Question 1

A favorable cost variance occurs when actual cost is less than standard cost at actual volumes.

Accepted Answer

A) True 
 B)False

Question 2

Use this information for Stringer Company to answer the questions that follow.
​The following data are given for Stringer Company:
​
   Overhead is applied on standard labor hours.
-The direct materials price variance is

Accepted Answer

A)  $22,800 unfavorable 
B)  $22,800 favorable 
C)  $52,000 unfavorable 
D)  $52,000 favorable 
A)  $22,800 unfavorable 
B)  $22,800 favorable 
C)  $52,000 unfavorable 
D)  $52,000 favorable

Question 3

Use this information for Zoyza Company to answer the questions that follow.
​
The following data are given for Zoyza Company:
​
   Overhead is applied on standard labor hours.
​​
-The variable factory overhead controllable variance is

Accepted Answer

A)  $73,250 favorable 
B)  $73,250 unfavorable 
C)  $59,400 favorable 
D)  $59,400 unfavorable 
A)  $73,250 favorable 
B)  $73,250 unfavorable 
C)  $59,400 favorable 
D)  $59,400 unfavorable

Question 4

Titus Company purchased on account and used 650 pounds of tomatoes 
(direct materials) to produce a taco sauce with a 635-pound standard direct materials requirement. The standard materials price is $22.40 per pound. The actual price of the tomatoes was $22.20 per pound. Prepare the journal entries to record 
(1) the purchase of the tomatoes and 
(2) the tomatoes entering production. Titus records standards and variances in the general ledger.

Accepted Answer

The answer of Titus Company purchased on account and used...

Question 5

A negative fixed overhead volume variance can be caused due to all of the following except

Accepted Answer

A)  sales orders at a low level 
B)  machine breakdowns 
C)  employee inexperience 
D)  increase in utility costs 
A)  sales orders at a low level 
B)  machine breakdowns 
C)  employee inexperience 
D)  increase in utility costs

Question 6

Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.60. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.50.?Determine the 
(a) price variance, 
(b) quantity variance, and 
(c) total cost variance.

Accepted Answer

(a) Price Variance =  ($7.50 -

Question 7

Standards are performance goals used to evaluate and control operations.

Accepted Answer

A) True 
 B)False

Question 8

Periodic comparisons between planned objectives and actual performance are reported in

Accepted Answer

A)  zero-base reports 
B)  budget performance reports 
C)  master budgets 
D)  budgets 
A)  zero-base reports 
B)  budget performance reports 
C)  master budgets 
D)  budgets

Question 9

An unfavorable cost variance occurs when standard cost at actual volumes exceeds actual cost.

Accepted Answer

A) True 
 B)False

Question 10

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $​4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.​What is the direct materials quantity variance?

Accepted Answer

A)  ​$1,020 favorable 
B)  ​​$1,020 unfavorable 
C)  ​$900 favorable 
D)  ​$900 unfavorable 
A)  ​$1,020 favorable 
B)  ​​$1,020 unfavorable 
C)  ​$900 favorable 
D)  ​$900 unfavorable

Question 11

Because accountants have financial expertise, they are the only ones that are able to set standard costs for the production area.

Accepted Answer

A) True 
 B)False

Question 12

Use this information for Taylor Company to answer the questions that follow.
​
The following data are given for Taylor Company:
​
   Overhead is applied based on standard labor hours.
​
-Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows:
Actual costs950 hours at $37
Standard costs975 hours at $36?
Determine the direct labor  (a) time variance,  (b) rate variance, and  (c) total direct labor cost variance.

Accepted Answer

The answer of Use this information for Taylor Company to...

Question 13

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material, $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound.​What is the direct materials price variance?

Accepted Answer

A)  $3,000 favorable 
B)  $3,000 unfavorable 
C)  $2,880 favorable 
D)  $2,880 unfavorable 
A)  $3,000 favorable 
B)  $3,000 unfavorable 
C)  $2,880 favorable 
D)  $2,880 unfavorable

Question 14

The following data relate to direct labor costs for the current period:Standard costs6,000 hours at $12.00Actual costs7,500 hours at $11.40​What is the direct labor rate variance?

Accepted Answer

A)  $18,000 unfavorable 
B)  $4,500 favorable 
C)  $17,100 unfavorable 
D)  $3,600 favorable 
A)  $18,000 unfavorable 
B)  $4,500 favorable 
C)  $17,100 unfavorable 
D)  $3,600 favorable

Question 15

Match each of the following formulas or descriptions with the term (a-e) it defines.
-(Actual Direct Hours - Standard Direct Hours) × Standard Rate per Hour

Accepted Answer

A) Direct materials price variance 
B) Direct labor rate variance 
C) Direct labor time variance 
D) Direct materials quantity variance 
E) Budgeted variable factory overhead 
A) Direct materials price variance 
B) Direct labor rate variance 
C) Direct labor time variance 
D) Direct materials quantity variance 
E) Budgeted variable factory overhead

Question 16

Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard.?Determine the 
(a) price variance, 
(b) quantity variance, and 
(c) total cost variance.

