Question
Multiple Choice Question 129
Dillon has a standard of 1.5 pounds of materials per unit at $6 per pound. In producing 2000 units Dillon used 3100 pounds of materials at a total cost of $18135. Dillon’s materials price variance is
$1050 F.
$135 U.
$465 F.
$600 F.
Multiple Choice Question 81
Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However the plastic actually cost $80 per yard. The company actually made 3900 units although it had planned to make only 3300 units. Total yards used for production were 3960. How much is the total materials variance?
$3960 F
$48600 U
$4860 U
$900 U
Multiple Choice Question 51
Standard costs
may show past cost experience.
help establish expected future costs.
all of these.
are the budgeted cost per unit in the present.
Multiple Choice Question 68
Allowance for spoilage is part of the direct
labor price standard.
labor quantity standard.
materials price standard.
materials quantity standard.
Multiple Choice Question 99
A company uses 8400 pounds of materials and exceeds the standard by 300 pounds. The quantity variance is $1800 unfavorable. What is the standard price?
$2
$4
Cannot be determined from the data provided.
$6
Multiple Choice Question 152
The balanced scorecard approach
evaluates performance using about 10 different perspectives in order to effectively incorporate all areas of the organization.
uses rather vague open statements when setting objectives in order to allow managers and employees flexibility.
normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.
uses only financial measures to evaluate performance.
Multiple Choice Question 78
Hofburgs standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $2 per pound and $7 per hour. The standard overhead rate is $8 per direct labor hour. The total standard cost of Hofburgs product is
$14.50.
$26.50.
$22.50.
$17.00.
Multiple Choice Question 54
If a company is concerned with the potential negative effects of establishing standards it should
set loose standards that are easy to fulfill.
not employ any standards.
set tight standards in order to motivate people.
offer wage incentives to those meeting standards.
Multiple Choice Question 56
Ideal standards
are rigorous but attainable.
reflect optimal performance under perfect operating conditions.
will always motivate employees to achieve the maximum output.
are the standards generally used in a master budget.
Multiple Choice Question 122
Shipp Inc. manufactures a product requiring two pounds of direct material. During 2013 Shipp purchases 24000 pounds of material for $99200 when the standard price per pound is $4. During 2013 Shipp uses 22000 pounds to make 12000 products. The standard direct material cost per unit of finished product is
$8.00.
$8.53.
$8.27.
$9.01.
Multiple Choice Question 113
Monster Company produces a product requiring 3 direct labor hours at $16.00 per hour. During January 2000 products are produced using 6300 direct labor hours. Monsters actual payroll during January was $98280. What is the labor quantity variance?
$2520 F
$4800 U
$4800 F
$2280 U
Multiple Choice Question 103
Edgar Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6000 pounds although the standard quantity allowed for the output was 5400 pounds.
Edgar Inc.’s materials price variance is
$120 U.
$1200 U.
$1200 F.
$1080 U.
Multiple Choice Question 105
Edgar Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6000 pounds although the standard quantity allowed for the output was 5400 pounds.
Edgar Inc.’s total materials variance is
$2400 F.
$2520 U.
$2520 F.
$2400 U.
Multiple Choice Question 73
Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds respectively. The purchase price is $2 per pound but a 2% discount is usually taken. Freight costs are $.10 per pound and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit and the allowance for rest periods and setup is .2 hours and .1 hours respectively. The standard direct labor rate per hour is
$15.90.
$15.60.
$12.30.
$12.00.
Multiple Choice Question 41
The difference between a budget and a standard is that
a budget expresses a total amount while a standard expresses a unit amount.
a budget expresses what costs were while a standard expresses what costs should be.
a budget expresses management’s plans while a standard reflects what actually happened.
standards are excluded from the cost accounting system whereas budgets are generally incorporated into the cost accounting system.