31.White Company budgeted for $200,000 of fixed overhead cost and volume of 40,000 units. During the year, the company produced and sold 39,000 units and spent $210,000 on fixed overhead.
The fixed overhead cost spending variance is:
A. $10,000 favorable.
B. $10,000 unfavorable.
C. $5,000 favorable.
D. $5,000 unfavorable.
32.White Company budgeted for $200,000 of fixed overhead cost and volume of 40,000 units. During the year, the company produced and sold 39,000 units and spent $210,000 on fixed overhead.
The fixed overhead cost volume variance is:
A. $10,000 favorable.
B. $10,000 unfavorable.
C. $5,000 favorable.
D. $5,000 unfavorable.
33.Which of the following equations can be used to compute the total materials variance? (A = Actual; S = Standard; Q = Quantity; P = Price)
A. (AQ × AP) - (SQ × SP)
B. (SQ × SP) - (SQ × SP)
C. (AQ × AP) - (AQ × SP)
D. (AQ × SP) - (SQ × SP)
34.Abbot Company spent less than expected for materials and more than expected for labor. Select the
incorrect
statement from the following.
A. You can always expect unfavorable labor variances if you have favorable material variances.
B. In order to facilitate cost control, it will be necessary to analyze the price and quantity of each resource used in production.
C. It cannot be determined from the information provided whether employees were paid higher wages or if they worked more hours.
D. It cannot be determined from the information provided whether the company paid a lower purchase price for materials or if workers used less materials.
35.The resources used in the manufacturing process are frequently called:
A. Variances.
B. Standards.
C. Inputs.
D. Outputs.
36.Select the
correct
statement from the following, assuming Carmichael Company had a favorable direct materials price variance of $3,000 and an unfavorable direct materials usage variance of $2,000.
A. The total direct materials variance is $1,000 unfavorable.
B. The total direct materials variance is $5,000 favorable.
C. The total direct materials variance is $5,000 unfavorable.
D. The total direct materials variance is $1,000 favorable.
37.Global Company makes a product that is expected to use 2.2 pounds of material per unit of product. The material has a standard cost of $2 per pound. Global actually used 2.3 pounds of material per unit of product made in January. The actual cost of material was $1.95 per pound. Based on this information alone, the materials variances for the January production would be:
A. Favorable for price and unfavorable for usage.
B. Unfavorable for price and favorable for usage.
C. Unfavorable for price and unfavorable for usage.
D. Favorable for price and favorable for usage.
38.Shia Company makes a product that is expected to require 2 hours of labor per unit of product. The standard cost of labor is $5.20. Shia actually used 2.1 hours of labor per unit of product. The actual cost of labor was $5.30 per hour. Shia made 1,000 units of product during the period. Based on this information alone, the labor price variance is:
A. $200 unfavorable.
B. $200 favorable.
C. $210 favorable.
D. $210 unfavorable.
39.Kokko Company makes a product that is expected to require 2 hours of labor per unit of product. The standard cost of labor is $6.00. Kokko actually used 2.1 hours of labor per unit of product. The actual cost of labor was $6.25 per hour. Kokko made 1,100 units of product during the period. Based on this information alone, the labor usage variance is:
A. $190 favorable.
B. $660 unfavorable.
C. $600 favorable.
D. $660 favorable.
40.The standard amount of materials required to make one unit of Product Q is 4 pounds. Tusa's static budget showed a planned production of 3,800 units. During the period the company actually produced 4,100 units of product. The actual amount of materials used averaged 3.9 pounds per unit. The standard price of material is $1 per pound. Based on this information, the materials usage variance was:
A. $410 favorable.
B. $380 unfavorable.
C. $410 unfavorable.
D. $380 favorable.