Question 1

The materials price variance for November is:

Accepted Answer

A) $8,460 F 
B) $8,460 U 
C) $9,460 U 
D) $9,460 F 
A) $8,460 F 
B) $8,460 U 
C) $9,460 U 
D) $9,460 F

Question 2

The labor rate variance for June is:

Accepted Answer

A) $4,095 F 
B) $4,050 F 
C) $4,095 U 
D) $4,050 U 
A) $4,095 F 
B) $4,050 F 
C) $4,095 U 
D) $4,050 U

Question 3

The variable overhead rate variance for August is:

Accepted Answer

A) $105 F 
B) $110 F 
C) $105 U 
D) $110 U 
A) $105 F 
B) $110 F 
C) $105 U 
D) $110 U

Question 4

The standard variable overhead rate per machine setup is:

Accepted Answer

A) $16.91 
B) $12.78 
C) $15.00 
D) $16.50 
A) $16.91 
B) $12.78 
C) $15.00 
D) $16.50

Question 5

The variable overhead rate variance for lubricants is closest to:

Accepted Answer

A) $1,425 U 
B) $13,448 U 
C) $12,023 U 
D) $12,023 F 
A) $1,425 U 
B) $13,448 U 
C) $12,023 U 
D) $12,023 F

Question 6

The labor efficiency variance for October is:

Accepted Answer

A) $618 U 
B) $630 F 
C) $618 F 
D) $630 U 
A) $618 U 
B) $630 F 
C) $618 F 
D) $630 U

Question 7

The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate.

Accepted Answer

A) True 
 B)False

Question 8

The direct labor rate variance for May is:

Accepted Answer

A) $2,200 favorable 
B) $1,900 unfavorable 
C) $2,000 unfavorable 
D) $2,090 favorable 
A) $2,200 favorable 
B) $1,900 unfavorable 
C) $2,000 unfavorable 
D) $2,090 favorable

Question 9

The labor rate variance for November is:

Accepted Answer

A) $787 U 
B) $720 F 
C) $787 F 
D) $720 U 
A) $787 U 
B) $720 F 
C) $787 F 
D) $720 U

Question 10

Last month 75,000 pounds of direct material were purchased and 71,000 pounds were used. If the actual purchase price per pound was $0.50 more than the standard purchase price per pound, then the materials price variance was:

Accepted Answer

A) $2,000 F 
B) $37,500 F 
C) $37,500 U 
D) $35,500 U 
A) $2,000 F 
B) $37,500 F 
C) $37,500 U 
D) $35,500 U

Question 11

The standard cost card for a product shows that the product should use 4 kilograms of material B per finished unit and that the standard price of material B is $4.50 per kilogram. During April, when the budgeted production level was 1,000 units, 1,040 units were actually made. A total of 4,100 kilograms of material B were used in production and the inventories of material B were reduced by 300 kilograms during April. The total cost of material B purchased during April was $14,400. The material variances for material B during April were:

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 12

Leerar Corporation makes a product with the following standard costs:   In December the company produced 4,200 units using 34,870 ounces of the direct material and 1,900 direct labor-hours. During the month, the company purchased 39,700 ounces of the direct material at a total cost of $111,160. The actual direct labor cost for the month was $35,530 and the actual variable overhead cost was $3,990. 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. SQ = 4,200 units × 8.1 ounces per uni

Question 13

The following standards for variable manufacturing overhead have been established for a company that makes only one product:   The following data pertain to operations for the last month:   What is the variable overhead efficiency variance for the month?

Accepted Answer

A) $9,219 U 
B) $10,179 U 
C) $9,867 U 
D) $648 U 
A) $9,219 U 
B) $10,179 U 
C) $9,867 U 
D) $648 U

Question 14

The labor efficiency variance for June is:

Accepted Answer

A) $995 U 
B) $950 U 
C) $995 F 
D) $950 F 
A) $995 U 
B) $950 U 
C) $995 F 
D) $950 F

Question 15

Ruston Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:   The original budget was based on 4,500 machine-hours. The company actually worked 4,590 machine-hours during the month and the standard hours allowed for the actual output were 4,700 machine-hours. What was the overall variable overhead efficiency variance for the month?

Accepted Answer

A) $50 unfavorable 
B) $869 favorable 
C) $969 unfavorable 
D) $100 unfavorable 
A) $50 unfavorable 
B) $869 favorable 
C) $969 unfavorable 
D) $100 unfavorable

Question 16

The variable overhead efficiency variance for February is:

Accepted Answer

A) $150 F 
B) $160 F 
C) $160 U 
D) $150 U 
A) $150 F 
B) $160 F 
C) $160 U 
D) $150 U

Question 17

The variable overhead efficiency variance for June is:

Accepted Answer

A) $100 F 
B) $98 F 
C) $100 U 
D) $98 U 
A) $100 F 
B) $98 F 
C) $100 U 
D) $98 U

Question 18

The labor efficiency variance for November is:

Accepted Answer

A) $2,530 U 
B) $2,530 F 
C) $2,343 F 
D) $2,343 U 
A) $2,530 U 
B) $2,530 F 
C) $2,343 F 
D) $2,343 U

Question 19

The materials price variance for November is:

Accepted Answer

A) $5,520 F 
B) $6,340 F 
C) $5,520 U 
D) $6,340 U 
A) $5,520 F 
B) $6,340 F 
C) $5,520 U 
D) $6,340 U

Question 20

Which of the following statements concerning ideal standards is incorrect?

Accepted Answer

A) Ideal standards generally do not provide the best motivation for workers. 
B) Ideal standards do not make allowances for waste, spoilage, and machine breakdowns. 
C) Ideal standards are better suited for cash budgeting than practical standards. 
D) Ideal standards may be better than practical standards when managers seek continual improvement. 
A) Ideal standards generally do not provide the best motivation for workers. 
B) Ideal standards do not make allowances for waste, spoilage, and machine breakdowns. 
C) Ideal standards are better suited for cash budgeting than practical standards. 
D) Ideal standards may be better than practical standards when managers seek continual improvement.

The materials price variance for November is:

The labor rate variance for June is:

The variable overhead rate variance for August is:

The standard variable overhead rate per machine setup is:

The variable overhead rate variance for lubricants is closest to:

The labor efficiency variance for October is:

The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate.

The direct labor rate variance for May is:

The labor rate variance for November is:

Last month 75,000 pounds of direct material were purchased and 71,000 pounds were used. If the actual purchase price per pound was $0.50 more than the standard purchase price per pound, then the materials price variance was:

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month?

The labor efficiency variance for June is:

The variable overhead efficiency variance for February is:

The variable overhead efficiency variance for June is:

The labor efficiency variance for November is:

The materials price variance for November is:

Which of the following statements concerning ideal standards is incorrect?

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 materials price variance for November is:

The labor rate variance for June is:

The variable overhead rate variance for August is:

The standard variable overhead rate per machine setup is:

The variable overhead rate variance for lubricants is closest to:

The labor efficiency variance for October is:

The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate.

The direct labor rate variance for May is:

The labor rate variance for November is:

Last month 75,000 pounds of direct material were purchased and 71,000 pounds were used. If the actual purchase price per pound was $0.50 more than the standard purchase price per pound, then the materials price variance was:

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month?

The labor efficiency variance for June is:

The variable overhead efficiency variance for February is:

The variable overhead efficiency variance for June is:

The labor efficiency variance for November is:

The materials price variance for November is:

Which of the following statements concerning ideal standards is incorrect?

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