Question :
56. The flexible budget usually shows A. only fixed costs.B. only variable costs.C. fixed and : 1197790
56. The flexible budget usually shows
A. only fixed costs.
B. only variable costs.
C. fixed and variable costs together.
D. fixed and variable costs separately.
57. One element that is NOT part of the standard cost is
A. shipping.
B. labor.
C. materials.
D. machine maintenance.
58. Standard quantity is usually determined by the
A. purchasing department.
B. engineers.
C. company accountant.
D. shop foreman.
59. Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are known as
A. variable costs.
B. fixed costs.
C. standard costs.
D. semi-variable costs.
60. The materials price variance for an item is the difference between its actual price and its standard cost
A. multiplied by the actual quantity used.
B. multiplied by the standard quantity allowed.
C. multiplied by the difference between the actual quantity and the standard quantity.
D. divided by the actual quantity.
61. The difference between the total standard cost and the total actual cost is the
A. standard cost card amount.
B. labor rate variance.
C. materials price variance.
D. cost variance.
62. The labor standard for a product was five hours at a wage rate of $8 per hour. The firm produced 900 units of the item. Labor costs totaled $35,250 and 4,700 hours of labor were used. An analysis of labor costs would indicate
A. a $750 favorable labor time variance.
B. a $1,600 unfavorable labor time variance.
C. a $750 unfavorable labor rate variance.
D. a $1,600 favorable labor rate variance.
63. The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by
A. the standard cost of the item.
B. the actual cost of the item.
C. the price variance.
D. the budgeted amount for the item.
64. An unfavorable price variance for materials means that
A. the actual cost of the materials was more than the budgeted amount.
B. more materials were used in production than anticipated.
C. more labor hours were required to work with the materials than expected.
D. the actual cost of the materials was more than the standard cost.
65. The standard quantity of materials for a product was 40 pounds per unit at the standard price of $2.00 per pound. The actual price per pound of materials was $1.50, and the actual quantity used was 44 pounds. An analysis would indicate
A. a $20.00 favorable price variance.
B. a $22.00 favorable price variance.
C. a $6.00 unfavorable quantity variance.
D. a $18.00 favorable price variance.
66. The standard quantity of materials for a product was 40 pounds per unit at the standard price of $2.00 per pound. The actual price per pound of materials was $1.50, and the actual quantity used was 44 pounds. An analysis would indicate
A. a $20.00 favorable price variance.
B. a $8.00 favorable quantity variance.
C. a $6.00 unfavorable quantity variance.
D. a $8.00 unfavorable quantity variance.
The Costmore Company uses standard costing and has established the following standards for direct materials and direct labor for each unit it makes:
During July, the company made 4,000 units of product and used 13,000 gallons. The actual price paid for materials was $5.20 per gallon.
Direct Labor used was 3,600 hours and workers were paid $11.75 per hour.
67. An analysis would indicate
A. a $5,000 unfavorable materials quantity variance
B. a $7,600 favorable materials quantity variance.
C. a $2,600 favorable materials quantity variance.
D. a $7,600 unfavorable materials quantity variance.
68. An analysis would indicate
A. a $900 unfavorable labor rate variance.
B. a $900 favorable labor rate variance.
C. a $4,800 unfavorable labor rate variance.
D. a $4,80 favorable labor rate variance.
69. An analysis would indicate
A. a $900 unfavorable labor efficiency variance.
B. a $900 favorable labor efficiency variance.
C. a $4,800 unfavorable labor efficiency variance.
D. a $4,800 favorable labor efficiency variance.
