Question 1

The difference between the actual labor rate and the standard labor rate,multiplied by the actual labor hours,is the:

Accepted Answer

A) direct labor spending variance. 
B) direct labor volume variance. 
C) direct labor rate variance. 
D) direct labor efficiency variance. 
A) direct labor spending variance. 
B) direct labor volume variance. 
C) direct labor rate variance. 
D) direct labor efficiency variance.

Question 2

The standard costs are summarized on a:

Accepted Answer

A) static cost card. 
B) flexible budget card. 
C) standard cost card. 
D) standard static card. 
A) static cost card. 
B) flexible budget card. 
C) standard cost card. 
D) standard static card.

Question 3

Oxford Co.has a materials standard of 2.1 pounds per unit of output.Each pound has a standard price of $10 per pound.During February,Oxford Co.paid $57,220 for 4,840 pounds,which were used to produce 2,400 units.What is the direct materials price variance?

Accepted Answer

A) $6,820 unfavorable 
B) $8,820 unfavorable 
C) $8,820 favorable 
D) $6,820 favorable 
A) $6,820 unfavorable 
B) $8,820 unfavorable 
C) $8,820 favorable 
D) $6,820 favorable

Question 4

In a standard cost system,overhead is applied per unit by multiplying the ________ overhead rate times the ________ quantity of the cost driver.

Accepted Answer

A) actual;actual 
B) actual;standard 
C) standard;standard 
D) standard;actual 
A) actual;actual 
B) actual;standard 
C) standard;standard 
D) standard;actual

Question 5

When preparing a flexible budget,fixed costs should remain the same as on the master budget.

Accepted Answer

A) True 
 B)False

Question 6

The flexible budget can be used as a benchmark for evaluating performance after the fact,as part of the control process.

Accepted Answer

A) True 
 B)False

Question 7

Standard cost systems depend on which two types of standards?

Accepted Answer

A) Quantity and price standards 
B) Quantity and efficiency standards 
C) Rate and price standards 
D) Rate and spending standards 
A) Quantity and price standards 
B) Quantity and efficiency standards 
C) Rate and price standards 
D) Rate and spending standards

Question 8

The difference between budgeted volume and practical capacity,multiplied by the fixed overhead rate,is the:

Accepted Answer

A) expected (planned)capacity variance. 
B) unexpected (unplanned)capacity variance. 
C) total capacity variance. 
D) volume variance. 
A) expected (planned)capacity variance. 
B) unexpected (unplanned)capacity variance. 
C) total capacity variance. 
D) volume variance.

Question 9

The difference between the actual price and the standard price,multiplied by the actual quantity of materials purchased,is the:

Accepted Answer

A) direct materials spending variance. 
B) direct materials volume variance. 
C) direct materials price variance. 
D) direct materials quantity variance. 
A) direct materials spending variance. 
B) direct materials volume variance. 
C) direct materials price variance. 
D) direct materials quantity variance.

Question 10

A quantity standard is:

Accepted Answer

A) the total dollar amount that a company expects to spend to achieve a given level of output. 
B) a form that shows what the company should spend to make a single unit of product. 
C) the price that should be paid for a specific quantity of input. 
D) the amount of input that should be used in each unit of product or service. 
A) the total dollar amount that a company expects to spend to achieve a given level of output. 
B) a form that shows what the company should spend to make a single unit of product. 
C) the price that should be paid for a specific quantity of input. 
D) the amount of input that should be used in each unit of product or service.

Question 11

Bonnie Company has a direct labor standard of 15 hours per unit of output.Each employee has a standard wage rate of $14 per hour.The standard variable overhead rate is $10 per hour.During March,employees worked 13,100 hours.The direct labor rate variance was $9,170 favorable,the variable overhead rate variance was $13,100 unfavorable,and the direct labor efficiency variance was $15,400 unfavorable.What is the actual variable overhead?

Accepted Answer

A) $117,900 
B) $131,000 
C) $144,100 
D) $183,400 
A) $117,900 
B) $131,000 
C) $144,100 
D) $183,400

Question 12

Raven applies overhead based on direct labor hours.The variable overhead standard is 2 hours at $11 per hour.During July,Raven spent $116,700 for variable overhead.8,890 labor hours were used to produce 4,700 units.How much is variable overhead on the flexible budget?

Accepted Answer

A) $56,400 
B) $97,790 
C) $103,400 
D) $116,700 
A) $56,400 
B) $97,790 
C) $103,400 
D) $116,700

Question 13

The difference between the actual labor hours and the standard labor hours,multiplied by the standard labor rate,is the:

Accepted Answer

A) direct labor spending variance. 
B) direct labor volume variance. 
C) direct labor rate variance. 
D) direct labor efficiency variance. 
A) direct labor spending variance. 
B) direct labor volume variance. 
C) direct labor rate variance. 
D) direct labor efficiency variance.

Question 14

The direct materials quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price.

Accepted Answer

A) True 
 B)False

Question 15

Regent Corp.uses a standard cost system to account for the costs of its one product.Materials standards are 3 pounds of material at $14 per pound,and labor standards are 4 hours of labor at a standard wage rate of $11.During July Regent Corp.produced 3,300 units.Materials purchased and used totaled 10,100 pounds at a total cost of $142,650.Payroll totaled $146,780 for 13,150 hours worked.Calculate the:
a.direct materials price variance.
b.direct materials quantity variance.

