Question 1

What is the amount of the fixed factory overhead volume variance?

Accepted Answer

A)   $12,500 favorable
B)   $10,000 unfavorable
C)   $12,500 unfavorable
D)   $10,000 favorableE) B) and C)
F) A) and D)

Question 2

In most businesses,cost standards are established principally by accountants.

Accepted Answer

A) True 
 B)False

Question 3

Ideal standards are developed under conditions that assume no idle time,no machine breakdowns,and no materials spoilage.

Accepted Answer

A) True 
 B)False

Question 4

Currently attainable standards do not allow for reasonable production difficulties.

Accepted Answer

A) True 
 B)False

Question 5

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds actual cost.

Accepted Answer

A) True 
 B)False

Question 6

Because accountants have financial expertise,they are the only ones that are able to set standard costs for the production area.

Accepted Answer

A) True 
 B)False

Question 7

The direct materials price variance is

Accepted Answer

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

Question 8

The amount of the total factory overhead cost variance is

Accepted Answer

A)   $2,000 favorable
B)   $5,000 unfavorable
C)   $2,500 unfavorable
D)   $5,000 favorableE) A) and B)
F) B) and C)

Question 9

A company must choose either a standard system or nonfinancial performance measures to evaluate the performance of a company.

Accepted Answer

A) True 
 B)False

Question 10

The direct materials quantity variance is

Accepted Answer

A)   22,800 favorable
B)   22,800 unfavorable
C)   52,000 favorable
D)   52,000 unfavorableE) None of the above
F) All of the above

Question 11

The materials price variance is

Accepted Answer

A)   $0
B)   $59,400 unfavorable
C)   $59,400 favorable
D)   $6,000 unfavorableE) A) and D)
F) B) and C)

Question 12

The direct labor time variance measures the efficiency of the direct labor force.

Accepted Answer

A) True 
 B)False

Question 13

The variable factory overhead controllable variance is

Accepted Answer

A)   $73,250 favorable
B)   $73,250 unfavorable
C)   $59,400 favorable
D)   $59,400 unfavorableE) All of the above
F) B) and C)

Question 14

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) None of the above

Question 15

The fixed factory overhead volume variance is

Accepted Answer

A)   $9,000 favorable
B)   $9,000 unfavorable
C)   $5,500 favorable
D)   $5,500 unfavorableE) C) and D)
F) B) and D)

Question 16

Tthe variable factory overhead controllable variance is

Accepted Answer

A)   $8,981.75 favorable
B)   $7,280.75 unfavorable
C)   $8,981.75 unfavorable
D)   $7,280.75 favorableE) B) and D)
F) B) and C)

Question 17

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material,$​4.50; and standard costs for 4,800 pounds of material at $5.10 per pound. ​
What is the direct materials price variance?

Accepted Answer

A)   ​$3,000 favorable
B)   ​$3,000 unfavorable
C)   ​$2,880 favorable
D)   ​$2,880 unfavorableE) A) and B)
F) A) and C)

Question 18

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the rate variance was $1,200 favorable.

Accepted Answer

A) True 
 B)False

Question 19

The fixed factory overhead volume variance is

Accepted Answer

A)   $73,250 unfavorable
B)   $73,250 favorable
C)   $59,400 favorable
D)   $59,400 unfavorableE) C) and D)
F) A) and D)

Question 20

The labor time variance is

Accepted Answer

A)   $9,880 favorable
B)   $9,880 unfavorable
C)   $7,800 unfavorable
D)   $7,800 favorableE) A) and B)
F) B) and C)

Exam 22: Evaluating Variances From Standard Costs

In most businesses,cost standards are established principally by accountants.

Correct AnswerverifiedShow Answer

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material,$​4.50; and standard costs for 4,800 pounds of material at $5.10 per pound. ​ What is the direct materials price variance?

Correct AnswerverifiedShow Answer

The amount of the total factory overhead cost variance is

Correct AnswerverifiedShow Answer

Currently attainable standards do not allow for reasonable production difficulties.

Correct AnswerverifiedShow Answer

Because accountants have financial expertise,they are the only ones that are able to set standard costs for the production area.

Correct AnswerverifiedShow Answer

A company must choose either a standard system or nonfinancial performance measures to evaluate the performance of a company.

Correct AnswerverifiedShow Answer

If at the end of the fiscal year,the variances from standard are significant,the variances should be transferred to the

Correct AnswerverifiedShow Answer

The fixed factory overhead volume variance is

Correct AnswerverifiedShow Answer

The direct materials price variance is

Correct AnswerverifiedShow Answer

Ideal standards are developed under conditions that assume no idle time,no machine breakdowns,and no materials spoilage.

Correct AnswerverifiedShow Answer

The materials price variance is

Correct AnswerverifiedShow Answer

Tthe variable factory overhead controllable variance is

Correct AnswerverifiedShow Answer

What is the amount of the fixed factory overhead volume variance?

Correct AnswerverifiedShow Answer

The variable factory overhead controllable variance is

Correct AnswerverifiedShow Answer

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the rate variance was $1,200 favorable.

Correct AnswerverifiedShow Answer

The fixed factory overhead volume variance is

Correct AnswerverifiedShow Answer

The direct materials quantity variance is

Correct AnswerverifiedShow Answer

The direct labor time variance measures the efficiency of the direct labor force.

Correct AnswerverifiedShow Answer

The labor time variance is

Correct AnswerverifiedShow Answer

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds actual cost.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material,$4.50; and standard costs for 4,800 pounds of material at $5.10 per pound. What is the direct materials price variance?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified