Question :
56) What the efficiency variance for direct materials? 56) : 1196269
56) What is the efficiency variance for direct materials? 56) ______ A) $39,000 favourable B) $39,000 unfavourable C) $23,750 unfavourable D) $37,500 unfavourable E) $47,350 favourable 57) What are the efficiency variances for direct manufacturing labour and direct marketing labour, respectively? 57) ______ A) $25,898 unfavourable; $15,133 unfavourable B) $23,750 favourable; $12,650 unfavourable C) $38,375 unfavourable; $7,350 favourable D) $23,750 unfavourable; $12,650 favourable E) $23,750 unfavourable; $12,650 unfavourable 58) The following data for a pottery company pertain to the production of 2,000 clay pots during July.
Direct Materials (All materials purchased were used.):
Standard cost: $6.00 per kilogram of clay.
Total actual cost: $11,200.
Standard cost allowed for units produced was $12,000.
Materials efficiency variance was $240 unfavourable.
Direct Manufacturing Labour:
Standard cost is 2 pots per hour at $24.00 per hour.
Actual cost per hour was $24.50.
Labour efficiency variance was $672 favourable.
What is the direct materials price variance? 58) ______ A) $1,040 favourable B) $560 unfavourable C) $800 favourable D) $560 favourable E) $800 unfavourable 59) In a manufacturing area of an organization; poor product design, problems with the quality of materials, and scheduling conflicts could result in 59) ______ A) an unfavourable materials efficiency variance. B) an unfavourable labour efficiency variance. C) a favourable materials effectiveness variance. D) an unfavourable materials effectiveness variance. E) a favourable materials efficiency variance. 60) If a company only reached 85% of their production goal, the 85% may be called the company’s 60) ______ A) standard production rate. B) efficiency rate. C) goal achievement rate. D) variance rate. E) effectiveness rate. 61) The relative amount of inputs used to reach a given level output is a measure of which of the following? 61) ______ A) purchase price B) marketing efforts C) selling price D) effectiveness E) efficiency 62) Which of the following statements is TRUE? 62) ______ A) A favourable variance is not always beneficial for an organization. B) Favourable variances are typically not preferred by management. C) Only a flexible budget can be used to determine a variance. D) Managers attempt to maintain unfavourable variances. E) A favourable variance always benefits a company. 63) Cost variances should be investigated EXCEPT when 63) ______ A) better decisions are required by the organization. B) expected costs of investigation exceed expected benefits. C) the results are favourable. D) costs incurred must be reduced. E) the results are unfavourable. 64) A continuous improvement budgeted cost, in terms of variances and standard costs, 64) ______ A) are easier to achieve for older, more established production runs, than for new products. B) ensures that managers will avoid unfavourable materials (or labour) variances that are due to external factors. C) is held constant regardless of external factors, thus enabling management to isolate internal variance factors. D) are achieved as easily for older, more established production runs, as for for new products. E) is successively reduced over succeeding time periods. 65) In a journal entry for a standard costing system that records favourable variances, to increase the relevant variance account 65) ______ A) the variance account must be debited. B) the variance account must be credited. C) reduces the contra account. D) decreases the Operating Income Account. E) causes a credit to Cost of Goods Sold. 66) When a journal entry is made in a standard cost system to record the liability for direct manufacturing labour costs, the difference between the debit to the work-in process control account and the credit to the payroll payables is
