Question 1

The labor efficiency variance is calculated by the equation

Accepted Answer

A) (Standard Hours ´ Actual Hours)- (Actual Hours ´ Standard Rate). 
B) (Actual Rate ´ Actual Hours)- (Standard Rate ´ Actual Hours). 
C) (Actual Hours ´ Standard Rate)- (Standard Hours ´ Standard Rate). 
D) (Standard Hours ´ Actual Rate)- (Actual Hours ´ Actual Rate). 
E) none of these. 
A) (Standard Hours ´ Actual Hours)- (Actual Hours ´ Standard Rate). 
B) (Actual Rate ´ Actual Hours)- (Standard Rate ´ Actual Hours). 
C) (Actual Hours ´ Standard Rate)- (Standard Hours ´ Standard Rate). 
D) (Standard Hours ´ Actual Rate)- (Actual Hours ´ Actual Rate). 
E) none of these.

Question 2

Figure 10-2. Highland Company's standard cost is $250,000.The allowable deviation is $\pm$10%.Its actual costs for six months are
  Refer to Figure 10-2.The variance that is lower than the lower control limit is

Accepted Answer

A) $220,000 
B) $280,000 
C) $265,000 
D) $235,000 
A) $220,000 
B) $280,000 
C) $265,000 
D) $235,000

Question 3

An unfavorable usage variance would occur when the actual usage of inputs is greater than the standard usage.

Accepted Answer

A) True 
 B)False

The labor efficiency variance is calculated by the equation

An unfavorable usage variance would occur when the actual usage of inputs is greater than the standard usage.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

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Exam 10: Standard Costing: a Managerial Control Tool

The labor efficiency variance is calculated by the equation

Figure 10-2. Highland Company's standard cost is $250,000.The allowable deviation is ±\pm± 10%.Its actual costs for six months are Refer to Figure 10-2.The variance that is lower than the lower control limit is

An unfavorable usage variance would occur when the actual usage of inputs is greater than the standard usage.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters