Exam 22: Evaluating Variances From Standard Costs

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12,the direct materials quantity variance was $2,200 unfavorable.

The total factory overhead cost variance is

Which of the following conditions normally would not indicate that standard costs should be revised?

The total manufacturing cost variance is

Standard costs are divided into which of the following components?

What is the amount of the variable factory overhead controllable variance?

If the standard to produce a given amount of product is 2,000 units of direct materials at $12 and the actual was 1,600 units at $13,the direct materials quantity variance was $5,200 favorable.

The direct labor time variance is

Calculate the direct materials price variance.

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

The fixed factory overhead volume variance is

A company should only use nonfinancial performance measures when financial measures cannot be calculated.

The total manufacturing cost variance consists of

The principle of exceptions allows managers to focus on correcting variances between standard costs and actual costs.

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

The standard price and quantity of direct materials are separated because

While setting standards,managers should never allow for spoilage or machine breakdowns in their calculations.

Calculate the direct labor rate variance.

A budget performance report compares actual results with the budgeted amounts and reports differences for possible investigation.

Standards are set for only direct labor and direct materials.