ACC202 Chpt 10
What is the difference between the actual cost of the input and its planned cost?
total budget variance
(T/F) To compute the standard direct labor hours allowed, multiply the unit labor standard by the actual output.
T
What is the equation for the materials price variance?
(Actual Price x Actual Quantity) - (Standard Price x Actual Quantity).
(T/F) Engineering studies are often too rigorous and may not be achievable by operating personnel.
T
(T/F) Standard costs are developed for direct materials, direct labor, and variable overhead only.
F
What is the equation for the materials usage variance?
Standard Price x Actual Quantity) - (Standard Price x Standard Quantity).
(T/F) An unfavorable price variance occurs whenever the actual prices are greater than the standard prices. (AQ * AP) - (AQ * SP) or (AP - SP) * AQ
T
(T/F) An unfavorable usage variance would occur when the actual usage of inputs is greater than the standard usage. (AQ * SP) - (SQ * SP) or (AQ-SQ)*SP
T
(T/F) The actual quantity of input at the standard price less than the standard quantity of input at the standard price equals the usage variance. (AQ * SP) - (SQ * SP) or (AQ - SQ) * SP
T
(T/F) The standard cost per unit of output for a particular input is calculated by multiplying the standard input price by the standard input allowed per unit of output produced.
T
(T/F) The sum of the price and usage variances will add up to the total materials variance only if the materials purchased is equal to the materials used.
T
(T/F) Unfavorable variances occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.
T
(T/F)The actual quantity of input at the actual price less the actual quantity of input at the standard price is the price variance. (AQ * AP) - (AQ * SP) or (AP - SP) * AQ
T
(T/F)The total budget variance is the difference between the actual cost of the input and its planned cost.
T
The usage variance is the difference between the actual and standard quantity of inputs....
multiplied by the standard unit price of the input.
