Question 1

The price variance for the direct material acquired by the company during March is:

Accepted Answer

A)  $7,550 favourable. 
B)  $7,550 unfavourable. 
C)  $8,250 unfavourable. 
D)  $8,250 favourable. 
A)  $7,550 favourable. 
B)  $7,550 unfavourable. 
C)  $8,250 unfavourable. 
D)  $8,250 favourable.

Question 2

The standard cost card for a product includes a list of all inputs required to complete one unit of the product with the standard quantity and standard cost of each input.

Accepted Answer

A) True 
 B)False

Question 3

The standard direct labour rate should not include fringe benefits.

Accepted Answer

A) True 
 B)False

Question 4

Determine the materials price variance:

Accepted Answer

Actual Price $1.00 per kilogra

Question 5

What is the materials quantity variance for the month?

Accepted Answer

A)  $6,550 U. 
B)  $6,600 U. 
C)  $15,982 U. 
D)  $16,104 U. 
A)  $6,550 U. 
B)  $6,600 U. 
C)  $15,982 U. 
D)  $16,104 U.

Question 6

The labour efficiency variance is:

Accepted Answer

A)  $6,375 F. 
B)  $6,375 U. 
C)  $6,600 U. 
D)  $6,600 F. 
A)  $6,375 F. 
B)  $6,375 U. 
C)  $6,600 U. 
D)  $6,600 F.

Question 7

A flexible budget is "flexible" in the sense that a budget can be prepared for any level of activity,but once a budget is set the budget figures are not changed if actual activity later proves to be different than budgeted activity.

Accepted Answer

A) True 
 B)False

Question 8

The fixed overhead budget variance is not controllable by managers since fixed costs are not controllable.

Accepted Answer

A) True 
 B)False

Question 9

What is the materials price variance for the month?

Accepted Answer

A)  $430 U. 
B)  $430 F. 
C)  $480 F. 
D)  $480 U. 
A)  $430 U. 
B)  $430 F. 
C)  $480 F. 
D)  $480 U.

Question 10

The labour rate variance is:

Accepted Answer

A)  $1,125 U. 
B)  $1,125 F. 
C)  $2,500 F. 
D)  $2,500 U. 
A)  $1,125 U. 
B)  $1,125 F. 
C)  $2,500 F. 
D)  $2,500 U.

Question 11

Which of the following entries would correctly record the charging of direct labour costs to work in process given an unfavourable labour efficiency variance and a favourable labour rate variance?

Accepted Answer

A)  Work in process Labour efficiency variance Labour rate variance Wages payable 
B)  Work in process Wages payable 
C)  Work in process Labour efficiency variance Labour rate variance Wages payable. 
D)  Work in process Labour rate variance Labour efficiency variance Wages payable. 
A)  Work in process Labour efficiency variance Labour rate variance Wages payable 
B)  Work in process Wages payable 
C)  Work in process Labour efficiency variance Labour rate variance Wages payable. 
D)  Work in process Labour rate variance Labour efficiency variance Wages payable.

Question 12

A favourable labour rate variance indicates that:

Accepted Answer

A)  actual hours exceed standard hours. 
B)  standard hours exceed actual hours. 
C)  the actual rate exceeds the standard rate. 
D)  the standard rate exceeds the actual rate. 
A)  actual hours exceed standard hours. 
B)  standard hours exceed actual hours. 
C)  the actual rate exceeds the standard rate. 
D)  the standard rate exceeds the actual rate.

Question 13

A static budget is geared toward a single level of activity.

Accepted Answer

A) True 
 B)False

Question 14

What does a credit balance in a direct labour efficiency variance account indicate?

Accepted Answer

A)  The average wage rate paid to direct labour employees was less than the standard rate. 
B)  The standard hours allowed for the units produced were greater than actual direct labour hours used. 
C)  Actual total direct labour costs incurred were less than standard direct labour costs allowed for the units produced. 
D)  The number of units produced was less than the number of units budgeted for the period. 
A)  The average wage rate paid to direct labour employees was less than the standard rate. 
B)  The standard hours allowed for the units produced were greater than actual direct labour hours used. 
C)  Actual total direct labour costs incurred were less than standard direct labour costs allowed for the units produced. 
D)  The number of units produced was less than the number of units budgeted for the period.

Question 15

Which of the following statements concerning practical standards is incorrect?

Accepted Answer

A)  Practical standards can be used for product costing and cash budgeting. 
B)  Practical standards can be attained by the average worker. 
C)  When practical standards are used,there is no reason to adjust standards if an old machine is replaced by a newer,faster machine. 
D)  Under practical standards,large variances are less likely than under ideal standards. 
A)  Practical standards can be used for product costing and cash budgeting. 
B)  Practical standards can be attained by the average worker. 
C)  When practical standards are used,there is no reason to adjust standards if an old machine is replaced by a newer,faster machine. 
D)  Under practical standards,large variances are less likely than under ideal standards.

