Standard Costs and Evaluation
 
  1. 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
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. 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
  8. 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
  9. 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
  10. 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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