Question 1

The direct materials price variance is the difference between the

Accepted Answer

A) actual costs and the actual quantity at the standard price 
B) actual costs and standard costs 
C) actual price and the standard price 
D) actual quantity at the standard price and the standard costs 
A) actual costs and the actual quantity at the standard price 
B) actual costs and standard costs 
C) actual price and the standard price 
D) actual quantity at the standard price and the standard costs

Question 2

Compute the standard cost for one pair of boots, based on the following standards for each pair of boots:
Standard materials quantity:
1.25 yards of leather at $35.00 per yard
Standard labor:
9 hours at $25.75 per hour
Factory overhead:
$1.75 per direct labor hour

Accepted Answer

The answer of Compute the standard cost for one pair...

Question 3

The most effective means of presenting factory overhead cost variance data is through a flexible factory overhead budget.

Accepted Answer

A) True 
 B)False

Question 4

Greyson Company produced 8,300 units of product that required 4.25 standard hours per unit. Determine the standard fixed overhead cost per unit at 27,000 hours, which is 100% of normal capacity, if the favorable fixed factory overhead volume variance is $14,895.

Accepted Answer

[27,000 - (8,300 × 4

Question 5

Currently attainable standards do not allow for reasonable production difficulties.

Accepted Answer

A) True 
 B)False

Question 6

Standard costs should always be revised when they differ from actual costs.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Accounting systems that use standards for product costs are called budgeted cost systems.

Accepted Answer

A) True 
 B)False

Question 9

Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows:
Actual costs
1,550 lbs. at $9.10
Standard costs
1,600 lbs. at $9.00
Determine the direct materials (a) quantity variance, (b) price variance, and (c) total cost variance.

Accepted Answer

The answer of Standard and actual costs for direct materials...

Question 10

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:   The direct labor rate variance is

Accepted Answer

A) $2,960 unfavorable 
B) $4,500 favorable 
C) $2,960 favorable 
D) $4,500 unfavorable 
A) $2,960 unfavorable 
B) $4,500 favorable 
C) $2,960 favorable 
D) $4,500 unfavorable

Question 11

If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual direct labor incurred is 500 hours at $15, the direct labor time variance is $1,500 unfavorable.

Accepted Answer

A) True 
 B)False

Question 12

The following data are given for Zoyza Company:   Overhead is applied on standard labor hours.​
-The fixed factory overhead volume variance is

Accepted Answer

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

Question 13

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual direct materials used are 800 units at $12, the direct materials quantity variance is $2,200 unfavorable.

Accepted Answer

A) True 
 B)False

Question 14

​   
*Actual hours are equal to standard hours for units produced.​
-The fixed factory overhead volume variance is

Accepted Answer

A) $1,701.00 favorable 
B) $4,866.75 unfavorable 
C) $1,701.00 unfavorable 
D) $4,866.75 favorable 
A) $1,701.00 favorable 
B) $4,866.75 unfavorable 
C) $1,701.00 unfavorable 
D) $4,866.75 favorable

Question 15

The following data relate to direct labor costs for March:
Rate: standard, $12.00; actual, $12.25
Hours: standard, 18,500; actual, 17,955
Units of production: 9,450
-The direct labor rate variance is

Accepted Answer

A) $4,488.75 unfavorable 
B) $6,851.25 favorable 
C) $4,488.75 favorable 
D) $6,851.25 unfavorable 
A) $4,488.75 unfavorable 
B) $6,851.25 favorable 
C) $4,488.75 favorable 
D) $6,851.25 unfavorable

Question 16

If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a _____ variance.

Accepted Answer

A) time 
B) price 
C) quantity 
D) rate 
A) time 
B) price 
C) quantity 
D) rate

Question 17

If employees are given bonuses for exceeding normal standards, the standards may be very effective in motivating employees.

Accepted Answer

A) True 
 B)False

Question 18

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.​ The direct materials quantity variance is

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 19

​   
*Actual hours are equal to standard hours for units produced.​
-Which of the following is the correct formula for the direct labor time variance in a service business?

Accepted Answer

A) Planned Staff Hours - Actual Staff Hours 
B) (Actual Staff Hours - Standard Staff Hours) × Actual Rate per Hour 
C) (Actual Staff Hours - Standard Staff Hours) × Standard Rate per Hour 
D) (Actual Staff - Planned Staff) × Actual Rate per Hour × Standard Shift Hours 
A) Planned Staff Hours - Actual Staff Hours 
B) (Actual Staff Hours - Standard Staff Hours) × Actual Rate per Hour 
C) (Actual Staff Hours - Standard Staff Hours) × Standard Rate per Hour 
D) (Actual Staff - Planned Staff) × Actual Rate per Hour × Standard Shift Hours

Question 20

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual direct labor incurred is 500 hours at $17, the direct labor time variance is $1,700 unfavorable.

Accepted Answer

A) True 
 B)False

Exam 23: Evaluating Variances From Standard Costs

The direct materials price variance is the difference between the

Compute the standard cost for one pair of boots, based on the following standards for each pair of boots: Standard materials quantity: 1.25 yards of leather at $35.00 per yard Standard labor: 9 hours at $25.75 per hour Factory overhead: $1.75 per direct labor hour

The most effective means of presenting factory overhead cost variance data is through a flexible factory overhead budget.

Greyson Company produced 8,300 units of product that required 4.25 standard hours per unit. Determine the standard fixed overhead cost per unit at 27,000 hours, which is 100% of normal capacity, if the favorable fixed factory overhead volume variance is $14,895.

Currently attainable standards do not allow for reasonable production difficulties.

Standard costs should always be revised when they differ from actual costs.

The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials price variance is

Accounting systems that use standards for product costs are called budgeted cost systems.

Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows: Actual costs 1,550 lbs. at $9.10 Standard costs 1,600 lbs. at $9.00 Determine the direct materials (a) quantity variance, (b) price variance, and (c) total cost variance.

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows: The direct labor rate variance is

If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual direct labor incurred is 500 hours at $15, the direct labor time variance is $1,500 unfavorable.

The following data are given for Zoyza Company: Overhead is applied on standard labor hours.​ -The fixed factory overhead volume variance is

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual direct materials used are 800 units at $12, the direct materials quantity variance is $2,200 unfavorable.

​ *Actual hours are equal to standard hours for units produced.​ -The fixed factory overhead volume variance is

The following data relate to direct labor costs for March: Rate: standard, $12.00; actual, $12.25 Hours: standard, 18,500; actual, 17,955 Units of production: 9,450 -The direct labor rate variance is

If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a _____ variance.

If employees are given bonuses for exceeding normal standards, the standards may be very effective in motivating employees.

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.​ The direct materials quantity variance is

​ *Actual hours are equal to standard hours for units produced.​ -Which of the following is the correct formula for the direct labor time variance in a service business?

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual direct labor incurred is 500 hours at $17, the direct labor time variance is $1,700 unfavorable.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters

The following data are given for Zoyza Company: Overhead is applied on standard labor hours. -The fixed factory overhead volume variance is

*Actual hours are equal to standard hours for units produced. -The fixed factory overhead volume 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. The direct materials quantity variance is

*Actual hours are equal to standard hours for units produced. -Which of the following is the correct formula for the direct labor time variance in a service business?