Question 1

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 2

The total manufacturing cost variance is

Accepted Answer

A)  the difference between actual costs and standard costs for units produced 
B)  the flexible budget variance plus the time variance 
C)  the difference between planned costs and standard costs for units produced 
D)  none of the answers are correct 
A)  the difference between actual costs and standard costs for units produced 
B)  the flexible budget variance plus the time variance 
C)  the difference between planned costs and standard costs for units produced 
D)  none of the answers are correct

Question 3

Which of the following would not lend itself to applying direct labor variances?

Accepted Answer

A)  help desk assistant 
B)  research and development scientist 
C)  customer service personnel 
D)  telemarketer 
A)  help desk assistant 
B)  research and development scientist 
C)  customer service personnel 
D)  telemarketer

Question 4

The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour.
The labor time variance is

Accepted Answer

A)  $9,880 favorable 
B)  $9,880 unfavorable 
C)  $7,800 unfavorable 
D)  $7,800 favorable 
A)  $9,880 favorable 
B)  $9,880 unfavorable 
C)  $7,800 unfavorable 
D)  $7,800 favorable

Question 5

The following data relate to direct labor costs for the current period:   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 6

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Currently attainable standards do not allow for reasonable production difficulties.

Accepted Answer

A) True 
 B)False

Question 9

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
Calculate the total direct labor variance.

Accepted Answer

A)  $2,051.25 favorable 
B)  $2,051.25 unfavorable 
C)  $2,362.50 unfavorable 
D)  $2,362.50 favorable 
A)  $2,051.25 favorable 
B)  $2,051.25 unfavorable 
C)  $2,362.50 unfavorable 
D)  $2,362.50 favorable

Question 10

The formula to compute the direct labor rate variance is to calculate the difference between

Accepted Answer

A)  Actual costs + (Actual hours × Standard rate) 
B)  Actual costs - Standard cost 
C)  (Actual hours × Standard rate) - Standard costs 
D)  Actual costs - (Actual hours × Standard rate) 
A)  Actual costs + (Actual hours × Standard rate) 
B)  Actual costs - Standard cost 
C)  (Actual hours × Standard rate) - Standard costs 
D)  Actual costs - (Actual hours × Standard rate)

Question 11

The following data is given for the Harry Company:   Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)
The direct labor rate variance is:

Accepted Answer

A)  $5,490 unfavorable 
B)  $5,490 favorable 
C)  $33,000 favorable 
D)  $33,000 unfavorable 
A)  $5,490 unfavorable 
B)  $5,490 favorable 
C)  $33,000 favorable 
D)  $33,000 unfavorable

Question 12

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are   The amount of direct materials price variance is

Accepted Answer

A)  $2,750 unfavorable variance 
B)  $2,750 favorable variance 
C)  $1,500 favorable variance 
D)  $1,500 unfavorable variance 
A)  $2,750 unfavorable variance 
B)  $2,750 favorable variance 
C)  $1,500 favorable variance 
D)  $1,500 unfavorable variance

Question 13

The following data relate to direct labor costs for the current period:   What is the direct labor time variance?

Accepted Answer

A)  $36,000 unfavorable 
B)  $35,000 unfavorable 
C)  $23,000 favorable 
D)  $22,000 favorable 
A)  $36,000 unfavorable 
B)  $35,000 unfavorable 
C)  $23,000 favorable 
D)  $22,000 favorable

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

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

Accepted Answer

A) True 
 B)False

Question 16

A favorable cost variance occurs when

Accepted Answer

A)  actual costs are more than standard costs 
B)  standard costs are more than actual costs 
C)  standard costs are less than actual costs 
D)  actual costs are the same as standard costs 
A)  actual costs are more than standard costs 
B)  standard costs are more than actual costs 
C)  standard costs are less than actual costs 
D)  actual costs are the same as standard costs

Question 17

A company should only use nonfinancial performance measures when financial measures cannot be calculated.

Accepted Answer

A) True 
 B)False

Question 18

Nonfinancial measures are often linked to the inputs or outputs of an activity or process.

Accepted Answer

A) True 
 B)False

Question 19

Standards are more widely used for nonmanufacturing activities than for manufacturing activities.

Accepted Answer

A) True 
 B)False

Question 20

The following data relate to direct labor costs for August: Actual costs: 5,500 hours at $24.00 per hour.
Standard costs: 5,000 hours at $23.70 per hour.
What is the direct labor rate variance?

Accepted Answer

A)  $1,650 favorable 
B)  $1,650 unfavorable 
C)  $1,500 favorable 
D)  $1,500 unfavorable 
A)  $1,650 favorable 
B)  $1,650 unfavorable 
C)  $1,500 favorable 
D)  $1,500 unfavorable

Periodic comparisons between planned objectives and actual performance are reported in:

The total manufacturing cost variance is

Which of the following would not lend itself to applying direct labor variances?

The following data relate to direct labor costs for the current period: What is the direct labor rate variance?

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

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?

Currently attainable standards do not allow for reasonable production difficulties.

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 Calculate the total direct labor variance.

The formula to compute the direct labor rate variance is to calculate the difference between

The following data is given for the Harry Company: Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor rate variance is:

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are The amount of direct materials price variance is

The following data relate to direct labor costs for the current period: What is the direct labor time variance?

*Actual hours are equal to standard hours for units produced. 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 was 800 units at $12, the direct materials quantity variance was $1,000 unfavorable.

A favorable cost variance occurs when

A company should only use nonfinancial performance measures when financial measures cannot be calculated.

Nonfinancial measures are often linked to the inputs or outputs of an activity or process.

Standards are more widely used for nonmanufacturing activities than for manufacturing activities.

The following data relate to direct labor costs for August: Actual costs: 5,500 hours at $24.00 per hour. Standard costs: 5,000 hours at $23.70 per hour. What is the direct labor rate variance?

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity Based Costing

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

Statement of Cash Flows

Financial Statement Analysis

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Exam 8: Evaluating Variances From Standard Costs

Periodic comparisons between planned objectives and actual performance are reported in:

The total manufacturing cost variance is

Which of the following would not lend itself to applying direct labor variances?

The following data relate to direct labor costs for the current period: What is the direct labor rate variance?

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

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?

Currently attainable standards do not allow for reasonable production difficulties.

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 Calculate the total direct labor variance.

The formula to compute the direct labor rate variance is to calculate the difference between

The following data is given for the Harry Company: Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor rate variance is:

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are The amount of direct materials price variance is

The following data relate to direct labor costs for the current period: What is the direct labor time variance?

*Actual hours are equal to standard hours for units produced. 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 was 800 units at $12, the direct materials quantity variance was $1,000 unfavorable.

A favorable cost variance occurs when

A company should only use nonfinancial performance measures when financial measures cannot be calculated.

Nonfinancial measures are often linked to the inputs or outputs of an activity or process.

Standards are more widely used for nonmanufacturing activities than for manufacturing activities.

The following data relate to direct labor costs for August: Actual costs: 5,500 hours at $24.00 per hour. Standard costs: 5,000 hours at $23.70 per hour. What is the direct labor rate variance?

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity Based Costing

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

Statement of Cash Flows

Financial Statement Analysis

Filters