Question :
43. The use of inexpensive, low quality, materials often results in: A. A : 1229637
43. The use of inexpensive, low quality, materials often results in:
A. A favorable materials quantity variance.
B. A favorable labor rate variance.
C. An unfavorable materials quantity variance.
D. An unfavorable materials price variance.
44. Excessive overtime hours worked by direct labor workers often results in:
A. An unfavorable labor rate variance.
B. A favorable labor rate variance.
C. A favorable materials price variance.
D. An unfavorable materials price variance.
45. There is an unfavorable labor efficiency variance when:
A. Actual hours are greater than standard hours.
B. Actual hours are less than standard hours.
C. The standard rate per hour is greater than the actual rate per hour.
D. The standard rate per hour is less than the actual rate per hour.
46. Unfavorable standard cost variances are normally closed at the end of the period by:
A. Debiting the variance account and crediting Cost of Goods Sold.
B. Crediting the variance account and debiting Cost of Goods Sold.
C. Debiting the variance account and crediting Work-in-Process.
D. Crediting the variance account and debiting Work-in-Process.
47. Favorable standard cost variances are normally closed at the end of the period by:
A. Crediting the variance account and debiting Cost of Goods Sold.
B. Debiting the variance account and crediting Cost of Goods Sold.
C. Debiting the variance account and crediting Work-in-Process.
D. Crediting the variance account and debiting Work-in-Process.
48. An unfavorable labor rate variance could most likely result from all of the following except:
A. Producing at levels of output which exceed normal output levels.
B. Using highly skilled laborers to perform tasks normally performed by unskilled laborers.
C. Having laborers work excessive overtime hours.
D. Using outdated standard cost figures.
49. An unfavorable overhead volume variance results from:
A. An unfavorable overhead spending variance.
B. Poor decisions made by the production manager.
C. Producing at levels of output which exceed normal output levels.
D. Producing at levels of output which fall short of normal output levels.
50. In a standard cost system, finished goods are reported in:
A. The balance sheet at standard cost.
B. The balance sheet at actual cost.
C. The income statement at standard cost.
D. The income statement at actual cost.
51. EJB Company used a “normal” production level of 10,000 units to determine the standard per-unit cost of manufacturing overhead. Which of the following is not true?
A. There is no overhead volume variance for a given month if actual production that month is 10,000 units.
B. When actual production exceeds 10,000 units, use of standard costs results in a favorable overhead volume variance.
C. When actual production is less than 10,000 units, use of standard costs results in an unfavorable total overhead variance.
D. Overhead variances arising as a result of producing more or less than 10,000 units do not indicate either strong or poor performance by the Production Department.
52. The total overhead variance is the difference between:
A. Budgeted overhead and applied overhead.
B. Actual overhead and budgeted overhead.
C. Actual overhead and applied overhead.
D. Applied overhead and budgeted overhead.
