Question 1

Expected costs per unit of input are called

Accepted Answer

A)   Standard prices
B)   Standard costs
C)   Standard quantities
D)   Standard idealsE) C) and D)
F) B) and D)

Question 2

The direct materials efficiency variance tells managers about the efficiency of the purchasing process.

Accepted Answer

A) True 
 B)False

Question 3

Normal fluctuations in labor hours may cause a favorable direct labor efficiency variance.

Accepted Answer

A) True 
 B)False

Question 4

Use the following information for the next 4 questions.
Hogle Mfg. Co. uses a standard costing system. The standard time to produce one unit is 4 hours, and normal production is 3,000 units monthly. Overhead costs were estimated to be $135,000. The standard variable overhead rate is $5 per machine hour. During April the following results were recorded: 
-The variable overhead efficiency variance was

Accepted Answer

A)   $8,000 U
B)   $4,000U
C)   $2,000 U
D)   $4,000 FE) None of the above
F) A) and D)

Question 5

If a variance is considered material, it should be allocated to work in process inventory, finished goods inventory, and cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 6

ELM Corporation introduced a new automated production process that has reduced the amount of labor needed, but not affected the use of materials. The standard cost system has not been changed yet to reflect this new process. Assuming the machinery is functioning properly and that workers were properly trained in its use, which of the following variances is most likely to result?

Accepted Answer

A)   Favorable variable overhead spending variance
B)   Favorable direct labor efficiency variance
C)   Unfavorable direct labor efficiency variance
D)   Favorable direct materials price varianceE) None of the above
F) A) and B)

Exam 11: Standard Costs and Variance Analysis

The direct materials efficiency variance tells managers about the efficiency of the purchasing process.

Correct Answer
verified

Normal fluctuations in labor hours may cause a favorable direct labor efficiency variance.

Correct Answer
verified

Correct Answer
verified

Expected costs per unit of input are called

Correct Answer
verified

If a variance is considered material, it should be allocated to work in process inventory, finished goods inventory, and cost of goods sold.

Correct Answer
verified

Correct Answer
verified

Exam 11: Standard Costs and Variance Analysis

The direct materials efficiency variance tells managers about the efficiency of the purchasing process.

Correct AnswerverifiedShow Answer

Normal fluctuations in labor hours may cause a favorable direct labor efficiency variance.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Expected costs per unit of input are called

Correct AnswerverifiedShow Answer

If a variance is considered material, it should be allocated to work in process inventory, finished goods inventory, and cost of goods sold.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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