Question : 43.When standard costs used in a cost accounting system: A. A favorable : 1259705

 

 

43.When standard costs are used in a cost accounting system:   

A. A favorable cost variance results when standard amounts are less than actual costs.

 

B. Cost variances are shown in the year-end balance sheet as assets, if favorable, or as liabilities, if unfavorable.

 

C. Costs charged to the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts are actual costs.

 

D. Costs charged to the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts are at standard costs.

 

 

 

 

44.If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit, then the total materials cost variance is:   

A. $2,850 Favorable.

 

B. $1,575 Unfavorable.

 

C. $1,275 Favorable.

 

D. $2,850 Unfavorable.

 

 

 

45.If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit, then the materials quantity variance is:   

A. $2,850 Favorable.

 

B. $1,575 Unfavorable.

 

C. $1,275 Favorable.

 

D. $2,850 Unfavorable.

 

 

 

46.If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit, then the materials price variance is:   

A. $2,850 Favorable.

 

B. $1,575 Unfavorable.

 

C. $1,275 Favorable.

 

D. $2,850 Unfavorable.

 

 

 

47.If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit, then the journal entry to record the cost of materials used includes:   

A. A debit to Work in Process Inventory of $11,400.

 

B. A debit to Work in Process Inventory of $12,675.

 

C. A debit to Materials Price variance of $2,850.

 

D. A credit to Materials Price variance of $1,575.

 

 

 

48.If actual direct labor cost was $7,560 and standard labor cost was $7,000, the journal entry to record this would include:   

A. A credit to the labor rate variance account of $560 and a credit to Direct Labor of $7,000.

 

B. A debit to the labor rate variance account of $560 and a debit to Direct Labor of $7,000.

 

C. A credit to the labor rate variance account of $560 and a debit to Direct Labor of $7,560.

 

D. A debit to the labor rate variance account of $560 and a credit to Direct Labor of $7,560.

 

 

 

 

49.There will be a favorable materials price variance if:   

A. The standard price per unit is less than the actual price per unit.

 

B. The standard price per unit is greater than the actual price per unit.

 

C. The actual quantity purchased is greater than expected.

 

D. The actual quantity purchased is less than expected.

 

 

 

 

50.Controlling the materials price variance is usually the responsibility of:   

A. The purchasing agent.

 

B. The marketing director.

 

C. The production supervisor.

 

D. The cost accountant.

 

 

 

 

51.Controlling the materials quantity variance is usually the responsibility of:   

A. The cost accountant.

 

B. The purchasing agent.

 

C. The marketing director.

 

D. The production supervisor.

 

 

 

 

52.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.