Question 1

Ruston Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:  The original budget was based on 4,500 machine-hours. The company actually worked 4,590 machine-hours during the month and the standard hours allowed for the actual output were 4,700 machine-hours. What was the overall variable overhead efficiency variance for the month?

Accepted Answer

A)  $50 unfavorable
B)  $869 favorable
C)  $969 unfavorable
D)  $100 unfavorableE) A) and B)
F) All of the above

Question 2

The labor efficiency variance for October is:

Accepted Answer

A)  $618 U
B)  $630 F
C)  $618 F
D)  $630 UE) B) and C)
F) B) and D)

Question 3

The materials price variance for November is:

Accepted Answer

A)  $5,520 F
B)  $6,340 F
C)  $5,520 U
D)  $6,340 UE) A) and D)
F) B) and D)

Question 4

Which of the following statements concerning ideal standards is incorrect?

Accepted Answer

A)  Ideal standards generally do not provide the best motivation for workers.
B)  Ideal standards do not make allowances for waste, spoilage, and machine breakdowns.
C)  Ideal standards are better suited for cash budgeting than practical standards.
D)  Ideal standards may be better than practical standards when managers seek continual improvement.E) B) and D)
F) B) and C)

Question 5

The direct labor rate variance for May is:

Accepted Answer

A)  $2,200 favorable
B)  $1,900 unfavorable
C)  $2,000 unfavorable
D)  $2,090 favorableE) A) and D)
F) A) and B)

Question 6

The variable overhead efficiency variance for February is:

Accepted Answer

A)  $150 F
B)  $160 F
C)  $160 U
D)  $150 UE) B) and D)
F) None of the above

Question 7

The variable overhead efficiency variance for June is:

Accepted Answer

A)  $100 F
B)  $98 F
C)  $100 U
D)  $98 UE) B) and C)
F) C) and D)

Question 8

The variable overhead rate variance for August is:

Accepted Answer

A)  $105 F
B)  $110 F
C)  $105 U
D)  $110 UE) A) and D)
F) A) and B)

Question 9

Last month 75,000 pounds of direct material were purchased and 71,000 pounds were used. If the actual purchase price per pound was $0.50 more than the standard purchase price per pound, then the materials price variance was:

Accepted Answer

A)  $2,000 F
B)  $37,500 F
C)  $37,500 U
D)  $35,500 UE) B) and D)
F) None of the above

Question 10

The labor efficiency variance for November is:

Accepted Answer

A)  $2,530 U
B)  $2,530 F
C)  $2,343 F
D)  $2,343 UE) B) and C)
F) None of the above

Question 11

The following standards for variable manufacturing overhead have been established for a company that makes only one product:  The following data pertain to operations for the last month:  What is the variable overhead efficiency variance for the month?

Accepted Answer

A)  $9,219 U
B)  $10,179 U
C)  $9,867 U
D)  $648 UE) A) and B)
F) All of the above

Question 12

The variable overhead rate variance for lubricants is closest to:

Accepted Answer

A)  $1,425 U
B)  $13,448 U
C)  $12,023 U
D)  $12,023 FE) None of the above
F) A) and C)

Question 13

The standard cost card for a product shows that the product should use 4 kilograms of material B per finished unit and that the standard price of material B is $4.50 per kilogram. During April, when the budgeted production level was 1,000 units, 1,040 units were actually made. A total of 4,100 kilograms of material B were used in production and the inventories of material B were reduced by 300 kilograms during April. The total cost of material B purchased during April was $14,400. The material variances for material B during April were:

Accepted Answer

A)  Option A
B)  Option B
C)  Option C
D)  Option DE) A) and C)
F) B) and D)

Question 14

The materials price variance for November is:

Accepted Answer

A)  $8,460 F
B)  $8,460 U
C)  $9,460 U
D)  $9,460 FE) B) and C)
F) None of the above

Question 15

The standard variable overhead rate per machine setup is:

Accepted Answer

A)  $16.91
B)  $12.78
C)  $15.00
D)  $16.50E) B) and C)
F) None of the above

Question 16

Leerar Corporation makes a product with the following standard costs:  In December the company produced 4,200 units using 34,870 ounces of the direct material and 1,900 direct labor-hours. During the month, the company purchased 39,700 ounces of the direct material at a total cost of $111,160. The actual direct labor cost for the month was $35,530 and the actual variable overhead cost was $3,990. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the direct labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.

