BUS202-03_Ch. 23 Quiz

Standards that represent levels of operation that can be attained with reasonable effort are called a. ideal standards b. theoretical standards c. variable standards d. normal standards

The principle of exceptions allows managers to focus on correcting variances between a. standard costs and actual costs b. competitor's costs and standard costs c. variable costs and actual costs d. competitor's costs and actual costs

The standard price and quantity of direct materials are separated because a. standard quantities change more frequently than standard prices b. standard prices are more difficult to estimate than standard quantities c. direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department d. GAAP and IFRS reporting requires separation

A favorable cost variance occurs when a. standard costs are less than actual costs b. actual costs are the same as standard costs c. actual costs are more than standard costs d. standard costs are more than actual costs

The total manufacturing cost variance is a. the flexible budget variance plus the time variance b. the difference between planned costs and standard costs for units produced c. the difference between actual costs and standard costs for units produced d. None of these choices are correct.

If the price paid per unit differs from the standard price per unit for direct materials, the variance is a a. variable variance b. volume variance c. price variance d. controllable variance

If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a a. price variance b. time variance c. quantity variance d. rate variance

The formula to the compute direct labor time variance is to calculate the difference between a. Actual Costs - Standard Costs b. Actual Costs + Standard Costs c. Actual Costs - (Actual Hours × Standard Rate) d. (Actual Hours × Standard Rate) - Standard Costs

Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the a. fixed factory overhead volume variance b. direct labor time variance c. variable factory overhead controllable variance d. direct labor rate variance

Favorable volume variances may be harmful when a. production in excess of normal capacity cannot be sold b. supervisors fail to maintain an even flow of work c. machine repairs cause work stoppages d. All of these choices are correct.