Question 1

The direct material price variance is based on the quantity of materials purchased when the quantity purchased is different from the quantity used.

Accepted Answer

A) True 
 B)False

Question 2

What is the sales quantity variance for the deluxe model?

Accepted Answer

A) $120,000 
B) $256,000 
C) $1,344,000 
D) $1,600,000 
A) $120,000 
B) $256,000 
C) $1,344,000 
D) $1,600,000

Question 3

The only variances that should be investigated are those for which the expected benefits of correction exceed the costs of investigating and correcting.

Accepted Answer

A) True 
 B)False

Question 4

The labor mix variance is actual total hours at

Accepted Answer

A) actual mix times actual labor rates less actual total hours at actual mix times standard labor rates. 
B) actual mix times standard labor rates less standard total hours at standard mix times standard labor rates. 
C) actual mix times standard labor rates less actual total hours at standard mix times standard labor rates. 
D) standard mix times standard labor rates less standard total hours at standard mix times standard labor rates. 
A) actual mix times actual labor rates less actual total hours at actual mix times standard labor rates. 
B) actual mix times standard labor rates less standard total hours at standard mix times standard labor rates. 
C) actual mix times standard labor rates less actual total hours at standard mix times standard labor rates. 
D) standard mix times standard labor rates less standard total hours at standard mix times standard labor rates.

Question 5

A credit balance in the labor yield variance implies

Accepted Answer

A) the total units produced was greater than the expected number of units given the total labor hours actually used. 
B) the total units produced was less than the expected number of units given the total labor hours actually used. 
C) the total units produced was greater than the expected number of units given the total standard hours allowed. 
D) the total units produced was less than the expected number of units given the total standard hours allowed. 
A) the total units produced was greater than the expected number of units given the total labor hours actually used. 
B) the total units produced was less than the expected number of units given the total labor hours actually used. 
C) the total units produced was greater than the expected number of units given the total standard hours allowed. 
D) the total units produced was less than the expected number of units given the total standard hours allowed.

Question 6

What is the total sales quantity variance?

Accepted Answer

A) $3,570.00 
B) $20,815.00 
C) $33,915.00 
D) $40,553.50 
A) $3,570.00 
B) $20,815.00 
C) $33,915.00 
D) $40,553.50

Question 7

The sales price variance for November is

Accepted Answer

A) $30,000 unfavorable. 
B) $18,000 unfavorable. 
C) $20,000 unfavorable. 
D) $15,000 unfavorable. 
A) $30,000 unfavorable. 
B) $18,000 unfavorable. 
C) $20,000 unfavorable. 
D) $15,000 unfavorable.

Question 8

What is the materials mix variance?

Accepted Answer

A) $1.68 
B) $3.00 
C) $1.32 
D) $.84 
A) $1.68 
B) $3.00 
C) $1.32 
D) $.84

Question 9

Is the market share variance favorable or unfavorable?

Accepted Answer

A) favorable. 
B) unfavorable. 
A) favorable. 
B) unfavorable.

Question 10

The direct labor yield variance is unfavorable when the total hours worked during a period are less than the total standard hours allowed for the actual number of units produced.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following sales variances is further analyzed into the market size and industry volume variances?

Accepted Answer

A) Quantity 
B) Efficiency 
C) Mix 
D) Activity 
A) Quantity 
B) Efficiency 
C) Mix 
D) Activity

Question 12

Is the materials yield variance favorable or unfavorable?

Accepted Answer

A) favorable. 
B) unfavorable. 
A) favorable. 
B) unfavorable.

Question 13

What is the correct journal entry to record a favorable materials mix variance assuming all material variances are recognized when the direct materials are issued to production?

Accepted Answer

A) a 
B) b 
C) c 
D) d 
A) a 
B) b 
C) c 
D) d

Question 14

What is the total direct materials mix variance for May?

Accepted Answer

A) $12,000 
B) $24,000 
C) $36,000 
D) $60,000 
A) $12,000 
B) $24,000 
C) $36,000 
D) $60,000

Question 15

The exhibit below reflects a summary of performance for a single item of a retail store's inventory for the month ended April 30.(CIA adapted) The sales volume variance is

Accepted Answer

A) $10,000 favorable. 
B) $10,000 unfavorable. 
C) $11,000 favorable. 
D) $12,000 unfavorable. 
E) $12,000 favorable. 
A) $10,000 favorable. 
B) $10,000 unfavorable. 
C) $11,000 favorable. 
D) $12,000 unfavorable. 
E) $12,000 favorable.

