigley Corp. adopted a standard cost system.... Problem 14E: Journalizing standard costs in two departments Griffin Manufacturing Inc. has two departments,... Problem 15E: Calculating factory overhead The standard capacity of a factory is 8,000 units per month. Cost and... Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of... Problem 17E: Calculating factory overhead: two variances Munoz Manufacturing Co. normally produces 10,000 units... Problem 18E: Calculating factory overhead: two variances Monrovia Manufacturing Inc. normally produces 10,000... Problem 19E: The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month.... Problem 20E: Calculating amount of factory overhead applied to work in process The overhead application rate for... Problem 21E: Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is... Problem 22E: (Appendix) Calculating factory overhead: four variances Atlanta Adhesives Inc. budgets 15,000 direct... Problem 23E: (Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate... Problem 1P: Materials and labor variances Branca Inspections Inc. specializes in determining whether a building... Problem 2P: Materials and labor variances Fausto Fabricators Inc. uses a standard cost system to account for its... Problem 3P: Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The... Problem 4P: Calculation of materials and labor variances
Fritz Corp. manufactures and sells a single product.... Problem 5P: High-End Products Inc. uses a standard cost system in accounting for the cost of production of its... Problem 6P: RDI Products Co. manufactures a variety of products made of plastic and aluminum components. During... Problem 7P: The standard cost summary for the most popular product of Phenom Products Co. is shown as follows,... Problem 8P: Carlo Lee Corp. has established the following standard cost per unit:
Although 10,000 units were... Problem 9P: USD Inc. has established the following standard cost per unit:
Although 10,000 units were budgeted,... Problem 10P: Allocation of variances
Costa Brava Manufacturing Corp. uses a standard cost system that records raw... Problem 11P: On May 1, Athens Inc. began the manufacture of a new mechanical device known as Snap. The company... Problem 12P: The standard specifications for an electric motor manufactured by XYZ Electric Co. follow:
Factory... Problem 13P: Cardiff Inc. manufactures men’s sport shirts for large stores. It produces a single quality shirt in... Problem 14P: Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost... Problem 15P Problem 16P: (Appendix) Overhead variances—four variance
Mobile Manufacturing Inc. manufactures a small electric... Problem 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per... Problem 18P: Kamen Manufacturing Co. estimates the following labor and overhead costs for the... Problem 19P Problem 20P: Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The... Problem 1MC: Cost and production data for Binghamton Beverages Inc. are presented as... Problem 24Q: What is the significance of a production-volume variance?
Related questions
Concept explainers
How can the total flexible-budget variance be broken down (i.e., what are the constituent parts of this total variance)?
Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.
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