Filters
Question type
Study Flashcards

*Actual hours are equal to standard hours for units produced. The fixed factory overhead volume variance is A) $1,701.00 favorable B) $4,866.75 unfavorable C) $1,701.00 unfavorable D) $4,866.75 favorable *Actual hours are equal to standard hours for units produced. The fixed factory overhead volume variance is


A) $1,701.00 favorable
B) $4,866.75 unfavorable
C) $1,701.00 unfavorable
D) $4,866.75 favorable

E) A) and C)
F) B) and D)

Correct Answer

verifed

verified

The following data relate to direct labor costs for the current period: The following data relate to direct labor costs for the current period: What is the direct labor rate variance? A) $18,000 unfavorable B) $4,500 favorable C) $17,100 unfavorable D) $3,600 favorable What is the direct labor rate variance?


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

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

The formula to compute the direct labor rate variance is to calculate the difference between


A) Actual costs + (Actual hours × Standard rate)
B) Actual costs - Standard cost
C) (Actual hours × Standard rate)  - Standard costs
D) Actual costs - (Actual hours × Standard rate)

E) None of the above
F) A) and B)

Correct Answer

verifed

verified

The following data is given for the Harry Company: The following data is given for the Harry Company: Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor rate variance is: A) $5,490 unfavorable B) $5,490 favorable C) $33,000 favorable D) $33,000 unfavorable Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor rate variance is:


A) $5,490 unfavorable
B) $5,490 favorable
C) $33,000 favorable
D) $33,000 unfavorable

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

A) True
B) False

Correct Answer

verifed

verified

Currently attainable standards do not allow for reasonable production difficulties.

A) True
B) False

Correct Answer

verifed

verified

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are 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 A) $2,750 unfavorable variance B) $2,750 favorable variance C) $1,500 favorable variance D) $1,500 unfavorable variance The amount of direct materials price variance is


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

E) A) and B)
F) C) and D)

Correct Answer

verifed

verified

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?


A) $1,020 favorable
B) $1,020 unfavorable
C) $900 favorable
D) $900 unfavorable

E) A) and D)
F) C) and D)

Correct Answer

verifed

verified

A company should only use nonfinancial performance measures when financial measures cannot be calculated.

A) True
B) False

Correct Answer

verifed

verified

Standards are more widely used for nonmanufacturing activities than for manufacturing activities.

A) True
B) False

Correct Answer

verifed

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 $1,000 unfavorable.

A) True
B) False

Correct Answer

verifed

verified

Nonfinancial measures are often linked to the inputs or outputs of an activity or process.

A) True
B) False

Correct Answer

verifed

verified

Which of the following would not lend itself to applying direct labor variances?


A) help desk assistant
B) research and development scientist
C) customer service personnel
D) telemarketer

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

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


A) zero-base reports
B) budget performance reports
C) master budgets
D) budgets

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

The following data relate to direct labor costs for March: Rate: standard, $12.00; actual, $12.25 Hours: standard, 18,500; actual, 17,955 Units of production: 9,450 Calculate the total direct labor variance.


A) $2,051.25 favorable
B) $2,051.25 unfavorable
C) $2,362.50 unfavorable
D) $2,362.50 favorable

E) A) and C)
F) All of the above

Correct Answer

verifed

verified

The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour. The labor time variance is


A) $9,880 favorable
B) $9,880 unfavorable
C) $7,800 unfavorable
D) $7,800 favorable

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

The following data relate to direct labor costs for August: Actual costs: 5,500 hours at $24.00 per hour. Standard costs: 5,000 hours at $23.70 per hour. What is the direct labor rate variance?


A) $1,650 favorable
B) $1,650 unfavorable
C) $1,500 favorable
D) $1,500 unfavorable

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

The total manufacturing cost variance is


A) the difference between actual costs and standard costs for units produced
B) the flexible budget variance plus the time variance
C) the difference between planned costs and standard costs for units produced
D) none of the answers are correct

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

A favorable cost variance occurs when


A) actual costs are more than standard costs
B) standard costs are more than actual costs
C) standard costs are less than actual costs
D) actual costs are the same as standard costs

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

The following data relate to direct labor costs for the current period: The following data relate to direct labor costs for the current period: What is the direct labor time variance? A) $36,000 unfavorable B) $35,000 unfavorable C) $23,000 favorable D) $22,000 favorable What is the direct labor time variance?


A) $36,000 unfavorable
B) $35,000 unfavorable
C) $23,000 favorable
D) $22,000 favorable

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Showing 81 - 100 of 166

Related Exams

Exam 1

Introduction to Managerial Accounting

191 Questions

Exam 2

Job Order Costing

178 Questions

Exam 3

Process Cost Systems

182 Questions

Exam 4

Activity Based Costing

110 Questions

Exam 5

Cost Volume Profit Analysis

210 Questions

Exam 6

Variable Costing for Management Analysis

153 Questions

Exam 7

Budgeting

182 Questions

Exam 9

Evaluating Decentralized Operations

204 Questions

Exam 10

Differential Analysis and Product Pricing

165 Questions

Exam 11

Capital Investment Analysis

177 Questions

Exam 12

Lean Manufacturing and Activity Analysis

123 Questions

Exam 13

Statement of Cash Flows

171 Questions

Exam 14

Financial Statement Analysis

183 Questions

Show Answer