Question 1

The formula to compute the direct material quantity variance is to calculate the difference between

Accepted Answer

A) Actual costs - Standard costs 
B) Standard costs - Actual costs 
C) Actual quantity × Standard price - Standard costs 
D) Actual costs - Standard price × Standard costs 
A) Actual costs - Standard costs 
B) Standard costs - Actual costs 
C) Actual quantity × Standard price - Standard costs 
D) Actual costs - Standard price × Standard costs

Question 2

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

Accepted Answer

A) $1,020 favorable 
B) $1,020 unfavorable 
C) $900 favorable 
D) $900 unfavorable 
A) $1,020 favorable 
B) $1,020 unfavorable 
C) $900 favorable 
D) $900 unfavorable

Question 3

Standard costs serve as a device for measuring efficiency.

Accepted Answer

A) True 
 B)False

Question 4

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows:   The direct labor time variance is

Accepted Answer

A) $1,180 favorable 
B) $1,140 unfavorable 
C) $1,180 unfavorable 
D) $1,140 favorable 
A) $1,180 favorable 
B) $1,140 unfavorable 
C) $1,180 unfavorable 
D) $1,140 favorable

Question 5

The fixed factory overhead volume variance is

Accepted Answer

A) $1,701.00 favorable 
B) $4,866.75 unfavorable 
C) $1,701.00 unfavorable 
D) $4,866.75 favorable 
A) $1,701.00 favorable 
B) $4,866.75 unfavorable 
C) $1,701.00 unfavorable 
D) $4,866.75 favorable

Question 6

Match the following descriptions with the term a-e it describes:
-theoretical standard

Accepted Answer

A) Ideal standard 
B) Nonfinancial performance measure 
C) Currently attainable standard 
D) Unfavorable cost variance 
E) Favorable cost variance 
A) Ideal standard 
B) Nonfinancial performance measure 
C) Currently attainable standard 
D) Unfavorable cost variance 
E) Favorable cost variance

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Match the following formulas or descriptions with the term a-e it defines.
-Actual rate per hour - Standard rate per hour × Actual hours

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 
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 11

Compute the direct labor rate and time variances for Taylor Company.

Accepted Answer

Direct labor rate variance: $6

Question 12

Accounting systems that use standards for product costs are called standard cost systems.

Accepted Answer

A) True 
 B)False

Question 13

Titus Company purchased and used 650 pounds of tomatoes direct materials to produce a taco sauce with a 635 pound standard direct materials requirement.The standard materials price is $22.40 per pound.The actual price of the tomatoes was $22.20 per pound.Prepare the journal entries to record 1 the purchase of the tomatoes and 2 the tomatoes entering production.Titus records standards and variances in the general ledger.

Accepted Answer

The answer of Titus Company purchased and used 650 pounds...

Question 14

The fixed factory overhead controllable variance is

Accepted Answer

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

Question 15

Define nonfinancial performance measures.What are they used for and what are some common examples?

Accepted Answer

Nonfinancial performance measures evalua

The formula to compute the direct material quantity variance is to calculate the difference between

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

Standard costs serve as a device for measuring efficiency.

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: The direct labor time variance is

The fixed factory overhead volume variance is

Match the following descriptions with the term a-e it describes: -theoretical standard

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

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

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

Match the following formulas or descriptions with the term a-e it defines. -Actual rate per hour - Standard rate per hour × Actual hours

Compute the direct labor rate and time variances for Taylor Company.

Accounting systems that use standards for product costs are called standard cost systems.

The fixed factory overhead controllable variance is

Define nonfinancial performance measures.What are they used for and what are some common examples?

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

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Exam 7: Performance Evaluation Using Variances From Standard Costs

The formula to compute the direct material quantity variance is to calculate the difference between

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

Standard costs serve as a device for measuring efficiency.

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: The direct labor time variance is

The fixed factory overhead volume variance is

Match the following descriptions with the term a-e it describes: -theoretical standard

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

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

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

Match the following formulas or descriptions with the term a-e it defines. -Actual rate per hour - Standard rate per hour × Actual hours

Compute the direct labor rate and time variances for Taylor Company.

Accounting systems that use standards for product costs are called standard cost systems.

The fixed factory overhead controllable variance is

Define nonfinancial performance measures.What are they used for and what are some common examples?

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters