Question 1

If a company produces fewer units than expected, there will be

Accepted Answer

A)  a favorable budget variance. 
B)  an unfavorable spending variance. 
C)  a favorable volume variance. 
D)  an unfavorable volume variance. 
A)  a favorable budget variance. 
B)  an unfavorable spending variance. 
C)  a favorable volume variance. 
D)  an unfavorable volume variance.

Question 2

All of the following are true of currently attainable standards EXCEPT

Accepted Answer

A)  Currently attainable standards are based on an efficiently operating work force. 
B)  Currently attainable standards are based on ideal conditions. 
C)  Currently attainable standards allow for downtime and rest periods. 
D)  Currently attainable standards are based on present production processes and technology. 
A)  Currently attainable standards are based on an efficiently operating work force. 
B)  Currently attainable standards are based on ideal conditions. 
C)  Currently attainable standards allow for downtime and rest periods. 
D)  Currently attainable standards are based on present production processes and technology.

Question 3

Harry 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 Harry?

Accepted Answer

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

Question 4

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

Question 5

Which of the following factors would cause an unfavorable labor rate variance?

Accepted Answer

A)  using higher quality materials 
B)  using low-efficiency workers 
C)  using more unskilled workers 
D)  using more highly skilled workers 
A)  using higher quality materials 
B)  using low-efficiency workers 
C)  using more unskilled workers 
D)  using more highly skilled workers

Question 6

Standard costing

Accepted Answer

A)  establishes price and quantity standards for inputs. 
B)  provides journal entry support. 
C)  is not used in unit costing. 
D)  none of these. 
A)  establishes price and quantity standards for inputs. 
B)  provides journal entry support. 
C)  is not used in unit costing. 
D)  none of these.

If a company produces fewer units than expected, there will be

All of the following are true of currently attainable standards EXCEPT

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

Which of the following factors would cause an unfavorable labor rate variance?

Standard costing

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

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

If a company produces fewer units than expected, there will be

All of the following are true of currently attainable standards EXCEPT

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

Which of the following factors would cause an unfavorable labor rate variance?

Standard costing

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

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