Accepted Answer

a. SQ = 4,200 units × 8.1 ounces per uni...

Question 17

The labor efficiency variance for June is:

Accepted Answer

A)  $995 U
B)  $950 U
C)  $995 F
D)  $950 FE) B) and C)
F) A) and D)

Question 18

The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate.

Accepted Answer

A) True 
 B)False

Question 19

The labor rate variance for November is:

Accepted Answer

A)  $787 U
B)  $720 F
C)  $787 F
D)  $720 UE) A) and B)
F) A) and C)

Question 20

The labor rate variance for June is:

Accepted Answer

A)  $4,095 F
B)  $4,050 F
C)  $4,095 U
D)  $4,050 UE) B) and D)
F) A) and C)

Exam 12: Standard Costs and Variances

The variable overhead efficiency variance for June is:

Correct Answer
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The direct labor rate variance for May is:

Correct Answer
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The materials price variance for November is:

Correct Answer
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The labor rate variance for November is:

Correct Answer
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Which of the following statements concerning ideal standards is incorrect?

Correct Answer
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The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate.

Correct Answer
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The standard variable overhead rate per machine setup is:

Correct Answer
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The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month?

Correct Answer
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The labor efficiency variance for November is:

Correct Answer
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Correct Answer
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a. SQ = 4,200 units × 8.1 ounces per uni...
View Answer

The labor rate variance for June is:

Correct Answer
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The labor efficiency variance for October is:

Correct Answer
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Correct Answer
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The materials price variance for November is:

Correct Answer
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Last month 75,000 pounds of direct material were purchased and 71,000 pounds were used. If the actual purchase price per pound was $0.50 more than the standard purchase price per pound, then the materials price variance was:

Correct Answer
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Correct Answer
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The variable overhead rate variance for lubricants is closest to:

Correct Answer
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The variable overhead rate variance for August is:

Correct Answer
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The labor efficiency variance for June is:

Correct Answer
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The variable overhead efficiency variance for February is:

Correct Answer
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Exam 12: Standard Costs and Variances

The variable overhead efficiency variance for June is:

Correct AnswerverifiedShow Answer

The direct labor rate variance for May is:

Correct AnswerverifiedShow Answer

The materials price variance for November is:

Correct AnswerverifiedShow Answer

The labor rate variance for November is:

Correct AnswerverifiedShow Answer

Which of the following statements concerning ideal standards is incorrect?

Correct AnswerverifiedShow Answer

The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate.

Correct AnswerverifiedShow Answer

The standard variable overhead rate per machine setup is:

Correct AnswerverifiedShow Answer

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month?

Correct AnswerverifiedShow Answer

The labor efficiency variance for November is:

Correct AnswerverifiedShow Answer

Correct Answerverifieda. SQ = 4,200 units × 8.1 ounces per uni...View AnswerShow Answer

The labor rate variance for June is:

Correct AnswerverifiedShow Answer

The labor efficiency variance for October is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The materials price variance for November is:

Correct AnswerverifiedShow Answer

Last month 75,000 pounds of direct material were purchased and 71,000 pounds were used. If the actual purchase price per pound was $0.50 more than the standard purchase price per pound, then the materials price variance was:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The variable overhead rate variance for lubricants is closest to:

Correct AnswerverifiedShow Answer

The variable overhead rate variance for August is:

Correct AnswerverifiedShow Answer

The labor efficiency variance for June is:

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for February is:

Correct AnswerverifiedShow Answer

Correct Answer
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a. SQ = 4,200 units × 8.1 ounces per uni...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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