Question 1

​  
*Actual hours are equal to standard hours for units produced.​
-If at the end of the fiscal year, the variances from standard are significant, the variances should be transferred to the

Accepted Answer

A) work in process account 
B) cost of goods sold account 
C) finished goods account 
D) work in process, cost of goods sold, and finished goods accounts

Question 2

Compute the direct materials price and quantity variances for Taylor Company.

Accepted Answer

The answer of Compute the direct materials price and quantity...

Question 3

The following data are given for Stringer Company:  Overhead is applied on standard labor hours.
-The direct materials quantity variance is

Accepted Answer

A) $22,800 favorable 
B) $22,800 unfavorable 
C) $52,000 favorable 
D) $52,000 unfavorable

Question 4

Match each of the following formulas and phrases with the term (a-e) it describes.
-(Actual Quantity - Standard Quantity) × Standard Price

Accepted Answer

A) Direct materials price variance 
B) Direct labor rate variance 
C) Direct labor time variance 
D) Direct materials quantity variance 
E) Budgeted variable factory overhead

Question 5

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows:  ​
-The variable factory overhead controllable variance is

Accepted Answer

A) $10,000 favorable 
B) $2,500 unfavorable 
C) $10,000 unfavorable 
D) $2,500 favorable

Question 6

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a _____ variance.

Accepted Answer

A) controllable 
B) price 
C) quantity 
D) rate

Question 7

The following data relate to direct materials costs for February:
Materials cost per yard: standard, $2.00; actual, $2.10
Yards per unit: standard, 4.5 yards; actual, 4.75 yards
Units of production: 9,500
-The total direct materials cost variance is

Accepted Answer

A) $9,262.50 unfavorable 
B) $9,262.50 favorable 
C) $3,780.00 unfavorable 
D) $3,562.50 favorable

Question 8

Standards that represent levels of operation that can be attained with reasonable effort are called _____ standards.

Accepted Answer

A) theoretical 
B) ideal 
C) variable 
D) normal

Question 9

A report that summarizes actual costs, standard costs, and the differences for the units produced is called a

Accepted Answer

A) zero-based budget report 
B) budget performance report 
C) master budget 
D) budget

Question 10

Standard costs are divided into which of the following components?

Accepted Answer

A) variance standard and quantity standard 
B) materials standard and labor standard 
C) standard quality and standard quantity 
D) standard price and standard quantity

Question 11

The direct labor rate variance is the difference between the

Accepted Answer

A) actual rate and the standard rate 
B) actual costs and the standard costs 
C) actual hours at the standard rate and the standard costs 
D) actual costs and the actual hours at the standard rate

Question 12

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual direct materials used are 800 units at $12, the direct materials quantity variance is $1,000 unfavorable.

Accepted Answer

A) True 
 B)False

Question 13

A favorable cost variance occurs when

Accepted Answer

A) actual costs are more than standard costs 
B) standard costs are more than actual costs 
C) standard costs are less than actual costs 
D) actual costs are the same as standard costs

Question 14

Define ideal and normal standards. Which type of standard should be used and why?

Accepted Answer

The answer of Define ideal and normal standards. Which type...

Question 15

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:  ​
-Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a _____ variance.

Accepted Answer

A) quantity 
B) controllable 
C) volume 
D) rate

Question 16

Match each of the following formulas and phrases with the term (a-e) it describes.
-(Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour

Accepted Answer

A) Direct materials price variance 
B) Direct labor rate variance 
C) Direct labor time variance 
D) Direct materials quantity variance 
E) Budgeted variable factory overhead

Question 17

The standard price and quantity of direct materials are separated because

Accepted Answer

A) GAAP and IFRS reporting requires separation 
B) direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department 
C) standard prices are more difficult to estimate than standard quantities 
D) standard quantities change more frequently than standard prices

Question 18

​  
*Actual hours are equal to standard hours for units produced.​
-At the end of the fiscal year, variances from standard costs are usually transferred to the _____ account.

