Question 1

Standard cost variances are usually not reported in reports to stockholders.

Accepted Answer

A) True 
 B)False

Question 2

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are ​
 The amount of direct materials price variance is

Accepted Answer

A)   $2,750 unfavorable variance
B)   $2,750 favorable variance
C)   $1,500 favorable variance
D)   $1,500 unfavorable varianceE) B) and C)
F) A) and D)

Question 3

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 quantity variance was $1,000 unfavorable.

Accepted Answer

A) True 
 B)False

Question 4

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 unfavorableE) A) and B)
F) A) and C)

Question 5

Morocco Desk Co.purchases 6,000 feet of lumber at $6.00 per foot.The standard price for direct materials is $5.00.The entry to record the purchase and unfavorable direct materials price variance is ​

Accepted Answer

A)   Direct Materials 30,000Direct Materials Price Variance 6,000Accounts Payable 36,000
B)   Direct Materials 30,000Accounts Payable 30,000
C)   Direct Materials 36,000Direct Materials Price Variance 6,000Accounts Payable 30,000
D)   Work in Process 36,000Direct Materials Price Variance 6,000Accounts Payable 30,000E) B) and D)
F) A) and D)

Question 6

What is the amount of the fixed factory overhead volume variance?

Accepted Answer

A)   $12,000 unfavorable
B)   $12,000 favorable
C)   $14,000 unfavorable
D)   $26,000 unfavorableE) B) and C)
F) A) and B)

Question 7

The direct labor rate variance is

Accepted Answer

A)   $5,490 unfavorable
B)   $5,490 favorable
C)   $33,000 favorable
D)   $33,000 unfavorableE) None of the above
F) A) and B)

Question 8

The fact that workers are unable to meet a properly determined direct labor standard is sufficient cause to change the standard.

Accepted Answer

A) True 
 B)False

Question 9

If the actual direct labor hours spent producing a commodity differs from the standard hours,the variance is a

Accepted Answer

A)   time variance
B)   price variance
C)   quantity variance
D)   rate varianceE) B) and C)
F) A) and C)

Question 10

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 11

Calculate the direct labor time variance.

Accepted Answer

A)   $2,362.50 favorable
B)   $2,362.50 unfavorable
C)   $6,540.00 favorable
D)   $6,540.00 unfavorableE) All of the above
F) B) and D)

Question 12

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

Accepted Answer

A) True 
 B)False

Question 13

The following data is given for the Bahia Company: ​​
 Overhead is applied on standard labor hours.
The variable factory overhead controllable variance is

Accepted Answer

A)   $65 unfavorable
B)   $65 favorable
C)   $540 unfavorable
D)   $540 favorableE) All of the above
F) A) and B)

Question 14

The following data relate to direct labor costs for the current period: ​
 What is the direct labor rate variance?

Accepted Answer

A)   $18,000 unfavorable
B)   $4,500 favorable
C)   $17,100 unfavorable
D)   $3,600 favorableE) A) and C)
F) None of the above

Question 15

Financial reporting systems that are guided by the principle of exceptions concept focus attention on variances from standard costs.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)   $2,960 unfavorable
B)   $4,500 favorable
C)   $2,960 favorable
D)   $4,500 unfavorableE) C) and D)
F) A) and B)

Question 17

The following data relate to direct labor costs for the current period: What is the direct labor rate variance?

Accepted Answer

A)   $2,250 unfavorable
B)   $2,125 unfavorable
C)   $2,250 favorable
D)   $2,125 favorableE) A) and D)
F) A) and B)

Question 18

Standards are performance goals used to evaluate and control operations.

Accepted Answer

A) True 
 B)False

Question 19

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 favorable.

Accepted Answer

A) True 
 B)False

Question 20

What is the direct labor rate variance?

Accepted Answer

A)   $14,000 favorable
B)   $14,000 unfavorable
C)   $15,400 favorable
D)   $15,400 unfavorableE) B) and C)
F) None of the above

Exam 22: Evaluating Variances From Standard Costs

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 quantity variance was $1,000 unfavorable.

Correct AnswerverifiedShow Answer

Morocco Desk Co.purchases 6,000 feet of lumber at $6.00 per foot.The standard price for direct materials is $5.00.The entry to record the purchase and unfavorable direct materials price variance is ​

Correct AnswerverifiedShow Answer

Financial reporting systems that are guided by the principle of exceptions concept focus attention on variances from standard costs.

Correct AnswerverifiedShow Answer

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 favorable.

Correct AnswerverifiedShow Answer

The following data relate to direct labor costs for the current period: What is the direct labor rate variance?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The direct labor rate variance is

Correct AnswerverifiedShow Answer

If the actual direct labor hours spent producing a commodity differs from the standard hours,the variance is a

Correct AnswerverifiedShow Answer

The following data is given for the Bahia Company: ​​ Overhead is applied on standard labor hours. The variable factory overhead controllable variance is

Correct AnswerverifiedShow Answer

Calculate the direct labor time variance.

Correct AnswerverifiedShow Answer

What is the amount of the fixed factory overhead volume variance?

Correct AnswerverifiedShow Answer

Standards are performance goals used to evaluate and control operations.

Correct AnswerverifiedShow Answer

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are ​ The amount of direct materials price variance is

Correct AnswerverifiedShow Answer

What is the direct labor rate variance?

Correct AnswerverifiedShow Answer

The fact that workers are unable to meet a properly determined direct labor standard is sufficient cause to change the standard.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The following data relate to direct labor costs for the current period: ​ What is the direct labor rate variance?

Correct AnswerverifiedShow Answer

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

Correct AnswerverifiedShow Answer

Standard cost variances are usually not reported in reports to stockholders.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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Morocco Desk Co.purchases 6,000 feet of lumber at $6.00 per foot.The standard price for direct materials is $5.00.The entry to record the purchase and unfavorable direct materials price variance is

Correct Answer
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The following data is given for the Bahia Company: Overhead is applied on standard labor hours. The variable factory overhead controllable variance is

Correct Answer
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The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are The amount of direct materials price variance is

Correct Answer
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Correct Answer
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The following data relate to direct labor costs for the current period: What is the direct labor rate variance?

Correct Answer
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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?

Correct Answer
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