Question 1

If a company produces fewer units than expected, there will be

Accepted Answer

A)   a favorable budget variance.
B)   an unfavorable spending variance.
C)   a favorable volume variance.
D)   an unfavorable volume variance.E) B) and D)
F) B) and C)

Question 2

All of the following are true of currently attainable standards EXCEPT

Accepted Answer

A)   Currently attainable standards are based on an efficiently operating work force.
B)   Currently attainable standards are based on ideal conditions.
C)   Currently attainable standards allow for downtime and rest periods.
D)   Currently attainable standards are based on present production processes and technology.E) A) and D)
F) A) and C)

Question 3

Harry Company's standard variable overhead rate is $6 per direct labor hour, and each unit requires 2 standard direct labor hours.During March, Harry recorded 6,000 actual direct labor hours, $37,000 actual variable overhead costs, and 2,900 units of product manufactured. What is the variable overhead efficiency variance for March for Harry?

Accepted Answer

A)   $2,200 (U) 
B)   $2,200 (F) 
C)   $600 (U) 
D)   $1,200 (U) E) B) and C)
F) B) and D)

Question 4

Standard costing

Accepted Answer

A)   establishes price and quantity standards for inputs.
B)   provides journal entry support.
C)   is not used in unit costing.
D)   none of these.E) B) and D)
F) None of the above

Question 5

If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed, the labor rate variance and labor efficiency variance will be

Accepted Answer

A)   Favorable Favorable
B)   Favorable Unfavorable
C)   Unfavorable Favorable
D)   Unfavorable UnfavorableE) A) and D)
F) A) and C)

Question 6

Which of the following factors would cause an unfavorable labor rate variance?

Accepted Answer

A)   using higher quality materials
B)   using low-efficiency workers
C)   using more unskilled workers
D)   using more highly skilled workersE) C) and D)
F) A) and B)

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

All of the following are true of currently attainable standards EXCEPT

Correct Answer
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If a company produces fewer units than expected, there will be

Correct Answer
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Standard costing

Correct Answer
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Which of the following factors would cause an unfavorable labor rate variance?

Correct Answer
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Correct Answer
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If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed, the labor rate variance and labor efficiency variance will be

Correct Answer
verified

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

All of the following are true of currently attainable standards EXCEPT

Correct AnswerverifiedShow Answer

If a company produces fewer units than expected, there will be

Correct AnswerverifiedShow Answer

Standard costing

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Which of the following factors would cause an unfavorable labor rate variance?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed, the labor rate variance and labor efficiency variance will be

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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