Question 1

Changes in technology,machinery,or production methods may make past cost data irrelevant when setting standards.

Accepted Answer

A) True 
 B)False

Question 2

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. ​
What is the direct labor time variance?

Accepted Answer

A)  ​$9,300 favorable 
B)  ​​$9,300 unfavorable 
C)  ​$9,450 favorable 
D)  ​​$9,450 unfavorable 
A)  ​$9,300 favorable 
B)  ​​$9,300 unfavorable 
C)  ​$9,450 favorable 
D)  ​​$9,450 unfavorable

Question 3

The formula to compute the direct materials price variance is to calculate the difference between

Accepted Answer

A)  Actual costs - (Actual quantity × Standard price) 
B)  Actual cost + Standard costs 
C)  Actual cost - Standard costs 
D)  (Actual quantity × Standard price)- Standard costs 
A)  Actual costs - (Actual quantity × Standard price) 
B)  Actual cost + Standard costs 
C)  Actual cost - Standard costs 
D)  (Actual quantity × Standard price)- Standard costs

Question 4

The unfavorable volume variance may be due to all of the following factors except

Accepted Answer

A)  failure to maintain an even flow of work 
B)  machine breakdowns 
C)  unexpected increases in the cost of utilities 
D)  failure to obtain enough sales orders 
A)  failure to maintain an even flow of work 
B)  machine breakdowns 
C)  unexpected increases in the cost of utilities 
D)  failure to obtain enough sales orders

Question 5

Which of the following is not a reason standard costs are separated into two components?

Accepted Answer

A)  The price and quantity variances need to be identified separately to correct the actual major differences 
B)  Identifying variances determines which manager must find a solution to major discrepancies 
C)  If a negative variance is overshadowed by a favorable variance,managers may overlook potential corrections 
D)  Variances bring attention to discrepancies in the budget and require managers to revise budgets closer to actual results 
A)  The price and quantity variances need to be identified separately to correct the actual major differences 
B)  Identifying variances determines which manager must find a solution to major discrepancies 
C)  If a negative variance is overshadowed by a favorable variance,managers may overlook potential corrections 
D)  Variances bring attention to discrepancies in the budget and require managers to revise budgets closer to actual results

Question 6

If employees are given bonuses for exceeding normal standards,the standards may be very effective in motivating employees.

Accepted Answer

A) True 
 B)False

Question 7

It is correct to rely exclusively on past cost data when establishing standards.

Accepted Answer

A) True 
 B)False

Question 8

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual was 500 hours at $17,the time variance was $1,700 unfavorable.

Accepted Answer

A) True 
 B)False

Question 9

Favorable volume variances may be harmful when

Accepted Answer

A)  machine repairs cause work stoppages 
B)  supervisors fail to maintain an even flow of work 
C)  production in excess of normal capacity cannot be sold 
D)  all of the answers are correct 
A)  machine repairs cause work stoppages 
B)  supervisors fail to maintain an even flow of work 
C)  production in excess of normal capacity cannot be sold 
D)  all of the answers are correct

Question 10

Accounting systems that use standards for product costs are called budgeted cost systems.

Accepted Answer

A) True 
 B)False

Changes in technology,machinery,or production methods may make past cost data irrelevant when setting standards.

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. What is the direct labor time variance?

The formula to compute the direct materials price variance is to calculate the difference between

The unfavorable volume variance may be due to all of the following factors except

Which of the following is not a reason standard costs are separated into two components?

If employees are given bonuses for exceeding normal standards,the standards may be very effective in motivating employees.

It is correct to rely exclusively on past cost data when establishing standards.

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual was 500 hours at $17,the time variance was $1,700 unfavorable.

Favorable volume variances may be harmful when

Accounting systems that use standards for product costs are called budgeted cost systems.

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

Exam 22: Evaluating Variances From Standard Costs

Changes in technology,machinery,or production methods may make past cost data irrelevant when setting standards.

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. ​ What is the direct labor time variance?

The formula to compute the direct materials price variance is to calculate the difference between

The unfavorable volume variance may be due to all of the following factors except

Which of the following is not a reason standard costs are separated into two components?

If employees are given bonuses for exceeding normal standards,the standards may be very effective in motivating employees.

It is correct to rely exclusively on past cost data when establishing standards.

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual was 500 hours at $17,the time variance was $1,700 unfavorable.

Favorable volume variances may be harmful when

Accounting systems that use standards for product costs are called budgeted cost systems.

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

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. What is the direct labor time variance?