Accounting 204-Chapter 10
The standard rate per unit that a company expects to pay for variable overhead equals the_________.
Variable portion of the predetermined overhead rate.
An unfavorable materials quantity variance occurs when
the actual amount of material used is greater than the standard amount of material allowed for the actual output
SP(AQ-SQ) is the formula for the materials_________variance.
quantity
True or false: A favorable labor rate variance is always favorable for a company.
False
The amount of direct-labor hours that should be used to produce one unit of finished goods is the _____ hours per unit.
Standard
The standard rate per unit that a company expects to pay for variable overhead equals the
variable portion of the predetermined overhead rate
Which of the following are used to calculate the standard quantity per unit of direct materials?
Allowance for normal scrap and spoilage. Direct materials requirements per unit of finished product.
The materials quantity variance is generally the responsibility of the ________ department manager.
production
The difference between actual results and the flexible budget amount is a(n) ___________ variance.
spending
A planning budget called for 500 units to be produced and total direct labor cost of $7,500. Actual production was 600 units and actual direct labor cost was $9,300. The spending variance is_________.
$300 U
The spending variance is Blank______.
(AQ*AP)-(SQ*SP)
A quantity variance is________.
calculated using the standard price of the input
he purchasing manager is generally responsible for the material ______variance, and the production manager is generally responsible for the material _______ variance.
price then quantity
Actual hours used 5,500; Standard hours allowed 5,800; Actual labor rate $14.75 per hour; and Standard labor rate $14.00 per hour. The labor efficiency variance is
$4200 F
T or F: The standard hours per unit includes both direct and indirect labor hours.
False
T or F:All materials variances are generally the responsibility of the production manager.
False
T or F:Quantity standards refer to the price to be paid for each unit of the input.
False
When the actual cost incurred exceeds the standard cost allowed for the actual level of output, the spending variance is___________.
Unfavorable
A price variance is the difference between the______.
actual price and the standard price multiplied by the actual amount of the input
To calculate a price variance, multiply the ______quantity times the actual price and compare it to the actual quantity times _______the price.
actual then standard
The standard hours per unit of an output includes
an allowance for cleanup and downtime the estimated time to complete the unit
The difference between the standard and the actual direct labor wages per hour is reflected in the labor____ variance
rate
A materials price variance is equivalent to a labor ________ variance, and a materials quantity variance is equivalent to a labor_________ variance.
rate then efficiency
The standard price of materials is $3.50 per pound, and the standard quantity allowed for actual output is 7,000 pounds. If the actual quantity purchased and used was 6,700 pounds, and the actual price per pound was $3.40, the direct materials price variance is $___F
670 F
(Actual cost per unit - standard cost per unit) × actual quantity = the materials ______variance.
price
Material requirements plus an allowance for normal inefficiencies are added together to determine the _______ _______ per unit.
Standard Quantity
How much input should be used to produce a product or provide a service is a(n)______ standard.
Quantity
The difference between the actual amount of an input used and the amount that should have been used, stated in dollar terms using the standard price of the input, is called a(n)________ variance.
Quantity
The materials price variance is the difference between the actual price of materials
and the standard price for materials with the difference multiplied by the actual quantity of materials
Poor supervision is one possible cause of an unfavorable ________ ____________ variance.
labor efficiency
The standard cost for ______ manufacturing overhead is computed the same way as the standard cost for direct labor.
variable
Which of the following statements are true?
-When actual results depart significantly from the standard, the reasons why should be investigated. -Standards provide information for measuring performance.
If managers consider it unwise to adjust the workforce in response to changes in workload Blank______. Multiple choice question.
the direct labor workforce is really fixed in the short run
