Question 1

What was the variable overhead efficiency variance?

Accepted Answer

A)  $430 unfavourable. 
B)  $740 favourable. 
C)  $950 unfavourable. 
D)  $1,120 favourable. 
A)  $430 unfavourable. 
B)  $740 favourable. 
C)  $950 unfavourable. 
D)  $1,120 favourable.

Question 2

Tyro Company has a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs).The following information is available:  
Based on these data,what was the variable overhead spending variance?

Accepted Answer

A)  $750 unfavourable. 
B)  $950 favourable. 
C)  $1,500 unfavourable. 
D)  $1,700 favourable. 
A)  $750 unfavourable. 
B)  $950 favourable. 
C)  $1,500 unfavourable. 
D)  $1,700 favourable.

Question 3

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 x AP)- (A

Question 4

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

Accepted Answer

A)  $110,889. 
B)  $112,850. 
C)  $113,415. 
D)  $116,550. 
A)  $110,889. 
B)  $112,850. 
C)  $113,415. 
D)  $116,550.

Question 5

What do the terms "standard quantity allowed" or "standard hours allowed" mean?

Accepted Answer

A)  The actual output in units multiplied by the standard output allowed. 
B)  The actual input in units multiplied by the standard output allowed. 
C)  The actual output in units multiplied by the standard input allowed. 
D)  The standard output in units multiplied by the standard input alloweD. 
A)  The actual output in units multiplied by the standard output allowed. 
B)  The actual input in units multiplied by the standard output allowed. 
C)  The actual output in units multiplied by the standard input allowed. 
D)  The standard output in units multiplied by the standard input alloweD.

Question 6

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

Accepted Answer

A)  $452 favourable. 
B)  $452 unfavourable. 
C)  $900 unfavourable. 
D)  $900 favourable. 
A)  $452 favourable. 
B)  $452 unfavourable. 
C)  $900 unfavourable. 
D)  $900 favourable.

Question 7

In a certain standard costing system,the following results occurred last period: labour rate variance,$1,000 unfavourable;labour efficiency variance,$2,800 favourable;and the actual labour rate was $0.20 more per hour than the standard labour rate.What number of actual direct labour hours was used last period?

Accepted Answer

A)  4,800 hours. 
B)  5,000 hours. 
C)  5,400 hours. 
D)  9,000 hours. 
A)  4,800 hours. 
B)  5,000 hours. 
C)  5,400 hours. 
D)  9,000 hours.

Question 8

What was the fixed overhead volume variance for March?

Accepted Answer

A)  $1,550 favourable. 
B)  $3,900 unfavourable. 
C)  $7,750 favourable. 
D)  $7,750 unfavourable. 
A)  $1,550 favourable. 
B)  $3,900 unfavourable. 
C)  $7,750 favourable. 
D)  $7,750 unfavourable.

Question 9

Which of the following is directly associated with a higher denominator level of activity?

Accepted Answer

A)  Higher unit product cost. 
B)  Lower unit product cost. 
C)  Frequent occurrence of a volume variance. 
D)  More profitable operations. 
A)  Higher unit product cost. 
B)  Lower unit product cost. 
C)  Frequent occurrence of a volume variance. 
D)  More profitable operations.

Question 10

Lido Company's standard and actual costs per unit for the most recent period,during which 400 units were actually produced,are given below:   
There were no inventory of materials at the beginning or end of the period.
Required:
From the above information,compute the following variances.Show whether the variance is favourable (F)or unfavourable (U):
a)Materials price variance
b)Materials quantity variance
c)Direct labour rate variance
d)Direct labour efficiency variance
e)Variable overhead spending variance
f)Variable overhead efficiency variance

Accepted Answer

a)Materials price variance = AQ(AP - SP)

Question 11

What was the labour rate variance?

Accepted Answer

A)  $480 favourable. 
B)  $480 unfavourable. 
C)  $440 favourable. 
D)  $440 unfavourable. 
A)  $480 favourable. 
B)  $480 unfavourable. 
C)  $440 favourable. 
D)  $440 unfavourable.

Question 12

The Porter Company has a standard cost system.In July,the company purchased and used 22,500 kilograms of direct material at an actual cost of $53,000,the materials quantity variance was $1,875 unfavourable,and the standard quantity of materials allowed for July production was 21,750 kilograms.What was the materials price variance for July?

Accepted Answer

A)  $2,725 favourable. 
B)  $2,725 unfavourable. 
C)  $3,250 favourable. 
D)  $3,250 unfavourable.Variance = 22,500 * 2.50 - 53,000 = $3,250 favourable. 
A)  $2,725 favourable. 
B)  $2,725 unfavourable. 
C)  $3,250 favourable. 
D)  $3,250 unfavourable.Variance = 22,500 * 2.50 - 53,000 = $3,250 favourable.

