101.The formula to compute the direct materials price variance is to calculate the difference between
a.Actual costs – (Actual quantity × Standard price)
b.Actual cost + Standard costs
c.Actual cost – Standard costs
d.(Actual quantity × Standard price) – Standard costs
102.The formula to compute the direct material quantity variance is to calculate the difference between
a.Actual costs – Standard costs
b.Standard costs – Actual costs
c.(Actual quantity × Standard price) – Standard costs
d.Actual costs – (Standard price × Standard costs)
103.Which of the following would
notlend itself to applying direct labor variances?
a.help desk assistant
b.research and development scientist
c.customer service personnel
d.telemarketer
The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual productionare as follows:
Standard Costs
|
Fixed overhead (based on 10,000 hours)
|
3 hours per unit @ $0.80 per hour
|
Variable overhead
|
3 hours per unit @ $2.00 per hour
|
|
Actual Costs
|
Total variable cost, $18,000
|
|
Total fixed cost, $8,000
|
|
|
|
104.The amount of the fixed factory overhead volume variance is
a.$2,000 favorable
b.$2,000 unfavorable
c.$2,500 unfavorable
d.$0
105.The amount of the total factory overhead cost variance is
a.$2,000 favorable
b.$5,000 unfavorable
c.$2,500 unfavorable
d.$5,000 favorable
106.The amount of the variable factory overhead controllable variance is
a.$2,000 unfavorable
b.$3,000 favorable
c.$0
d.$3,000 unfavorable
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixedfactory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actualcost of factory overhead for the production of 5,000 units during May were as follows:
Standard:
|
25,000 hours at $10
|
$250,000
|
Actual:
|
Variable factory overhead
|
$202,500
|
|
Fixed factory overhead
|
60,000
|
107.What is the amount of the fixed factory overhead volume variance?
a.$12,500 favorable
b.$10,000 unfavorable
c.$12,500 unfavorable
d.$10,000 favorable
108.What is the amount of the variable factory overhead controllable variance?
a.$10,000 favorable
b.$2,500 unfavorable
c.$10,000 unfavorable
d.$2,500 favorable
109.Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unusedproductive capacity is indicated by the
a.fixed factory overhead volume variance
b.direct labor time variance
c.direct labor rate variance
d.variable factory overhead controllable variance
The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 forfixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and theactual cost of factory overhead for the production of 15,000 units during August were as follows:
Actual:
|
Variable factory overhead
|
$360,000
|
Standard hours allowed for units produced:
|
Fixed factory overhead
60,000 hours
|
104,000
|
110.What is the amount of the fixed factory overhead volume variance?
a.$12,000 unfavorable
b.$12,000 favorable
c.$14,000 unfavorable
d.$26,000 unfavorable