Man. Acct. Final ch8 MULTIPLE CHOICE
The variable overhead efficiency variance is caused by the difference between which of the following?
actual and standard allocation base
The variable overhead rate variance is caused by the sum between which of the following?
actual and standard overhead rates
This standard is set at a level that may be reached with reasonable effort
attainable standard
This variance is the difference involving spending less, or using less than the standard amount
favorable variance
which of the following is a possible cause of an unfavorable labor rate variance?
hiring higher-quality workers at a higher wage
What are some possible reasons for a labor rate variance?
hiring less qualified workers
which of the following is a possible cause of an unfavorable labor efficiency variance?
hiring substandard workers
What are some possible reasons for a material price variance?
substandard material
Why does a company use a standard costing system?
to identify variances from actual cost that assist them in maintaining profits
When is the material price variance unfavorable?
When the actual price paid is greater than the standard price
This standard is set at a level that could be achieved if everything ran perfectly
ideal standard
Which of the following is a possible cause of an unfavorable material quantity vairance?
purchasing substandard material
this variance is the difference involving spending more or using more than the standard amount
unfavorable variance
when is the material quantity unfavorable?
when the actual quantity used is greater than the standard quantity
When is the material price variance favorable?
when the actual price is less than the standard price
when is the labor rate variance favorable?
when the actual price is less than the standard price
When is the labor rate variance unfavorable
when the actual price paid is greater than the standard price
When is the direct labor time variance unfavorable
when the actual quantity used is greater than the standard quantity
which of the following is a possible cause of an unfavorable material price variance?
purchasing higher-quality material
When is the material quantity variance favorable?
when the actual quantity used is less than standard quantity
when is the direct labor time variance favorable?
when the actual quantity used is less than the standard quantity.
What are some possible reasons for a direct labor time variance
less qualified workers
the fixed factory overhead variance is caused by the difference between which of the following?
actual fixed overhead and applied fixed overhead
What are some reasons for a material quantity variance?
more qualified workers
A flexible budget __________.
predicts estimated revenues and costs at varying levels of production
