Question 1

Ideal standards should be used for forecasting and planning.

Accepted Answer

A) True 
 B)False

Question 2

What is the variable overhead rate variance for the month?

Accepted Answer

A)  $1,220 U
B)  $5,885 F
C)  $1,220 F
D)  $5,885 UE) A) and D)
F) All of the above

Question 3

The standards for product C54L specify 4.5 direct labor-hours per unit at $12.40 per direct labor-hour. Last month 1,560 units of product C54L were produced using 7,000 direct labor-hours at a total direct labor wage cost of $86,100.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?

Accepted Answer

a. Labor rate variance = (AH × AR) - (AH...

Question 4

The standard quantity per unit for direct materials should not include an allowance for waste.

Accepted Answer

A) True 
 B)False  False

Question 5

The variable overhead efficiency variance for May is:

Accepted Answer

A)  $100 U
B)  $108 F
C)  $108 U
D)  $100 FE) A) and B)
F) A) and C)

Question 6

The labor efficiency variance for June is:

Accepted Answer

A)  $454 F
B)  $454 U
C)  $440 F
D)  $440 UE) B) and C)
F) A) and C)

Question 7

Which department should usually be held responsible for an unfavorable materials price variance?

Accepted Answer

A)  Production.
B)  Materials Handling.
C)  Engineering.
D)  Purchasing.E) A) and D)
F) All of the above

Question 8

Millonzi Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company has provided the following data for the most recent month:  What was the variable overhead rate variance for the month?

Accepted Answer

A)  $4,350 favorable
B)  $2,000 unfavorable
C)  $2,650 favorable
D)  $1,700 favorableE) B) and D)
F) None of the above

Question 9

The variable overhead efficiency variance for July is:

Accepted Answer

A)  $1,352 U
B)  $1,352 F
C)  $1,300 U
D)  $1,300 FE) B) and D)
F) A) and B)

Question 10

Generally speaking, it is the responsibility of the production department to see that material usage is kept in line with standards.

Accepted Answer

A) True 
 B)False  True

Question 11

The following labor standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  What is the labor efficiency variance for the month?

Accepted Answer

A)  $13,805 U
B)  $13,530 U
C)  $15,305 U
D)  $15,305 FE) All of the above
F) A) and C)

Question 12

The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F The actual number of hours worked during the past period was:

Accepted Answer

A)  23,500
B)  22,500
C)  20,500
D)  21,500E) C) and D)
F) None of the above

Question 13

The labor rate variance for October is:

Accepted Answer

A)  $164 F
B)  $164 U
C)  $152 U
D)  $152 FE) B) and D)
F) C) and D)

Question 14

The variable overhead rate variance for indirect labor is closest to:

Accepted Answer

A)  $7,407 F
B)  $4,347 F
C)  $4,347 U
D)  $3,060 FE) A) and D)
F) A) and C)

Question 15

The following materials standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  What is the materials price variance for the month?

Accepted Answer

A)  $15,405 F
B)  $5,775 U
C)  $5,925 U
D)  $1,600 UE) B) and C)
F) C) and D) D

Question 16

The materials price variance for May is:

Accepted Answer

A)  $11,880 U
B)  $11,880 F
C)  $12,120 F
D)  $12,120 UE) C) and D)
F) A) and B)

Question 17

The materials quantity variance for March is:

Accepted Answer

A)  $900 favorable
B)  $1,950 favorable
C)  $1,950 unfavorable
D)  $900 unfavorableE) A) and B)
F) A) and C)

Question 18

The materials price variance for March is:

Accepted Answer

A)  $860 unfavorable
B)  $860 favorable
C)  $281 unfavorable
D)  $281 favorableE) A) and B)
F) A) and C)

Question 19

The number of actual hours spent on tune-up work last week was:

Accepted Answer

A)  125 hours
B)  105 hours
C)  145 hours
D)  Cannot be computed without further informationE) A) and B)
F) All of the above

Question 20

The labor efficiency variance for September was:

Accepted Answer

A)  $33,600 favorable
B)  $1,600 favorable
C)  $22,400 favorable
D)  $3,200 favorableE) None of the above
F) All of the above

Exam 12: Standard Costs and Variances

Ideal standards should be used for forecasting and planning.

Correct Answer
verified

What is the variable overhead rate variance for the month?

Correct Answer
verified

Correct Answer
verified
a. Labor rate variance = (AH × AR) - (AH...
View Answer

The standard quantity per unit for direct materials should not include an allowance for waste.

Correct Answer
verified
False

The variable overhead efficiency variance for May is:

Correct Answer
verified

The labor efficiency variance for June is:

Correct Answer
verified

Which department should usually be held responsible for an unfavorable materials price variance?

Correct Answer
verified

Millonzi Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

Correct Answer
verified

The variable overhead efficiency variance for July is:

Correct Answer
verified

Generally speaking, it is the responsibility of the production department to see that material usage is kept in line with standards.

Correct Answer
verified
True

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month?

Correct Answer
verified

The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F The actual number of hours worked during the past period was:

Correct Answer
verified

The labor rate variance for October is:

Correct Answer
verified

The variable overhead rate variance for indirect labor is closest to:

Correct Answer
verified

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials price variance for the month?

Correct Answer
verified
D

The materials price variance for May is:

Correct Answer
verified

The materials quantity variance for March is:

Correct Answer
verified

The materials price variance for March is:

Correct Answer
verified

The number of actual hours spent on tune-up work last week was:

Correct Answer
verified

The labor efficiency variance for September was:

Correct Answer
verified

Exam 12: Standard Costs and Variances

Ideal standards should be used for forecasting and planning.

Correct AnswerverifiedShow Answer

What is the variable overhead rate variance for the month?

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Labor rate variance = (AH × AR) - (AH...View AnswerShow Answer

The standard quantity per unit for direct materials should not include an allowance for waste.

Correct AnswerverifiedFalse

The variable overhead efficiency variance for May is:

Correct AnswerverifiedShow Answer

The labor efficiency variance for June is:

Correct AnswerverifiedShow Answer

Which department should usually be held responsible for an unfavorable materials price variance?

Correct AnswerverifiedShow Answer

Millonzi Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for July is:

Correct AnswerverifiedShow Answer

Generally speaking, it is the responsibility of the production department to see that material usage is kept in line with standards.

Correct AnswerverifiedTrue

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month?

Correct AnswerverifiedShow Answer

The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F The actual number of hours worked during the past period was:

Correct AnswerverifiedShow Answer

The labor rate variance for October is:

Correct AnswerverifiedShow Answer

The variable overhead rate variance for indirect labor is closest to:

Correct AnswerverifiedShow Answer

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials price variance for the month?

Correct AnswerverifiedD

The materials price variance for May is:

Correct AnswerverifiedShow Answer

The materials quantity variance for March is:

Correct AnswerverifiedShow Answer

The materials price variance for March is:

Correct AnswerverifiedShow Answer

The number of actual hours spent on tune-up work last week was:

Correct AnswerverifiedShow Answer

The labor efficiency variance for September was:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. Labor rate variance = (AH × AR) - (AH...
View Answer

Correct Answer
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False

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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D

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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