39. In the general model, a price variance is calculated as:
40. In the general model, an efficiency variance is calculated as:
41. Which of the following direct labor variances uses the standard hours allowed for the
actual number of units produced?
42. Which of the following is the most probable reason a company would experience an
unfavorable labor rate variance and a favorable labor efficiency variance?
43. Which variance will be unfavorable due to employees working more hours than allowed for
the actual number of units produced?
44. In general, the direct labor efficiency variance is the responsibility of the:
45. The variable overhead price variance is due to:
46. If overhead is applied to production using direct labor hours and the direct labor efficiency
variance is favorable, then the variable overhead efficiency variance is:
47. The production volume variance is computed by the difference between the:
48. Which of the following is
not
an alternative name for the production volume variance?
49. The production volume variance must be computed when a company uses:
50. Which of these variances is least significant for cost control?
51. A debit balance in the labor-efficiency variance account indicates that:
52. If materials are carried in the direct materials inventory account at standard cost, then it is
reasonable to assume that the:
53. The Redrock Company uses flexible budgeting for cost control. Redrock produced 10,800
units of product during October, incurring indirect material costs of $13,000. Its master budget for
the reflected indirect material costs of $180,000 at a production volume of 144,000 units. What
was the flexible budget variance for the indirect material costs in October?
54.
What is the actual sales revenue?
55.
What is the sales revenue in the flexible budget?
56.
What is the flexible budget contribution margin?
57.
What is the master budget sales revenue?
58.
What is the master budget contribution margin?
59.
What is the activity variance for the variable manufacturing costs?
60.
Is the activity variance for the variable manufacturing costs favorable or unfavorable?
61. Arrow Industries employs a standard cost system in which direct materials inventory is
carried at standard cost. Arrow has established the following standards for the prime costs of one
unit of product.
During November, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000.
The total factory wages for November were $42,000, 90% of which were for direct labor. Arrow
manufactured 19,000 units of product during November using 142,500 pounds of direct materials
and 5,000 direct labor hours.
What is the direct materials price variance for November?
62. Arrow Industries employs a standard cost system in which direct materials inventory is
carried at standard cost. Arrow has established the following standards for the prime costs of one
unit of product.
During November, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000.
The total factory wages for November were $42,000, 90% of which were for direct labor. Arrow
manufactured 19,000 units of product during November using 142,500 pounds of direct materials
and 5,000 direct labor hours.
Is the direct materials price variance favorable or unfavorable?
63. Arrow Industries employs a standard cost system in which direct materials inventory is
carried at standard cost. Arrow has established the following standards for the prime costs of one
unit of product.
During November, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000.
The total factory wages for November were $42,000, 90% of which were for direct labor. Arrow
manufactured 19,000 units of product during November using 142,500 pounds of direct materials
and 5,000 direct labor hours.
What is the direct materials efficiency (quantity) variance for November?
64. Arrow Industries employs a standard cost system in which direct materials inventory is
carried at standard cost. Arrow has established the following standards for the prime costs of one
unit of product.
During November, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000.
The total factory wages for November were $42,000, 90% of which were for direct labor. Arrow
manufactured 19,000 units of product during November using 142,500 pounds of direct materials
and 5,000 direct labor hours.
Is the direct materials efficiency (quantity) variance favorable or unfavorable?