Question :
71. Standard costs divided into which of the following components? A. Variance Standard : 1246915
71. Standard costs are divided into which of the following components? A. Variance Standard and Quantity StandardB. Materials Standard and Labor StandardC. Quality Standard and Quantity StandardD. Price Standard and Quantity Standard
72. A favorable cost variance occurs when A. Actual costs are more than standard costs.B. Standard costs are more than actual costs.C. Standard costs are less than actual costs.D. None of the above.
73. Total manufacturing cost variance includes: A. Direct materials price variance, direct labor cost variance, and fixed factory overhead volume varianceB. Direct materials cost variance, direct labor rate variance, and factory overhead cost varianceC. Direct materials cost variance, direct labor cost variance, variable factory overhead controllable varianceD. Direct materials cost variance, direct labor cost variance, factory overhead cost variance
74. Which of the following is not a reason standard costs are separated in two components? A. the price and quantity variances need to be identified separately to correct the actual major differences.B. identifying variances determines which manager must find a solution to major discrepancies.C. if a negative variance is over-shadowed by a favorable variance, managers may overlook potential corrections.D. variances brings attention to discrepancies in the budget and requires managers to revise budgets closer to actual.
75. The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows:
Standard Costs
Direct materials (per completed unit)
1.04 kilograms @$8.75
Actual Costs
Direct materials
2,500 kilograms @ $8
The amount of direct materials price variance is: A. $1,875 unfavorableB. $1,950 favorableC. $1,875 favorableD. $1,950 unfavorable
76. The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows:
Standard Costs
Direct materials
2,500 kilograms @ $8
Actual Costs
Direct materials
2,600 kilograms @ $8.75
The amount of the direct materials quantity variance is: A. $875 favorableB. $800 unfavorableC. $800 favorableD. $875 unfavorable
77. The following data relate to direct materials costs for November:
Actual costs
4,700 pounds at $5.40
Standard costs
4,500 pounds at $6.00
What is the direct materials price variance? A. $2,700 favorableB. $120 favorableC. $2,820 favorableD. $1,700 unfavorable
78. The following data relate to direct materials costs for November:
Actual costs
4,700 pounds at $5.40
Standard costs
4,500 pounds at $6.00
What is the direct materials quantity variance? A. $2,700 favorableB. $1,200 favorableC. $2,700 favorableD. $1,200 unfavorable
79. If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed: A. controllable varianceB. price varianceC. quantity varianceD. rate variance
80. If the price paid per unit differs from the standard price per unit for direct materials, the variance is termed: A. variable varianceB. controllable varianceC. price varianceD. volume variance
