FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 24: Standard Cost Systems

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

There is an unfavorable labor efficiency variance when:

A) Actual hours are greater than standard hours.
B) Actual hours are less than standard hours.
C) The standard rate per hour is greater than the actual rate per hour.
D) The standard rate per hour is less than the actual rate per hour.

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

A good standard cost system should always generate unfavorable variances.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

[The following information applies to the questions displayed below.] Eagle Company uses a standard cost system that has provided the following data: -The direct labor rate variance for the period was:

If the standard quantity of materials is 84,500 units at $0.15 per unit and the actual quantity is 95,000 units at $0.12 per unit,then the materials quantity variance is:

In most companies using standard cost procedures,the costs charged to Work in Process,Finished Goods,and Cost of Goods Sold are the actual costs,not the standard costs.

A variance is said to be unfavorable when actual costs exceed standard costs.

In a standard cost system,actual costs are charged to work in process as they are incurred.

An unfavorable overhead volume variance results from:

Caesar,Inc.purchased and used 47,600 pounds of goods to produce an actual quantity of 15,300 units.Each unit required 3 pounds of goods.The quantity variance was $10,200 unfavorable and the price variance was $7,140 unfavorable.What was the actual price and the standard price per pound?

Standard costs are typically reviewed once per year.

A standard cost is predetermined,that is,determined before actual costs of the current period have been computed.

Unfavorable standard cost variances are normally closed at the end of the period by:

External auditors are often called upon to evaluate cost variances.

If the hourly wage rate actually paid during January is higher than the standard rate,the result is:

[The following information applies to the questions displayed below.] Cooper Corporation produces decorator wall coverings.Budgeted production is 240,000 square feet per month,and the standard direct labor requirement to make this amount is 6,000 hours.All overhead is allocated based on direct labor hours.The following information is available: -The journal entry to apply overhead to Work in Process Inventory for the month included:

[The following information applies to the questions displayed below.] Cooper Corporation produces decorator wall coverings.Budgeted production is 240,000 square feet per month,and the standard direct labor requirement to make this amount is 6,000 hours.All overhead is allocated based on direct labor hours.The following information is available: -The overhead spending variance for the month in question was:

The Victor Corporation has been incurring favorable overhead volume variances in each of the last several months.These persistent favorable variances indicate:

Controlling the materials quantity variance is usually the responsibility of:

Standard cost system-materials and labor variances Job no.811 involved the production of 200 units of product MF.The total standard and actual costs for materials and direct labor on this job are shown below: Compute the following cost variances for job no.811.Indicate whether each variance is favorable (F)or unfavorable (U). (a)Materials price variance: $________ (b)Materials quantity variance: $________ (c)Labor rate variance: $________ (d)Labor efficiency variance: $________

It is possible for the overhead volume variance to be favorable and the overhead spending variance to be unfavorable.