Question :
73. Overhead volume variances indicate: A. Efficient performance.B. Inefficient performance.C. Fluctuations in the level of : 1229640
73. Overhead volume variances indicate:
A. Efficient performance.
B. Inefficient performance.
C. Fluctuations in the level of production from month to month.
D. Inadequate budgeting.
74. Which statement is true regarding a standard cost system?
A. Both actual and standard costs are used.
B. Only standard costs are used.
C. If variances occurred, then something negative in the operations has occurred.
D. Standards are used only when actual amounts are not available.
75. A large unanticipated reduction in the property taxes on a company’s factory would, all other things equal, most likely cause:
A. A favorable overhead spending variance.
B. An unfavorable overhead spending variance.
C. A favorable overhead volume variance.
D. An unfavorable overhead volume variance.
76. The overhead spending variance:
A. Occurs automatically whenever actual production levels differ from the “normal” production level used to compute the standard overhead cost per unit.
B. Is the difference between amounts spent for actual manufacturing overhead costs and the amount applied to production.
C. Is computed as the difference between variable overhead per the flexible budget and actual variable overhead costs incurred.
D. Is the portion of the total overhead variance that is considered “controllable” by the production manager.
James Inc.’s flexible budget for June, based upon actual output, called for the use of 10,500 pounds of materials at a standard cost of $7.40 per pound. The Production Department actually used 10,700 pounds of materials costing $7.10 per pound during June.
77. James’s materials price variance for June is:
A. $3,150 unfavorable.
B. $3,150 favorable.
C. $3,210 unfavorable.
D. $3,210 favorable.
78. The materials quantity variance for James’s June operations is:
A. $3,150 favorable.
B. $3,210 unfavorable.
C. $1,480 unfavorable.
D. $3,210 favorable.
79. The journal entry to record the cost of direct materials used in June includes each of the following except:
A. A debit to Work-in-Process Inventory of $77,700.
B. A credit to Materials Price Variance of $3,210.
C. A credit to Direct Materials Inventory of $77,700.
D. A debit to Materials Quantity Variance of $1,480.
80. Greenleaf’s flexible budget for June, based on actual output, called for the use of 10,000 square feet of materials at a standard cost of $9.90 per square foot. Company records show that the actual price paid for the materials used in June was $9.70 per square foot, and that the direct materials price variance for the month was $2,090 favorable. The materials quantity variance for Greenleaf’s June operations was:
A. $1,000 favorable.
B. $4,455 unfavorable.
C. $4,365 favorable.
D. Impossible to determine from the data given.
Maple Company’s flexible budget, based upon the number of equivalent units produced, called for the use of 5,000 square yards of fabric at a standard cost of $2.45 per square yard. The Production Department actually used 5,200 square yards costing $2.35 per square yard during June.
81. The materials price variance for Maple Company for June is:
A. $520 favorable.
B. $990 favorable.
C. $30 unfavorable.
D. $520 unfavorable.
82. The materials quantity variance for Maple Company for June is:
A. $990 favorable.
B. $520 unfavorable.
C. $490 unfavorable.
D. $520 favorable.
