Question : 21.Which of the following factors should be considered in establishing : 1257193

 

 

21.Which of the following factors should be considered in establishing standards for use with a standard costing system?   

A. Historical data

 

B. Current and planned technology, plant layout, and operating procedures

 

C. Behavioral implications

 

D. All of these answers are correct.

 

 

22.Standard cost systems facilitate the management practice known as:   

A. Management by the numbers.

 

B. Management development.

 

C. Managing by exception.

 

D. Just-in-time management.

 

 

23.Which range of difficulty should normally be used to develop standards?   

A. Practical standards

 

B. Lax standards

 

C. Ideal standards

 

D. Inflated standards

 

 

24.All of the following factors should influence the decision to investigate a variance except:   

A. Frequency of occurrence.

 

B. Materiality of the variance amount.

 

C. The direction of the variance (favorable or unfavorable).

 

D. Capacity for management to control.

 

 

25.Which of the following is not an advantage of using a standard cost system?   

A. Promotes the efficient use of management talent to control costs

 

B. Provides immediate feedback that permits rapid response to problems

 

C. The easiest cost system to develop and maintain

 

D. Can boost morale and motivate employees

 

 

26.The Russell Company provides the following standard cost data per unit of product:  During the period, the company produced and sold 22,000 units incurring the following costs:  The direct labor usage variance was:   

A. $15,000 unfavorable.

 

B. $15,000 favorable.

 

C. $14,625 unfavorable.

 

D. $14,625 favorable.

 

 

27.The Russell Company provides the following standard cost data per unit of product:  During the period, the company produced and sold 22,000 units incurring the following costs:  The direct labor price variance was:   

A. $11,000 unfavorable.

 

B. $11,000 favorable.

 

C. $11,375 unfavorable.

 

D. $11,375 favorable.

 

 

28.The Russell Company provides the following standard cost data per unit of product:  During the period, the company produced and sold 22,000 units incurring the following costs:  The direct material usage variance was:   

A. $12,000 unfavorable.

 

B. $12,000 favorable.

 

C. $11,800 unfavorable.

 

D. $11,800 favorable.

 

 

29.The Russell Company provides the following standard cost data per unit of product:  During the period, the company produced and sold 22,000 units incurring the following costs:  The direct material price variance was:   

A. $6,600 unfavorable.

 

B. $6,600 favorable.

 

C. $6,800 unfavorable.

 

D. $6,800 favorable.

 

 

30.The Landrum Company provides the following standard cost data per unit of product:  Landrum anticipated that they would produce and sell 24,000 units. During the period, the company produced and sold 25,000 units incurring $210,000 of variable overhead costs.The variable overhead flexible budget variance was:   

A. $8,000 unfavorable.

 

B. $10,000 unfavorable.

 

C. $8,000 favorable.

 

D. $10,000 favorable.