Question 1

Tthe variable factory overhead controllable variance is

Accepted Answer

A)  $8,981.75 favorable 
B)  $7,280.75 unfavorable 
C)  $8,981.75 unfavorable 
D)  $7,280.75 favorable 
A)  $8,981.75 favorable 
B)  $7,280.75 unfavorable 
C)  $8,981.75 unfavorable 
D)  $7,280.75 favorable

Question 2

The fixed factory overhead volume variance is

Accepted Answer

A)  $9,000 favorable 
B)  $9,000 unfavorable 
C)  $5,500 favorable 
D)  $5,500 unfavorable 
A)  $9,000 favorable 
B)  $9,000 unfavorable 
C)  $5,500 favorable 
D)  $5,500 unfavorable

Question 3

The variable factory overhead controllable variance is

Accepted Answer

A)  $73,250 favorable 
B)  $73,250 unfavorable 
C)  $59,400 favorable 
D)  $59,400 unfavorable 
A)  $73,250 favorable 
B)  $73,250 unfavorable 
C)  $59,400 favorable 
D)  $59,400 unfavorable

Question 4

The direct materials quantity variance is

Accepted Answer

A)  22,800 favorable 
B)  22,800 unfavorable 
C)  52,000 favorable 
D)  52,000 unfavorable 
A)  22,800 favorable 
B)  22,800 unfavorable 
C)  52,000 favorable 
D)  52,000 unfavorable

Question 5

The materials price variance is

Accepted Answer

A)  $0 
B)  $59,400 unfavorable 
C)  $59,400 favorable 
D)  $6,000 unfavorable 
A)  $0 
B)  $59,400 unfavorable 
C)  $59,400 favorable 
D)  $6,000 unfavorable

Question 6

Currently attainable standards do not allow for reasonable production difficulties.

Accepted Answer

A) True 
 B)False

Question 7

The amount of the total factory overhead cost variance is

Accepted Answer

A)  $2,000 favorable 
B)  $5,000 unfavorable 
C)  $2,500 unfavorable 
D)  $5,000 favorable 
A)  $2,000 favorable 
B)  $5,000 unfavorable 
C)  $2,500 unfavorable 
D)  $5,000 favorable

Question 8

Because accountants have financial expertise,they are the only ones that are able to set standard costs for the production area.

Accepted Answer

A) True 
 B)False

Question 9

Ideal standards are developed under conditions that assume no idle time,no machine breakdowns,and no materials spoilage.

Accepted Answer

A) True 
 B)False

Question 10

The labor time variance is

Accepted Answer

A)  $9,880 favorable 
B)  $9,880 unfavorable 
C)  $7,800 unfavorable 
D)  $7,800 favorable 
A)  $9,880 favorable 
B)  $9,880 unfavorable 
C)  $7,800 unfavorable 
D)  $7,800 favorable

Question 11

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material,$​4.50; and standard costs for 4,800 pounds of material at $5.10 per pound. ​
What is the direct materials price variance?

Accepted Answer

A)  ​$3,000 favorable 
B)  ​$3,000 unfavorable 
C)  ​$2,880 favorable 
D)  ​$2,880 unfavorable 
A)  ​$3,000 favorable 
B)  ​$3,000 unfavorable 
C)  ​$2,880 favorable 
D)  ​$2,880 unfavorable

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

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds actual cost.

Accepted Answer

A) True 
 B)False

Question 14

The direct materials price variance is

Accepted Answer

A)  $22,800 unfavorable 
B)  $22,800 favorable 
C)  $52,000 unfavorable 
D)  $52,000 favorable 
A)  $22,800 unfavorable 
B)  $22,800 favorable 
C)  $52,000 unfavorable 
D)  $52,000 favorable

Question 15

A company must choose either a standard system or nonfinancial performance measures to evaluate the performance of a company.

Accepted Answer

A) True 
 B)False

Question 16

In most businesses,cost standards are established principally by accountants.

Accepted Answer

A) True 
 B)False

Question 17

If at the end of the fiscal year,the variances from standard are significant,the variances should be transferred to the

Accepted Answer

A)  work in process account 
B)  cost of goods sold account 
C)  finished goods account 
D)  work in process,cost of goods sold,and finished goods accounts 
A)  work in process account 
B)  cost of goods sold account 
C)  finished goods account 
D)  work in process,cost of goods sold,and finished goods accounts

Question 18

The direct labor time variance measures the efficiency of the direct labor force.

Accepted Answer

A) True 
 B)False

Question 19

The fixed factory overhead volume variance is

Accepted Answer

A)  $73,250 unfavorable 
B)  $73,250 favorable 
C)  $59,400 favorable 
D)  $59,400 unfavorable 
A)  $73,250 unfavorable 
B)  $73,250 favorable 
C)  $59,400 favorable 
D)  $59,400 unfavorable

Question 20

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

Accepted Answer

A)  $12,500 favorable 
B)  $10,000 unfavorable 
C)  $12,500 unfavorable 
D)  $10,000 favorable 
A)  $12,500 favorable 
B)  $10,000 unfavorable 
C)  $12,500 unfavorable 
D)  $10,000 favorable

Exam 22: Evaluating Variances From Standard Costs

Tthe variable factory overhead controllable variance is

The fixed factory overhead volume variance is

The variable factory overhead controllable variance is

The direct materials quantity variance is

The materials price variance is

Currently attainable standards do not allow for reasonable production difficulties.

The amount of the total factory overhead cost variance is

Because accountants have financial expertise,they are the only ones that are able to set standard costs for the production area.

Ideal standards are developed under conditions that assume no idle time,no machine breakdowns,and no materials spoilage.

The labor time variance is

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material,$​4.50; and standard costs for 4,800 pounds of material at $5.10 per pound. ​ What is the direct materials price 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.

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds actual cost.

The direct materials price variance is

A company must choose either a standard system or nonfinancial performance measures to evaluate the performance of a company.

In most businesses,cost standards are established principally by accountants.

If at the end of the fiscal year,the variances from standard are significant,the variances should be transferred to the

The direct labor time variance measures the efficiency of the direct labor force.

The fixed factory overhead volume variance is

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material,$4.50; and standard costs for 4,800 pounds of material at $5.10 per pound. What is the direct materials price variance?