FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Performance Evaluation Using Variances From Standard Costs

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows: The amount of the direct labor rate variance is:

A) $2,960 unfavorable
B) $4,500 favorable
C) $2,960 favorable
D) $4,500 unfavorable

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

If at the end of the fiscal year the variances from standard are significant, the variances should be transferred to the:

A) work in process account only
B) cost of goods sold account only
C) finished goods account only
D) work in process, cost of goods sold, and finished goods accounts

E) C) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 83

Multiple Choice

Review LaterAdd Note

Calculate the fixed factory overhead volume variance using the above information:

If a company records inventory purchases at standard cost and also records purchase price variances, prepare the journal entry for a purchase of widgets that were bought at $7.45 per unit and have a standard cost of $7.15. The total amount owed to the vendor for this purchase is $33,525.

Calculate the variable factory overhead controllable variance using the above information:

Calculate the Total Direct Labor Variance using the above information

Standard costs are divided into which of the following components?

Which of the following is not a reason standard costs are separated in two components?

The following data is given for the Harry Company: Overhead is applied on standard labor hours. The direct labor time variance is:

Normally standard costs should be revised when labor rates change to incorporate new union contracts.

At the end of the fiscal year, variances from standard costs are usually transferred to the:

Standard costs serve as a device for measuring efficiency.

The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour. Compute the labor time variance.

If employees are given bonuses for exceeding normal standards, the standards may be very effective in motivating employees.

The following data is given for the Taylor Company:

The following data is given for the Bahia Company: Overhead is applied on standard labor hours. The factory overhead controllable variance is:

A variable cost system is an accounting system where standards are set for each manufacturing cost element.

Financial reporting systems that are guided by the principle of exceptions concept focus attention on variances from standard costs.

The following data is given for the Taylor Company:

Match the following terms with the best definition given.