Question 1

Fixed manufacturing overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted.If the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed manufacturing overhead applied must be

Accepted Answer

A)   $208,000.
B)   $206,000.
C)   $202,000.
D)   $194,000. A

Question 2

Fixed manufacturing overhead was budgeted at $105,000, and 25,000 direct labor hours were budgeted.If the fixed overhead volume variance was $4,000 unfavorable and the fixed overhead spending variance was $1,500 favorable, fixed manufacturing overhead applied must be

Accepted Answer

A)   $109,000.
B)   $106,500.
C)   -$106,500.
D)   $101,000. D

Question 3

_______________ demand maximum efficiency and can be achieved only if everything operates perfectly.

Accepted Answer

A)   Currently attainable standards
B)   Ideal standards
C)   Budget standards
D)   Personnel standards B

Question 4

Total fixed overhead budget variance is always equal to

Accepted Answer

A)   fixed overhead volume variance.
B)   fixed overhead volume variance plus fixed overhead spending variance.
C)   total variable overhead budget variance plus fixed overhead spending variance.
D)   total variable overhead budget variance.

Question 5

Figure 9-1 Bender 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:
 
-Refer to Figure 9-1.What is the material usage variance for Bender Corporation?

Accepted Answer

A)   $60 (U) 
B)   $60 (F) 
C)   $33 (F) 
D)   $33 (U)

Question 6

Figure 9-2 Bender 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:

-Refer to Figure 9-2.What is the journal entry to record labor variances?

Accepted Answer

A)   Work in Process 6,072 Payroll 6,072
B)   Payroll 6,072 Work in Process 6,072
C)   Work in Process 6,000 Labor Efficiency Variance 552Labor Rate Variance 480Payroll 6,072
D)   Work in Process 6,000 Labor Rate Variance 552Labor Efficiency Variance 480Payroll 6,072

Question 7

Frekko Company collected the following information:   
-Using the three variance method, what is the spending variance?

Accepted Answer

A)   $36,000 (U) 
B)   $30,000 (U) 
C)   $36,000 (F) 
D)   $30,000 (F)

Question 8

During January, 7,000 direct labor hours were worked at a standard cost of $20 per hour.If the direct labor rate variance for January was $17,500 favorable, the actual cost per direct labor hour must be

Accepted Answer

A)   $17.50.
B)   $20.00.
C)   $22.50.
D)   $25.00.

Question 9

Bread Company has developed the following standards for one of its products.  The company records materials price variances at the time of purchase.
-
The direct labor efficiency variance is

Accepted Answer

A)   $8,000 favorable.
B)   $8,000 unfavorable.
C)   $20,000 unfavorable.
D)   $20,000 favorable.

Question 10

As a general rule, an investigation of a variance should be undertaken only if the

Accepted Answer

A)   anticipated benefits are greater than zero.
B)   anticipated benefits are greater than the expected costs.
C)   variance is negative.
D)   variance is positive.

Question 11

Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July:  Roberts Company reports its material price variances at the time of purchase.
-
What is the material usage variance for Roberts Company?

Accepted Answer

A)   $900 (F) 
B)   $1,950 (F) 
C)   $2,850 (F) 
D)   $900 (U)

Question 12

A five-percent wage increase for all factory employees would affect which of the following variances?

Accepted Answer

A)   direct materials price variance
B)   direct labor rate variance
C)   direct labor efficiency variance
D)   variable manufacturing overhead efficiency variance

Question 13

Griffen Corporation uses a standard costing system.Information for the month of May is as follows:  The factory overhead rate is based on a normal volume of 12,000 direct labor hours.Standard cost data at 12,000 direct labor hours were as follows:

- What is the variable overhead efficiency variance for Griffen?

Accepted Answer

A)   $2,000 (U) 
B)   $8,000 (U) 
C)   $4,000 (U) 
D)   $20,000 (U)

Question 14

Griffen Corporation uses a standard costing system.Information for the month of May is as follows:  The factory overhead rate is based on a normal volume of 12,000 direct labor hours.Standard cost data at 12,000 direct labor hours were as follows:
 
-What is the fixed overhead spending variance for Griffen?

Accepted Answer

A)   $2,000 (U) 
B)   $8,000 (U) 
C)   $4,000 (U) 
D)   $20,000 (U)

Question 15

Figure 9-2 Bender 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:

- Refer to 9-2.What is the labor efficiency variance for Bender Corporation?

Accepted Answer

A)   $480 (U) 
B)   $552 (F) 
C)   $552 (U) 
D)   $480 (F)

Question 16

The standard cost sheet includes all of the following EXCEPT

Accepted Answer

A)   the standard quantity per unit.
B)   the standard material costs per unit.
C)   the standard cost per unit.
D)   the standard labor hours allowed for actual production.

Question 17

Claire Company uses a standard costing system.The following information pertains to direct labor costs for the month of February:  
-What is the total labor budget variance for Claire Company?

Accepted Answer

A)   $18,000 (F) 
B)   $12,000 (F) 
C)   $18,000 (U) 
D)   $12,000 (U)

Question 18

Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July:  Roberts Company reports its material price variances at the time of purchase.
-
What is the standard quantity of direct materials per unit for Roberts Company?

Accepted Answer

A)   3.50 lbs.
B)   3.25 lbs.
C)   3.10 lbs.
D)   3.00 lbs.

Question 19

If actual fixed manufacturing overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been

Accepted Answer

A)   $56,300.
B)   $50,300.
C)   $53,000.
D)   $52,700.

Question 20

Variances indicate

Accepted Answer

A)   the cause of the variance.
B)   who is responsible for the variance.
C)   that actual performance is not going according to plan.
D)   when the variance should be investigated.

Exam 9: Standard Costing: a Functional-Based Control Approach

Fixed manufacturing overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted.If the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed manufacturing overhead applied must be

Fixed manufacturing overhead was budgeted at $105,000, and 25,000 direct labor hours were budgeted.If the fixed overhead volume variance was $4,000 unfavorable and the fixed overhead spending variance was $1,500 favorable, fixed manufacturing overhead applied must be

_______________ demand maximum efficiency and can be achieved only if everything operates perfectly.

Total fixed overhead budget variance is always equal to

Figure 9-1 Bender 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: -Refer to Figure 9-1.What is the material usage variance for Bender Corporation?

Figure 9-2 Bender 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: -Refer to Figure 9-2.What is the journal entry to record labor variances?

Frekko Company collected the following information: -Using the three variance method, what is the spending variance?

During January, 7,000 direct labor hours were worked at a standard cost of $20 per hour.If the direct labor rate variance for January was $17,500 favorable, the actual cost per direct labor hour must be

Bread Company has developed the following standards for one of its products. The company records materials price variances at the time of purchase. - The direct labor efficiency variance is

As a general rule, an investigation of a variance should be undertaken only if the

Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July: Roberts Company reports its material price variances at the time of purchase. - What is the material usage variance for Roberts Company?

A five-percent wage increase for all factory employees would affect which of the following variances?

Figure 9-2 Bender 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: - Refer to 9-2.What is the labor efficiency variance for Bender Corporation?

The standard cost sheet includes all of the following EXCEPT

Claire Company uses a standard costing system.The following information pertains to direct labor costs for the month of February: -What is the total labor budget variance for Claire Company?

Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July: Roberts Company reports its material price variances at the time of purchase. - What is the standard quantity of direct materials per unit for Roberts Company?

If actual fixed manufacturing overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been

Variances indicate