Question 1

The ________ "tells managers how much of the total direct materials variance is due to using more or less materials than anticipated the by standards."

Accepted Answer

A) production volume variance 
B) overhead flexible budget variance 
C) price variance 
D) quantity variance 
A) production volume variance 
B) overhead flexible budget variance 
C) price variance 
D) quantity variance

Question 2

Michael Corporation manufactures railroad cars, which is its only product. The standards for railroad cars are as follows:   During the month of March, the company produced 1750 railroad cars. Related production data for the month follows:
  What is the direct labor rate variance for the month?

Accepted Answer

A) $75,000 favorable 
B) $75,000 unfavorable 
C) $255,000 favorable 
D) $255,000 unfavorable 
A) $75,000 favorable 
B) $75,000 unfavorable 
C) $255,000 favorable 
D) $255,000 unfavorable

Question 3

A company receives an unusually high number of orders in a month. To produce all of the orders within the scheduled dates of delivery, the company pays employees an extra $8 per hour for every hour of overtime the employees work. Which of the following variances may be directly impacted?

Accepted Answer

A) Direct materials price variance 
B) Direct materials quantity variance 
C) Direct labor efficiency variance 
D) Direct labor rate variance 
A) Direct materials price variance 
B) Direct materials quantity variance 
C) Direct labor efficiency variance 
D) Direct labor rate variance

Question 4

The fixed overhead volume variance is the difference between the budgeted fixed overhead and

Accepted Answer

A) the standard fixed overhead cost allocated to production. 
B) the budgeted fixed overhead in the static budget. 
C) the actual overhead. 
D) the budgeted variable overhead. 
A) the standard fixed overhead cost allocated to production. 
B) the budgeted fixed overhead in the static budget. 
C) the actual overhead. 
D) the budgeted variable overhead.

Question 5

How is the direct labor rate variance calculated?

Accepted Answer

A) The difference between the standard labor rate and the actual labor rate multiplied by the actual labor hours used 
B) The difference between the standard labor rate and the actual labor rate multiplied by the standard allowable hours 
C) The difference between the standard labor hours and the allowable labor hours 
D) The difference between the standard labor rate and the actual labor rate 
A) The difference between the standard labor rate and the actual labor rate multiplied by the actual labor hours used 
B) The difference between the standard labor rate and the actual labor rate multiplied by the standard allowable hours 
C) The difference between the standard labor hours and the allowable labor hours 
D) The difference between the standard labor rate and the actual labor rate

Question 6

A(n)________ is a carefully predetermined cost that is usually expressed on a per unit basis.

Accepted Answer

A) allocated cost 
B) applied cost 
C) standard cost 
D) flexible cost 
A) allocated cost 
B) applied cost 
C) standard cost 
D) flexible cost

Question 7

The Stallard Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Stallard produced 17,000 units of Product X and incurred actual overhead costs of $343,000. The standard costs developed for Product X by Stallard follow:   What was the total variable overhead variance for Product X in October?

Accepted Answer

A) $269,000 favorable 
B) $269,000 unfavorable 
C) $190,000 favorable 
D) $190,000 unfavorable 
A) $269,000 favorable 
B) $269,000 unfavorable 
C) $190,000 favorable 
D) $190,000 unfavorable

Question 8

Steep Enterprises machines heavy-duty brake rotors that are used on commercial airliners. Steep's management developed the following standard costs:   Actual activity for October:
  What is the total variable manufacturing overhead variance in October?

Accepted Answer

A) $40,440 unfavorable 
B) $120,975 unfavorable 
C) $40,440 favorable 
D) $120,975 favorable 
A) $40,440 unfavorable 
B) $120,975 unfavorable 
C) $40,440 favorable 
D) $120,975 favorable

Question 9

Oliver Enterprises has collected the following data for one of its products:   What is the actual cost of the Direct Materials Used (AQU)per pound?

