Chapter 10
Standard indirect materials cost per unit
A standard cost card does not explicitly mention which of the following? Standard direct materials cost per unit Standard indirect materials cost per unit Standard direct labor cost per unit Standard variable manufacturing overhead cost per unit
The materials price variance must be unfavorable.
Assume (1) the quantity of materials purchased equals the quantity used in production, (2) the materials spending variance is unfavorable, and (3) the materials quantity variance is favorable. Given the assumptions, which of the following statements is true? The materials price variance must be favorable. The materials price variance must be unfavorable. The materials price variance must be equal in amount to the materials quantity variance but unfavorable instead of favorable. The materials price variance could be favorable or possibly unfavorable depending on the standard quantity of materials allowed for the actual level of output.
Standard hours allowed (SH) x standard rate (SR)
The flexible budget for direct materials is computed in which of the following ways? Actual hours used (AH) x standard rate (SR) Actual hours used (AH) x actual rate (AR) Standard hours allowed (SH) x actual rate (AR) Standard hours allowed (SH) x standard rate (SR)
Standard quantity allowed (SQ) x standard price (SP)
The flexible budget for direct materials is computed in which of the following ways? Actual quantity used (AQ) x standard price (SP) Actual quantity used (AQ) x actual price (AP) Standard quantity allowed (SQ) x standard price (SP) Standard quantity allowed (SQ) x actual price (AP)
Standard hours allowed (SH) standard rate (SR)
The flexible budget for variable manufacturing overhead is computed in which of the following ways? Actual hours used (AH) x standard rate (SR) Actual hours used (AH) x actual rate (AR) Standard hours allowed (SH) x actual rate (AR) Standard hours allowed (SH) standard rate (SR)
Standard hours per unit of finished goods x standard rate per hour.
The standard direct labor cost per unit of finished goods is computed in which of the following ways? Standard hours per unit of finished goods x standard rate per hour. Standard hours per unit of finished goods - standard rate per hour. Standard hours per unit of finished goods / standard rate per hour. Standard hours per unit of finished goods x (standard rate per hour - actual rate per hour)
Standard quantity per unit of finished goods x standard price per unit of direct material.
The standard directed material cost per unit of finished goods is computed in which of the following? Standard quantity per unit of direct material x standard price per unit of direct material. Standard quantity per unit of finished goods x standard price per unit of finished goods. Standard quantity per unit of direct material x standard price per unit of finished goods. Standard quantity per unit of finished goods x standard price per unit of direct material.
[AH x (AR - SR)]
Which of the following equations can be used to compute a labor rate variance (where AQ = actual quantity; SQ = standard quantity allowed; AP = actual price; SP = standard price)? [SH / (AR - SR)] [AH x (AR - SR)] [AH / (AR - SR)] [SH x (AR - SR)
[AQ x (AP - SP)]
Which of the following equations can be used to compute a materials price variance (where AQ = actual quantity; SQ = standard quantity allowed; AP = actual price; SP = standard price)? [SQ / (AP - SP)] [AQ / (AP - SP)] [AQ x (AP - SP)] [SQ x (AP - SP)]
[SP x (AQ - SQ)]
Which of the following equations can be used to compute a materials quantity variance (where AQ = actual quantity; SQ = standard quantity allowed; AP = actual price; SP = standard price)? [SP / (AQ - SQ)] [AP / (AQ - SQ)] [AP x (AQ - SQ)] [SP x (AQ - SQ)]
If the company's labor spending variance is unfavorable and its actual hourly labor rate is less than the standard hourly rate, then its variable overhead efficiency variance must be unfavorable.
Which of the following statements is true for a manufacturing company that uses standard costing and allocates its manufacturing overhead to production based on direct labor hours? If the company's labor spending variance is unfavorable and its actual hourly labor rate is less than the standard hourly rate, then its labor efficiency variance must be favorable. If the company's labor spending variance is unfavorable and its actual hourly labor rate is less than the standard hourly rate, then its standard quantity of labor hours allowed must be greater than the actual labor hours worked. If the company's labor spending variance is unfavorable and its actual hourly labor rate is less than the standard hourly rate, then its variable overhead efficiency variance must be unfavorable. If the company's labor spending variance is unfavorable and its actual hourly labor rate is less than the standard hourly rate, then its labor rate variance must be unfavorable.
It is computed using the actual quantity of materials purchased.
Which of the following statements is true with respect to materials price variance? It is computed using the actual quantity of materials used in production. It is computed using the actual quantity of materials purchased. It is computed using the standard quantity of materials used in production. It is computed using the standard quantity of materials purchased.
It is computed using the standard price.
Which of the following statements is true with respect to materials quantity variance? It is computed using the actual price. It is computed using the actual quantity of materials purchased. It is computed using the difference between the actual and standard price. It is computed using the standard price.
It encompasses the labor rate and efficiency variances.
Which of the following statements is true with respect to the labor spending variance? It encompasses the labor rate variance but excludes the labor efficiency variance. It encompasses the labor rate and efficiency variances. It encompasses the labor efficiency variance but excludes the labor rate variance. It is separate and independent from the labor rate and efficiency variances.
