ACC chapter 10 smartbook
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
production
the labor efficiency variance is generally the responsibility of the ______ manager.
standard hours per unit
he amount of direct-labor hours that should be used to produce one unit of finished goods
unfavorable
When the actual cost incurred exceeds the standard cost allowed for the actual level of output, the spending variance is ______.
A price variance is the difference between the ______.
actual price and the standard price multiplied by the actual amount of the input
faulty equipment unmotivated workers poor quality materials
An unfavorable labor efficiency variance can result from _____.
quantity variance equation
SP(AQ-SQ)
standard quantity per unit
The amount of direct materials that should be used for each unit of finished product, including an allowance for normal inefficiencies, such as scrap and spoilage.
standard
The labor efficiency variance is the difference between actual hours used and standard hours allowed multiplied by the ______ hourly rate.
actual
The materials price variance is calculated using the ______ quantity of the input purchased.
the direct labor workforce is really fixed in the short run
If managers consider it unwise to adjust the workforce in response to changes in workload _____.
purchasing
If poor-quality materials results in excessive labor processing time, the ______ manager will probably be held responsible for the labor efficiency variance.
standard price per unit
The price that should be paid for each unit of direct materials. It should reflect the final, delivered cost of those materials
Price Variance Equation
AQ(AP-SP)
Which of the following are used to calculate the standard quantity per unit of direct materials?
Direct materials requirements per unit of finished product. Allowance for normal scrap and spoilage.
The variable overhead efficiency variance depends on the efficiency of direct labor.
Which statement regarding variable overhead variance analysis is true?
standard quantity
Material requirements plus an allowance for normal inefficiencies are added together to determine the _______- _______ per unit of output for direct materials.
labor efficiency
Poor supervision is one possible cause of an unfavorable _____ variance.
what is true about standards?
Standards provide information for measuring performance. When actual results depart significantly from the standard, the reasons why should be investigated.
False
T/F The standard hours per unit includes both direct and indirect labor hours.
price variance only
The purchasing manager is generally responsible for the material ______.
is favorable when the direct labor efficiency variance is favorable
When direct labor is used as the overhead allocation base, the variable overhead efficiency variance Blank_____
favorable
When the standard price is higher than the actual price, the materials price variance is ______.
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
The materials price variance is generally calculated at the time materials are purchased because ______.
it allows materials to be carried in the inventory accounts at standard cost it simplifies bookkeeping management can generate more timely variance reports
A quantity variance is ______.
calculated using the standard price of the input
standards are _________
set for each major production input or task benchmarks for measuring performance compared to the actual quantities and costs of inputs
false
t/f All materials variances are generally the responsibility of the production manager.
True
t/f Managers reluctance to constantly adjust the workforce in response to decreases in the amount of work that needs to be done often leads to an unfavorable labor efficiency variance.
