Question 1

If a company produces fewer units than expected, there will be

Accepted Answer

A)   a favorable budget variance.
B)   an unfavorable spending variance.
C)   a favorable volume variance.
D)   an unfavorable volume variance.

Question 2

Figure 9-2
Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:
Materials: Standard Actual
Standard: 200 pounds at $3.00 per pound $600
Actual: 220 pounds at $2.85 per pound $627
Direct labor:
Standard: 400 hours at $15.00 per hour 6,000
Actual: 368 hours at $16.50 per hour 6,072
-Refer to Figure 9-2. What is the journal entry to record labor variances?

Accepted Answer

A)   Work in Process 6,072 Payroll 6,072
B)   Payroll 6,072 Work in Process 6,072
C)   Work in Process 6,000 Labor Rate Variance 552Labor Efficiency Variance 480Payroll 6,072
D)   Work in Process 6,000 Labor Efficiency Variance 552Labor Rate Variance 480Payroll 6,072

Question 3

Which of the following equations measures the direct labor rate variance?

Accepted Answer

A)   (SR × AH)  - (SR × SH) 
B)   (AR × SH)  - (SR × AH) 
C)   (AR × AH)  - (SR × AH) 
D)   none of these

Question 4

The San Jose Corporation uses two materials in the production of its product. The materials, G and H, have the following standards:  During June, the following actual production information was provided:
Material Actual Mix
G 45,000 units
H 30,000 units
Yield 54,000 units
What is the materials mix variance?

Accepted Answer

A)   $18,000 (F) 
B)   $18,000 (U) 
C)   $22,500 (F) 
D)   $22,500 (U)

Question 5

A production would most likely be responsible for an unfavorable variable overhead efficiency variance.

Accepted Answer

The answer of A production would most likely be responsible...

Exam 9: Standard Costing: a Functional-Based Control Approach

A production would most likely be responsible for an unfavorable variable overhead efficiency variance.

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Which of the following equations measures the direct labor rate variance?

Correct Answer
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If a company produces fewer units than expected, there will be

Correct Answer
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Correct Answer
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Correct Answer
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Exam 9: Standard Costing: a Functional-Based Control Approach

A production would most likely be responsible for an unfavorable variable overhead efficiency variance.

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Which of the following equations measures the direct labor rate variance?

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If a company produces fewer units than expected, there will be

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Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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