Question 16

To record the use of direct materials in production,the general ledger would include what entry to the materials quantity variance account?

Accepted Answer

A)  $900 debit. 
B)  $900 credit. 
C)  $3,600 debit. 
D)  $3,600 credit. 
A)  $900 debit. 
B)  $900 credit. 
C)  $3,600 debit. 
D)  $3,600 credit.

Question 17

The Moore Company produces and sells a single product.A standard cost card for the product follows:

Accepted Answer

@#IMG-DLM& 
The company manufactured and sold 18,0

Question 18

Which of the following is the most probable reason a company would experience an unfavourable labour rate variance and a favourable labour efficiency variance?

Accepted Answer

A)  the mix of workers assigned to the particular job was heavily weighted towards the use of higher paid,experienced individuals. 
B)  the mix of workers assigned to the particular job was heavily weighted towards the use of new relatively low paid,unskilled workers. 
C)  because of the production schedule,workers from other production areas were assigned to assist this particular process. 
D)  defective materials caused more labour to be used in order to produce a standard unit. 
A)  the mix of workers assigned to the particular job was heavily weighted towards the use of higher paid,experienced individuals. 
B)  the mix of workers assigned to the particular job was heavily weighted towards the use of new relatively low paid,unskilled workers. 
C)  because of the production schedule,workers from other production areas were assigned to assist this particular process. 
D)  defective materials caused more labour to be used in order to produce a standard unit.

Question 19

A labour efficiency variance resulting from the use of poor quality materials should be charged to:

Accepted Answer

A)  the production manager. 
B)  the purchasing agent. 
C)  manufacturing overhead. 
D)  the engineering department. 
A)  the production manager. 
B)  the purchasing agent. 
C)  manufacturing overhead. 
D)  the engineering department.

Question 20

Standard costs should generally be based on the actual costs of prior periods.

Accepted Answer

A) True 
 B)False

The price variance for the direct material acquired by the company during March is:

The standard cost card for a product includes a list of all inputs required to complete one unit of the product with the standard quantity and standard cost of each input.

The standard direct labour rate should not include fringe benefits.

Determine the materials price variance:

What is the materials quantity variance for the month?

The labour efficiency variance is:

A flexible budget is "flexible" in the sense that a budget can be prepared for any level of activity,but once a budget is set the budget figures are not changed if actual activity later proves to be different than budgeted activity.

The fixed overhead budget variance is not controllable by managers since fixed costs are not controllable.

What is the materials price variance for the month?

The labour rate variance is:

Which of the following entries would correctly record the charging of direct labour costs to work in process given an unfavourable labour efficiency variance and a favourable labour rate variance?

A favourable labour rate variance indicates that:

A static budget is geared toward a single level of activity.

What does a credit balance in a direct labour efficiency variance account indicate?

Which of the following statements concerning practical standards is incorrect?

To record the use of direct materials in production,the general ledger would include what entry to the materials quantity variance account?

The Moore Company produces and sells a single product.A standard cost card for the product follows:

Which of the following is the most probable reason a company would experience an unfavourable labour rate variance and a favourable labour efficiency variance?

A labour efficiency variance resulting from the use of poor quality materials should be charged to:

Standard costs should generally be based on the actual costs of prior periods.

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters

Exam 11: Relevant Costs for Decision Making

The price variance for the direct material acquired by the company during March is:

The standard cost card for a product includes a list of all inputs required to complete one unit of the product with the standard quantity and standard cost of each input.

The standard direct labour rate should not include fringe benefits.

Determine the materials price variance:

What is the materials quantity variance for the month?

The labour efficiency variance is:

A flexible budget is "flexible" in the sense that a budget can be prepared for any level of activity,but once a budget is set the budget figures are not changed if actual activity later proves to be different than budgeted activity.

The fixed overhead budget variance is not controllable by managers since fixed costs are not controllable.

What is the materials price variance for the month?

The labour rate variance is:

Which of the following entries would correctly record the charging of direct labour costs to work in process given an unfavourable labour efficiency variance and a favourable labour rate variance?

A favourable labour rate variance indicates that:

A static budget is geared toward a single level of activity.

What does a credit balance in a direct labour efficiency variance account indicate?

Which of the following statements concerning practical standards is incorrect?

To record the use of direct materials in production,the general ledger would include what entry to the materials quantity variance account?

The Moore Company produces and sells a single product.A standard cost card for the product follows:

Which of the following is the most probable reason a company would experience an unfavourable labour rate variance and a favourable labour efficiency variance?

A labour efficiency variance resulting from the use of poor quality materials should be charged to:

Standard costs should generally be based on the actual costs of prior periods.

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters