FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Standard Costing and Variances

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

The standard costs are summarized on a:

A) static cost card.
B) flexible budget card.
C) standard cost card.
D) standard static carD.
The standard cost card summarizes standard costs by showing what the company should spend to make a single unit of product based on expected production and sales for the coming perioD.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following statements is true about variances?

A) Positive variances (i.e., those with a positive sign) are always favorable.
B) Positive variances (i.e., those with a positive sign) are always unfavorable.
C) Negative variances (i.e., those with a negative sign) are always favorable.
D) There is not necessarily any correlation between the sign of the result (positive or negative) and whether the variance is positive or negative.

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

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

The formula AQ × (SP - AP) is the:

Basil Tooling uses a standard cost system to account for the costs of its one product. Standards are 4 sheets of ½ inch steel at $110 per sheet and 14 hours of labor at a standard wage rate of $13. During July, Basil Tooling produced 600 units. Materials purchased and used totaled 2,540 sheets at a total cost of $268,850. Payroll totaled $112,930 for 8,770 hours worked. Calculate the: a. direct materials price variance. b. direct materials quantity variance. c. direct labor rate variance. d. direct labor efficiency variance.

Regent Corp. uses a standard cost system to account for the costs of its one product. Materials standards are 3 pounds of material at $14 per pound, and labor standards are 4 hours of labor at a standard wage rate of $11. During July Regent Corp. produced 3,300 units. Materials purchased and used totaled 10,100 pounds at a total cost of $142,650. Payroll totaled $146,780 for 13,150 hours worked. Calculate the: a. direct materials price variance. b. direct materials quantity variance.

The formula SP × (SQ - AQ) is the:

When preparing a flexible budget, fixed costs should remain the same as on the master budget