Accepted Answer

A) $4.36 
B) $3.94 
C) $5.14 
D) $0.58 
A) $4.36 
B) $3.94 
C) $5.14 
D) $0.58

Question 10

An LCD screen is purchased to be used in the manufacturing of a digital watch. The Standard Price (SP)for the LCD screen used is $60.00. During the month of February, 4200 screens were purchased and used. The materials price variance was $14,700 unfavorable. The standard number of screens allowed for the actual number of watches manufactured during the period was 26,000 screens. The actual purchase price of each LCD screen may be closest to

Accepted Answer

A) $1.77 per LCD screen. 
B) $60.29 per LCD screen. 
C) $56.50 per LCD screen. 
D) $63.50 per LCD screen. 
A) $1.77 per LCD screen. 
B) $60.29 per LCD screen. 
C) $56.50 per LCD screen. 
D) $63.50 per LCD screen.

Question 11

Neil's Service Shop performs routine vehicle maintenance. One such service is tire rotations. Neil's reports the following budgeted and actual amounts for tire rotations for the month of August.   What is the labor efficiency variance for the month of August?

Accepted Answer

A) $3,507 favorable 
B) $3,507 unfavorable 
C) $3000 favorable 
D) $3000 unfavorable 
A) $3,507 favorable 
B) $3,507 unfavorable 
C) $3000 favorable 
D) $3000 unfavorable

Question 12

Hushovd Iron Works has collected the following data for its Thunderbolt line of products:   What is the direct materials quantity variance?

Accepted Answer

A) $2,750 unfavorable 
B) $2,750 favorable 
C) $6,250 unfavorable 
D) $6,250 favorable 
A) $2,750 unfavorable 
B) $2,750 favorable 
C) $6,250 unfavorable 
D) $6,250 favorable

Question 13

Nixon's Diner bakes pies in large batches. One batch of pies has the following standard costs and amounts:
   Nixon's Diner baked 425 batches of pies in the most recent month. Actual costs and usage levels were as follows:
   Required:
a. Calculate the material price variance.
b. Calculate the material quantity variance.
c. Calculate the labor rate variance.
d. Calculate the labor efficiency variance.

Accepted Answer

The answer of Nixon's Diner bakes pies in large batches....

Question 14

The direct labor efficiency variance tells managers how much of the total labor variance is due to using a greater or lesser amount of time than anticipated.

Accepted Answer

A) True 
 B)False

Question 15

On the line in front of each variance, enter the letters of the items needed to compute that variance. You will enter more than one item on each line.
A. Actual labor rate
B. Actual labor hours
C. Standard labor rate
D. Standard labor hours
________ Direct labor rate variance
________ Direct labor efficiency variance

Accepted Answer

A, B, C Direct labor

Question 16

A direct materials flexible budget variance can be broken down into a price variance and a quantity variance.

Accepted Answer

A) True 
 B)False

Question 17

Aiken Manufacturing gathered the following flexible budget information:   How much is the total budgeted overhead cost at 90% of normal capacity?

Accepted Answer

A) $224,000 
B) $80,000 
C) $209,600 
D) $201,600 
A) $224,000 
B) $80,000 
C) $209,600 
D) $201,600

Question 18

A rate variance for direct labor measures how well a company keeps unit prices of labor inputs within standards.

Accepted Answer

A) True 
 B)False

Question 19

Baskets Inc. gathered the following actual results for the current month:   Budgeted production and standard costs were:
  What is the direct materials price variance?

Accepted Answer

A) $7300 unfavorable 
B) $7300 favorable 
C) $5200 favorable 
D) $5200 unfavorable 
A) $7300 unfavorable 
B) $7300 favorable 
C) $5200 favorable 
D) $5200 unfavorable

Question 20

The variable overhead rate variance may be caused by variances in the following production inputs except

Accepted Answer

A) indirect materials. 
B) indirect labor. 
C) fixed manufacturing overhead. 
D) None of the above impacts the variable overhead rate variance. 
A) indirect materials. 
B) indirect labor. 
C) fixed manufacturing overhead. 
D) None of the above impacts the variable overhead rate variance.

The ________ "tells managers how much of the total direct materials variance is due to using more or less materials than anticipated the by standards."