Accepted Answer

(a) Price Variance =  ($7.30 -

Question 17

The total manufacturing cost variance consists of

Accepted Answer

A)  direct materials price variance, direct labor cost variance, and fixed factory overhead volume variance 
B)  direct materials cost variance, direct labor rate variance, and factory overhead cost variance 
C)  direct materials cost variance, direct labor cost variance, and variable factory overhead controllable variance 
D)  direct materials cost variance, direct labor cost variance, and factory overhead cost variance 
A)  direct materials price variance, direct labor cost variance, and fixed factory overhead volume variance 
B)  direct materials cost variance, direct labor rate variance, and factory overhead cost variance 
C)  direct materials cost variance, direct labor cost variance, and variable factory overhead controllable variance 
D)  direct materials cost variance, direct labor cost variance, and factory overhead cost variance

Question 18

Using the following information, prepare a factory overhead cost budget for Andover Company where the total factory overhead cost is $75,500 at normal capacity 
(100%). Include capacity at 75%, 90%, 100%, and 110%. Total variable cost is $6.25 per unit and total fixed costs are $38,000. The information is for the month ended August 31. 
(Hint: Determine units produced at normal capacity.)

Accepted Answer

The answer of Using the following information, prepare a factory...

Question 19

Use this information to answer the questions that follow.
​
The following data relate to direct labor costs for February:
​
   ​
-What is the direct labor time variance?

Accepted Answer

A)  $7,700 favorable 
B)  $7,700 unfavorable 
C)  $11,200 unfavorable 
D)  $11,200 favorable 
A)  $7,700 favorable 
B)  $7,700 unfavorable 
C)  $11,200 unfavorable 
D)  $11,200 favorable

Question 20

Aquatic Corp.'s standard material requirement to produce one Model 2000 is 15 pounds of material at $110 per pound. Last month, Aquatic purchased 170,000 pounds of material at a total cost of $17,850,000. It used 162,000 pounds to produce 10,000 units of Model 2000.?Calculate the materials price variance and materials quantity variance, and indicate whether each variance is favorable or unfavorable.

Accepted Answer

Actual Cost = $17,850,000/170,000 pound

A favorable cost variance occurs when actual cost is less than standard cost at actual volumes.

Use this information for Stringer Company to answer the questions that follow. The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials price variance is

Use this information for Zoyza Company to answer the questions that follow. The following data are given for Zoyza Company: Overhead is applied on standard labor hours. -The variable factory overhead controllable variance is

A negative fixed overhead volume variance can be caused due to all of the following except

Standards are performance goals used to evaluate and control operations.

Periodic comparisons between planned objectives and actual performance are reported in

An unfavorable cost variance occurs when standard cost at actual volumes exceeds actual cost.

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.What is the direct materials quantity variance?

Because accountants have financial expertise, they are the only ones that are able to set standard costs for the production area.

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material, $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound.What is the direct materials price variance?

The following data relate to direct labor costs for the current period:Standard costs6,000 hours at $12.00Actual costs7,500 hours at $11.40What is the direct labor rate variance?

Match each of the following formulas or descriptions with the term (a-e) it defines. -(Actual Direct Hours - Standard Direct Hours) × Standard Rate per Hour

The total manufacturing cost variance consists of

Use this information to answer the questions that follow. The following data relate to direct labor costs for February: -What is the direct labor time variance?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Exam 22: Evaluating Variances From Standard Costs

A favorable cost variance occurs when actual cost is less than standard cost at actual volumes.

Use this information for Stringer Company to answer the questions that follow. ​The following data are given for Stringer Company: ​ Overhead is applied on standard labor hours. -The direct materials price variance is

Use this information for Zoyza Company to answer the questions that follow. ​ The following data are given for Zoyza Company: ​ Overhead is applied on standard labor hours. ​​ -The variable factory overhead controllable variance is

A negative fixed overhead volume variance can be caused due to all of the following except

Standards are performance goals used to evaluate and control operations.

Periodic comparisons between planned objectives and actual performance are reported in

An unfavorable cost variance occurs when standard cost at actual volumes exceeds actual cost.

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $​4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.​What is the direct materials quantity variance?

Because accountants have financial expertise, they are the only ones that are able to set standard costs for the production area.

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material, $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound.​What is the direct materials price variance?

The following data relate to direct labor costs for the current period:Standard costs6,000 hours at $12.00Actual costs7,500 hours at $11.40​What is the direct labor rate variance?

Match each of the following formulas or descriptions with the term (a-e) it defines. -(Actual Direct Hours - Standard Direct Hours) × Standard Rate per Hour

The total manufacturing cost variance consists of

Use this information to answer the questions that follow. ​ The following data relate to direct labor costs for February: ​ ​ -What is the direct labor time variance?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Use this information for Stringer Company to answer the questions that follow. The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials price variance is

Use this information for Zoyza Company to answer the questions that follow. The following data are given for Zoyza Company: Overhead is applied on standard labor hours. -The variable factory overhead controllable variance is

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.What is the direct materials quantity variance?

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material, $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound.What is the direct materials price variance?

The following data relate to direct labor costs for the current period:Standard costs6,000 hours at $12.00Actual costs7,500 hours at $11.40What is the direct labor rate variance?

Use this information to answer the questions that follow. The following data relate to direct labor costs for February: -What is the direct labor time variance?