Question 13

What was the labour rate variance for November?

Accepted Answer

A)  $550 unfavourable. 
B)  $1,050 unfavourable. 
C)  $2,150 favourable. 
D)  $2,150 unfavourable. 
A)  $550 unfavourable. 
B)  $1,050 unfavourable. 
C)  $2,150 favourable. 
D)  $2,150 unfavourable.

Question 14

(Appendix 10B)What does a credit balance in a direct labour efficiency variance account indicate?

Accepted Answer

A)  The average wage rate paid to direct labour employees was less than the standard rate. 
B)  The standard hours allowed for the units produced were greater than actual direct labour hours used. 
C)  The actual total direct labour costs incurred were less than standard direct labour costs allowed for the units produced. 
D)  The number of units produced was less than the number of units budgeted for the perioD. 
A)  The average wage rate paid to direct labour employees was less than the standard rate. 
B)  The standard hours allowed for the units produced were greater than actual direct labour hours used. 
C)  The actual total direct labour costs incurred were less than standard direct labour costs allowed for the units produced. 
D)  The number of units produced was less than the number of units budgeted for the perioD.

Question 15

What was the actual direct labour rate for May in dollars per hour?

Accepted Answer

A)  $11.50. 
B)  $11.75. 
C)  $12.00. 
D)  $12.50. 
A)  $11.50. 
B)  $11.75. 
C)  $12.00. 
D)  $12.50.

Question 16

(Appendix 10A)Direct labour efficiency variance can be analyzed further into mix and yield variances if more than one class of direct labour that are good substitutes is used in operations.

Accepted Answer

A) True 
 B)False

Question 17

The standard direct labour rate should NOT include fringe benefits.

Accepted Answer

A) True 
 B)False

Question 18

What was the total standard cost for direct labour for May?

Accepted Answer

A)  $120,000. 
B)  $161,000. 
C)  $168,000. 
D)  $180,000. 
A)  $120,000. 
B)  $161,000. 
C)  $168,000. 
D)  $180,000.

Question 19

Union Company uses a standard cost accounting system.The following overhead costs and production data are available for August:  
What was the total amount of overhead applied to work in process in August?

Accepted Answer

A)  $195,000. 
B)  $197,000. 
C)  $197,500. 
D)  $199,500. 
A)  $195,000. 
B)  $197,000. 
C)  $197,500. 
D)  $199,500.

Question 20

For August,what was the fixed overhead volume variance?

Accepted Answer

A)  $4,300 unfavourable. 
B)  $4,980 favourable. 
C)  $4,980 unfavourable. 
D)  $7,920 unfavourable. 
A)  $4,300 unfavourable. 
B)  $4,980 favourable. 
C)  $4,980 unfavourable. 
D)  $7,920 unfavourable.

What was the variable overhead efficiency variance?

Tyro Company has a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs).The following information is available: Based on these data,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?

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

What do the terms "standard quantity allowed" or "standard hours allowed" mean?

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

What was the fixed overhead volume variance for March?

Which of the following is directly associated with a higher denominator level of activity?

What was the labour rate variance?

What was the labour rate variance for November?

(Appendix 10B)What does a credit balance in a direct labour efficiency variance account indicate?

What was the actual direct labour rate for May in dollars per hour?

(Appendix 10A)Direct labour efficiency variance can be analyzed further into mix and yield variances if more than one class of direct labour that are good substitutes is used in operations.

The standard direct labour rate should NOT include fringe benefits.

What was the total standard cost for direct labour for May?

Union Company uses a standard cost accounting system.The following overhead costs and production data are available for August: What was the total amount of overhead applied to work in process in August?

For August,what was the fixed overhead volume variance?

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

What was the variable overhead efficiency variance?

Tyro Company has a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs).The following information is available: Based on these data,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?

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

What do the terms "standard quantity allowed" or "standard hours allowed" mean?

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

What was the fixed overhead volume variance for March?

Which of the following is directly associated with a higher denominator level of activity?

What was the labour rate variance?

What was the labour rate variance for November?

(Appendix 10B)What does a credit balance in a direct labour efficiency variance account indicate?

What was the actual direct labour rate for May in dollars per hour?

(Appendix 10A)Direct labour efficiency variance can be analyzed further into mix and yield variances if more than one class of direct labour that are good substitutes is used in operations.

The standard direct labour rate should NOT include fringe benefits.

What was the total standard cost for direct labour for May?

Union Company uses a standard cost accounting system.The following overhead costs and production data are available for August: What was the total amount of overhead applied to work in process in August?

For August,what was the fixed overhead volume variance?

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

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