Question 1

QRS Limited uses a standard costing system for all its products. QRS Limited produces Product

Accepted Answer

A)  £600 Unfavourable 
B)  £2,000 Unfavourable 
C)  £2,600 Unfavourable 
D)  £8,400 Unfavourable 
A)  £600 Unfavourable 
B)  £2,000 Unfavourable 
C)  £2,600 Unfavourable 
D)  £8,400 Unfavourable

Question 2

XTA Limited uses a standard costing system for all its products. Product E's standard specifies 4 machine hours of production time and absorbs variable overheads at the standard rate of £2 per machine hour. Budgeted production of Product E is 10,000 units per annum. For the financial year ended 31 January 2019, it was calculated that the machine hours actually used for each Product E were 3.9 hours while the actual cost of variable overhead was £2.10 per machine hour. Actual production was 9,800 units of Product

Accepted Answer

A)  £1,862 Unfavourable 
B)  £1,960 Favourable 
C)  £2,000 Favourable 
D)  £3,822 Unfavourable 
A)  £1,862 Unfavourable 
B)  £1,960 Favourable 
C)  £2,000 Favourable 
D)  £3,822 Unfavourable

Question 3

QRS Limited uses a standard costing system for all its products. QRS Limited produces Product

Accepted Answer

A)  £3,600 Favourable 
B)  £4,200 Favourable 
C)  £9,800 Unfavourable 
D)  £14,000 Unfavourable 
A)  £3,600 Favourable 
B)  £4,200 Favourable 
C)  £9,800 Unfavourable 
D)  £14,000 Unfavourable

Question 4

BCD allocates £6 of fixed overhead to each product it produces. Fixed overhead is allocated to products on the basis that monthly production at the company will be 2,500 units of product. Actual production for August was 2,000 units. Actual fixed overhead costs in August totalled up to £14,800. What is the fixed overhead variance for August?

Accepted Answer

A)  £200 Favourable 
B)  £2,800 Unfavourable 
C)  £3,000 Unfavourable 
D)  £3,000 Favourable 
A)  £200 Favourable 
B)  £2,800 Unfavourable 
C)  £3,000 Unfavourable 
D)  £3,000 Favourable

Question 5

BTG Limited uses a standard costing system for all its products. BTG Limited produces Product

Accepted Answer

A)  £10,625 Unfavourable 
B)  £13,750 Favourable 
C)  £14,375 Favourable 
D)  £25,000 Unfavourable 
A)  £10,625 Unfavourable 
B)  £13,750 Favourable 
C)  £14,375 Favourable 
D)  £25,000 Unfavourable

Question 6

What is the correct formula for the direct material price variance?

Accepted Answer

A)  Actual expenditure on direct materials for actual production - expected expenditure on direct materials for actual production. 
B)  (Actual usage of direct materials for actual production - expected usage of direct materials for actual production) x the standard cost for one unit of direct material. 
C)  What the direct materials for actual production should have cost - what the direct materials for actual production actually cost. 
D)  What the direct materials for expected production should have cost - what the direct materials for actual production actually cost. 
A)  Actual expenditure on direct materials for actual production - expected expenditure on direct materials for actual production. 
B)  (Actual usage of direct materials for actual production - expected usage of direct materials for actual production) x the standard cost for one unit of direct material. 
C)  What the direct materials for actual production should have cost - what the direct materials for actual production actually cost. 
D)  What the direct materials for expected production should have cost - what the direct materials for actual production actually cost.

Question 7

Which of the following words do you associate with standard costing?
Please select all that apply.

Accepted Answer

A)  Expected 
B)  Predictive 
C)  Actual 
D)  Planned 
A)  Expected 
B)  Predictive 
C)  Actual 
D)  Planned

Question 8

(The labour hours that should have been used for actual production - the labour hours that were actually used for actual production) x standard rate per hour. Which variance is calculated using this formula?

Accepted Answer

A)  Direct Labour Efficiency Variance 
B)  Direct Labour Total Variance 
C)  Direct Labour Rate Variance 
D)  Variable Overhead Efficiency Variance 
A)  Direct Labour Efficiency Variance 
B)  Direct Labour Total Variance 
C)  Direct Labour Rate Variance 
D)  Variable Overhead Efficiency Variance

Question 9

What is the correct formula for the direct material total variance?

Accepted Answer

A)  (Actual usage of direct materials for actual production - expected usage of direct materials for actual production) x the standard cost for one unit of direct material. 
B)  Actual expenditure on direct materials for actual production - expected expenditure on direct materials for actual production. 
C)  What the direct materials for actual production should have cost - what the direct materials for actual production actually cost. 
D)  Expected expenditure on materials - (actual production units x standard materials cost per unit of production). 
A)  (Actual usage of direct materials for actual production - expected usage of direct materials for actual production) x the standard cost for one unit of direct material. 
B)  Actual expenditure on direct materials for actual production - expected expenditure on direct materials for actual production. 
C)  What the direct materials for actual production should have cost - what the direct materials for actual production actually cost. 
D)  Expected expenditure on materials - (actual production units x standard materials cost per unit of production).

QRS Limited uses a standard costing system for all its products. QRS Limited produces Product

QRS Limited uses a standard costing system for all its products. QRS Limited produces Product

BTG Limited uses a standard costing system for all its products. BTG Limited produces Product

What is the correct formula for the direct material price variance?

Which of the following words do you associate with standard costing? Please select all that apply.

(The labour hours that should have been used for actual production - the labour hours that were actually used for actual production) x standard rate per hour. Which variance is calculated using this formula?

What is the correct formula for the direct material total variance?

Introduction to Accounting

The Statement of Financial Position

The Income Statement

The Statement of Cash Flows

Business Organisations and the Financing of Business

Ratio Analysis 1: Profitability, Efficiency, and Performance

Ratio Analysis 2: Liquidity, Working Capital and Long-Term Financial Stability

Costing

Relevant Costs, Marginal Costing and Decision Making

Budgeting

Capital Investment Appraisal

Filters

Exam 10: Standard Costing and Variance Analysis

QRS Limited uses a standard costing system for all its products. QRS Limited produces Product

QRS Limited uses a standard costing system for all its products. QRS Limited produces Product

BTG Limited uses a standard costing system for all its products. BTG Limited produces Product

What is the correct formula for the direct material price variance?

Which of the following words do you associate with standard costing? Please select all that apply.

(The labour hours that should have been used for actual production - the labour hours that were actually used for actual production) x standard rate per hour. Which variance is calculated using this formula?

What is the correct formula for the direct material total variance?

Introduction to Accounting

The Statement of Financial Position

The Income Statement

The Statement of Cash Flows

Business Organisations and the Financing of Business

Ratio Analysis 1: Profitability, Efficiency, and Performance

Ratio Analysis 2: Liquidity, Working Capital and Long-Term Financial Stability

Costing

Relevant Costs, Marginal Costing and Decision Making

Budgeting

Capital Investment Appraisal

Filters