Question 1

The benefits of operational control under a standard cost system can extend to all manufacturing environments.

Accepted Answer

A) True 
 B)False

Question 2

For better control, the materials price variance is computed using actual quantity of materials purchased.

Accepted Answer

A) True 
 B)False

Question 3

Match the variance with its correct calculation.
-Labor Efficiency Variance

Accepted Answer

A) Actual Quantity × Actual Price 
B) (Actual Hours × Actual Rate) − (Standard Hours × Standard Rate) 
C) (Actual Quantity × Actual Price) − (Standard Quantity × Standard Price) 
D) (Actual Hours − Standard Hours) × Standard Rate 
E) (Actual Price − Standard Price) × Actual Quantity
F)Standard Quantity × Standard Price
G)(Actual Rate − Standard Rate) × Actual Hours
H)(Actual Quantity − Standard Quantity) × Standard Price 
A) Actual Quantity × Actual Price 
B) (Actual Hours × Actual Rate) − (Standard Hours × Standard Rate) 
C) (Actual Quantity × Actual Price) − (Standard Quantity × Standard Price) 
D) (Actual Hours − Standard Hours) × Standard Rate 
E) (Actual Price − Standard Price) × Actual Quantity
F)Standard Quantity × Standard Price
G)(Actual Rate − Standard Rate) × Actual Hours
H)(Actual Quantity − Standard Quantity) × Standard Price

Question 4

One reason for adopting a standard cost system is to make product costing easier.

Accepted Answer

A) True 
 B)False

Question 5

Zinkyl Corporation produces high-quality leather boots.The company has a standard cost system and has set the following standards for materials and labor:
  During the year, Zinkyl produced 100 boots.Actual leather purchased was 1,500 strips, at $12 per strip.There were no beginning or ending inventories of leather.Actual direct labor was 1,000 hours at $10 per hour.

Compute the materials price variance.

Accepted Answer

A)  $6,000 F 
B)  $7,300 U 
C)  $12,000 F 
D)  $16,800 U 
A)  $6,000 F 
B)  $7,300 U 
C)  $12,000 F 
D)  $16,800 U

Question 6

The amount that should be paid for the quantity of the input to be used is known as the ______________.

Accepted Answer

pricing de

Question 7

During August, 10,000 units were produced.The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound.If there was an unfavorable usage variance of $18,750 for August, the actual quantity of materials used must be

Accepted Answer

A)  106,250 pounds. 
B)  93,750 pounds. 
C)  31,875 pounds. 
D)  23,438 pounds. 
A)  106,250 pounds. 
B)  93,750 pounds. 
C)  31,875 pounds. 
D)  23,438 pounds.

Question 8

Matching
Match each item with the correct statement below.
-This reflects the planned improvement that is set, which will help reduce nonvalue-added costs.

Accepted Answer

A) Quantity Standards 
B) Ideal Standards 
C) Price Standards 
D) Standard Cost Sheet 
E) Upper Control Limit
F)Currently Attainable Standards
G)Kaizen Standards 
A) Quantity Standards 
B) Ideal Standards 
C) Price Standards 
D) Standard Cost Sheet 
E) Upper Control Limit
F)Currently Attainable Standards
G)Kaizen Standards

Question 9

Which of the following formulas calculates the standard hours allowed for the actual output?

Accepted Answer

A)  Unit Labor Standard × Actual Output 
B)  Total Labor Standard × Standard Output 
C)  Unit Labor Standard × Normal Input 
D)  Total Labor Standard × Real Input 
E)  None of these is correct. 
A)  Unit Labor Standard × Actual Output 
B)  Total Labor Standard × Standard Output 
C)  Unit Labor Standard × Normal Input 
D)  Total Labor Standard × Real Input 
E)  None of these is correct.

Question 10

An acceptable range is established in order to determine if whether variances are significant.The acceptable range is the standard, plus or minus an allowable deviation.

Accepted Answer

A) True 
 B)False

Question 11

Benzyne Corporation produced 100 units of Product AA.The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: 
  What is the labor efficiency variance for Benzyne Corporation?

