Question 1

If the standard cost for an item exceeds the actual cost, the variance is favorable.

Accepted Answer

A) True 
 B)False

Question 2

The following production information is available for January:
$\begin{array}{lrr}
\text { Actual Hours used } & 45,000 \
\text { Actual Rate per hour } & \$  15 \
\text { Standard Rate per hour } & \$  14 \
\text { Standard hours for units produced } & 47,000
\end{array}$
The direct materials price variance is:

Accepted Answer

A) $28,000 unfavorable 
B) $45,000 unfavorable 
C) $28,000 favorable 
D) $45,000 favorable 
A) $28,000 unfavorable 
B) $45,000 unfavorable 
C) $28,000 favorable 
D) $45,000 favorable

Question 3

The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

Accepted Answer

A) the actual cost of the item. 
B) the standard cost of the item. 
C) the price variance. 
D) the budgeted amount for the item. 
A) the actual cost of the item. 
B) the standard cost of the item. 
C) the price variance. 
D) the budgeted amount for the item.

Question 4

Better Blankets, Inc. makes a SnuggieBlank using flannel material and trim binding. They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need. The Standard Cost Card for The SnuggieBlank model is shown. 
STANDARD COST CARD
 
The company reported the following results concerning January:
 
-
The material quantity variance for Trim used in January is:

Accepted Answer

A) $5,640 favorable. 
B) $5,640 unfavorable. 
C) $1,440 unfavorable. 
D) $1,440 favorable. 
A) $5,640 favorable. 
B) $5,640 unfavorable. 
C) $1,440 unfavorable. 
D) $1,440 favorable.

Question 5

Explain the process for establishing standard costs for manufactured products. Identify the parties responsible and accountable for the standard.

Accepted Answer

Establishing standard costs for manufact

Question 6

The cost of utilities consumed in the factory is a good example of

Accepted Answer

A) a semi-variable cost. 
B) a fixed cost. 
C) a variable cost. 
D) a standard cost. 
A) a semi-variable cost. 
B) a fixed cost. 
C) a variable cost. 
D) a standard cost.

If the standard cost for an item exceeds the actual cost, the variance is favorable.

The following production information is available for January: Actual Hours used 45,000 Actual Rate per hour \ 15 Standard Rate per hour \ 14 Standard hours for units produced 47,000 The direct materials price variance is:

The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

Explain the process for establishing standard costs for manufactured products. Identify the parties responsible and accountable for the standard.

The cost of utilities consumed in the factory is a good example of

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Cost-Revenue Analysis for Decision Making

Filters

Exam 29: Controlling Manufacturing Costs: Standard Costs

If the standard cost for an item exceeds the actual cost, the variance is favorable.

The following production information is available for January: Actual Hours used 45,000 Actual Rate per hour \ 15 Standard Rate per hour \ 14 Standard hours for units produced 47,000 The direct materials price variance is:

The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

Explain the process for establishing standard costs for manufactured products. Identify the parties responsible and accountable for the standard.

The cost of utilities consumed in the factory is a good example of

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Cost-Revenue Analysis for Decision Making

Filters