Standard Costs and Evaluation, Accounting

Standard Costs and Evaluation

Question: Standards differ from budgets in that:
A
budgets but not standards may be used in valuing inventories.

B
budgets but not standards may be journalized and posted.

C
budgets are a total amount and standards are a unit amount.

D
only budgets contribute to management planning and control.

Note: Not available
1. Report
Question: The advantages of standards costs included all of the following except:
A
management by execption may be used.

B
management planning is facilitaled.

C
they may simplify the costing of inventories.

D
management must a static budget.

Note: Not available
1. Report
Question: The setting of standards is:
A
a managerial accounting decision.

B
a management decision.

C
a worker decision.

D
preferable set at the ideal level of performance.

Note: Not available
1. Report
Question: Each of the following formulas is correct except:
A
Labor price variance=(Actual hours x Actual rate) - (Actual hours x Standards rate)

B
Overhead controllable variance = Actual overhead - Overhead budgeted.

C
Materials price variance = (Actual quantity x Actual cost) - (Standards quantity x Standards cost)

D
Overhead volumne variance = Overhead budgeted - Overhead applied

Note: Not available
1. Report
Question: In producing product AA, 6300 pounds of direct materials were used at a cost of $1.10 per pound. The standard was 6000 pounds at $1 per pound. The direct materials quantity variance is:
A
$330 unfavourable.

B
$300 unfavourable.

C
$600 unfavourable.

D
$630 unfavourable.

Note: Not available
1. Report
Question: In producing product ZZ, 14,800 direct labor hours were used at a rate of $8.20 per hour. The standard was 15,000 hours at $8.00 per hour. Based on these data, the direct labor:
A
quantity variance is $1,600 favourable.

B
quantity variance is $1,600 unfavourable.

C
price variance is $2,960 favourable.

D
price variance is $3,000 unfavourable.

Note: Not available
1. Report
Question: Which of the following is correct about overhead variances?
A
The controllable variance generally pertains to fixed overhead costs.

B
The volume variance pertains solely to variable overhead costs.

C
Standard hours actually worked are used in each variance.

D
Budgeted overhead costs are based on the flexiable overhead budget.

Note: Not available
1. Report
Question: The formula of computing the total overhead variance is:
A
actual overhead less overhead applied.

B
overhead budgeted less overhead applied.

C
actual overhead less overhead budgeted.

D
None

Note: Not available
1. Report
Question: Which of the following is incorrect about variance reports?
A
They facilitate "management by exception."

B
They should only be sent to the top level of management.

C
They should be prepared as soon as possible.

D
They may vary in form, content, and frequency among companies.

Note: Not available
1. Report
Question: Which of the following is incorrect about a standard cost accounting system?
A
It is applicable to job order costing.

B
It is applicable to process costing.

C
It is a single-entrty system.

D
It keeps separate accounts for each variance.

Note: Not available
1. Report

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Question: Standards differ from budgets in that:

Question: The advantages of standards costs included all of the following except:

Question: The setting of standards is:

Question: Each of the following formulas is correct except:

Question: In producing product AA, 6300 pounds of direct materials were used at a cost of $1.10 per pound. The standard was 6000 pounds at $1 per pound. The direct materials quantity variance is:

Question: In producing product ZZ, 14,800 direct labor hours were used at a rate of $8.20 per hour. The standard was 15,000 hours at $8.00 per hour. Based on these data, the direct labor:

Question: Which of the following is correct about overhead variances?

Question: The formula of computing the total overhead variance is:

Question: Which of the following is incorrect about variance reports?

Question: Which of the following is incorrect about a standard cost accounting system?