Accepted Answer

A)  $810 U 
B)  $540 F 
C)  $602 U 
D)  $500 F 
A)  $810 U 
B)  $540 F 
C)  $602 U 
D)  $500 F

Question 12

Match the variance with its correct calculation.
-Total Materials Variance

Accepted Answer

A) Actual Quantity × Actual Price 
B) (Actual Hours × Actual Rate) − (Standard Hours × Standard Rate) 
C) (Actual Quantity × Actual Price) − (Standard Quantity × Standard Price) 
D) (Actual Hours − Standard Hours) × Standard Rate 
E) (Actual Price − Standard Price) × Actual Quantity
F)Standard Quantity × Standard Price
G)(Actual Rate − Standard Rate) × Actual Hours
H)(Actual Quantity − Standard Quantity) × Standard Price 
A) Actual Quantity × Actual Price 
B) (Actual Hours × Actual Rate) − (Standard Hours × Standard Rate) 
C) (Actual Quantity × Actual Price) − (Standard Quantity × Standard Price) 
D) (Actual Hours − Standard Hours) × Standard Rate 
E) (Actual Price − Standard Price) × Actual Quantity
F)Standard Quantity × Standard Price
G)(Actual Rate − Standard Rate) × Actual Hours
H)(Actual Quantity − Standard Quantity) × Standard Price

Question 13

The ___________________ measures the difference between the labor hours that were actually used and the labor hours that should have been used.

Accepted Answer

labor effi

Question 14

Which of the following is not true regarding the use of labor variance information?

Accepted Answer

A)  The actual wage rate is almost always different from the standard rate. 
B)  Unexpected overtime can cause variation in the labor rate. 
C)  An average wage rate is chosen as the labor rate standard. 
D)  The production manager controls the use of labor. 
E)  The actual wage rate is used in determining the labor rate variance. 
A)  The actual wage rate is almost always different from the standard rate. 
B)  Unexpected overtime can cause variation in the labor rate. 
C)  An average wage rate is chosen as the labor rate standard. 
D)  The production manager controls the use of labor. 
E)  The actual wage rate is used in determining the labor rate variance.

Question 15

Colortrigon Company produces picture frames.During the year, 200,000 picture frames were produced.Materials and labor standards for producing the picture frames are as follows: ​
​​
  Colortrigon purchased and used 300,000 pieces of wood at $2.00 each, and its actual labor hours were 350,000 hours at a wage rate of $11.
​
What is the materials usage variance?

Accepted Answer

A)  $112,500 F 
B)  $112,500 U 
C)  $200,000 U 
D)  $200,000 F 
A)  $112,500 F 
B)  $112,500 U 
C)  $200,000 U 
D)  $200,000 F

Question 16

Which of the following is used to compute the standard quantity of material allowed for the actual output?

Accepted Answer

A)  Fixed Quantity Standard × Standard Output 
B)  Fixed Quantity Standard × Actual Input 
C)  Unit Quantity Standard × Standard Input 
D)  Unit Quantity Standard × Actual Output 
E)  None of these 
A)  Fixed Quantity Standard × Standard Output 
B)  Fixed Quantity Standard × Actual Input 
C)  Unit Quantity Standard × Standard Input 
D)  Unit Quantity Standard × Actual Output 
E)  None of these

Question 17

Because fixed overhead is made up of many items

Accepted Answer

A)  the fixed overhead spending variance is not meaningful. 
B)  it is not possible to calculate a fixed overhead volume variance. 
C)  the fixed overhead volume variance will always be unfavorable. 
D)  a line by line comparison of budgeted costs with actual costs provides more information. 
E)  All of these. 
A)  the fixed overhead spending variance is not meaningful. 
B)  it is not possible to calculate a fixed overhead volume variance. 
C)  the fixed overhead volume variance will always be unfavorable. 
D)  a line by line comparison of budgeted costs with actual costs provides more information. 
E)  All of these.

Question 18

The fixed overhead volume variance is a measure of

Accepted Answer

A)  the cost of overspending on fixed overhead items. 
B)  the effect of the actual output differing from the output used to calculate the predetermined fixed overhead rate. 
C)  the cost of unused activity capacity acquired. 
D)  both the cost of overspending on fixed overhead items and the effect of the actual output differing from the output used to calculate predetermined fixed overhead rate. 
E)  both the effect of the actual output differing from the output used to calculate the predetermined fixed overhead rate and the cost of unused activity capacity. 
A)  the cost of overspending on fixed overhead items. 
B)  the effect of the actual output differing from the output used to calculate the predetermined fixed overhead rate. 
C)  the cost of unused activity capacity acquired. 
D)  both the cost of overspending on fixed overhead items and the effect of the actual output differing from the output used to calculate predetermined fixed overhead rate. 
E)  both the effect of the actual output differing from the output used to calculate the predetermined fixed overhead rate and the cost of unused activity capacity.

