Question 1

If the price paid per unit differs from the standard price per unit for direct materials, the variance is a

Accepted Answer

A) variable variance 
B) controllable variance 
C) price variance 
D) volume variance 
A) variable variance 
B) controllable variance 
C) price variance 
D) volume variance

Question 2

The direct labor time variance is

Accepted Answer

A) $6,000 favorable 
B) $6,000 unfavorable 
C) $33,000 unfavorable 
D) $33,000 favorable 
A) $6,000 favorable 
B) $6,000 unfavorable 
C) $33,000 unfavorable 
D) $33,000 favorable

Question 3

The formula to the compute direct labor time variance is to calculate the difference between

Accepted Answer

A) Actual costs - Standard costs 
B) Actual costs + Standard costs 
C) Actual hours × Standard rate - Standard costs 
D) Actual costs - Actual hours × Standard rate 
A) Actual costs - Standard costs 
B) Actual costs + Standard costs 
C) Actual hours × Standard rate - Standard costs 
D) Actual costs - Actual hours × Standard rate

Question 4

The controllable variance measures

Accepted Answer

A) operating results at less than normal capacity 
B) the efficiency of using variable overhead resources 
C) operating results at more than normal capacity 
D) control over fixed overhead costs 
A) operating results at less than normal capacity 
B) the efficiency of using variable overhead resources 
C) operating results at more than normal capacity 
D) control over fixed overhead costs

Question 5

The amount of the variable factory overhead controllable variance is

Accepted Answer

A) $2,000 unfavorable 
B) $3,000 favorable 
C) $0 
D) $3,000 unfavorable 
A) $2,000 unfavorable 
B) $3,000 favorable 
C) $0 
D) $3,000 unfavorable

Question 6

At the end of the fiscal year, the variances from standard are usually transferred to the finished goods account.

Accepted Answer

A) True 
 B)False

Question 7

Standards that represent levels of operation that can be attained with reasonable effort are called

Accepted Answer

A) theoretical standards 
B) ideal standards 
C) variable standards 
D) normal standards 
A) theoretical standards 
B) ideal standards 
C) variable standards 
D) normal standards

Question 8

If a company records inventory purchases at standard cost and also records purchase price variances, prepare the journal entry for a purchase of widgets that were bought at $7.45 per unit and have a standard cost of $7.15.The total amount owed to the vendor for this purchase is $33,525.

Accepted Answer

The answer of If a company records inventory purchases at...

Question 9

The amount of the fixed factory overhead volume variance is

Accepted Answer

A) $2,000 favorable 
B) $2,000 unfavorable 
C) $2,500 unfavorable 
D) $0 
A) $2,000 favorable 
B) $2,000 unfavorable 
C) $2,500 unfavorable 
D) $0

Question 10

Calculate the direct materials price variance.

Accepted Answer

A) $1,795.50 favorable 
B) $378.00 favorable 
C) $4,512.50 unfavorable 
D) $378.00 unfavorable 
A) $1,795.50 favorable 
B) $378.00 favorable 
C) $4,512.50 unfavorable 
D) $378.00 unfavorable

Question 11

The following data relate to direct labor costs for the current period: Standard costs 6,000 hours at $12.00
Actual costs 7,500 hours at $11.40
What is the direct labor rate variance?

Accepted Answer

A) $18,000 unfavorable 
B) $4,500 favorable 
C) $17,100 unfavorable 
D) $3,600 favorable 
A) $18,000 unfavorable 
B) $4,500 favorable 
C) $17,100 unfavorable 
D) $3,600 favorable

Question 12

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17, the rate variance was $1,200 favorable.

Accepted Answer

A) True 
 B)False

Question 13

Robin Company purchased and used 500 pounds of direct materials to produce a product with a 520 pound standard direct materials requirement.The standard materials price is $1.90 per pound.The actual materials price was $2.00 per pound.
Prepare the journal entries to record 1 the purchase of the materials and 2 the material entering production.

Accepted Answer

The answer of Robin Company purchased and used 500 pounds...

Question 14

Standard costs are divided into which of the following components?

Accepted Answer

A) variance standard and quantity standard 
B) materials standard and labor standard 
C) quality standard and quantity standard 
D) price standard and quantity standard 
A) variance standard and quantity standard 
B) materials standard and labor standard 
C) quality standard and quantity standard 
D) price standard and quantity standard

Question 15

What is the amount of the fixed factory overhead volume variance?

