an unfavorable materials quantity variance indicates that
An unfavorable materials quantity variance indicates that
l>ACCT-202 ethics of Managerial accountancy - practice Exam - thing 10
ACCT 202 values of Managerial AccountingPractice exam - chapter 10Standard Costs and the well balanced ScorecardDr. Fred Barbee
Select your answer by clicking on the switch next to every alternative. Girlfriend willreceive immediate feedback. 1. An adverse material amount variance indicates that: a.Actual usage of product exceeds the conventional material enabled for output.b.Standard material enabled for output exceeds the actual consumption of material.c.Actual product price exceeds traditional price.d.Standard material price exceeds actual price. 2. Standard price systems different from actual price systems in the assignment that a.Prime prices onlyb.Overhead costs onlyc.Both element costs and also overhead costsd.Neither prime expenses nor overhead costs. 3. The products price variance is calculated together a.(actual price - typical price) x actual quantity or AQ(AP-SP)b.(actual price - standard price) x conventional quantityc.(actual quantity - standard quantity) x actual priced.(actual amount - standard quantity) x typical price. 4. The labor effectiveness variance is calculated together a.(actual DLHs supplied - std DLHs the should have actually been used) x yes, really DLHs used.b.(actual hourly wage rate - std hourly fairy rate) x std DLHs the should have been used.c.(actual DLHs offered - std DLHs that should have been used) x really hourly fairy rate.d.(actual DLHs used - std DLHs the should have been used) x std hourly wage rate 5. The products price variance should be computed: a.When products are purchased.b.When materials are offered in production.c.Based upon the amount of materials used in production once only a portion of materials purchased is actually used.d.Based top top the difference between the actual quantity of inputs and also the traditional quantity permitted for calculation times the traditional price. 6. Throughout May, 6,000 pounds the raw products were purchased in ~ a cost of $2.60 every pound. If there was a favorable materials price variance that $900 for December, the standard cost per pound have to be a.$2.75b.$2.60c.$2.45d.None of the above 7. During October, 16,000 straight labor hrs were functioned at a standard expense of $6 every hour. If the labor rate variance because that October was $4,000 unfavorable, the actual cost per labor hour should be: a.$6.25b.$6.00c.$5.75d.None that the above 8. The basic model for calculating a price variance is: a.Actual amount of inputs x (actual price - conventional price).b.Standard price x (actual quantity of entry - typical quantity allowed for output).c.(actual quantity of inputs at actual price) - (standard quantity allowed for output at typical price).d.Actual price x (actual amount of input - conventional quantity enabled for output). 9. Home company manufactures tables through vinyl tops. The typical material price for the vinyl used per Type-R table is $7.80 based upon six square feet that vinyl at a price of $1.30 every square foot. A production run that 1,000 tables in January resulted in consumption of $6,400 square feet that vinyl in ~ a expense of $1.20 per square foot, a full cost of $7,680. The amount variance resulting from the over production run was: a.$120 favorableb.$480 unfavorablec.$520 unfavorabled.$640 favorable 10. Variances indicate a.The cause of the variance.b.Who is responsible because that the variance.c.That actual performance is not going according to the plan.d.When the variance have to be investigated.Part II: Problems (To view the answer, click on the systems button.)Problem 1 Lisle manufacturing has emerged the adhering to standards for among its products: typical Variable cost Card One Unit the Product straight Materials: 10 yards x $10 per yard $100.00 direct Labor: 4 hours x $16 per hour 64.00 change Overhead: 4 hrs x $10 every hour 40.00 total standard variable expense per unit $204.00 The agency records materials price variances at the moment of purchase. During August, Lisle purchased 16,000 yards of product costing $169,600 and used 12,500 yards in its manufacturing process. There was no products inventory at august 1. Lisle recorded a full of 4,600 straight labor hours worked for complete payroll the $72,680. Lisle made 1,200 units in august RequiredCalculate the products price and also usage variances and also indicate whether every is favorable or unfavorable.Calculate the job rate and also efficiency variances and also indicate whether they are favorable or unfavorable.Problem 2 The adhering to standard costs were developed for among the assets of Ferrars Company: Standard cost Card per Unit direct Materials: 4 pounds x $5 per lb $20 straight Labor: 1.5 hrs x $20 every hour 30 change overhead: $10 every hour 15 solved overhead: $30 every hour 45 full standard cost per unit $110 Budgeted resolved overhead because that the duration was $600,000 and also expectged volume for the period was 20,000 DLHs. Throughout the period just ended, Ferrars created 15,000 systems using 80,000 pounds that material and 23,000 straight labor hours. Total payroll expense was $288,000. The materials price $3.70 every pound. Actual change overhead expense was $220,000 and also actual addressed overhead cost was $640,000. Required: 1.