Question 16

Is the sales activity variance for the deluxe model favorable or unfavorable?

Accepted Answer

A) favorable. 
B) unfavorable. 
A) favorable. 
B) unfavorable.

Question 17

For a company that produces more than one product,the sales volume variance can be divided into which two of the following additional variances? (CMA adapted)

Accepted Answer

A) Sales price variance and flexible budget variance. 
B) Sales mix variance and sales price variance. 
C) Sales efficiency variance and sales price variance. 
D) Sales quantity variance and sales mix variance. 
A) Sales price variance and flexible budget variance. 
B) Sales mix variance and sales price variance. 
C) Sales efficiency variance and sales price variance. 
D) Sales quantity variance and sales mix variance.

Question 18

What is the correct journal entry to record direct labor when the actual labor mix is favorable and the total standard hours allowed is greater than the total actual hours worked?

Accepted Answer

A) a 
B) b 
C) c 
D) d 
A) a 
B) b 
C) c 
D) d

Question 19

Is the total sales quantity variance favorable or unfavorable?

Accepted Answer

A) favorable 
B) unfavorable 
A) favorable 
B) unfavorable

Question 20

What is the total direct material yield variance for May?

Accepted Answer

A) $45,000 
B) $81,000 
C) $109,800 
D) $117,000 
A) $45,000 
B) $81,000 
C) $109,800 
D) $117,000

The direct material price variance is based on the quantity of materials purchased when the quantity purchased is different from the quantity used.

What is the sales quantity variance for the deluxe model?

The only variances that should be investigated are those for which the expected benefits of correction exceed the costs of investigating and correcting.

The labor mix variance is actual total hours at

A credit balance in the labor yield variance implies

What is the total sales quantity variance?

The sales price variance for November is

What is the materials mix variance?

Is the market share variance favorable or unfavorable?

The direct labor yield variance is unfavorable when the total hours worked during a period are less than the total standard hours allowed for the actual number of units produced.

Which of the following sales variances is further analyzed into the market size and industry volume variances?

Is the materials yield variance favorable or unfavorable?

What is the correct journal entry to record a favorable materials mix variance assuming all material variances are recognized when the direct materials are issued to production?

What is the total direct materials mix variance for May?

The exhibit below reflects a summary of performance for a single item of a retail store's inventory for the month ended April 30.(CIA adapted) The sales volume variance is

Is the sales activity variance for the deluxe model favorable or unfavorable?

For a company that produces more than one product,the sales volume variance can be divided into which two of the following additional variances? (CMA adapted)

What is the correct journal entry to record direct labor when the actual labor mix is favorable and the total standard hours allowed is greater than the total actual hours worked?

Is the total sales quantity variance favorable or unfavorable?

What is the total direct material yield variance for May?

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Nonfinancial and Multiple Measures of Performance

Filters

Exam 17: Additional Topics in Variance Analysis

The direct material price variance is based on the quantity of materials purchased when the quantity purchased is different from the quantity used.

What is the sales quantity variance for the deluxe model?

The only variances that should be investigated are those for which the expected benefits of correction exceed the costs of investigating and correcting.

The labor mix variance is actual total hours at

A credit balance in the labor yield variance implies

What is the total sales quantity variance?

The sales price variance for November is

What is the materials mix variance?

Is the market share variance favorable or unfavorable?

The direct labor yield variance is unfavorable when the total hours worked during a period are less than the total standard hours allowed for the actual number of units produced.

Which of the following sales variances is further analyzed into the market size and industry volume variances?

Is the materials yield variance favorable or unfavorable?

What is the correct journal entry to record a favorable materials mix variance assuming all material variances are recognized when the direct materials are issued to production?

What is the total direct materials mix variance for May?

The exhibit below reflects a summary of performance for a single item of a retail store's inventory for the month ended April 30.(CIA adapted) The sales volume variance is

Is the sales activity variance for the deluxe model favorable or unfavorable?

For a company that produces more than one product,the sales volume variance can be divided into which two of the following additional variances? (CMA adapted)

What is the correct journal entry to record direct labor when the actual labor mix is favorable and the total standard hours allowed is greater than the total actual hours worked?

Is the total sales quantity variance favorable or unfavorable?

What is the total direct material yield variance for May?

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Nonfinancial and Multiple Measures of Performance

Filters