Question 1

The labor rate variance for February is:

Accepted Answer

A) $825 U 
B) $820 U 
C) $820 F 
D) $825 F 
A) $825 U 
B) $820 U 
C) $820 F 
D) $825 F

Question 2

The variable overhead rate variance for March is:

Accepted Answer

A) $884 U 
B) $884 F 
C) $940 U 
D) $940 F 
A) $884 U 
B) $884 F 
C) $940 U 
D) $940 F

Question 3

The materials price variance for November is:

Accepted Answer

A) $2,145 U 
B) $2,145 F 
C) $2,600 U 
D) $2,600 F 
A) $2,145 U 
B) $2,145 F 
C) $2,600 U 
D) $2,600 F

Question 4

Standard costs greatly increase the complexity of the bookkeeping process.

Accepted Answer

A) True 
 B)False

Question 5

The labor rate variance for March is:

Accepted Answer

A) $4,578 unfavorable 
B) $1,470 unfavorable 
C) $4,578 favorable 
D) $1,470 favorable 
A) $4,578 unfavorable 
B) $1,470 unfavorable 
C) $4,578 favorable 
D) $1,470 favorable

Question 6

The general model for calculating a price variance is:

Accepted Answer

A) actual quantity of inputs × (actual price - standard price). 
B) standard price × (actual quantity of inputs - standard quantity allowed for output). 
C) (actual quantity of inputs at actual price) - (standard quantity allowed for output at standard price). 
D) actual price × (actual quantity of inputs - standard quantity allowed for output). 
A) actual quantity of inputs × (actual price - standard price). 
B) standard price × (actual quantity of inputs - standard quantity allowed for output). 
C) (actual quantity of inputs at actual price) - (standard quantity allowed for output at standard price). 
D) actual price × (actual quantity of inputs - standard quantity allowed for output).

Question 7

The variable overhead rate variance for supplies is closest to:

Accepted Answer

A) $47,251 F 
B) $42,901 U 
C) $47,251 U 
D) $42,901 F 
A) $47,251 F 
B) $42,901 U 
C) $47,251 U 
D) $42,901 F

Question 8

The labor rate variance for August is:

Accepted Answer

A) $440 F 
B) $440 U 
C) $420 U 
D) $420 F 
A) $440 F 
B) $440 U 
C) $420 U 
D) $420 F

Question 9

The variable overhead efficiency variance is:

Accepted Answer

A) $520 F 
B) $520 U 
C) $500 U 
D) $500 F 
A) $520 F 
B) $520 U 
C) $500 U 
D) $500 F

Question 10

The materials quantity variance for August is:

Accepted Answer

A) $1,620 F 
B) $1,674 F 
C) $1,620 U 
D) $1,674 U 
A) $1,620 F 
B) $1,674 F 
C) $1,620 U 
D) $1,674 U

Question 11

Schlager Corporation makes a product with the following standard costs:   The company reported the following results concerning this product in August.   The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the direct labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.

Accepted Answer

a. SH = 8,500 units × 7.8 kilos per unit

Question 12

The variable overhead efficiency variance for November is:

Accepted Answer

A) $2,680 F 
B) $2,546 F 
C) $2,680 U 
D) $2,546 U 
A) $2,680 F 
B) $2,546 F 
C) $2,680 U 
D) $2,546 U

Question 13

The labor rate variance was:

Accepted Answer

A) $3,900 favorable 
B) $3,900 unfavorable 
C) $3,100 unfavorable 
D) $3,100 favorable 
A) $3,900 favorable 
B) $3,900 unfavorable 
C) $3,100 unfavorable 
D) $3,100 favorable

Question 14

The labor efficiency variance for March is:

Accepted Answer

A) $2,660 F 
B) $2,422 F 
C) $2,422 U 
D) $2,660 U 
A) $2,660 F 
B) $2,422 F 
C) $2,422 U 
D) $2,660 U

Question 15

The variable overhead rate variance for July is:

Accepted Answer

A) $600 F 
B) $600 U 
C) $548 F 
D) $548 U 
A) $600 F 
B) $600 U 
C) $548 F 
D) $548 U

Question 16

Igel Corporation makes a product with the following standard costs:   The company reported the following results concerning this product in September.   The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the direct labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.

Accepted Answer

a. SH = 1,700 units × 4.3 pounds per uni

Question 17

The materials quantity variance for March is:

Accepted Answer

A) $5,810 F 
B) $5,893 U 
C) $5,893 F 
D) $5,810 U 
A) $5,810 F 
B) $5,893 U 
C) $5,893 F 
D) $5,810 U

Question 18

The materials quantity variance should be computed:

Accepted Answer

A) when materials are purchased. 
B) based upon the amount of materials used in production. 
C) based upon the difference between the actual and standard prices per unit times the actual quantity used. 
D) only when there is a difference between standard and actual cost per unit for the materials. 
A) when materials are purchased. 
B) based upon the amount of materials used in production. 
C) based upon the difference between the actual and standard prices per unit times the actual quantity used. 
D) only when there is a difference between standard and actual cost per unit for the materials.

Question 19

The actual material cost per pound was:

Accepted Answer

A) $4.00 
B) $3.67 
C) $3.30 
D) $4.40 
A) $4.00 
B) $3.67 
C) $3.30 
D) $4.40

Question 20

The labor rate variance for January is:

Accepted Answer

A) $700 F 
B) $640 U 
C) $640 F 
D) $700 U 
A) $700 F 
B) $640 U 
C) $640 F 
D) $700 U

The labor rate variance for February is:

The variable overhead rate variance for March is:

The materials price variance for November is:

Standard costs greatly increase the complexity of the bookkeeping process.

The labor rate variance for March is:

The general model for calculating a price variance is:

The variable overhead rate variance for supplies is closest to:

The labor rate variance for August is:

The variable overhead efficiency variance is:

The materials quantity variance for August is:

The variable overhead efficiency variance for November is:

The labor rate variance was:

The labor efficiency variance for March is:

The variable overhead rate variance for July is:

The materials quantity variance for March is:

The materials quantity variance should be computed:

The actual material cost per pound was:

The labor rate variance for January 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

The labor rate variance for February is:

The variable overhead rate variance for March is:

The materials price variance for November is:

Standard costs greatly increase the complexity of the bookkeeping process.

The labor rate variance for March is:

The general model for calculating a price variance is:

The variable overhead rate variance for supplies is closest to:

The labor rate variance for August is:

The variable overhead efficiency variance is:

The materials quantity variance for August is:

The variable overhead efficiency variance for November is:

The labor rate variance was:

The labor efficiency variance for March is:

The variable overhead rate variance for July is:

The materials quantity variance for March is:

The materials quantity variance should be computed:

The actual material cost per pound was:

The labor rate variance for January 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