Question 1

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 2

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 unfavorableE) A) and D)
F) A) and C)

Question 3

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 4

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 favorableE) B) and D)
F) C) and D)

Question 5

​  
*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 materialsE) None of the above
F) B) and C)

Question 6

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)  rateE) A) and D)
F) A) and B)

Question 7

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 quantityE) B) and C)
F) A) and B)

Question 8

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

Accepted Answer

Ideal standards are standards that are o...

Question 9

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)  normalE) C) and D)
F) None of the above

Question 10

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 overheadF) B) and D)
G) A) and D)

Question 11

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 unfavorableE) A) and C)
F) B) and C)

Question 12

​  
*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 accountsE) All of the above
F) C) and D)

Question 13

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 favorableE) All of the above
F) C) and D)

Question 14

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 costsE) None of the above
F) C) and D)

Question 15

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

Accepted Answer

Direct materials price varianc...

Question 16

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)  budgetE) A) and D)
F) A) and C)

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 pricesE) A) and C)
F) A) and B)

Question 18

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 overheadF) A) and E)
G) A) and C)

Question 19

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)  rateE) A) and B)
F) B) and D)

Question 20

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 rateE) None of the above
F) A) and B)

Exam 23: Evaluating Variances From Standard Costs

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

Correct Answer
verified

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

Correct Answer
verified
Ideal standards are standards that are o...
View Answer

Correct Answer
verified

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

Correct Answer
verified

*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.

Correct Answer
verified

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

Correct Answer
verified

The standard price and quantity of direct materials are separated because

Correct Answer
verified

Correct Answer
verified

A favorable cost variance occurs when

Correct Answer
verified

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.

Correct Answer
verified

The direct labor rate variance is the difference between the

Correct Answer
verified

*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

Correct Answer
verified

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

Correct Answer
verified
Direct materials price varianc...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Standard costs are divided into which of the following components?

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

Exam 23: Evaluating Variances From Standard Costs

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedIdeal standards are standards that are o...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

​ *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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The standard price and quantity of direct materials are separated because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A favorable cost variance occurs when

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The direct labor rate variance is the difference between the

Correct AnswerverifiedShow Answer

​ *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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedDirect materials price varianc...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Standard costs are divided into which of the following components?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Ideal standards are standards that are o...
View Answer

Correct Answer
verified

Correct Answer
verified

*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.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

*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

Correct Answer
verified

Correct Answer
verified
Direct materials price varianc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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