Question 1

Which of the following is true concerning the materials price variance?

Accepted Answer

A)  It is the difference between the actual and standard unit price of an input multiplied by the number of inputs used. 
B)  It is the difference between the actual and standard unit price of an output multiplied by the number of inputs used. 
C)  It is the difference between the actual and standard unit price of an input multiplied by the number of inputs purchased. 
D)  It is the difference between the actual and standard unit price of an output multiplied by the number of inputs purchased. 
E)  None of these. 
A)  It is the difference between the actual and standard unit price of an input multiplied by the number of inputs used. 
B)  It is the difference between the actual and standard unit price of an output multiplied by the number of inputs used. 
C)  It is the difference between the actual and standard unit price of an input multiplied by the number of inputs purchased. 
D)  It is the difference between the actual and standard unit price of an output multiplied by the number of inputs purchased. 
E)  None of these.

Question 2

Practical capacity is always used to calculate fixed overhead rates

Accepted Answer

A) True 
 B)False

Question 3

Blue Company produces picture frames.During the year, 250,000 picture frames were produced.Materials and labor standards for producing the picture frames are as follows: ​
​
  Blue purchased and used 600,000 pieces of wood at $2.5 each, and its actual labor hours were 400,000 hours at a wage rate of $15.00.
​
What is Blue's total labor variance?

Accepted Answer

A)  $1,250,000 F 
B)  $2,300,000 U 
C)  $1,430,500 F 
D)  $1,500,000 U 
A)  $1,250,000 F 
B)  $2,300,000 U 
C)  $1,430,500 F 
D)  $1,500,000 U

Question 4

Matching
Match each item with the correct statement below.
-Standards of perfection that require absolute efficiency.

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 5

Matching
Match each item with the correct statement below.
-These reflect the amount of input that should be used per unit of output.

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 6

The __________________ provides the products data needed to calculate the standard unit cost.

Accepted Answer

The answer of The __________________ provides the products data needed...

Question 7

Opal Production Company uses a standard costing system.The following information pertains to the current year:  
  The factory overhead rate is based on an activity level of 12,000 hours.Standard cost data for 6,000 units is as follows:
 
  What is the variable overhead efficiency variance for Opal Production Company?

Accepted Answer

A)  $540 F 
B)  $980 U 
C)  $750 U 
D)  $820 F 
A)  $540 F 
B)  $980 U 
C)  $750 U 
D)  $820 F

Question 8

The amount of input that should be used per unit of output is known as the _______________.

Accepted Answer

quantity d

Question 9

Standard cost systems can enhance operational control through the use of

Accepted Answer

A)  efficiency variances which indicate the need for corrective action. 
B)  price variances which indicate the need for better spending control. 
C)  standard costs which indicate the desired cost of a unit of input. 
D)  actual costs which indicate the price received for units sold. 
E)  All of these. 
A)  efficiency variances which indicate the need for corrective action. 
B)  price variances which indicate the need for better spending control. 
C)  standard costs which indicate the desired cost of a unit of input. 
D)  actual costs which indicate the price received for units sold. 
E)  All of these.

Question 10

Rhodium Company is planning to produce 5,000,000 speakers for the coming year.Actual production was 3,000,000 speakers.Each speaker requires 0.50 direct labor hours per unit.Predetermined overhead rates are calculated using expected production, measured in direct labor hours.The budgeted variable overhead for the coming year is $500,000.The actual variable overhead incurred was $650,000.The applied variable overhead for the year is:

Accepted Answer

A)  $450,000. 
B)  $725,000. 
C)  $300,000. 
D)  $740,000. 
E)  None of these 
A)  $450,000. 
B)  $725,000. 
C)  $300,000. 
D)  $740,000. 
E)  None of these

Question 11

Hexene, Inc.produces a specialized machine part used in forklifts.For last year's operations, the following data were gathered:  
  Hexene employs a standard costing system.During the year, a variable overhead rate of $6.00 was used.The labor standard requires 0.75 hours per unit produced.The variable overhead spending and efficiency variances are:

Accepted Answer

A)  $45,000 U and $6,500 U. 
B)  $52,000 F and $12,000 U. 
C)  $9,600 U and $45,000 F. 
D)  $16,000 F and $8,400 F. 
E)  None of these 
A)  $45,000 U and $6,500 U. 
B)  $52,000 F and $12,000 U. 
C)  $9,600 U and $45,000 F. 
D)  $16,000 F and $8,400 F. 
E)  None of these

Question 12

Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:  
 
- 
Calculate the variable overhead efficiency variance.