Question 19

Match the variance with its correct calculation.
-Labor Rate Variance

Accepted Answer

A) Actual Quantity × Actual Price 
B) (Actual Hours × Actual Rate) − (Standard Hours × Standard Rate) 
C) (Actual Quantity × Actual Price) − (Standard Quantity × Standard Price) 
D) (Actual Hours − Standard Hours) × Standard Rate 
E) (Actual Price − Standard Price) × Actual Quantity
F)Standard Quantity × Standard Price
G)(Actual Rate − Standard Rate) × Actual Hours
H)(Actual Quantity − Standard Quantity) × Standard Price 
A) Actual Quantity × Actual Price 
B) (Actual Hours × Actual Rate) − (Standard Hours × Standard Rate) 
C) (Actual Quantity × Actual Price) − (Standard Quantity × Standard Price) 
D) (Actual Hours − Standard Hours) × Standard Rate 
E) (Actual Price − Standard Price) × Actual Quantity
F)Standard Quantity × Standard Price
G)(Actual Rate − Standard Rate) × Actual Hours
H)(Actual Quantity − Standard Quantity) × Standard Price

Question 20

Marigold Company has developed the following standards for one of its products. ​
​
  ​
The following activity occurred during the month of October:
​
​
  The company records materials price variances at the time of purchase.The direct materials price variance is:

Accepted Answer

A)  $41,000 F. 
B)  $53,000 U. 
C)  $30,000 U. 
D)  $12,000 F. 
A)  $41,000 F. 
B)  $53,000 U. 
C)  $30,000 U. 
D)  $12,000 F.

The benefits of operational control under a standard cost system can extend to all manufacturing environments.

For better control, the materials price variance is computed using actual quantity of materials purchased.

Match the variance with its correct calculation. -Labor Efficiency Variance

One reason for adopting a standard cost system is to make product costing easier.

The amount that should be paid for the quantity of the input to be used is known as the ______________.

During August, 10,000 units were produced.The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound.If there was an unfavorable usage variance of $18,750 for August, the actual quantity of materials used must be

Matching Match each item with the correct statement below. -This reflects the planned improvement that is set, which will help reduce nonvalue-added costs.

Which of the following formulas calculates the standard hours allowed for the actual output?

An acceptable range is established in order to determine if whether variances are significant.The acceptable range is the standard, plus or minus an allowable deviation.

Benzyne Corporation produced 100 units of Product AA.The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: What is the labor efficiency variance for Benzyne Corporation?

Match the variance with its correct calculation. -Total Materials Variance

The ___________________ measures the difference between the labor hours that were actually used and the labor hours that should have been used.

Which of the following is not true regarding the use of labor variance information?

Which of the following is used to compute the standard quantity of material allowed for the actual output?

Because fixed overhead is made up of many items

The fixed overhead volume variance is a measure of

Match the variance with its correct calculation. -Labor Rate Variance

Marigold Company has developed the following standards for one of its products. The following activity occurred during the month of October: The company records materials price variances at the time of purchase.The direct materials price variance is:

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 10: Standard Costing and Variance Analysis

The benefits of operational control under a standard cost system can extend to all manufacturing environments.

For better control, the materials price variance is computed using actual quantity of materials purchased.

Match the variance with its correct calculation. -Labor Efficiency Variance

One reason for adopting a standard cost system is to make product costing easier.

The amount that should be paid for the quantity of the input to be used is known as the ______________.

During August, 10,000 units were produced.The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound.If there was an unfavorable usage variance of $18,750 for August, the actual quantity of materials used must be

Matching Match each item with the correct statement below. -This reflects the planned improvement that is set, which will help reduce nonvalue-added costs.

Which of the following formulas calculates the standard hours allowed for the actual output?

An acceptable range is established in order to determine if whether variances are significant.The acceptable range is the standard, plus or minus an allowable deviation.

Benzyne Corporation produced 100 units of Product AA.The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: What is the labor efficiency variance for Benzyne Corporation?

Match the variance with its correct calculation. -Total Materials Variance

The ___________________ measures the difference between the labor hours that were actually used and the labor hours that should have been used.

Which of the following is not true regarding the use of labor variance information?

Which of the following is used to compute the standard quantity of material allowed for the actual output?

Because fixed overhead is made up of many items

The fixed overhead volume variance is a measure of

Match the variance with its correct calculation. -Labor Rate Variance

Marigold Company has developed the following standards for one of its products. ​ ​ ​ The following activity occurred during the month of October: ​ ​ The company records materials price variances at the time of purchase.The direct materials price variance is:

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Marigold Company has developed the following standards for one of its products. The following activity occurred during the month of October: The company records materials price variances at the time of purchase.The direct materials price variance is: