Question 1

Generally speaking, it is the responsibility of the production department to see that material usage is kept in line with standards.

Accepted Answer

A) True 
 B)False  True

Question 2

The standard quantity per unit for direct materials should not include an allowance for waste.

Accepted Answer

A) True 
 B)False  False

Question 3

The following materials standards have been established for a particular product:   The following data pertain to operations concerning the product for the last month:   What is the materials price variance for the month?

Accepted Answer

A) $15,405 F 
B) $5,775 U 
C) $5,925 U 
D) $1,600 U 
A) $15,405 F 
B) $5,775 U 
C) $5,925 U 
D) $1,600 U D

Question 4

The materials price variance for May is:

Accepted Answer

A) $11,880 U 
B) $11,880 F 
C) $12,120 F 
D) $12,120 U 
A) $11,880 U 
B) $11,880 F 
C) $12,120 F 
D) $12,120 U

Question 5

The labor efficiency variance for September was:

Accepted Answer

A) $33,600 favorable 
B) $1,600 favorable 
C) $22,400 favorable 
D) $3,200 favorable 
A) $33,600 favorable 
B) $1,600 favorable 
C) $22,400 favorable 
D) $3,200 favorable

Question 6

The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F The actual number of hours worked during the past period was:

Accepted Answer

A) 23,500 
B) 22,500 
C) 20,500 
D) 21,500 
A) 23,500 
B) 22,500 
C) 20,500 
D) 21,500

Question 7

The standards for product C54L specify 4.5 direct labor-hours per unit at $12.40 per direct labor-hour. Last month 1,560 units of product C54L were produced using 7,000 direct labor-hours at a total direct labor wage cost of $86,100.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?

Accepted Answer

a. Labor rate variance = (AH × AR) - (AH

Question 8

The variable overhead rate variance for indirect labor is closest to:

Accepted Answer

A) $7,407 F 
B) $4,347 F 
C) $4,347 U 
D) $3,060 F 
A) $7,407 F 
B) $4,347 F 
C) $4,347 U 
D) $3,060 F

Question 9

Millonzi Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:   What was the variable overhead rate variance for the month?

Accepted Answer

A) $4,350 favorable 
B) $2,000 unfavorable 
C) $2,650 favorable 
D) $1,700 favorable 
A) $4,350 favorable 
B) $2,000 unfavorable 
C) $2,650 favorable 
D) $1,700 favorable

Question 10

The number of actual hours spent on tune-up work last week was:

Accepted Answer

A) 125 hours 
B) 105 hours 
C) 145 hours 
D) Cannot be computed without further information 
A) 125 hours 
B) 105 hours 
C) 145 hours 
D) Cannot be computed without further information

Question 11

The materials price variance for March is:

Accepted Answer

A) $860 unfavorable 
B) $860 favorable 
C) $281 unfavorable 
D) $281 favorable 
A) $860 unfavorable 
B) $860 favorable 
C) $281 unfavorable 
D) $281 favorable

Question 12

The labor rate variance for October is:

Accepted Answer

A) $164 F 
B) $164 U 
C) $152 U 
D) $152 F 
A) $164 F 
B) $164 U 
C) $152 U 
D) $152 F

Question 13

The labor efficiency variance for June is:

Accepted Answer

A) $454 F 
B) $454 U 
C) $440 F 
D) $440 U 
A) $454 F 
B) $454 U 
C) $440 F 
D) $440 U

Question 14

What is the variable overhead rate variance for the month?

Accepted Answer

A) $1,220 U 
B) $5,885 F 
C) $1,220 F 
D) $5,885 U 
A) $1,220 U 
B) $5,885 F 
C) $1,220 F 
D) $5,885 U

Question 15

Which department should usually be held responsible for an unfavorable materials price variance?

Accepted Answer

A) Production. 
B) Materials Handling. 
C) Engineering. 
D) Purchasing. 
A) Production. 
B) Materials Handling. 
C) Engineering. 
D) Purchasing.

Question 16

The following labor standards have been established for a particular product:   The following data pertain to operations concerning the product for the last month:   What is the labor efficiency variance for the month?

Accepted Answer

A) $13,805 U 
B) $13,530 U 
C) $15,305 U 
D) $15,305 F 
A) $13,805 U 
B) $13,530 U 
C) $15,305 U 
D) $15,305 F

Question 17

The variable overhead efficiency variance for July is:

Accepted Answer

A) $1,352 U 
B) $1,352 F 
C) $1,300 U 
D) $1,300 F 
A) $1,352 U 
B) $1,352 F 
C) $1,300 U 
D) $1,300 F

Question 18

The materials quantity variance for March is:

Accepted Answer

A) $900 favorable 
B) $1,950 favorable 
C) $1,950 unfavorable 
D) $900 unfavorable 
A) $900 favorable 
B) $1,950 favorable 
C) $1,950 unfavorable 
D) $900 unfavorable

Question 19

Ideal standards should be used for forecasting and planning.

Accepted Answer

A) True 
 B)False

Question 20

The variable overhead efficiency variance for May is:

Accepted Answer

A) $100 U 
B) $108 F 
C) $108 U 
D) $100 F 
A) $100 U 
B) $108 F 
C) $108 U 
D) $100 F

Generally speaking, it is the responsibility of the production department to see that material usage is kept in line with standards.

The standard quantity per unit for direct materials should not include an allowance for waste.

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials price variance for the month?

The materials price variance for May is:

The labor efficiency variance for September was:

The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F The actual number of hours worked during the past period was:

The variable overhead rate variance for indirect labor is closest to:

Millonzi Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

The number of actual hours spent on tune-up work last week was:

The materials price variance for March is:

The labor rate variance for October is:

The labor efficiency variance for June is:

What is the variable overhead rate variance for the month?

Which department should usually be held responsible for an unfavorable materials price variance?

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month?

The variable overhead efficiency variance for July is:

The materials quantity variance for March is:

Ideal standards should be used for forecasting and planning.

The variable overhead efficiency variance for May is:

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters

Exam 12: Standard Costs and Variances

Generally speaking, it is the responsibility of the production department to see that material usage is kept in line with standards.

The standard quantity per unit for direct materials should not include an allowance for waste.

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials price variance for the month?

The materials price variance for May is:

The labor efficiency variance for September was:

The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F The actual number of hours worked during the past period was:

The variable overhead rate variance for indirect labor is closest to:

Millonzi Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

The number of actual hours spent on tune-up work last week was:

The materials price variance for March is:

The labor rate variance for October is:

The labor efficiency variance for June is:

What is the variable overhead rate variance for the month?

Which department should usually be held responsible for an unfavorable materials price variance?

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month?

The variable overhead efficiency variance for July is:

The materials quantity variance for March is:

Ideal standards should be used for forecasting and planning.

The variable overhead efficiency variance for May is:

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters