Chapter 10 Buss 215

The difference between the actual level of activity and the standard activity allowed for the actual output x the variable part of the predetermined overhead rate is the variable overhead blank variance

efficiency

Which of the following statements are correct?

1.Excessive inventories contribute to inefficient operations. 2.When the workforce is fixed, managers must be cautious about how labor efficiency variances are used.

When using a standard cost system, Blank______.

1.employees may take unfavorable actions to ensure favorable variances 2.an undue emphasis on labor efficiency can create pressure to build excess inventory

The standard rate per hour includes Blank______.

1.fringe benefits 2.employment taxes 3.the direct labor rate per hour

The calculation of a standard price per unit of direct materials includes Blank______.

purchase discounts shipping costs purchase price of the materials

The calculation of a standard price per unit of direct materials includes Blank______.

purchase price of the materials purchase discounts shipping costs

he variable overhead efficiency variance compares the blank hours times the standard rate with the standard hours allowed for the actual output times the blank rate

Field 1: actual Field 2: standard

Which of the following statements are correct?

When the workforce is fixed, managers must be cautious about how labor efficiency variances are used. Excessive inventories contribute to inefficient operations.

The standard price per unit for direct materials Blank______.

can change based on a change in the delivery method

Which of the following statements is true?

A labor efficiency variance is a quantity variance.

A favorable labor rate variance is always favorable for a company.

False

Material requirements plus an allowance for normal inefficiencies are added together to determine the blank per unit of output for direct materials.

Field 1: standard Field 2: quantity

The difference between the actual level of activity and the standard activity allowed for the actual output x the variable part of the predetermined overhead rate is the variable overhead blank variance.

efficiency

Excessive inventory on hand, especially in the work in process inventory account, may lead to Blank______.

inefficient operations high defect rates obsolete goods

When demand for a product is insufficient to keep all of the production workers busy and no layoffs occur, an unfavorable blank variance may occur

labor efficiency

How much input should be used to produce a product or provide a service is a(n) blank standard

quantity or usage

AH(AR - SR) is the formula for the variable overhead blank variance

rate

A materials price variance is equivalent to a labor blank variance and a materials quantity variance is equivalent to a labor blank variance.

rate efficiency

The standard labor rate per hour Blank______.

reflects the expected mix of workers

The amount of direct-labor hours that should be used to produce one unit of finished goods is the blank hours per unit.

standard

Standard quantities and the cost of the inputs to make a single product are accumulated on a(n)

standard cost card

An unfavorable materials quantity variance occurs when Blank______.

the actual amount of material used is greater than the standard amount of material allowed for the actual output

When the standard purchase price is less than the actual price paid for materials, the material price variance is

unfavorable