l>ACCT-202 principles of Managerial accounting - practice Exam - chapter 10
ACCT 202 principles of Managerial AccountingPractice test - chapter 10Standard Costs and the well balanced ScorecardDr. Fred Barbee
Select your answer by clicking on the button next to every alternative. Friend willreceive instant feedback. 1. An adverse material amount variance suggests that: a.Actual consumption of product exceeds the typical material permitted for output.b.Standard material enabled for calculation exceeds the actual intake of material.c.Actual material price exceeds traditional price.d.Standard product price exceeds really price. 2. Standard cost systems differ from actual expense systems in the assignment of a.Prime prices onlyb.Overhead prices onlyc.Both element costs and also overhead costsd.Neither prime expenses nor overhead costs. 3. The products price variance is calculated together a.(actual price - conventional price) x actual quantity or AQ(AP-SP)b.(actual price - typical price) x traditional quantityc.(actual quantity - typical quantity) x actual priced.(actual quantity - standard quantity) x typical price. 4. The labor efficiency variance is calculated together a.(actual DLHs used - std DLHs that should have actually been used) x really DLHs used.b.(actual hourly wage rate - std hourly fairy rate) x std DLHs the should have actually been used.c.(actual DLHs offered - std DLHs the should have actually been used) x actual hourly wage rate.d.(actual DLHs offered - std DLHs the should have actually been used) x std hourly wage rate 5. The materials price variance must be computed: a.When products are purchased.b.When products are provided in production.c.Based upon the quantity of products used in production as soon as only a portion of products purchased is in reality used.d.Based ~ above the difference between the actual amount of inputs and the typical quantity permitted for output times the traditional price. 6. During May, 6,000 pounds that raw materials were purchased in ~ a cost of $2.60 every pound. If there to be a favorable materials price variance the $900 because that December, the standard price per pound need to be a.$2.75b.$2.60c.$2.45d.None that the over 7. Throughout October, 16,000 straight labor hrs were operated at a standard price of $6 per hour. If the labor price variance because that October to be $4,000 unfavorable, the actual cost per labor hour need to be: a.$6.25b.$6.00c.$5.75d.None that the above 8. The general model because that calculating a price variance is: a.Actual quantity of entry x (actual price - conventional price).b.Standard price x (actual quantity of input - standard quantity enabled for output).c.(actual amount of inputs in ~ actual price) - (standard quantity permitted for output at traditional price).d.Actual price x (actual quantity of entry - typical quantity permitted for output). 9. Home company manufactures tables v vinyl tops. The typical material expense for the vinyl provided per Type-R table is $7.80 based upon six square feet of vinyl in ~ a expense of $1.30 per square foot. A manufacturing run that 1,000 tables in January result in intake of $6,400 square feet of vinyl at a price of $1.20 every square foot, a complete cost the $7,680. The amount variance result from the over production run was: a.$120 favorableb.$480 unfavorablec.$520 unfavorabled.$640 favorable 10. Variances indicate a.The cause of the variance.b.Who is responsible for the variance.c.That actual performance is not going follow to the plan.d.When the variance have to be investigated.Part II: Problems (To watch the answer, click the solution button.)Problem 1 Lisle manufacturing has developed the adhering to standards for among its products: conventional Variable cost Card One Unit the Product direct Materials: 10 yards x $10 per garden $100.00 direct Labor: 4 hours x $16 per hour 64.00 variable Overhead: 4 hrs x $10 per hour 40.00 full standard variable cost per unit $204.00 The company records products price variances at the time of purchase. Throughout August, Lisle purchase 16,000 yards of product costing $169,600 and also used 12,500 yards in its manufacturing process. There to be no materials inventory at august 1. Lisle tape-recorded a total of 4,600 direct labor hours operated for total payroll the $72,680. Lisle manufactured 1,200 units in august RequiredCalculate the materials price and usage variances and also indicate whether each is favorable or unfavorable.Calculate the labor rate and also efficiency variances and also indicate even if it is they are favorable or unfavorable.Problem 2 The following standard costs were occurred for among the commodities of Ferrars Company: Standard expense Card every Unit straight Materials: 4 pounds x $5 per pound $20 straight Labor: 1.5 hrs x $20 every hour 30 variable overhead: $10 per hour 15 fixed overhead: $30 per hour 45 complete standard price per unit $110 Budgeted resolved overhead for the duration was $600,000 and expectged volume for the duration was 20,000 DLHs. Throughout the duration just ended, Ferrars created 15,000 units using 80,000 pounds of material and also 23,000 direct labor hours. Complete payroll price was $288,000. The materials price $3.70 every pound. Actual variable overhead expense was $220,000 and actual addressed overhead cost was $640,000. Required: 1.


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Calculation the variable overhead spending and also efficiency variances and also indicate whether they space favorable or unfavorable.
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Last modification October 29, 2004