82.
When computing standard cost variances, the difference between actual and standard
price multiplied by actual quantity yields a(n): (CMA adapted)
83.
84.
Miller Company planned to produce 3,000 units of its single product, Tallium, during
November. The standards for one unit of Tallium specify six pounds of materials at $0.30
per pound. Actual production in November was 3,100 units of Tallium. There was a
favorable materials price variance of $380 and an unfavorable materials quantity variance
of $120. Based on these variances, one could conclude that: (CMA adapted)
85.
An unfavorable direct labor efficiency variance could be caused by: (CMA adapted)
86.
Variable manufacturing overhead is applied to products on the basis of standard direct
labor-hours. If the direct labor efficiency variance is unfavorable, the variable overhead
efficiency variance will be: (CMA adapted)
87.
Given the following information in standard costing:
Standard
16,000 hours at $4.00
Actual
15,800 hours at $4.20
What is the labor rate variance?
88.
Information for Bonanza Company’s direct labor cost for February is as follows:
Actual direct labor hours
69,000
Total direct labor payroll
$483,000
Efficiency variance
$6,400
F
Rate variance
$41,400
U
89.
The standard unit cost is used in the calculation of which of the following variances? (CPA
adapted)
Materials Price
Variance
Materials Usage
Variance
A.
No
No
B.
No
Yes
C.
Yes
No
D.
Yes
Yes
90.
A favorable materials price variance coupled with an unfavorable materials usage variance
would most likely result from: (CMA adapted)
91.
Excess direct labor wages resulting from overtime premium will be disclosed in which type
of variance? (CPA adapted)
92.
The budget for the month of May was for 9,000 units at a direct materials cost of $15 per
unit. Direct labor was budgeted at 45 minutes per unit for a total of $81,000. Actual output
for the month was 8,500 units with $127,500 in direct materials and $77,775 in direct labor
expense. The direct labor standard of 45 minutes was obtained throughout the month.
Variance analysis of the performance for the month of May would show a(n): (CMA
adapted)
93.
Jackson Company uses a standard cost system. The following information pertains to
direct labor for product B for the month of October:
Standard hours allowed for actual
production
2,000
Actual rate paid per hour
$8.40
Standard rate per hour
$8.00
Labor efficiency variance
$1,600
U
What were the actual hours worked for the month of October?
94.
The fixed factory overhead application rate is a function of a predetermined activity level.
If standard hours allowed for good output equal this predetermined activity level for a
given period, the volume variance will be: (CPA adapted)
95.
Actual machine hours
840
Standard machine hours allowed
900
Denominator activity (machine hours)
1,000
Actual fixed overhead costs
$3,800
Budgeted fixed overhead costs
$4,000
Predetermined overhead rate ($1 variable
+ $4 fixed)
$5
What is the fixed overhead spending (budget) variance?
96.
Actual machine hours
840
Standard machine hours allowed
900
Denominator activity (machine hours)
1,000
Actual fixed overhead costs
$3,800
Budgeted fixed overhead costs
$4,000
Predetermined overhead rate ($1 variable
+ $4 fixed)
$5
Is the fixed overhead spending (budget) variance favorable or unfavorable?
97.
Actual machine hours
840
Standard machine hours allowed
900
Denominator activity (machine hours)
1,000
Actual fixed overhead costs
$3,800
Budgeted fixed overhead costs
$4,000
Predetermined overhead rate ($1 variable
+ $4 fixed)
$5
What is the production volume variance?
98.
Actual machine hours
840
Standard machine hours allowed
900
Denominator activity (machine hours)
1,000
Actual fixed overhead costs
$3,800
Budgeted fixed overhead costs
$4,000
Predetermined overhead rate ($1 variable
+ $4 fixed)
$5
Is the production volume variance favorable or unfavorable?
16–76
99.
Denominator hours for May
15,000
Actual hours worked during May
14,000
Standard hours allowed for May
12,000
Flexible budget fixed overhead cost
$45,000
Actual fixed overhead costs for May
$48,000
Danske Company had total underapplied overhead of $15,000. Additional information is
as follows:
Variable Overhead:
Applied based on standard direct labor
hours allowed
$42,000
Budgeted based on standard direct labor
hours
38,000
Fixed Overhead:
Applied based on standard direct labor
hours allowed
$30,000
Budgeted based on standard direct labor
hours
27,000
What is the actual total overhead for the period?
100.
Denominator hours for May
15,000
Actual hours worked during May
14,000
Standard hours allowed for May
12,000
16–77
Flexible budget fixed overhead cost
$45,000
Actual fixed overhead costs for May
$48,000
Danske Company had total underapplied overhead of $15,000. Additional information is
as follows:
Variable Overhead:
Applied based on standard direct labor
hours allowed
$42,000
Budgeted based on standard direct labor
hours
38,000
Fixed Overhead:
Applied based on standard direct labor
hours allowed
$30,000
Budgeted based on standard direct labor
hours
27,000
What is the fixed overhead spending (budget) variance for May?
101.
Denominator hours for May
15,000
Actual hours worked during May
14,000
Standard hours allowed for May
12,000
Flexible budget fixed overhead cost
$45,000
Actual fixed overhead costs for May
$48,000
Danske Company had total underapplied overhead of $15,000. Additional information is
16–78
as follows:
Variable Overhead:
Applied based on standard direct labor
hours allowed
$42,000
Budgeted based on standard direct labor
hours
38,000
Fixed Overhead:
Applied based on standard direct labor
hours allowed
$30,000
Budgeted based on standard direct labor
hours
27,000
What is the production volume variance for May?
102.
Denominator hours for May
15,000
Actual hours worked during May
14,000
Standard hours allowed for May
12,000
Flexible budget fixed overhead cost
$45,000
Actual fixed overhead costs for May
$48,000
Danske Company had total underapplied overhead of $15,000. Additional information is
as follows:
Variable Overhead:
Applied based on standard direct labor
hours allowed
$42,000
Budgeted based on standard direct labor
hours
38,000
Fixed Overhead:
Applied based on standard direct labor
hours allowed
$30,000
Budgeted based on standard direct labor
hours
27,000
Is the production volume variance favorable or unfavorable?
103.
Which one of the following variances is of least significance from a behavioral control
perspective? (CMA adapted)
104.
The production volume variance is computed by the difference between the: