Exam 16: Topic Focus Standard Costing Systems

The following information relating to variable overhead is available for Haven Industries: Spending variance $~~~~~~~~$$~~~~~~~~$ $4,000 unfavorable Efficiency variance $~~~~~~~~$$~~~~~~~~$ $7,000 favorable Which of the following is the correct journal entry to record the spending and efficiency variances?

When using a standard costing system,at the end of the accounting period,the balances in all inventory and cost of goods sold accounts will be at standard amounts.

When using a standard costing system,all product costs are recorded at standard cost while the products are being made.

The easiest way to dispose of variances at the end of the period is to

When using a standard costing system,the direct materials price variance is recorded at the time direct materials are transferred to the production floor.

The following information relating to fixed overhead is available for Haven Industries: Spending variance $~~~~~~~~$$~~~~~~~~$ $6,000 favorable Volume variance $~~~~~~~~$$~~~~~~~~$ $4,000 unfavorable Which of the following is the correct journal entry to record the spending and efficiency variances?

When using a standard costing system,which of the following should be recorded when invoices are received for variable overhead costs?

Using a normal costing system,direct materials and direct labor are recorded at standard cost,and overhead is applied to products using a predetermined overhead rate.

When using a standard costing system,when materials are purchased,the transaction is recorded in the inventory account at the standard price and accounts payable is charged for the full amount owed to the supplier.

Wolfe Manufacturing has provided the following information related to fixed overhead. a.Calculate the fixed overhead spending variance for the period. b.Calculate the fixed overhead volume variance for the period.

When using a standard costing system,direct material and direct labor are recorded at actual cost while manufacturing over is applied at a standard rate.

When using a standard costing system,which of the following should be recorded when direct materials are transferred to the production floor?

At what amount will the inventory and cost of goods sold amounts be reported on the financial statements?

What is the difference between a normal costing system and a standard costing system?

A costing system where direct material and direct labor are recorded at actual cost and overhead is applied to products using a predetermined overhead rate is referred to as

When using a standard costing system,which of the following should be recorded for labor as a product is being made?

When using a standard costing system,which of the following should be recorded when variable overhead is applied during the period?

When using a standard costing system,which of the following should be recorded when fixed overhead is applied during the period?

When using a standard costing system,recording events related to variable overhead requires four separate entries.

Manufacturing Overhead is a temporary account that must have a zero balance at the end of the accounting period.