Michael Corporation manufactures railroad cars, which is its only product. The standards for railroad cars are as follows: During the month of March, the company produced 1750 railroad cars. Related production data for the month follows: What is the direct labor rate variance for the month?

A company receives an unusually high number of orders in a month. To produce all of the orders within the scheduled dates of delivery, the company pays employees an extra $8 per hour for every hour of overtime the employees work. Which of the following variances may be directly impacted?

The fixed overhead volume variance is the difference between the budgeted fixed overhead and

How is the direct labor rate variance calculated?

A(n)________ is a carefully predetermined cost that is usually expressed on a per unit basis.

Steep Enterprises machines heavy-duty brake rotors that are used on commercial airliners. Steep's management developed the following standard costs: Actual activity for October: What is the total variable manufacturing overhead variance in October?

Oliver Enterprises has collected the following data for one of its products: What is the actual cost of the Direct Materials Used (AQU)per pound?

Neil's Service Shop performs routine vehicle maintenance. One such service is tire rotations. Neil's reports the following budgeted and actual amounts for tire rotations for the month of August. What is the labor efficiency variance for the month of August?

Hushovd Iron Works has collected the following data for its Thunderbolt line of products: What is the direct materials quantity variance?

The direct labor efficiency variance tells managers how much of the total labor variance is due to using a greater or lesser amount of time than anticipated.

On the line in front of each variance, enter the letters of the items needed to compute that variance. You will enter more than one item on each line. A. Actual labor rate B. Actual labor hours C. Standard labor rate D. Standard labor hours Direct labor rate variance Direct labor efficiency variance

A direct materials flexible budget variance can be broken down into a price variance and a quantity variance.

Aiken Manufacturing gathered the following flexible budget information: How much is the total budgeted overhead cost at 90% of normal capacity?

A rate variance for direct labor measures how well a company keeps unit prices of labor inputs within standards.

Baskets Inc. gathered the following actual results for the current month: Budgeted production and standard costs were: What is the direct materials price variance?

The variable overhead rate variance may be caused by variances in the following production inputs except

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evalulation

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

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Exam 11: Standard Costs and Variances

The ________ "tells managers how much of the total direct materials variance is due to using more or less materials than anticipated the by standards."

Michael Corporation manufactures railroad cars, which is its only product. The standards for railroad cars are as follows: During the month of March, the company produced 1750 railroad cars. Related production data for the month follows: What is the direct labor rate variance for the month?

A company receives an unusually high number of orders in a month. To produce all of the orders within the scheduled dates of delivery, the company pays employees an extra $8 per hour for every hour of overtime the employees work. Which of the following variances may be directly impacted?

The fixed overhead volume variance is the difference between the budgeted fixed overhead and

How is the direct labor rate variance calculated?

A(n)________ is a carefully predetermined cost that is usually expressed on a per unit basis.

Steep Enterprises machines heavy-duty brake rotors that are used on commercial airliners. Steep's management developed the following standard costs: Actual activity for October: What is the total variable manufacturing overhead variance in October?

Oliver Enterprises has collected the following data for one of its products: What is the actual cost of the Direct Materials Used (AQU)per pound?

Neil's Service Shop performs routine vehicle maintenance. One such service is tire rotations. Neil's reports the following budgeted and actual amounts for tire rotations for the month of August. What is the labor efficiency variance for the month of August?

Hushovd Iron Works has collected the following data for its Thunderbolt line of products: What is the direct materials quantity variance?

The direct labor efficiency variance tells managers how much of the total labor variance is due to using a greater or lesser amount of time than anticipated.

A direct materials flexible budget variance can be broken down into a price variance and a quantity variance.

Aiken Manufacturing gathered the following flexible budget information: How much is the total budgeted overhead cost at 90% of normal capacity?

A rate variance for direct labor measures how well a company keeps unit prices of labor inputs within standards.

Baskets Inc. gathered the following actual results for the current month: Budgeted production and standard costs were: What is the direct materials price variance?

The variable overhead rate variance may be caused by variances in the following production inputs except

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evalulation

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters