121.
122.
123. A negative fixed overhead volume variance can be caused due to the following except:
A. Sales orders at a low level
B. Machine breakdowns
C. Employee inexperience
D. Increase in utility costs
124. At the end of the fiscal year, variances from standard costs are usually transferred to the:
A. direct labor account
B. factory overhead account
C. cost of goods sold account
D. direct materials account
125. Variances from standard costs are usually reported to:
A. suppliers
B. stockholders
C. management
D. creditors
126. If at the end of the fiscal year the variances from standard are significant, the variances should be transferred to the:
A. work in process account only
B. cost of goods sold account only
C. finished goods account only
D. work in process, cost of goods sold, and finished goods accounts
127. Assuming that the Morocco Desk Co. purchases 8,000 feet of lumber at $6.00 per foot and the standard price for direct materials is $5.00, the entry to record the purchase and unfavorable direct materials price variance is:
A. Direct Materials 40,000
Direct Materials Price Variance 8,000
Accounts Payable 48,000
B. Direct Materials 40,000
Accounts Payable 40,000
C. Direct Materials 48,000
Direct Materials Price Variance 8,000
Accounts Payable 40,000
D. Work in Process 48,000
Direct Materials Price Variance 8,000
Accounts Payable 40,000
128. A company records their inventory purchases at standard cost but also records purchase price variances. The company purchased 5,000 widgets $8.00. The standard cost for the widgets is $7.80. Which of the following would be included in the journal entry?
A. $39,000 Debit to Accounts Payable
B. $1,000 Credit to Direct Materials Price Variance
C. $39,000 Credit to Accounts Payable
D. $1,000 Debit to Direct Materials Price Variance
129. The use of standards for nonmanufacturing expenses is:
A. not as common as it is for manufacturing costs
B. as common as it is for manufacturing costs
C. not useful
D. impossible
130. The total manufacturing cost variance is
A. the difference between actual costs and standard costs for units produced.
B. the flexible budget variance plus the time variance
C. the difference between planned costs and standard costs for units produced
D. none of the above.