Question 1

Under which product costing system for a manufacturing company would there be no fixed manufacturing overhead volume variance?

Accepted Answer

A)  Standard absorption costing. 
B)  Standard variable costing. 
C)  Job order costing. 
D)  Process costing. 
A)  Standard absorption costing. 
B)  Standard variable costing. 
C)  Job order costing. 
D)  Process costing.

Question 2

A reason for keeping a constant denominator activity level is to maintain stability in the amount of overhead cost that is applied to each unit of product manufactured over the period.

Accepted Answer

A) True 
 B)False

Question 3

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Accepted Answer

A)  $163 favourable. 
B)  $815 favourable. 
C)  $978 favourable. 
D)  $993 favourable. 
A)  $163 favourable. 
B)  $815 favourable. 
C)  $978 favourable. 
D)  $993 favourable.

Question 4

Cox Company's direct material costs for the month of January were as follows:  
What was the favourable direct materials quantity variance for January?

Accepted Answer

A)  $3,360. 
B)  $3,375. 
C)  $3,400. 
D)  $3,800.Material quantity variance = $3.40 * (15,000 - 16,000)=$3,400. 
A)  $3,360. 
B)  $3,375. 
C)  $3,400. 
D)  $3,800.Material quantity variance = $3.40 * (15,000 - 16,000)=$3,400.

Question 5

For August,what was the variable overhead spending variance?

Accepted Answer

A)  $4,300 favourable. 
B)  $4,300 unfavourable. 
C)  $6,500 favourable. 
D)  $6,500 unfavourable. 
A)  $4,300 favourable. 
B)  $4,300 unfavourable. 
C)  $6,500 favourable. 
D)  $6,500 unfavourable.

Question 6

The following materials standards have been established for a particular product:   
The following data pertain to operations concerning the product for the last month:   
Required:
a)What was the materials price variance for the month?
b)What was the materials quantity variance for the month?

Accepted Answer

Materials price variance = (AQ × AP)- (A

Question 7

What was the variable overhead efficiency variance for the year?

Accepted Answer

A)  $28,000 favourable. 
B)  $28,000 unfavourable. 
C)  $192,000 favourable. 
D)  $192,000 unfavourable. 
A)  $28,000 favourable. 
B)  $28,000 unfavourable. 
C)  $192,000 favourable. 
D)  $192,000 unfavourable.

Question 8

Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items?

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D

Question 9

Jaune Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs).The following data pertain to last month's operations:  
What was the fixed overhead budget variance?

Accepted Answer

A)  $500 favourable. 
B)  $500 unfavourable. 
C)  $1,700 unfavourable. 
D)  $2,200 unfavourable. 
A)  $500 favourable. 
B)  $500 unfavourable. 
C)  $1,700 unfavourable. 
D)  $2,200 unfavourable.

Question 10

What was the fixed overhead volume variance for the year?

Accepted Answer

A)  $7,000 unfavourable. 
B)  $18,000 favourable. 
C)  $25,000 unfavourable. 
D)  $41,667 unfavourable. 
A)  $7,000 unfavourable. 
B)  $18,000 favourable. 
C)  $25,000 unfavourable. 
D)  $41,667 unfavourable.

Question 11

Which of the following refers to standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times?

Accepted Answer

A)  Normal standards. 
B)  Practical standards. 
C)  Ideal standards. 
D)  Budgeted standards. 
A)  Normal standards. 
B)  Practical standards. 
C)  Ideal standards. 
D)  Budgeted standards.

Question 12

How much overhead was applied to products during the period,rounded to the nearest dollar?

Accepted Answer

A)  $67,408. 
B)  $71,955. 
C)  $72,270. 
D)  $74,460. 
A)  $67,408. 
B)  $71,955. 
C)  $72,270. 
D)  $74,460.

Question 13

What was the variable overhead spending variance for the period,rounded to the nearest dollar?

Accepted Answer

A)  $315 favourable. 
B)  $315 unfavourable. 
C)  $2,075 favourable. 
D)  $2,075 unfavourable. 
A)  $315 favourable. 
B)  $315 unfavourable. 
C)  $2,075 favourable. 
D)  $2,075 unfavourable.

Question 14

What was the fixed overhead volume variance?

Accepted Answer

A)  $3,000 favourable. 
B)  $3,000 unfavourable. 
C)  $9,000 unfavourable. 
D)  $6,000 unfavourable. 
A)  $3,000 favourable. 
B)  $3,000 unfavourable. 
C)  $9,000 unfavourable. 
D)  $6,000 unfavourable.

Question 15

(Appendix 10A)A mix variance for direct materials can be derived as the difference between the quantity variance and the yield variance.