Accepted Answer

A) direct labor 
B) factory overhead 
C) cost of goods sold 
D) direct materials

Question 19

Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts.

Accepted Answer

A) True 
 B)False

Question 20

The following data relate to direct labor costs for March:
Rate: standard, $12.00; actual, $12.25
Hours: standard, 18,500; actual, 17,955
Units of production: 9,450
-The direct labor time variance is

Accepted Answer

A) $2,362.50 favorable 
B) $2,362.50 unfavorable 
C) $6,540.00 favorable 
D) $6,540.00 unfavorable

Exam 23: Evaluating Variances From Standard Costs

*Actual hours are equal to standard hours for units produced. -If at the end of the fiscal year, the variances from standard are significant, the variances should be transferred to the

Compute the direct materials price and quantity variances for Taylor Company.

The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials quantity variance is

Match each of the following formulas and phrases with the term (a-e) it describes. -(Actual Quantity - Standard Quantity) × Standard Price

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a _____ variance.

The following data relate to direct materials costs for February: Materials cost per yard: standard, $2.00; actual, $2.10 Yards per unit: standard, 4.5 yards; actual, 4.75 yards Units of production: 9,500 -The total direct materials cost variance is

Standards that represent levels of operation that can be attained with reasonable effort are called _____ standards.

A report that summarizes actual costs, standard costs, and the differences for the units produced is called a

Standard costs are divided into which of the following components?

The direct labor rate variance is the difference between the

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual direct materials used are 800 units at $12, the direct materials quantity variance is $1,000 unfavorable.

A favorable cost variance occurs when

Define ideal and normal standards. Which type of standard should be used and why?

Match each of the following formulas and phrases with the term (a-e) it describes. -(Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour

The standard price and quantity of direct materials are separated because

*Actual hours are equal to standard hours for units produced. -At the end of the fiscal year, variances from standard costs are usually transferred to the _____ account.

Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts.

The following data relate to direct labor costs for March: Rate: standard, $12.00; actual, $12.25 Hours: standard, 18,500; actual, 17,955 Units of production: 9,450 -The direct labor time variance is

Exam 23: Evaluating Variances From Standard Costs

​ *Actual hours are equal to standard hours for units produced.​ -If at the end of the fiscal year, the variances from standard are significant, the variances should be transferred to the

Compute the direct materials price and quantity variances for Taylor Company.

The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials quantity variance is

Match each of the following formulas and phrases with the term (a-e) it describes. -(Actual Quantity - Standard Quantity) × Standard Price

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a _____ variance.

The following data relate to direct materials costs for February: Materials cost per yard: standard, $2.00; actual, $2.10 Yards per unit: standard, 4.5 yards; actual, 4.75 yards Units of production: 9,500 -The total direct materials cost variance is

Standards that represent levels of operation that can be attained with reasonable effort are called _____ standards.

A report that summarizes actual costs, standard costs, and the differences for the units produced is called a

Standard costs are divided into which of the following components?

The direct labor rate variance is the difference between the

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual direct materials used are 800 units at $12, the direct materials quantity variance is $1,000 unfavorable.

A favorable cost variance occurs when

Define ideal and normal standards. Which type of standard should be used and why?

Match each of the following formulas and phrases with the term (a-e) it describes. -(Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour

The standard price and quantity of direct materials are separated because

​ *Actual hours are equal to standard hours for units produced.​ -At the end of the fiscal year, variances from standard costs are usually transferred to the _____ account.

Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts.

The following data relate to direct labor costs for March: Rate: standard, $12.00; actual, $12.25 Hours: standard, 18,500; actual, 17,955 Units of production: 9,450 -The direct labor time variance is

*Actual hours are equal to standard hours for units produced. -If at the end of the fiscal year, the variances from standard are significant, the variances should be transferred to the

*Actual hours are equal to standard hours for units produced. -At the end of the fiscal year, variances from standard costs are usually transferred to the _____ account.