Question 1

A mix variance is

Accepted Answer

A)  created whenever the actual mix of inputs differs from the standard mix. 
B)  the difference in the standard cost of the actual mix of inputs used and the standard cost of the mix of inputs that should have been used. 
C)  both 'a' and 'b' are correct. 
D)  none of these are correct. 
A)  created whenever the actual mix of inputs differs from the standard mix. 
B)  the difference in the standard cost of the actual mix of inputs used and the standard cost of the mix of inputs that should have been used. 
C)  both 'a' and 'b' are correct. 
D)  none of these are correct. C

Question 2

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July:   Malkovich Company reports its material price variances at the time of purchase.
What is the journal entry to record material purchases?

Accepted Answer

A)  Materials 55,800 Materials Price Variance 4,650
Accounts Payable 51,150 
B)  Accounts Payable 55,800 Materials 55,800 
C)  Materials 55,800 Accounts Payable 55,800 
D)  Materials 51,150 Materials Price Variance 4,650
Accounts Payable 55,800 
A)  Materials 55,800 Materials Price Variance 4,650
Accounts Payable 51,150 
B)  Accounts Payable 55,800 Materials 55,800 
C)  Materials 55,800 Accounts Payable 55,800 
D)  Materials 51,150 Materials Price Variance 4,650
Accounts Payable 55,800 A

Question 3

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July:   Malkovich Company reports its material price variances at the time of purchase.
What is the material usage variance for Malkovich Company?

Accepted Answer

A)  $2,850 (F) 
B)  $1,950 (F) 
C)  $900 (F) 
D)  $900 (U) 
A)  $2,850 (F) 
B)  $1,950 (F) 
C)  $900 (F) 
D)  $900 (U) C

Question 4

Rowing Company has developed the following standards for one of its products:   The company records materials price variances at the time of purchase.
The variable standard cost per unit is

Accepted Answer

A)  $81.00 
B)  $91.00 
C)  $98.50 
D)  $42.50 
A)  $81.00 
B)  $91.00 
C)  $98.50 
D)  $42.50

Question 5

A yield variance occurs when the actual output is the same as the standard output.

Accepted Answer

A) True 
 B)False

Question 6

A variable overhead efficiency variance could be caused by

Accepted Answer

A)  using a poor quality material that needs more labor time to meet production standards. 
B)  not taking a quantity discount. 
C)  paying more than the standard rate for labor. 
D)  price increases on the materials. 
A)  using a poor quality material that needs more labor time to meet production standards. 
B)  not taking a quantity discount. 
C)  paying more than the standard rate for labor. 
D)  price increases on the materials.

Question 7

In standard costing, overhead is applied to a product by debiting work in process and crediting variable and fixed overhead control accounts.

Accepted Answer

A) True 
 B)False

Question 8

Standard costs are the amount that should be spent to produce a product or service

Accepted Answer

A) True 
 B)False

Question 9

The following information is provided about three materials utilized in the production of a product:   During May, the following actual production information was provided:
  Yield 15,000 units
What is the Material yield variance.

Accepted Answer

A)  $3,167(F) 
B)  $3,167(U) 
C)  $6,333(F) 
D)  $6,333(U) 
A)  $3,167(F) 
B)  $3,167(U) 
C)  $6,333(F) 
D)  $6,333(U)

Question 10

The San Jose Corporation uses two materials in the production of its product. The materials, G and H, have the following standards:   During June, the following actual production information was provided:
  What is the materials yield variance?

Accepted Answer

A)  $6,000 (F) 
B)  $6,000 (U) 
C)  $18,000 (U) 
D)  $18,000 (F) 
A)  $6,000 (F) 
B)  $6,000 (U) 
C)  $18,000 (U) 
D)  $18,000 (F)

Question 11

Refer to Figure 9-2. What is the journal entry to record labor variances?

Accepted Answer

A)  Work in Process 6,072 Payroll 6,072 
B)  Payroll 6,072 Work in Process 6,072 
C)  Work in Process 6,000 Labor Rate Variance 552
Labor Efficiency Variance 480
Payroll 6,072 
D)  Work in Process 6,000 Labor Efficiency Variance 552
Labor Rate Variance 480
Payroll 6,072 
A)  Work in Process 6,072 Payroll 6,072 
B)  Payroll 6,072 Work in Process 6,072 
C)  Work in Process 6,000 Labor Rate Variance 552
Labor Efficiency Variance 480
Payroll 6,072 
D)  Work in Process 6,000 Labor Efficiency Variance 552
Labor Rate Variance 480
Payroll 6,072

Question 12

The unit quantity standards can be used to compute the total amount of inputs allowed for the actual output.

Accepted Answer

A) True 
 B)False

Question 13

In setting price standards, the purchasing manager must consider

Accepted Answer

A)  freight. 
B)  quality. 
C)  discounts. 
D)  all of these. 
A)  freight. 
B)  quality. 
C)  discounts. 
D)  all of these.

Question 14

Formidable Company collected the following information:   Using the two variance method, what is the budget variance?

Accepted Answer

A)  $70,000 (U) 
B)  $30,000 (F) 
C)  $30,000 (U) 
D)  $70,000 (F) 
A)  $70,000 (U) 
B)  $30,000 (F) 
C)  $30,000 (U) 
D)  $70,000 (F)

Question 15

Using more highly skilled direct laborers might affect which of the following variances?

Accepted Answer

A)  direct materials usage variance 
B)  direct labor efficiency variance 
C)  variable manufacturing overhead efficiency variance 
D)  all of these 
A)  direct materials usage variance 
B)  direct labor efficiency variance 
C)  variable manufacturing overhead efficiency variance 
D)  all of these

Question 16

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July:   Malkovich Company reports its material price variances at the time of purchase.
What is the standard quantity of direct materials per unit for Malkovich Company?

Accepted Answer

A)  3.50 lbs. 
B)  3.00 lbs. 
C)  3.10 lbs. 
D)  3.25 lbs. 
A)  3.50 lbs. 
B)  3.00 lbs. 
C)  3.10 lbs. 
D)  3.25 lbs.

Question 17

The following information is provided about three materials utilized in the production of a product:   During May, the following actual production information was provided:
  Yield 15,000 units
Calculate the Material mix variance.

Accepted Answer

A)  $1,500(U) 
B)  $1,500(F) 
C)  $1,250(U) 
D)  $1,250(F) 
A)  $1,500(U) 
B)  $1,500(F) 
C)  $1,250(U) 
D)  $1,250(F)

Question 18

The three-variance method requires dividing costs into fixed and variable amounts.

Accepted Answer

A) True 
 B)False

Question 19

As a general rule, an investigation of a variance should be undertaken only if the

Accepted Answer

A)  variance is isolated 
B)  anticipated benefits are greater than the expected costs. 
C)  variance is negative. 
D)  variance is positive. 
A)  variance is isolated 
B)  anticipated benefits are greater than the expected costs. 
C)  variance is negative. 
D)  variance is positive.

Question 20

If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed, the labor rate variance and labor efficiency variance will be

Accepted Answer

A)  Favorable Favorable 
B)  Favorable Unfavorable 
C)  Unfavorable Favorable 
D)  Unfavorable Unfavorable 
A)  Favorable Favorable 
B)  Favorable Unfavorable 
C)  Unfavorable Favorable 
D)  Unfavorable Unfavorable

A mix variance is

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Malkovich Company reports its material price variances at the time of purchase. What is the journal entry to record material purchases?

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Malkovich Company reports its material price variances at the time of purchase. What is the material usage variance for Malkovich Company?

Rowing Company has developed the following standards for one of its products: The company records materials price variances at the time of purchase. The variable standard cost per unit is

A yield variance occurs when the actual output is the same as the standard output.

A variable overhead efficiency variance could be caused by

In standard costing, overhead is applied to a product by debiting work in process and crediting variable and fixed overhead control accounts.

Standard costs are the amount that should be spent to produce a product or service

The following information is provided about three materials utilized in the production of a product: During May, the following actual production information was provided: Yield 15,000 units What is the Material yield variance.

The San Jose Corporation uses two materials in the production of its product. The materials, G and H, have the following standards: During June, the following actual production information was provided: What is the materials yield variance?

Refer to Figure 9-2. What is the journal entry to record labor variances?

The unit quantity standards can be used to compute the total amount of inputs allowed for the actual output.

In setting price standards, the purchasing manager must consider

Formidable Company collected the following information: Using the two variance method, what is the budget variance?

Using more highly skilled direct laborers might affect which of the following variances?

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Malkovich Company reports its material price variances at the time of purchase. What is the standard quantity of direct materials per unit for Malkovich Company?

The following information is provided about three materials utilized in the production of a product: During May, the following actual production information was provided: Yield 15,000 units Calculate the Material mix variance.

The three-variance method requires dividing costs into fixed and variable amounts.

As a general rule, an investigation of a variance should be undertaken only if the

If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed, the labor rate variance and labor efficiency variance will be

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 9: Standard Costing: a Functional-Based Control Approach

A mix variance is

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Malkovich Company reports its material price variances at the time of purchase. What is the journal entry to record material purchases?

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Malkovich Company reports its material price variances at the time of purchase. What is the material usage variance for Malkovich Company?

Rowing Company has developed the following standards for one of its products: The company records materials price variances at the time of purchase. The variable standard cost per unit is

A yield variance occurs when the actual output is the same as the standard output.

A variable overhead efficiency variance could be caused by

In standard costing, overhead is applied to a product by debiting work in process and crediting variable and fixed overhead control accounts.

Standard costs are the amount that should be spent to produce a product or service

The following information is provided about three materials utilized in the production of a product: During May, the following actual production information was provided: Yield 15,000 units What is the Material yield variance.

The San Jose Corporation uses two materials in the production of its product. The materials, G and H, have the following standards: During June, the following actual production information was provided: What is the materials yield variance?

Refer to Figure 9-2. What is the journal entry to record labor variances?

The unit quantity standards can be used to compute the total amount of inputs allowed for the actual output.

In setting price standards, the purchasing manager must consider

Formidable Company collected the following information: Using the two variance method, what is the budget variance?

Using more highly skilled direct laborers might affect which of the following variances?

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Malkovich Company reports its material price variances at the time of purchase. What is the standard quantity of direct materials per unit for Malkovich Company?

The following information is provided about three materials utilized in the production of a product: During May, the following actual production information was provided: Yield 15,000 units Calculate the Material mix variance.

The three-variance method requires dividing costs into fixed and variable amounts.

As a general rule, an investigation of a variance should be undertaken only if the

If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed, the labor rate variance and labor efficiency variance will be

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters