Question 1

Accounting systems that use standards for product costs are called budgeted cost systems.

Accepted Answer

A) True 
 B)False

Question 2

If employees are given bonuses for exceeding normal standards,the standards may be very effective in motivating employees.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a reason standard costs are separated into two components?

Accepted Answer

A)   The price and quantity variances need to be identified separately to correct the actual major differences
B)   Identifying variances determines which manager must find a solution to major discrepancies
C)   If a negative variance is overshadowed by a favorable variance,managers may overlook potential corrections
D)   Variances bring attention to discrepancies in the budget and require managers to revise budgets closer to actual resultsE) A) and D)
F) A) and C)

Question 4

The unfavorable volume variance may be due to all of the following factors except

Accepted Answer

A)   failure to maintain an even flow of work
B)   machine breakdowns
C)   unexpected increases in the cost of utilities
D)   failure to obtain enough sales ordersE) A) and B)
F) All of the above

Question 5

The formula to compute the direct materials price variance is to calculate the difference between

Accepted Answer

A)   Actual costs - (Actual quantity × Standard price) 
B)   Actual cost + Standard costs
C)   Actual cost - Standard costs
D)   (Actual quantity × Standard price) - Standard costsE) None of the above
F) C) and D)

Question 6

Changes in technology,machinery,or production methods may make past cost data irrelevant when setting standards.

Accepted Answer

A) True 
 B)False

Question 7

Favorable volume variances may be harmful when

Accepted Answer

A)   machine repairs cause work stoppages
B)   supervisors fail to maintain an even flow of work
C)   production in excess of normal capacity cannot be sold
D)   all of the answers are correctE) A) and B)
F) All of the above

Question 8

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. ​
What is the direct labor time variance?

Accepted Answer

A)   ​$9,300 favorable
B)   ​​$9,300 unfavorable
C)   ​$9,450 favorable
D)   ​​$9,450 unfavorableE) B) and D)
F) B) and C)

Question 9

It is correct to rely exclusively on past cost data when establishing standards.

Accepted Answer

A) True 
 B)False

Question 10

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual was 500 hours at $17,the time variance was $1,700 unfavorable.

Accepted Answer

A) True 
 B)False

Exam 22: Evaluating Variances From Standard Costs

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual was 500 hours at $17,the time variance was $1,700 unfavorable.

Correct Answer
verified

The formula to compute the direct materials price variance is to calculate the difference between

Correct Answer
verified

If employees are given bonuses for exceeding normal standards,the standards may be very effective in motivating employees.

Correct Answer
verified

The unfavorable volume variance may be due to all of the following factors except

Correct Answer
verified

Changes in technology,machinery,or production methods may make past cost data irrelevant when setting standards.

Correct Answer
verified

It is correct to rely exclusively on past cost data when establishing standards.

Correct Answer
verified

Which of the following is not a reason standard costs are separated into two components?

Correct Answer
verified

Favorable volume variances may be harmful when

Correct Answer
verified

Accounting systems that use standards for product costs are called budgeted cost systems.

Correct Answer
verified

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. What is the direct labor time variance?

Correct Answer
verified

Exam 22: Evaluating Variances From Standard Costs

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual was 500 hours at $17,the time variance was $1,700 unfavorable.

Correct AnswerverifiedShow Answer

The formula to compute the direct materials price variance is to calculate the difference between

Correct AnswerverifiedShow Answer

If employees are given bonuses for exceeding normal standards,the standards may be very effective in motivating employees.

Correct AnswerverifiedShow Answer

The unfavorable volume variance may be due to all of the following factors except

Correct AnswerverifiedShow Answer

Changes in technology,machinery,or production methods may make past cost data irrelevant when setting standards.

Correct AnswerverifiedShow Answer

It is correct to rely exclusively on past cost data when establishing standards.

Correct AnswerverifiedShow Answer

Which of the following is not a reason standard costs are separated into two components?

Correct AnswerverifiedShow Answer

Favorable volume variances may be harmful when

Correct AnswerverifiedShow Answer

Accounting systems that use standards for product costs are called budgeted cost systems.

Correct AnswerverifiedShow Answer

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. ​ What is the direct labor time variance?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. What is the direct labor time variance?

Correct Answer
verified