SB CHP 10 ACC

All materials variances are generally the responsibility of the production manager. True false question. True False

false

Actual cost per unit - standard cost per unit) × actual quantity = the materials _______________ variance

price

The difference between the amount of an input used and the amount that should have been used, all evaluated at the standard price for the input, is called a Blank______ variance. Multiple choice question. price quality quantity

quantity

The amount of direct-labor hours that should be used to produce one unit of finished goods is the _________________________ hours per unit.

standard

Material requirements plus an allowance for normal inefficiencies are added together to determine the _______________ ________________per unit of output for direct materials

standard quanity

The spending variance is Blank______. Multiple choice question. (AQ × SP) − (SQ × SP) (AQ × AP) − (AQ × SP) (AQ × AP) − (SQ × SP)

(AQ × AP) − (SQ × SP)

Which of the following statements is true? Multiple choice question. The variance that computes the price difference for materials is called a material rate variance. A labor efficiency variance is a quantity variance. Quantity variances are computed for direct materials, direct labor and fixed overhead. Price variances can only be computed for direct materials and direct labor.

A labor efficiency variance is a quantity variance.

The materials price variance is calculated using the Blank______ quantity of the input purchased.

ACTUAL

Which of the following are used to calculate the standard quantity per unit of direct materials? Multiple select question. Allowance for normal scrap and spoilage. Direct materials requirements per unit of finished product. Freight and transportation costs.

Allowance for normal scrap and spoilage. Direct materials requirements per unit of finished product.

FALSE

JUST DIRECT

A price variance is the difference between the Blank______. Multiple choice question. actual price and the standard price multiplied by the standard amount allowed standard quantity allowed and the actual quantity used multiplied by the actual price actual price and the standard price multiplied by the actual amount of the input standard quantity allowed and the actual quantity used multiplied by the standard price

actual price and the standard price multiplied by the actual amount of the input

The materials price variance is the difference between the actual price of materials Blank______. Multiple choice question. and the standard price for materials with the difference multiplied by the actual quantity of materials and the standard price for materials with the difference multiplied by the standard quantity of material allowed times the actual quantity of materials and the standard price of materials times the standard quantity allowed for production

and the standard price for materials with the difference multiplied by the actual quantity of materials

Standards are Blank______. Multiple select question. benchmarks for measuring performance compared to the actual quantities and costs of inputs rarely used outside of management accounting set for each major production input or task

benchmarks for measuring performance compared to the actual quantities and costs of inputs set for each major production input or task

A quantity variance is Blank______. Multiple choice question. calculated using the actual price of the input calculated using the standard price of the input based only on the standard quantity of inputs based only on the actual quantity of inputs

calculated using the standard price of the input

The materials price variance is Blank______. Multiple select question. generally unfavorable when lower than standard quality materials are purchased charged to the production manager when production problems occur impacted by the delivery method chosen generally the responsibility of the purchasing manager

charged to the production manager when production problems occur impacted by the delivery method chosen generally the responsibility of the purchasing manager

An unfavorable labor efficiency variance can result from Blank______. Multiple select question. unmotivated workers poor quality materials the payment of overtime premiums faulty equipment

unmotivated workers poor quality materials faulty equipment

The standard price of the material is used in the calculation of the material quantity variance because Blank______. Multiple choice question. materials are acquired at their standard prices, not their actual prices actual prices are not known when the material quantity variance is calculated using actual prices would hold the production manager responsible for the inefficiencies of the purchasing manager using actual prices is unfair to the purchasing managee

using actual prices would hold the production manager responsible for the inefficiencies of the purchasing manager

Which of the following statements are true? Multiple select question. When actual results depart significantly from the standard, the reasons why should be investigated. Standards provide information for measuring performance. The purpose of using standards is to assess blame and responsibility. Standards are only used in managerial accounting.

When actual results depart significantly from the standard, the reasons why should be investigated. Standards provide information for measuring performance.