Accepted Answer

A) $12,000 unfavorable 
B) $12,000 favorable 
C) $14,000 unfavorable 
D) $26,000 unfavorable 
A) $12,000 unfavorable 
B) $12,000 favorable 
C) $14,000 unfavorable 
D) $26,000 unfavorable

Question 16

Standard cost variances are usually not reported in reports to stockholders.

Accepted Answer

A) True 
 B)False

Question 17

Japan Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour.Production of 7,700 units required 19,250 hours at an hourly rate of $14.90 per hour.
What is the direct labor a rate variance, b time variance, and c total cost variance?

Accepted Answer

a Rate variance = $14.90 - $15

Question 18

Compute the direct materials price and quantity variances for Taylor Company.

Accepted Answer

Direct materials price varianc

Question 19

The following data is given for the Bahia Company:   Overhead is applied on standard labor hours.
The fixed factory overhead volume variance is

Accepted Answer

A) $65 unfavorable 
B) $65favorable 
C) $540 unfavorable 
D) $540 favorable 
A) $65 unfavorable 
B) $65favorable 
C) $540 unfavorable 
D) $540 favorable

Question 20

Match the following descriptions with the term a-e it describes:
-actual cost < standard cost at actual volumes

Accepted Answer

A) Ideal standard 
B) Nonfinancial performance measure 
C) Currently attainable standard 
D) Unfavorable cost variance 
E) Favorable cost variance 
A) Ideal standard 
B) Nonfinancial performance measure 
C) Currently attainable standard 
D) Unfavorable cost variance 
E) Favorable cost variance

If the price paid per unit differs from the standard price per unit for direct materials, the variance is a

The direct labor time variance is

The formula to the compute direct labor time variance is to calculate the difference between

The controllable variance measures

The amount of the variable factory overhead controllable variance is

At the end of the fiscal year, the variances from standard are usually transferred to the finished goods account.

Standards that represent levels of operation that can be attained with reasonable effort are called

If a company records inventory purchases at standard cost and also records purchase price variances, prepare the journal entry for a purchase of widgets that were bought at $7.45 per unit and have a standard cost of $7.15.The total amount owed to the vendor for this purchase is $33,525.

The amount of the fixed factory overhead volume variance is

Calculate the direct materials price variance.

The following data relate to direct labor costs for the current period: Standard costs 6,000 hours at $12.00 Actual costs 7,500 hours at $11.40 What is the direct labor rate variance?

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17, the rate variance was $1,200 favorable.

Standard costs are divided into which of the following components?

What is the amount of the fixed factory overhead volume variance?

Standard cost variances are usually not reported in reports to stockholders.

Japan Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour.Production of 7,700 units required 19,250 hours at an hourly rate of $14.90 per hour. What is the direct labor a rate variance, b time variance, and c total cost variance?

Compute the direct materials price and quantity variances for Taylor Company.

The following data is given for the Bahia Company: Overhead is applied on standard labor hours. The fixed factory overhead volume variance is

Match the following descriptions with the term a-e it describes: -actual cost < standard cost at actual volumes

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

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Exam 7: Performance Evaluation Using Variances From Standard Costs

If the price paid per unit differs from the standard price per unit for direct materials, the variance is a

The direct labor time variance is

The formula to the compute direct labor time variance is to calculate the difference between

The controllable variance measures

The amount of the variable factory overhead controllable variance is

At the end of the fiscal year, the variances from standard are usually transferred to the finished goods account.

Standards that represent levels of operation that can be attained with reasonable effort are called

If a company records inventory purchases at standard cost and also records purchase price variances, prepare the journal entry for a purchase of widgets that were bought at $7.45 per unit and have a standard cost of $7.15.The total amount owed to the vendor for this purchase is $33,525.

The amount of the fixed factory overhead volume variance is

Calculate the direct materials price variance.

The following data relate to direct labor costs for the current period: Standard costs 6,000 hours at $12.00 Actual costs 7,500 hours at $11.40 What is the direct labor rate variance?

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17, the rate variance was $1,200 favorable.

Standard costs are divided into which of the following components?

What is the amount of the fixed factory overhead volume variance?

Standard cost variances are usually not reported in reports to stockholders.

Japan Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour.Production of 7,700 units required 19,250 hours at an hourly rate of $14.90 per hour. What is the direct labor a rate variance, b time variance, and c total cost variance?

Compute the direct materials price and quantity variances for Taylor Company.

The following data is given for the Bahia Company: Overhead is applied on standard labor hours. The fixed factory overhead volume variance is

Match the following descriptions with the term a-e it describes: -actual cost < standard cost at actual volumes

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters