Question :
91. A company established a direct material standard of 2 : 1256691
91. A company established a direct material standard of 2 pounds of material at a cost of $6 per pound for unit produced. During August the company produced 6,000 units of product. 10,000 pounds of direct material which cost $6.50 per pound were used in the production process. Compute the direct material quantity variance for August.A. $5,000 unfavorableB. $12,000 unfavorableC. $5,000 favorableD. $12,000 favorableE. $7,000 favorable
92. A company established a direct material standard of 2 pounds of material at a cost of $6 per pound for unit produced. During August the company produced 6,000 units of product; 10,000 pounds of direct material that cost $6.50 per pound were used in the production process. Compute the direct material price variance for August.A. $5,000 unfavorableB. $12,000 unfavorableC. $5,000 favorableD. $12,000 favorableE. $7,000 favorable
93. Overhead cost variance is:A. The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level.B. The difference between the actual overhead incurred during a period and the standard overhead applied.C. The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit.D. The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform a specific service.E. The difference between the total overhead cost that would have been expected if the actual operating volume had been accurately predicted and the amount of overhead cost that was allocated to products using the standard overhead rate.
94. Which of the following variances is not used in a standard cost system?
A. Variable overhead spending variance.
B. Fixed overhead spending variance.
C. Variable overhead efficiency variance.
D. Fixed overhead efficiency variance.
E. Fixed overhead volume variance.
95. The sum of the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance is the:A. Production varianceB. Quantity varianceC. Volume varianceD. Price varianceE. Controllable variance
96. The difference between the total budgeted overhead cost and the overhead applied to production using the predetermined overhead rate is the:A. Production varianceB. Volume varianceC. Overhead cost varianceD. Quantity varianceE. Controllable variance
97. A company’s flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total controllable cost variance is:A. $1,200 favorableB. $1,200 unfavorableC. $13,200 favorableD. $13,200 unfavorableE. $15,200 favorable
98. Adams Co. uses the following standard to produce a single unit of its product:Variable overhead (2 hrs. @ $3/hr.) = $ 6Actual data for the month show variable overhead costs of $150,000 based on 24,000 units of production. The total variable overhead variance is:A. $6,000FB. $6,000UC. $78,000UD. $78,000FE. $0
Reference: 21_07
Montaigne Corp. has the following information about its standards and production activity in November:
Actual total factory overhead incurred
$28,175
Standard factory overhead:
Variable overhead
$3.10 per unit produced
Fixed overhead
($12,000/6,000 estimated units to be produced)
$2 per unit
Actual units produced
4,800 units
99. The volume variance is:A. $1,295UB. $1,295FC. $2,400UD. $2,400FE. $3,695U
100. The controllable variance is:A. $1,295UB. $1,295FC. $2,400UD. $2,400FE. $3,695U
