Question : 61. The standard price and quantity of direct materials separated because: A. GAAP : 1239594

 

 

61. The standard price and quantity of direct materials are separated because: A. GAAP reporting requires this separationB. direct materials prices are controlled by the purchasing department, and quantity used is controlled by the production departmentC. standard quantities are more difficult to estimate than standard pricesD. standard prices change more frequently than standard quantities

 

62. Standard costs are divided into which of the following components? A. Variance Standard and Quantity StandardB. Materials Standard and Labor StandardC. Quality Standard and Quantity StandardD. Price Standard and Quantity Standard

 

63. 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. None of the above.

 

64. The total manufacturing cost variance consists of: A. Direct materials price variance, direct labor cost variance, and fixed factory overhead volume varianceB. Direct materials cost variance, direct labor rate variance, and factory overhead cost varianceC. Direct materials cost variance, direct labor cost variance, variable factory overhead controllable varianceD. Direct materials cost variance, direct labor cost variance, factory overhead cost variance

 

65. Which of the following is not a reason standard costs are separated in two components? A. the price and quantity variances need to be identified separately to correct the actual major differences.B. identifying variances determines which manager must find a solution to major discrepancies.C. if a negative variance is over-shadowed by a favorable variance, managers may overlook potential corrections.D. variances brings attention to discrepancies in the budget and requires managers to revise budgets closer to actual.

 

66. The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows: 

Standard Costs

Direct materials (per completed unit)

1.04 kilograms @$8.75

 

 

 

 

Actual Costs

Direct materials

2,500 kilograms @ $8

 

 

The amount of direct materials price variance is: A. $2,250 unfavorableB. $1,950 favorableC. $1,875 favorableD. $1,950 unfavorable

 

67. The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: 

Standard Costs

Direct materials

2,500 kilograms @ $8

 

 

 

 

Actual Costs

Direct materials

2,600 kilograms @ $8.75

 

 

The amount of the direct materials quantity variance is: A. $875 favorableB. $800 unfavorableC. $800 favorableD. $875 unfavorable

 

68. The following data relate to direct materials costs for November: 

Actual costs

4,700 pounds at $5.40

Standard costs

4,500 pounds at $6.20

 

 

What is the direct materials price variance? A. $3,600 favorableB. $160 favorableC. $3,760 favorableD. $3,600 unfavorable

 

69. The following data relate to direct materials costs for November: 

Actual costs

4,700 pounds at $5.40

Standard costs

4,500 pounds at $6.20

 

 

What is the direct materials quantity variance? A. $3,600 favorableB. $1,240 favorableC. $3,600 favorableD. $1,240 unfavorable

 

70. If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed a: A. controllable varianceB. price varianceC. quantity varianceD. rate variance

 

 

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