Question 1

If the actual direct labor hours spent producing a commodity differs from the standard hours, the variance is a

Accepted Answer

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

Question 2

The following data is given for the Stringer Company:   Overhead is applied on standard labor hours.
The direct materials quantity variance is:

Accepted Answer

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

Question 3

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

Accepted Answer

A)  $14,000 favorable 
B)  $14,000 unfavorable 
C)  $15,400 favorable 
D)  $15,400 unfavorable 
A)  $14,000 favorable 
B)  $14,000 unfavorable 
C)  $15,400 favorable 
D)  $15,400 unfavorable

Question 4

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 5

The following information relates to manufacturing overhead for the Chapman Company: 
Standards: 
Total fixed factory overhead - $450,000 
Estimated production - 25,000 units (100% of normal capacity) 
Overhead rates are based on machine hours 
Standard hours allowed per unit produced - 2 
Fixed overhead rate - $9.00 per machine hour 
Variable overhead rate - $3.50 per hour 
Actual: Fixed factory overhead - $450,000 
Production - 24,000 units 
Variable overhead - $170,000 
Compute: 
(a) the fixed factory overhead volume variance
(b) the variable factory overhead controllable variance
(c) the total factory overhead cost variance.

Accepted Answer

The answer of The following information relates to manufacturing overhead...

Question 6

The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% normal production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units.
The variable factory overhead controllable variance is

Accepted Answer

A)  $9,000 favorable 
B)  $9,000 unfavorable 
C)  $5,500 favorable 
D)  $5,500 unfavorable 
A)  $9,000 favorable 
B)  $9,000 unfavorable 
C)  $5,500 favorable 
D)  $5,500 unfavorable

Question 7

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

[(8,300 × 4.25) -  2

Question 8

Standards are set for only direct labor and direct materials.

Accepted Answer

A) True 
 B)False

Question 9

The following data relate to direct materials costs for February:
Materials cost per yard: standard, $2.00; actual, $2.10
Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards
Units of production: 9,500
Calculate the total direct materials cost variance.

Accepted Answer

A)  $9,262.50 unfavorable 
B)  $9,262.50 favorable 
C)  $3,780.00 unfavorable 
D)  $3,562.50 favorable 
A)  $9,262.50 unfavorable 
B)  $9,262.50 favorable 
C)  $3,780.00 unfavorable 
D)  $3,562.50 favorable

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A company must choose either a standard system or nonfinancial performance measures to evaluate the performance of a company.

Accepted Answer

A) True 
 B)False

Question 12

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 price variance was $800 favorable.

Accepted Answer

A) True 
 B)False

Question 13

Hsu Company produces a part with a standard of 5 yards of material per unit. The standard price of one yard of material is $8.50. During the month, 8,800 parts were manufactured, using 45,700 yards of material at a cost of $8.30. 
Determine: 
(a) price variance 
(b) quantity variance
(c) cost variance.

Accepted Answer

(a) Price variance = ($8.30 -

Question 14

Though favorable fixed factory overhead volume variances are usually good news, if inventory levels are too high, additional production could be harmful.

Accepted Answer

A) True 
 B)False

Question 15

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:   The amount of the variable factory overhead controllable variance is

Accepted Answer

A)  $2,000 unfavorable 
B)  $3,000 favorable 
C)  $0 
D)  $3,000 unfavorable 
A)  $2,000 unfavorable 
B)  $3,000 favorable 
C)  $0 
D)  $3,000 unfavorable

Question 16

The principle of exceptions allows managers to focus on correcting variances between

Accepted Answer

A)  standard costs and actual costs 
B)  variable costs and actual costs 
C)  competitor's costs and actual costs 
D)  competitor's costs and standard costs 
A)  standard costs and actual costs 
B)  variable costs and actual costs 
C)  competitor's costs and actual costs 
D)  competitor's costs and standard costs

Question 17

The following data is given for the 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 18

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: 
Actual costs: 950 hours at $37 
Standard costs: 975 hours at $36 
Determine the direct labor: 
(a) time variance
(b) rate variance
(c) total direct labor cost variance.

Accepted Answer

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

Question 19

Using the following information, prepare a factory overhead flexible budget for Jacob Company where the total factory overhead cost is $206,500 at normal capacity (100%). Include capacity at 60%, 80%, 100%, and 120%. Total variable cost is $15.25 per unit and total fixed costs are $54,000. The information is for month ended October 31.  (Hint: Determine units produced at normal capacity.)

Accepted Answer

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

Question 20

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

If the actual direct labor hours spent producing a commodity differs from the standard hours, the variance is a

The following data is given for the Stringer Company: Overhead is applied on standard labor hours. The direct materials quantity variance is:

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

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

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.

Standards are set for only direct labor and direct materials.

The following data relate to direct materials costs for February: Materials cost per yard: standard, $2.00; actual, $2.10 Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards Units of production: 9,500 Calculate the total direct materials cost variance.

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

A company must choose either a standard system or nonfinancial performance measures to evaluate the performance of a company.

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 price variance was $800 favorable.

Hsu Company produces a part with a standard of 5 yards of material per unit. The standard price of one yard of material is $8.50. During the month, 8,800 parts were manufactured, using 45,700 yards of material at a cost of $8.30. Determine: (a) price variance (b) quantity variance (c) cost variance.

Though favorable fixed factory overhead volume variances are usually good news, if inventory levels are too high, additional production could be harmful.

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: The amount of the variable factory overhead controllable variance is

The principle of exceptions allows managers to focus on correcting variances between

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

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: Actual costs: 950 hours at $37 Standard costs: 975 hours at $36 Determine the direct labor: (a) time variance (b) rate variance (c) total direct labor 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

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

If the actual direct labor hours spent producing a commodity differs from the standard hours, the variance is a

The following data is given for the Stringer Company: Overhead is applied on standard labor hours. The direct materials quantity variance is:

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

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

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.

Standards are set for only direct labor and direct materials.

The following data relate to direct materials costs for February: Materials cost per yard: standard, $2.00; actual, $2.10 Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards Units of production: 9,500 Calculate the total direct materials cost variance.

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

A company must choose either a standard system or nonfinancial performance measures to evaluate the performance of a company.

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 price variance was $800 favorable.

Though favorable fixed factory overhead volume variances are usually good news, if inventory levels are too high, additional production could be harmful.

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: The amount of the variable factory overhead controllable variance is

The principle of exceptions allows managers to focus on correcting variances between

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

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: Actual costs: 950 hours at $37 Standard costs: 975 hours at $36 Determine the direct labor: (a) time variance (b) rate variance (c) total direct labor 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

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