ACCT 2101 Chapter 9

Which standards can be achieved only under perfect conditions? A. easily attainable standard B. ideal standard C. currently attainable standard D. tight but attainable standard

B

In a standard cost system, the initial debit to an inventory account is based on A. standard cost rather than actual cost B. actual cost rather than standard cost C. actual cost less than standard cost D. standard cost less the actual cost

A

Standard cost systems depend on which two types of standards? A. quantity and price B. quantity and efficiency C. rate and price D. rate and spending

A

A master budget is an example of: A. a static budget B. flexible budget C. standard cost card D. volume variance

A

In a standard cost system, a favorable variance will appear as A. a credit entry B. a debit entry C. either a debit or a credit entry D. variances don't affect journal entries

A

The difference between budgeted volume and practical capacity, multiplied by the fixed overhead rate is the: A. expected capacity variance B. unexpected capacity variance C. total capacity variance D. volume variance

A

The difference between the actual fixed manufacturing overhead cost and he budgeted fixed manufacturing overhead cost is the: A. fixed overhead spending variance B. fixed overhead volume variance C. fixed overhead rate variance D. fixed overhead efficiency variance

A

The difference between the actual variable overhead rate and the standard variable overhead rate, multiplied by the actual amount of the cost driver, is the A. variable overhead rate variance B. variable overhead efficiency variance C. variable overhead volume variance D. over or under applied variance

A

The overall difference between the actual and applied manufacturing overhead is the: A. over or underapplied overhead B. overhead rate variance C. overhead efficiency variance D. overhead volume variance

A

The difference between the actual cost driver and the standard cost driver amount, multiplied by the standard variable overhead rate is the: A. variable overhead rate variance B. variable overhead efficiency variance C. variable overhead volume variance D. over or under applied variance

B

The standard labor rate is: A. the expected hourly cost of labor, excluding employee taxes and benefits B. the expected hourly cost of labor, including employee taxes and benefits C. the amount of time that workers should take to produce a single unit of product D. the amount of time that workers should take to produce a single unit of product times the expectedly hour cost of labor

B

Comparing the master budget with a flexible budget creates: A. quantity variance B. volume variance C. spending variance D. price variance

B

In a standard cost system, an unfavorable variance will appear as: A. a credit entry B. a debit entry C. either a debt or credit entry D. variances don't affect journal entries

B

The difference between actual volume and budgeted production, multiplied by the fixed overhead rate based on practical capacity is the: A. expected capacity variance B. unexpected capacity variance C. total capacity variance D. volume variance

B

To foster continuous improvement, standards should ________ in difficulty over time. A. remain stable B. increase C. decrease D. idealize

B

A spending variance is made up of: A. volume variance and quantity variance B. price variance and volume variance C. price variance and quantity variance D. price variance and rate variance

C

The difference between the actual price and the standard price, multiplied by the actual quantity of materials purchased is the: A. direct materials spending variance B. direct materials volume variance C. direct materials price variance D. direct materials quantity variance

C

The fixed overhead volume variance is the difference between: A. actual fixed overhead and budgeted fixed overhead B. actual fixed overhead and applied fixed overhead C. applied fixed overhead and budgeted fixed overhead D. actual fixed overhead and the standard fixed overhead times actual cost driver

C

The formula AH x (SR-AR) is the: A. direct labor spending variance B. direct labor volume variance C. direct labor rate variance D. direct labor efficiency variance

C

The formula AQ x (SP-AP) is the: A. direct materials spending variance B. direct materials volume variance C. direct materials price variance D. direct materials quantity variance

C

The standard costs are summarized on a: A. static cost card B. flexible budget card C. standard cost card D. standard static card

C

A fixed overhead rate based on ________ highlights for management attention the cost of un-utilized capacity. A. budgeted production B. practical capacity C. utilized capacity D. actual production

D

A quantity standard is: A. the total dollar amount that a company expects to spend to achieve a given level of output B. a form that shows what the company should spend to make a single unit of product C. the price that should be paid for a specific quantity of input D. the amount of input that should be paid for a specific quantity of input

D

At the end of the accounting period, all variances are closed to the ______ account. A. work in process B. finished goods C. cost of goods manufactured D. cost of goods sold

D

The difference between the actual labor hours and the standard labor hours, multiplied by the standard labor rate is the: A. direct labor spending variance B. direct labor volume variance C. direct labor rate variance D. direct labor efficiency variance

D

The difference between the actual volume and he budgeted volume, multiplied by the fixed overhead rate on budgeted volume is: A. fixed overhead spending variance B. fixed overhead price variance C. fixed overhead efficiency variance D. fixed overhead volume variance

D

The different between the actual quantity and the standard quantity, multiplied by the standard price is the: A. direct materials spending variance B. direct materials volume variance C. direct materials price variance D. direct materials quantity variance

D

The formula SP x (SQ-AQ) is the: A. direct materials spending variance B. direct materials volume variance C. direct materials price variance D. direct materials quantity variance

D

The formula SR x (SH-AH) is the: A. direct labor spending variance B. direct labor volume variance C. direct labor rate variance D. direct labor efficiency variance

D