Question : 51. Which of the following equations can be used to compute : 1208294

51. Which of the following equations can be used to compute a labor usage variance? (A = Actual; S = Standard; Q = Quantity; P = Price) 
A. (AQ ? SP) – (SQ ? SP)
B. (SQ ? SP) – (SQ ? SP)
C. (AQ ? AP) – (SQ ? SP)
D. (AQ ? AP) – (AQ ? SP)

52. The following information is provided by the Atlantic Company:
  
What is the direct material price variance? 
A. $1,000 favorable
B. $1,000 unfavorable
C. $5,000 unfavorable
D. Not enough information is provided

53. The following standard cost card is provided for Newcomb Company’s Product A:
  
The fixed overhead rate is based on total budgeted fixed overhead of $12,000. During the period, the company produced and sold 5,800 units at the following costs.
Direct material 12,000 pounds @ $4.50 per pound
Direct labor 5,750 hours @ $8.00 per hour
Overhead $29,920
The standard manufacturing cost per unit is $23.00 while the actual manufacturing cost per unit was: 
A. $23.71.
B. $23.16.
C. $22.40.
D. Cannot be determined from the information provided.

54. Huntsville Company reported a $4,000 unfavorable direct labor price variance and a $1,500 favorable direct labor usage variance. Select the incorrect statement from the following. 
A. The standard direct labor rate must have exceeded the actual direct labor rate.
B. It took the employees less time to produce the outputs than expected.
C. The total direct labor variance is $2,500 unfavorable.
D. It is possible that the supervisor attempted to use more highly skilled (and paid) employees than allowed for by the direct labor standards.

55. Which of the following statements is true? 
A. An unfavorable materials usage variance could have resulted from actions taken by the purchasing agent.
B. An unfavorable materials price variance could have resulted from actions taken by the production supervisor.
C. An unfavorable labor usage variance could have resulted from actions taken by the personnel department.
D. All of the other answers are correct.

56. Which manager is usually held responsible for materials price variances? 
A. Production supervisor
B. Marketing manager
C. Purchasing agent
D. None of the other answers are correct.

57. Which manager is usually held responsible for materials usage variances? 
A. Plant manager
B. Purchasing agent
C. Marketing manager
D. Production supervisor

58. Which manager is usually held responsible for labor price variances? 
A. Purchasing agent
B. Personnel manager
C. Production supervisor
D. Marketing manager

59. Which manager is normally held responsible for fixed cost volume variances? 
A. Plant manager
B. Production supervisor
C. Purchasing agent
D. Upper level marketing managers

60. Select the correct statement regarding general, selling, and administrative (GS&A) costs. 
A. Variable general, selling, and administrative costs cannot have usage variances.
B. Variable general, selling, and administrative costs can have price variances.
C. Cost variances are not generally computed for fixed general, selling, and administrative costs.
D. All of the other answers are correct.