Question 1

Tippi Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour. Production of 7,700 units required 17,550 hours at an hourly rate of $15.20 per hour.?What is the direct labor 
(a) rate variance, 
(b) time variance, and 
(c) total cost variance?

Accepted Answer

(a) Rate Variance =  ($15.20 -...

Question 2

The direct labor time variance measures the efficiency of the direct labor force.

Accepted Answer

A) True 
 B)False

Question 3

The following data relate to direct labor costs for the current period:Standard costs9,000 hours at $5.50Actual costs8,500 hours at $5.75What is the direct labor rate variance?

Accepted Answer

A)   $2,250 unfavorable
B)   $2,125 unfavorable
C)   $2,250 favorable
D)   $2,125 favorableE) A) and D)
F) B) and C)

Question 4

Standards are designed to evaluate price and quantity variances separately.

Accepted Answer

A) True 
 B)False

Question 5

Use this information to answer the questions that follow.
​
The following data relate to direct labor costs for February:
​
  ​
-What is the direct labor rate variance?

Accepted Answer

A)   $14,000 favorable
B)   $14,000 unfavorable
C)   $15,400 favorable
D)   $15,400 unfavorableE) A) and C)
F) None of the above

Question 6

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual is 600 hours at $17, the rate variance is $1,200 unfavorable.

Accepted Answer

A) True 
 B)False

Question 7

The following data relate to direct labor costs for the current period:Standard costs7,500 hours at $11.70Actual costs6,000 hours at $12.00​What is the direct labor time variance?

Accepted Answer

A)   $18,000 favorable
B)   $18,000 unfavorable
C)   $17,550 unfavorable
D)   $17,550 favorableE) None of the above
F) All of the above

Question 8

The following information relates to manufacturing overhead for Chapman Company:  ​Compute 
(a) the fixed factory overhead volume variance, 
(b) the variable factory overhead controllable variance, and 
(c) the total factory overhead cost variance.

Accepted Answer

The answer of The following information relates to manufacturing overhead...

Question 9

An unfavorable fixed factory overhead volume variance may be due to a failure of supervisors to maintain an even flow of work.

Accepted Answer

A) True 
 B)False

Question 10

The standard cost is how much a product should cost to manufacture.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The principle of exceptions allows managers to focus on correcting variances between

Accepted Answer

A)   standard costs and actual costs
B)   variable costs and actual costs
C)   competitor's costs and actual costs
D)   competitor's costs and standard costsE) B) and C)
F) None of the above

Question 13

Match each of the following descriptions with the term (a-e)  it describes.
-Theoretical standard

Accepted Answer

A)  Ideal standard
B)  Nonfinancial performance measure
C)  Currently attainable standard
D)  Unfavorable cost variance
E)  Favorable cost varianceF) A) and E)
G) A) and B)

Question 14

Financial reporting systems that are guided by the principle of exceptions concept focus attention on variances from standard costs.

Accepted Answer

A) True 
 B)False

Question 15

The variable factory overhead controllable variance is

Accepted Answer

A)   $8,981.75 favorable
B)   $7,280.75 unfavorable
C)   $8,981.75 unfavorable
D)   $7,280.75 favorableE) A) and D)
F) All of the above

Question 16

If at the end of the fiscal year, the variances from standard are significant, the variances should be transferred to the

Accepted Answer

A)   work in process account
B)   cost of goods sold account
C)   finished goods account
D)   work in process, cost of goods sold, and finished goods accountsE) A) and D)
F) None of the above

Question 17

Since the controllable variance measures the efficiency of using variable overhead resources, if budgeted variable overhead exceeds actual results, the variance is favorable.

Accepted Answer

A) True 
 B)False

Question 18

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows:​  The direct labor time variance is

Accepted Answer

A)   $1,180 favorable
B)   $1,140 unfavorable
C)   $1,180 unfavorable
D)   $1,140 favorableE) None of the above
F) B) and C)

Question 19

The controllable variance measures

Accepted Answer

A)   operating results at less than normal capacity
B)   the efficiency of using variable overhead resources
C)   operating results at more than normal capacity
D)   control over fixed overhead costsE) B) and C)
F) None of the above

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 22: Evaluating Variances From Standard Costs

Standards are designed to evaluate price and quantity variances separately.

Correct AnswerverifiedShow Answer

The following data relate to direct labor costs for the current period:Standard costs9,000 hours at $5.50Actual costs8,500 hours at $5.75What is the direct labor rate variance?

Correct AnswerverifiedShow Answer

Use this information to answer the questions that follow. ​ The following data relate to direct labor costs for February: ​ ​ -What is the direct labor rate variance?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Tippi Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour. Production of 7,700 units required 17,550 hours at an hourly rate of $15.20 per hour.?What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance?

Correct Answerverified(a) Rate Variance = ($15.20 -...View AnswerShow Answer

The following data relate to direct labor costs for the current period:Standard costs7,500 hours at $11.70Actual costs6,000 hours at $12.00​What is the direct labor time variance?

Correct AnswerverifiedShow Answer

Since the controllable variance measures the efficiency of using variable overhead resources, if budgeted variable overhead exceeds actual results, the variance is favorable.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If at the end of the fiscal year, the variances from standard are significant, the variances should be transferred to the

Correct AnswerverifiedShow Answer

The following information relates to manufacturing overhead for Chapman Company: ​Compute (a) the fixed factory overhead volume variance, (b) the variable factory overhead controllable variance, and (c) the total factory overhead cost variance.

Correct AnswerverifiedShow Answer

The direct labor time variance measures the efficiency of the direct labor force.

Correct AnswerverifiedShow Answer

The controllable variance measures

Correct AnswerverifiedShow Answer

The variable factory overhead controllable variance is

Correct AnswerverifiedShow Answer

Financial reporting systems that are guided by the principle of exceptions concept focus attention on variances from standard costs.

Correct AnswerverifiedShow Answer

The principle of exceptions allows managers to focus on correcting variances between

Correct AnswerverifiedShow Answer

An unfavorable fixed factory overhead volume variance may be due to a failure of supervisors to maintain an even flow of work.

Correct AnswerverifiedShow Answer

Match each of the following descriptions with the term (a-e) it describes. -Theoretical standard

Correct AnswerverifiedShow Answer

The standard cost is how much a product should cost to manufacture.

Correct AnswerverifiedShow Answer

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual is 600 hours at $17, the rate variance is $1,200 unfavorable.

Correct AnswerverifiedShow Answer

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows:​ The direct labor time variance is

Correct AnswerverifiedShow Answer

Correct Answer
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Use this information to answer the questions that follow. The following data relate to direct labor costs for February: -What is the direct labor rate variance?

Correct Answer
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(a) Rate Variance = ($15.20 -...
View Answer

The following data relate to direct labor costs for the current period:Standard costs7,500 hours at $11.70Actual costs6,000 hours at $12.00What is the direct labor time variance?

Correct Answer
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The following information relates to manufacturing overhead for Chapman Company: Compute (a) the fixed factory overhead volume variance, (b) the variable factory overhead controllable variance, and (c) the total factory overhead cost variance.

Correct Answer
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Correct Answer
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The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: The direct labor time variance is

Correct Answer
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