Question : 159.If a company incurs direct labor cost of $82,000 when : 1311909

 

159.If a company incurs direct labor cost of $82,000 when the standard cost is $84,000, it will

a.debit Labor Price Variance for $2,000.

b.credit Labor Price Variance for $2,000.

c.debit Labor Quantity Variance for $2,000.

d.credit Labor Quantity Variance for $2,000.

 

 

a160.If a company assigns factory labor to production at a cost of $84,000 when standard cost is $80,000, it will

a.debit Labor Price Variance for $4,000.

b.credit Labor Price Variance for $4,000.

c.debit Labor Quantity Variance for $4,000.

d.credit Labor Quantity Variance for $4,000.

 

 

a161.The overhead variances measure whether overhead costs

Are Effectively Managed              Were Used Effectively

a.ControllableControllable and Volume

b.ControllableVolume

c.Controllable and VolumeControllable

d.VolumeControllable

 

 

a162.The overhead volume variance is

a.actual overhead less overhead budgeted for actual hours.

b.actual overhead less overhead budgeted for standard hours allowed.

c.overhead budgeted for actual hours less applied overhead.

d.the fixed overhead rate times the difference between normal capacity hours and standard hours allowed.

 

 

 

 

a163.Budgeted overhead for Cinnabar Industries at normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead controllable variance is

a.$5,000 favorable.

b.$2,000 favorable.

c.$10,000 favorable.

d.$10,000 unfavorable.

 

 

a164.Budgeted overhead for Cinnabar Industries at normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead volume variance is

a.$8,000 favorable.

b.$11,000 favorable.

c.$5,000 favorable.

d.$10,000 favorable.

 

a165.Budgeted overhead for Haft, Inc. at normal capacity of 60,000 direct labor hours is $3 per hour variable and $2 per hour fixed.  In May, $310,000 of overhead was incurred in working 63,000 hours when 64,000 standard hours were allowed.  The overhead controllable variance is

a.$5,000 favorable.

b.$2,000 favorable.

c.$10,000 favorable.

d.$10,000 unfavorable.

 

 

a166.Budgeted overhead for Haft, Inc. at normal capacity of 60,000 direct labor hours is $3 per hour variable and $2 per hour fixed.  In May, $310,000 of overhead was incurred in working 63,000 hours when 64,000 standard hours were allowed. The overhead volume variance is

a.$8,000 favorable.

b.$11,000 favorable.

c.$5,000 favorable.

d.$10,000 favorable.

 

 

a167.An overhead volume variance is calculated as the difference between normal capacity hours and standard hours allowed

a.times the total predetermined overhead rate.

b.times the predetermined variable overhead rate.

c.times the predetermined fixed overhead rate.

d.divided by actual number of hours worked.

 

 

 

 

 

 

a168.Which of the following statements is false?

a.The overhead volume variance indicates whether plant facilities were used efficiently during the period.

b.The costs that cause the overhead volume variance are usually controllable costs.

c.The overhead volume variance relates solely to fixed costs.

d.The overhead volume variance is favorable if standard hours allowed for output are greater than the standard hours at normal capacity.

 

 

a