Accepted Answer

a.$1,250 unfavorable = $142,650 - (10,10

Question 16

Benjamin Inc.uses a standard cost system and has the following information regarding the labor and overhead used in the production of widgets.Standard labor input is 2 hours per unit.The variable overhead rate is $8 per hour;fixed overhead is budgeted to be $100,000 on budgeted production of 8,000 widgets.During August,Benjamin Inc.paid its workers $161,670 for 16,800 hours.Actual variable overhead incurred totaled $133,560,and actual fixed overhead totaled $98,956.Benjamin Inc.produced 8,600 widgets during August.Calculate the:
a.variable overhead rate variance.
b.variable overhead efficiency variance.
c.fixed overhead spending variance.

Accepted Answer

a.$840 favorable = $133,560 - (16,800 ×

Question 17

Wilson Manufacturing has provided you with the following variances for the month of March:
   Wilson Manufacturing produced 6,200 units during the month of March;6,000 units were budgeted.Direct Materials Inventory did not change over the period.You have also been provided the following partial information:
   Calculate the:
a.pounds of direct materials (purchased = used).
b.actual direct labor hours.
c.actual labor cost in dollars.
d.actual spending for materials.

Accepted Answer

a.25,600 pounds: $4,000 = $5 × [P - (620

Question 18

An ideal standard is one that can be achieved only under perfect conditions.

Accepted Answer

A) True 
 B)False

Question 19

The difference between the actual fixed manufacturing overhead cost and the budgeted fixed manufacturing overhead cost is the:

Accepted Answer

A) fixed overhead spending variance. 
B) fixed overhead volume variance. 
C) fixed overhead rate variance. 
D) fixed overhead efficiency variance. 
A) fixed overhead spending variance. 
B) fixed overhead volume variance. 
C) fixed overhead rate variance. 
D) fixed overhead efficiency variance.

Question 20

Beech has budgeted fixed overhead of $202,500 based on budgeted production of 13,500 units.During July,14,100 units were produced and $214,200 was spent on fixed overhead.What is the budgeted fixed overhead rate?

Accepted Answer

A) $14.36 
B) $15.00 
C) $15.19 
D) $15.89 
A) $14.36 
B) $15.00 
C) $15.19 
D) $15.89

The difference between the actual labor rate and the standard labor rate,multiplied by the actual labor hours,is the:

The standard costs are summarized on a:

Oxford Co.has a materials standard of 2.1 pounds per unit of output.Each pound has a standard price of $10 per pound.During February,Oxford Co.paid $57,220 for 4,840 pounds,which were used to produce 2,400 units.What is the direct materials price variance?

In a standard cost system,overhead is applied per unit by multiplying the overhead rate times the quantity of the cost driver.

When preparing a flexible budget,fixed costs should remain the same as on the master budget.

The flexible budget can be used as a benchmark for evaluating performance after the fact,as part of the control process.

Standard cost systems depend on which two types of standards?

The difference between budgeted volume and practical capacity,multiplied by the fixed overhead rate,is the:

The difference between the actual price and the standard price,multiplied by the actual quantity of materials purchased,is the:

A quantity standard is:

Raven applies overhead based on direct labor hours.The variable overhead standard is 2 hours at $11 per hour.During July,Raven spent $116,700 for variable overhead.8,890 labor hours were used to produce 4,700 units.How much is variable overhead on the flexible budget?

The difference between the actual labor hours and the standard labor hours,multiplied by the standard labor rate,is the:

The direct materials quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price.

An ideal standard is one that can be achieved only under perfect conditions.

The difference between the actual fixed manufacturing overhead cost and the budgeted fixed manufacturing overhead cost is the:

Beech has budgeted fixed overhead of $202,500 based on budgeted production of 13,500 units.During July,14,100 units were produced and $214,200 was spent on fixed overhead.What is the budgeted fixed overhead rate?

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 9: Standard Costing and Variance Analysis

The difference between the actual labor rate and the standard labor rate,multiplied by the actual labor hours,is the:

The standard costs are summarized on a:

Oxford Co.has a materials standard of 2.1 pounds per unit of output.Each pound has a standard price of $10 per pound.During February,Oxford Co.paid $57,220 for 4,840 pounds,which were used to produce 2,400 units.What is the direct materials price variance?

In a standard cost system,overhead is applied per unit by multiplying the ________ overhead rate times the ________ quantity of the cost driver.

When preparing a flexible budget,fixed costs should remain the same as on the master budget.

The flexible budget can be used as a benchmark for evaluating performance after the fact,as part of the control process.

Standard cost systems depend on which two types of standards?

The difference between budgeted volume and practical capacity,multiplied by the fixed overhead rate,is the:

The difference between the actual price and the standard price,multiplied by the actual quantity of materials purchased,is the:

A quantity standard is:

Raven applies overhead based on direct labor hours.The variable overhead standard is 2 hours at $11 per hour.During July,Raven spent $116,700 for variable overhead.8,890 labor hours were used to produce 4,700 units.How much is variable overhead on the flexible budget?

The difference between the actual labor hours and the standard labor hours,multiplied by the standard labor rate,is the:

The direct materials quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price.

An ideal standard is one that can be achieved only under perfect conditions.

The difference between the actual fixed manufacturing overhead cost and the budgeted fixed manufacturing overhead cost is the:

Beech has budgeted fixed overhead of $202,500 based on budgeted production of 13,500 units.During July,14,100 units were produced and $214,200 was spent on fixed overhead.What is the budgeted fixed overhead rate?

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

In a standard cost system,overhead is applied per unit by multiplying the overhead rate times the quantity of the cost driver.