Accepted Answer

A) True 
 B)False

Question 16

The Reedy Company uses a standard costing system.The following data are available for November:  
What was the actual direct labour rate for November?

Accepted Answer

A)  $8.80. 
B)  $8.90. 
C)  $9.00 
D)  $9.20. 
A)  $8.80. 
B)  $8.90. 
C)  $9.00 
D)  $9.20.

Question 17

(Appendix 10B)Albert Manufacturing Company manufactures a single product.The standard cost of one unit of this product is:   
During the month of October,6,000 units were produced.Selected cost data relating to the month's production follow:   
There was no beginning inventory of raw materials.The variable overhead rate is based on direct labour-hours.
Required:
a)(Appendix 10B)For direct materials,compute the price and quantity variances for the month,and prepare journal entries to record activity for the month.
b)(Appendix 10B)For direct labour,compute the rate and efficiency variances for the month,and prepare a journal entry to record labour activity for the month.
c)For variable overhead,compute the spending variance for the month,and prove the efficiency variance given above.

Accepted Answer

a)Materials Price Variance: @#IMG-DLM& 
 @#IMG-DLM& 
Journal

Question 18

What was the materials quantity variance?

Accepted Answer

A)  $760 favourable. 
B)  $760 unfavourable. 
C)  $800 unfavourable. 
D)  $4,000 unfavourable. 
A)  $760 favourable. 
B)  $760 unfavourable. 
C)  $800 unfavourable. 
D)  $4,000 unfavourable.

Question 19

If the standard hours allowed for the actual output of the period is greater than the denominator level of activity (in hours),then the overhead budget variance will be unfavourable.

Accepted Answer

A) True 
 B)False

Question 20

What was the labour rate variance for January?

Accepted Answer

A)  $475 favourable. 
B)  $475 unfavourable. 
C)  $585 favourable. 
D)  $585 unfavourable. 
A)  $475 favourable. 
B)  $475 unfavourable. 
C)  $585 favourable. 
D)  $585 unfavourable.

Under which product costing system for a manufacturing company would there be no fixed manufacturing overhead volume variance?

A reason for keeping a constant denominator activity level is to maintain stability in the amount of overhead cost that is applied to each unit of product manufactured over the period.

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Cox Company's direct material costs for the month of January were as follows: What was the favourable direct materials quantity variance for January?

For August,what was the variable overhead spending variance?

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: Required: a)What was the materials price variance for the month? b)What was the materials quantity variance for the month?

What was the variable overhead efficiency variance for the year?

Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items?

Jaune Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs).The following data pertain to last month's operations: What was the fixed overhead budget variance?

What was the fixed overhead volume variance for the year?

Which of the following refers to standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times?

How much overhead was applied to products during the period,rounded to the nearest dollar?

What was the variable overhead spending variance for the period,rounded to the nearest dollar?

What was the fixed overhead volume variance?

(Appendix 10A)A mix variance for direct materials can be derived as the difference between the quantity variance and the yield variance.

The Reedy Company uses a standard costing system.The following data are available for November: What was the actual direct labour rate for November?

What was the materials quantity variance?

If the standard hours allowed for the actual output of the period is greater than the denominator level of activity (in hours),then the overhead budget variance will be unfavourable.

What was the labour rate variance for January?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

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Exam 10: Standard Costs and Overhead Analysis

Under which product costing system for a manufacturing company would there be no fixed manufacturing overhead volume variance?

A reason for keeping a constant denominator activity level is to maintain stability in the amount of overhead cost that is applied to each unit of product manufactured over the period.

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Cox Company's direct material costs for the month of January were as follows: What was the favourable direct materials quantity variance for January?

For August,what was the variable overhead spending variance?

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: Required: a)What was the materials price variance for the month? b)What was the materials quantity variance for the month?

What was the variable overhead efficiency variance for the year?

Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items?

Jaune Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs).The following data pertain to last month's operations: What was the fixed overhead budget variance?

What was the fixed overhead volume variance for the year?

Which of the following refers to standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times?

How much overhead was applied to products during the period,rounded to the nearest dollar?

What was the variable overhead spending variance for the period,rounded to the nearest dollar?

What was the fixed overhead volume variance?

(Appendix 10A)A mix variance for direct materials can be derived as the difference between the quantity variance and the yield variance.

The Reedy Company uses a standard costing system.The following data are available for November: What was the actual direct labour rate for November?

What was the materials quantity variance?

If the standard hours allowed for the actual output of the period is greater than the denominator level of activity (in hours),then the overhead budget variance will be unfavourable.

What was the labour rate variance for January?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters