Question : 83.A supervisor’s salary an example of: A. Direct labor. B. Variable factory overhead. : 1259694

 

 

83.A supervisor’s salary is an example of:   

A. Direct labor.

 

B. Variable factory overhead.

 

C. A standard cost.

 

D. Fixed manufacturing costs.

 

 

 

 

84.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.

 

 

 

 

85.Refer to the information above. The journal entry to apply overhead to Work in Process Inventory for the month included:   

A. A debit to Work in Process Inventory of $16,000.

 

B. A debit to Work in Process Inventory of $13,500.

 

C. A debit to Work in Process Inventory of $16,875.

 

D. A credit to Work in Process Inventory of $875.

 

 

 

86.Refer to the information above. The overhead spending variance for the month in question was:   

A. $250 unfavorable.

 

B. $2,500 unfavorable.

 

C. $875 favorable.

 

D. $3,375 unfavorable.

 

 

 

87.Refer to the information above. The overhead volume variance for the month in question was:   

A. $250 unfavorable.

 

B. $1,125 favorable.

 

C. $3,375 favorable.

 

D. $1,125 unfavorable.

 

 

 

88.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.

 

 

 

 

89.If fewer units are produced than had been estimated when standard unit costs were determined, there would normally be:   

A. A favorable labor efficiency (usage) variance.

 

B. An unfavorable overhead volume variance.

 

C. A favorable materials quantity variance.

 

D. An unfavorable overhead spending variance.

 

 

 

 

90.An unfavorable volume variance in a factory is generally:   

A. The responsibility of the production manager.

 

B. Viewed as an idle capacity loss.

 

C. The result of actual volume exceeding normal volume.

 

D. Treated as part of the controllable factory overhead variance.

 

 

 

 

91.The Victor Corporation has been incurring favorable overhead volume variances in each of the last several months. These persistent favorable variances indicate:   

A. Victor’s management is unusually efficient.

 

B. The overhead application rate should be revised upward.

 

C. Monthly output is consistently under budget.

 

D. Monthly output is consistently over that budgeted.

 

 

 

 

92.Overhead volume variances indicate:   

A. Efficient performance.

 

B. Inefficient performance.

 

C. Fluctuations in the level of production from month to month.

 

D. Inadequate budgeting.

 

 

93.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.

 

 

 

 

94.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.

 

 

 

 

95.Dawson Company has a union contract which calls for an 8% cost of living increase in the wages paid to all factory workers as of July 1 of the current year. This suggests that:   

A. The labor rate variance for July will be unfavorable.

 

B. The labor rate variances during the first half of the current year have been favorable.

 

C. The standard labor cost per unit should be revised as of July 1.

 

D. The labor efficiency variance for July will be unfavorable.

 

 

 

 

96.An unfavorable labor efficiency variance is most likely to occur if:   

A. Employees are paid at an overtime wage rate.

 

B. Employees are inefficient and units must be reworked.

 

C. Labor cost per unit exceeds materials costs per unit.

 

D. Employee turnover rates are low.