Question : 79.              Which of the following statements true? a.Variances the differences between : 1311901

 

 

79.              Which of the following statements is true?

a.Variances are the differences between total actual costs and total standard costs.

b.When actual costs exceed standard costs, the variance is favorable.

c.An unfavorable variance results when actual costs are decreasing but standards are not changed.

d.All of the above are true.

 

 

80.              Unfavorable materials price and quantity variances are generally the responsibility of the

PriceQuantity

a.Purchasing departmentPurchasing Department

b.Purchasing departmentProduction Department

c.Production departmentProduction Department

d.Production DepartmentPurchasing Department

 

 

81.              Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only 3,300 units. Total yards used for production were 3,960. How much is the total materials variance?

a.$48,600 U

b.$4,860 U

c.$3,960 F

d.$900 U

 

 

82.              If actual direct materials costs are greater than standard direct materials costs, it means that

a.actual costs were calculated incorrectly.

b.the actual unit price of direct materials was greater than the standard unit price of direct materials.

c.the actual unit price of raw materials or the actual quantities of raw materials used was greater than the standard unit price or standard quantities of raw materials expected.

d.the purchasing agent or the production foreman is inefficient.

 

 

83.              If actual costs are greater than standard costs, there is a(n)

a.normal variance.

b.unfavorable variance.

c.favorable variance.

d.error in the accounting system.

 

 

84.              A total materials variance is analyzed in terms of

a.price and quantity variances.

b.buy and sell variances.

c.quantity and quality variances.

d.tight and loose variances.

 

 

85.              A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month, 1,500 pounds of direct materials were purchased for $5,700. The direct materials price variance for last month was

a.$5,700 favorable.

b.$300 favorable.

c.$150 favorable.

d.$300 unfavorable.

 

86.              The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200 gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was

a.$3,200 favorable.

b.$2,400 favorable.

c.$3,200 unfavorable.

d.$5,600 unfavorable.

 

 

87.              The purchasing agent of the Poplin, Inc. ordered materials of lower quality in an effort to economize on price. What variance will most likely result?

a.Favorable materials quantity variance

b.Favorable total materials variance

c.Unfavorable materials price variance

d.Unfavorable labor quantity variance

 

 

88.              The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1,800 units, the actual direct labor cost was $48,000 for 3,000 direct labor hours worked, the total direct labor variance is

a.$1,800 unfavorable.

b.$6,000 favorable.

c.$3,750 unfavorable.

d.$6,000 unfavorable.

 

 

 

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