Question : 91.The standard quantity of materials for a product was 40 : 1169272

 

 

91.The standard quantity of materials for a product was 40 pounds per unit at the standard price of $2.00 per pound. The actual price per pound of materials was $1.50, and the actual quantity used was 44 pounds. An analysis would indicate   

A. a $20.00 favorable price variance.

 

B. a $8.00 favorable quantity variance.

 

C. a $6.00 unfavorable quantity variance.

 

D. a $8.00 unfavorable quantity variance.

 

 

 

92.Efficiency and cost control can be evaluated by comparing actual overhead costs with the budget for the actual level of operations with the   

A. flexible budget.

 

B. fixed budget.

 

C. budget performance report.

 

D. manufacturing cost budget.

 

 

 

 

93.One element that is NOT part of the standard cost is   

A. shipping.

 

B. labor.

 

C. materials.

 

D. machine maintenance.

 

 

 

 

94.Standard quantity is usually determined by the   

A. purchasing department.

 

B. engineers.

 

C. company accountant.

 

D. shop foreman.

 

 

 

 

95.The difference between the total standard cost and the total actual cost is the   

A. standard cost card amount.

 

B. labor rate variance.

 

C. materials price variance.

 

D. cost variance.

 

 

 

 

96.The flexible budget usually shows   

A. only fixed costs.

 

B. only variable costs.

 

C. fixed and variable costs together.

 

D. fixed and variable costs separately.

 

 

 

 

97.The Costmore Company uses standard costing and has established the following standards for direct materials and direct labor for each unit it makes:  During July, the company made 4,000 units of product and used 13,000 gallons. The actual price paid for materials was $5.20 per gallon.Direct Labor used was 3,600 hours and workers were paid $11.75 per hour.An analysis would indicate   

A. a $5,000 unfavorable materials quantity variance.

 

B. a $7,600 favorable materials quantity variance.

 

C. a $2,600 favorable materials quantity variance.

 

D. a $7,600 unfavorable materials quantity variance.

 

 

 

98.The Costmore Company uses standard costing and has established the following standards for direct materials and direct labor for each unit it makes:  During July, the company made 4,000 units of product and used 13,000 gallons. The actual price paid for materials was $5.20 per gallon.Direct Labor used was 3,600 hours and workers were paid $11.75 per hour.An analysis would indicate   

A. a $900 unfavorable labor rate variance variance.

 

B. a $900 favorable labor rate variance variance.

 

C. a $4,800 unfavorable labor rate variance variance.

 

D. a $4,800 favorable labor rate variance variance.

 

 

 

99.The Costmore Company uses standard costing and has established the following standards for direct materials and direct labor for each unit it makes:  During July, the company made 4,000 units of product and used 13,000 gallons. The actual price paid for materials was $5.20 per gallon.Direct Labor used was 3,600 hours and workers were paid $11.75 per hour.An analysis would indicate   

A. a $900 unfavorable labor efficiency variance.

 

B. a $900 favorable labor efficiency variance.

 

C. a $4,800 unfavorable labor efficiency variance.

 

D. a $4,800 favorable labor efficiency variance.

 

 

 

100.Better Blankets, Inc. makes a SnuggieBlank using flannel material and trim binding. They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need. The Standard Cost Card for The SnuggieBlank model is shown.  The company reported the following results concerning January results:  The material quantity variance for Flannel used in January is:   

A. $2,700 favorable.

 

B. $2,700 unfavorable.

 

C. $7,500 favorable.

 

D. $7,500 unfavorable.