Accepted Answer

A)  $36,850 U 
B)  $80,000 U 
C)  $36,850 F 
D)  $4,000 U 
E)  None of these. 
A)  $36,850 U 
B)  $80,000 U 
C)  $36,850 F 
D)  $4,000 U 
E)  None of these.

Question 13

Which of the following is not true concerning direct materials variances?

Accepted Answer

A)  The sum of the price and usage variances will add up to the total materials variance only if the materials purchased is equal to the materials used. 
B)  The materials price variance uses the actual quantity of materials purchased rather than the actual quantity of materials used. 
C)  The materials price variance always uses the actual quantity of materials used rather than the actual quantity of materials purchased. 
D)  The materials usage variance uses the actual quantity of materials used. 
E)  Separate materials variances can be computed for each type of material used. 
A)  The sum of the price and usage variances will add up to the total materials variance only if the materials purchased is equal to the materials used. 
B)  The materials price variance uses the actual quantity of materials purchased rather than the actual quantity of materials used. 
C)  The materials price variance always uses the actual quantity of materials used rather than the actual quantity of materials purchased. 
D)  The materials usage variance uses the actual quantity of materials used. 
E)  Separate materials variances can be computed for each type of material used.

Question 14

Craydye makes all sorts of moldings.Its standard quantity of material allowed is 1 foot of wood per 1 foot of molding at a standard price of $3.00 per foot.During August, it purchased 200,000 feet of wood at a cost of $2.00 per foot, which produced only 199,000 feet of molding.Calculate the materials price variance and the materials usage variance.

Accepted Answer

A)  $400,000 F and $1,000 U 
B)  $600,900 U and $2,500 F 
C)  $700,000 U and $4,000 F 
D)  $200,000 F and $3,000 U 
A)  $400,000 F and $1,000 U 
B)  $600,900 U and $2,500 F 
C)  $700,000 U and $4,000 F 
D)  $200,000 F and $3,000 U

Question 15

If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance

Accepted Answer

A)  the direct materials usage variance will be unfavorable. 
B)  the direct labor rate variance will be favorable. 
C)  the variable manufacturing overhead efficiency variance will be unfavorable. 
D)  the variable manufacturing overhead spending variance will be unfavorable. 
A)  the direct materials usage variance will be unfavorable. 
B)  the direct labor rate variance will be favorable. 
C)  the variable manufacturing overhead efficiency variance will be unfavorable. 
D)  the variable manufacturing overhead spending variance will be unfavorable.

Question 16

During the year, Octagon produced 8,000 units, used 24,000 direct labor hours, and incurred variable overhead of $120,000.Budgeted variable overhead for the year was $90,000.The hours allowed per unit are 2.The standard variable overhead rate is $3.00 per direct labor hour.The variable overhead spending variance is:

Accepted Answer

A)  $54,000 F. 
B)  $61,000 U. 
C)  $48,000 U. 
D)  $27,000 U. 
E)  None of these 
A)  $54,000 F. 
B)  $61,000 U. 
C)  $48,000 U. 
D)  $27,000 U. 
E)  None of these

Question 17

A performance report for variable overhead reveals

Accepted Answer

A)  the aggregate variable overhead spending and efficiency variances. 
B)  the volume and spending variances. 
C)  the spending and efficiency variances for each variable overhead item. 
D)  both the aggregate variable overhead spending and efficiency variances and the spending and efficiency variances for each variable overhead item. 
E)  both the volume and spending variances and the spending and efficiency variances for each variable overhead item. 
A)  the aggregate variable overhead spending and efficiency variances. 
B)  the volume and spending variances. 
C)  the spending and efficiency variances for each variable overhead item. 
D)  both the aggregate variable overhead spending and efficiency variances and the spending and efficiency variances for each variable overhead item. 
E)  both the volume and spending variances and the spending and efficiency variances for each variable overhead item.

Question 18

Which of the following is true regarding direct labor variances?

Accepted Answer

A)  The labor efficiency variance measures the difference between what was paid to direct laborers and what should have been paid. 
B)  The labor rate and labor efficiency variances will always add up to the total labor variance. 
C)  The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that should have been used. 
D)  The labor rate variance measures the difference between the labor hours that were originally budgeted and the labor hours that should have been used. 
E)  The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that were originally budgeted. 
A)  The labor efficiency variance measures the difference between what was paid to direct laborers and what should have been paid. 
B)  The labor rate and labor efficiency variances will always add up to the total labor variance. 
C)  The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that should have been used. 
D)  The labor rate variance measures the difference between the labor hours that were originally budgeted and the labor hours that should have been used. 
E)  The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that were originally budgeted.

Question 19

Which of the following is used to calculate the fixed overhead spending variance?

Accepted Answer

A)  (Budgeted Fixed Overhead - Standard Fixed Overhead Rate) × Actual Hours 
B)  (Actual Fixed Overhead - Standard Fixed Overhead) × Actual Hours 
C)  Budgeted Fixed Overhead - Variable Overhead 
D)  Actual Fixed Overhead - Budgeted Fixed Overhead 
E)  None of these 
A)  (Budgeted Fixed Overhead - Standard Fixed Overhead Rate) × Actual Hours 
B)  (Actual Fixed Overhead - Standard Fixed Overhead) × Actual Hours 
C)  Budgeted Fixed Overhead - Variable Overhead 
D)  Actual Fixed Overhead - Budgeted Fixed Overhead 
E)  None of these

Question 20

If actual fixed overhead was $98,400 and there was a $2,880 favorable spending variance and a $600 unfavorable volume variance, budgeted fixed overhead must have been

Accepted Answer

A)  $101,280. 
B)  $100,680. 
C)  $99,000. 
D)  $97,800. 
E)  $95,520. 
A)  $101,280. 
B)  $100,680. 
C)  $99,000. 
D)  $97,800. 
E)  $95,520.

Which of the following is true concerning the materials price variance?

Practical capacity is always used to calculate fixed overhead rates

Matching Match each item with the correct statement below. -Standards of perfection that require absolute efficiency.

Matching Match each item with the correct statement below. -These reflect the amount of input that should be used per unit of output.

The __________________ provides the products data needed to calculate the standard unit cost.

The amount of input that should be used per unit of output is known as the _______________.

Standard cost systems can enhance operational control through the use of

Which of the following is not true concerning direct materials variances?

If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance

A performance report for variable overhead reveals

Which of the following is true regarding direct labor variances?

Which of the following is used to calculate the fixed overhead spending variance?

If actual fixed overhead was $98,400 and there was a $2,880 favorable spending variance and a $600 unfavorable volume variance, budgeted fixed overhead must have been

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

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Exam 10: Standard Costing and Variance Analysis

Which of the following is true concerning the materials price variance?

Practical capacity is always used to calculate fixed overhead rates

Matching Match each item with the correct statement below. -Standards of perfection that require absolute efficiency.

Matching Match each item with the correct statement below. -These reflect the amount of input that should be used per unit of output.

The __________________ provides the products data needed to calculate the standard unit cost.

The amount of input that should be used per unit of output is known as the _______________.

Standard cost systems can enhance operational control through the use of

Which of the following is not true concerning direct materials variances?

If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance

A performance report for variable overhead reveals

Which of the following is true regarding direct labor variances?

Which of the following is used to calculate the fixed overhead spending variance?

If actual fixed overhead was $98,400 and there was a $2,880 favorable spending variance and a $600 unfavorable volume variance, budgeted fixed overhead must have been

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