Question 1

The direct materials usage variance is the sum of the actual quantities and the standard quantities of units.

Accepted Answer

A) True 
 B)False

Question 2

The usage variances focus on the difference between

Accepted Answer

A)  actual quantity used and standard quantity allowed for actual production. 
B)  actual costs of inputs and standard costs of inputs. 
C)  actual quantity used and standard quantity allowed for budgeted production. 
D)  both a and b. 
A)  actual quantity used and standard quantity allowed for actual production. 
B)  actual costs of inputs and standard costs of inputs. 
C)  actual quantity used and standard quantity allowed for budgeted production. 
D)  both a and b.

Question 3

Figure 9-1 Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:
  Refer to Figure 9-1. What is the material usage variance for Bender Corporation?

Accepted Answer

A)  $90 (F) 
B)  $90 (U) 
C)  $36 (F) 
D)  $36 (U) 
A)  $90 (F) 
B)  $90 (U) 
C)  $36 (F) 
D)  $36 (U)

Question 4

If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance

Accepted Answer

A)  the direct materials usage variance will be unfavorable. 
B)  the direct labor rate variance will be favorable. 
C)  the variable manufacturing overhead efficiency variance will be unfavorable. 
D)  the variable manufacturing overhead spending variance will be unfavorable. 
A)  the direct materials usage variance will be unfavorable. 
B)  the direct labor rate variance will be favorable. 
C)  the variable manufacturing overhead efficiency variance will be unfavorable. 
D)  the variable manufacturing overhead spending variance will be unfavorable.

Question 5

Standard costing is used in process industries because it's more difficult to utilize.

Accepted Answer

A) True 
 B)False

Question 6

The total budget variances are categorized into price variances and usage variances.

Accepted Answer

A) True 
 B)False

Question 7

Barbaro Production Company has developed the following standards for one of its products.
   The company records materials price variances at the time of purchase. The following activity occurred during the month of April:
   Required:

Accepted Answer

The answer of Barbaro Production Company has developed the following...

Question 8

A materials price variance would NOT be caused by

Accepted Answer

A)  ordering the wrong quality of materials. 
B)  ordering from the wrong supplier. 
C)  not taking a quantity discount. 
D)  requiring laborers to work overtime. 
A)  ordering the wrong quality of materials. 
B)  ordering from the wrong supplier. 
C)  not taking a quantity discount. 
D)  requiring laborers to work overtime.

Question 9

Harrangue Company's standard variable overhead rate is $6 per direct labor hour, and each unit requires 2 standard direct labor hours. During March, Harry recorded 6,000 actual direct labor hours, $37,000 actual variable overhead costs, and 2,900 units of product manufactured. What is the variable overhead efficiency variance for March for Harrangue?

Accepted Answer

A)  $2,200 (U) 
B)  $2,200 (F) 
C)  $1,200 (U) 
D)  $600 (U) 
A)  $2,200 (U) 
B)  $2,200 (F) 
C)  $1,200 (U) 
D)  $600 (U)

Question 10

The standard cost sheet includes all of the following EXCEPT

Accepted Answer

A)  the standard cost per unit. 
B)  the standard quantity allowed for actual production. 
C)  the standard price. 
D)  the standard quantity per unit. 
A)  the standard cost per unit. 
B)  the standard quantity allowed for actual production. 
C)  the standard price. 
D)  the standard quantity per unit.

Question 11

A production __________ would most likely be responsible for an unfavorable variable overhead efficiency variance.

Accepted Answer

The answer of A production __________ would most likely be...

Question 12

A mix variance is created whenever the actual mix of inputs is equal to the standard mix.

Accepted Answer

A) True 
 B)False

Question 13

The standard cost sheet shows costs needed to make many units of output.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

The variances that focus on the difference between actual quantity and standard quantity are called the __________ variances.

Accepted Answer

The answer of The variances that focus on the difference...

Question 16

Montecino Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards:   During July, the following actual production information was provided:
  What is the Labor mix variance?

Accepted Answer

A)  $3,750(F) 
B)  $3,750(U) 
C)  $1,563(F) 
D)  $1,563(U) 
A)  $3,750(F) 
B)  $3,750(U) 
C)  $1,563(F) 
D)  $1,563(U)

Question 17

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products.   The company records materials price variances at the time of purchase.
The variable manufacturing overhead efficiency variance is

Accepted Answer

A)  $1,000 favorable. 
B)  $2,000 favorable. 
C)  $1,000 unfavorable. 
D)  $3,000 unfavorable. 
A)  $1,000 favorable. 
B)  $2,000 favorable. 
C)  $1,000 unfavorable. 
D)  $3,000 unfavorable.

Question 18

The following condition which demands maximum efficiency and can be achieved only if everything operates perfectly is called:

Accepted Answer

A)  Ideal standards 
B)  Currently attainable standards 
C)  Budget standards 
D)  Personnel standards 
A)  Ideal standards 
B)  Currently attainable standards 
C)  Budget standards 
D)  Personnel standards

Question 19

Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the following standards:   During January, the following actual production information was provided:
  What is the materials yield variance?

Accepted Answer

A)  $2,500 (U) 
B)  $2,000 (U) 
C)  $2,500 (F) 
D)  $2,000 (F) 
A)  $2,500 (U) 
B)  $2,000 (U) 
C)  $2,500 (F) 
D)  $2,000 (F)

Question 20

During November, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound. If there was an unfavorable usage variance of $18,750 for November, the actual quantity of materials used must be

Accepted Answer

A)  23,438 pounds. 
B)  93,750 pounds. 
C)  31,875 pounds. 
D)  106,250 pounds. 
A)  23,438 pounds. 
B)  93,750 pounds. 
C)  31,875 pounds. 
D)  106,250 pounds.

The direct materials usage variance is the sum of the actual quantities and the standard quantities of units.

The usage variances focus on the difference between

Figure 9-1 Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: Refer to Figure 9-1. What is the material usage variance for Bender Corporation?

If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance

Standard costing is used in process industries because it's more difficult to utilize.

The total budget variances are categorized into price variances and usage variances.

Barbaro Production Company has developed the following standards for one of its products. The company records materials price variances at the time of purchase. The following activity occurred during the month of April: Required:

A materials price variance would NOT be caused by

The standard cost sheet includes all of the following EXCEPT

A production __________ would most likely be responsible for an unfavorable variable overhead efficiency variance.

A mix variance is created whenever the actual mix of inputs is equal to the standard mix.

The standard cost sheet shows costs needed to make many units of output.

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

The variances that focus on the difference between actual quantity and standard quantity are called the __________ variances.

Montecino Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: During July, the following actual production information was provided: What is the Labor mix variance?

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. The company records materials price variances at the time of purchase. The variable manufacturing overhead efficiency variance is

The following condition which demands maximum efficiency and can be achieved only if everything operates perfectly is called:

Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the following standards: During January, the following actual production information was provided: What is the materials yield variance?

During November, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound. If there was an unfavorable usage variance of $18,750 for November, the actual quantity of materials used must 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

The direct materials usage variance is the sum of the actual quantities and the standard quantities of units.

The usage variances focus on the difference between

Figure 9-1 Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: Refer to Figure 9-1. What is the material usage variance for Bender Corporation?

If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance

Standard costing is used in process industries because it's more difficult to utilize.

The total budget variances are categorized into price variances and usage variances.

Barbaro Production Company has developed the following standards for one of its products. The company records materials price variances at the time of purchase. The following activity occurred during the month of April: Required:

A materials price variance would NOT be caused by

The standard cost sheet includes all of the following EXCEPT

A production __________ would most likely be responsible for an unfavorable variable overhead efficiency variance.

A mix variance is created whenever the actual mix of inputs is equal to the standard mix.

The standard cost sheet shows costs needed to make many units of output.

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

The variances that focus on the difference between actual quantity and standard quantity are called the __________ variances.

Montecino Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: During July, the following actual production information was provided: What is the Labor mix variance?

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. The company records materials price variances at the time of purchase. The variable manufacturing overhead efficiency variance is

The following condition which demands maximum efficiency and can be achieved only if everything operates perfectly is called:

Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the following standards: During January, the following actual production information was provided: What is the materials yield variance?

During November, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound. If there was an unfavorable usage variance of $18,750 for November, the actual quantity of materials used must 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