Question 1

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 2

The unfavorable volume variance may be due to all of the following factors except:

Accepted Answer

A)   failure to maintain an even flow of work
B)   machine breakdowns
C)   unexpected increases in the cost of utilities
D)   failure to obtain enough sales ordersE) A) and C)
F) A) and D)

Question 3

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

Accepted Answer

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

Question 4

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead)  based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows:  What is the amount of the factory overhead controllable variance?

Accepted Answer

A)   $10,000 favorable
B)   $2,500 unfavorable
C)   $10,000 unfavorable
D)   $2,500 favorableE) A) and C)
F) A) and B)

Question 5

Standards are set for only direct labor and direct materials.

Accepted Answer

A) True 
 B)False

Question 6

The following data is given for the Zoyza Company:  Overhead is applied on standard labor hours.
The factory overhead volume variance is:

Accepted Answer

A)   $73,250U
B)   $73,250F
C)   $59,400F
D)   $59,400UE) A) and D)
F) B) and C)

Question 7

The difference between the standard cost of a product and its actual cost is called a variance.

Accepted Answer

A) True 
 B)False

Question 8

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:  The amount of the factory overhead controllable variance is:

Accepted Answer

A)   $2,000 unfavorable
B)   $3,000 favorable
C)   $0
D)   $3,000 unfavorableE) A) and C)
F) A) and B)

Question 9

Periodic comparisons between planned objectives and actual performance are reported in:

Accepted Answer

A)   zero-base reports
B)   budget performance reports
C)   master budgets
D)   budgetsE) All of the above
F) A) and B)

Question 10

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

Accepted Answer

A)   $ 4,500 favorable
B)   $18,000 unfavorable
C)   $ 3,600 favorable
D)   $17,100 favorableE) A) and B)
F) A) and C)

Question 11

Calculate the Total Direct Materials cost variance using the above information:

Accepted Answer

A)   $9,262.50 Unfavorable
B)   $9,262.50 Favorable
C)   $3,780.00 Unfavorable
D)   $3,562.50 FavorableE) All of the above
F) A) and D)

Question 12

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed a:

Accepted Answer

A)   controllable variance
B)   price variance
C)   quantity variance
D)   rate varianceE) A) and D)
F) None of the above

Question 13

Calculate the total factory overhead cost variance using the above information:

Accepted Answer

A)   $4,866.75 Unfavorable
B)   $4,866.75 Favorable
C)   $8,981.75 Favorable
D)   $8,981.75 UnfavorableE) B) and C)
F) A) and B)

Question 14

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 $2,200 unfavorable.

Accepted Answer

A) True 
 B)False

Question 15

Standards are designed to evaluate price and quantity variances separately.

Accepted Answer

A) True 
 B)False

Question 16

The following data relate to direct materials costs for November:  What is the direct materials quantity variance?

Accepted Answer

A)   $3,600 favorable
B)   $1,240 favorable
C)   $3,600 favorable.
D)   $1,240 unfavorable.E) A) and B)
F) A) and C)

Question 17

The principle of exceptions allows managers to

Accepted Answer

A)   focus on correcting variances between standard costs and actual costs.
B)   focus on correcting variances between variable costs and actual costs.
C)   focus on correcting variances between competitor's costs and actual costs.
D)   focus on correcting variances between competitor's costs and standard costs.E) A) and B)
F) B) and D)

Question 18

Rosser Company produces a container that requires 4 yds. of material per unit. The standard price of one yard of material is $4.50. During the month, 9,500 chairs were manufactured, using 37,300 yards.
Required: Journalize the entry to record the standard direct materials used in production.

Accepted Answer

The answer of Rosser Company produces a container that requires...

Question 19

Which of the following is not a reason for a direct materials quantity variance?

Accepted Answer

A)   Malfunctioning equipment
B)   Purchasing of inferior raw materials
C)   Increased material cost per unit
D)   Spoilage of materialsE) B) and C)
F) A) and C)

Question 20

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

Exam 23: Performance Evaluation Using Variances From Standard Costs

Which of the following is not a reason for a direct materials quantity variance?

Correct Answer
verified

Standards are set for only direct labor and direct materials.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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 $2,200 unfavorable.

Correct Answer
verified

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: The amount of the factory overhead controllable variance is:

Correct Answer
verified

Calculate the Total Direct Materials cost variance using the above information:

Correct Answer
verified

Standards are designed to evaluate price and quantity variances separately.

Correct Answer
verified

The principle of exceptions allows managers to

Correct Answer
verified

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

Correct Answer
verified

The following data relate to direct materials costs for November: What is the direct materials quantity variance?

Correct Answer
verified

Rosser Company produces a container that requires 4 yds. of material per unit. The standard price of one yard of material is $4.50. During the month, 9,500 chairs were manufactured, using 37,300 yards. Required: Journalize the entry to record the standard direct materials used in production.

Correct Answer
verified

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed a:

Correct Answer
verified

The unfavorable volume variance may be due to all of the following factors except:

Correct Answer
verified

Calculate the total factory overhead cost variance using the above information:

Correct Answer
verified

The difference between the standard cost of a product and its actual cost is called a variance.

Correct Answer
verified

The following data is given for the Zoyza Company: Overhead is applied on standard labor hours. The factory overhead volume variance is:

Correct Answer
verified

Periodic comparisons between planned objectives and actual performance are reported in:

Correct Answer
verified

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

Correct Answer
verified

Exam 23: Performance Evaluation Using Variances From Standard Costs

Which of the following is not a reason for a direct materials quantity variance?

Correct AnswerverifiedShow Answer

Standards are set for only direct labor and direct materials.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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 $2,200 unfavorable.

Correct AnswerverifiedShow Answer

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: The amount of the factory overhead controllable variance is:

Correct AnswerverifiedShow Answer

Calculate the Total Direct Materials cost variance using the above information:

Correct AnswerverifiedShow Answer

Standards are designed to evaluate price and quantity variances separately.

Correct AnswerverifiedShow Answer

The principle of exceptions allows managers to

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 following data relate to direct materials costs for November: What is the direct materials quantity variance?

Correct AnswerverifiedShow Answer

Rosser Company produces a container that requires 4 yds. of material per unit. The standard price of one yard of material is $4.50. During the month, 9,500 chairs were manufactured, using 37,300 yards. Required: Journalize the entry to record the standard direct materials used in production.

Correct AnswerverifiedShow Answer

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed a:

Correct AnswerverifiedShow Answer

The unfavorable volume variance may be due to all of the following factors except:

Correct AnswerverifiedShow Answer

Calculate the total factory overhead cost variance using the above information:

Correct AnswerverifiedShow Answer

The difference between the standard cost of a product and its actual cost is called a variance.

Correct AnswerverifiedShow Answer

The following data is given for the Zoyza Company: Overhead is applied on standard labor hours. The factory overhead volume variance is:

Correct AnswerverifiedShow Answer

Periodic comparisons between planned objectives and actual performance are reported in:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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