Chapter 10: Standard Costs and Variances

If the actual level of activity is greater than the planned level of activity, the activity variances will be ______.

Which of the following statements are true?

Quantity standards refer to the price to be paid for each unit of the input.

How much should be paid for each unit of an input is specified by a(n) ______standard.

Material requirements plus an allowance for normal inefficiencies are added together to determine the_________ of a direct material per unit of output.

The calculation of a standard price per unit of direct materials includes ______.

Standards are ______.

How much input should be used to produce a product or provide a service is a(n) standard

True or false: The standard hours per unit includes both direct and indirect labor hours.

How much should be paid for an input is indicated by a price____

The standard hours per unit of an output includes ______.

Which of the following are used to calculate the standard quantity per unit of direct materials?

The standard labor rate per hour ______.

The final, delivered price that should be paid for each unit of direct materials is the________-price per unit of materials.

The standard cost for ______ manufacturing overhead is computed the same way as the standard cost for direct labor.

Which of the following statements are true?

The amount of direct-labor hours that should be used to produce one unit of finished goods is the hours per unit.

When setting direct labor standards ______.

Standard quantities and the cost of the inputs to make a single product are accumulated on a(n) card.

The standard rate per hour includes ______.

The standard rate per unit that a company expects to pay for variable overhead equals the ______.

The difference between actual results and the flexible budget amount is a(n) variance

The standard quantity or hours and the standard price or rate required to produce a unit of a specific product is shown on a standard

The materials price variance is calculated using the ______ quantity of the input purchased.

When the actual cost incurred exceeds the standard cost allowed for the actual level of output, the spending variance is ______.

When the standard cost allowed for the actual output is less than the standard cost allowed for the planned output the activity variance is labeled as ______.

A quantity variance is ______.

A price variance is the difference between the ______.

All materials variances are generally the responsibility of the production manager.

The spending variance is ______.

A planning budget called for 500 units to be produced and total direct labor cost of $7,500. Actual production was 600 units and actual direct labor cost was $9,300. The spending variance is:

Which of the following statements is true?

The difference between the amount of an input used and the amount that should have been used, all evaluated at the standard price for the input, is called a(n)

True or false: The standard hours or quantity allowed for an input is the amount of the input that should have been used to produce the standard output for the period.

The purchasing manager is generally responsible for the material variance, and the production manager is generally responsible for the material variance.

To calculate a quantity variance, multiply the quantity times the standard price and compare it to the standard quantity allowed times the

The difference between the actual price paid for the material and what should have been paid according to the standard is reflected in the direct materials

When the actual cost incurred exceeds the standard cost allowed for the actual level of output, the spending variance is ______.

When the standard purchase price is less than the actual price paid for materials, the material price variance is

The amount of an input that should have been used to produce the actual output is known as the quantity or hours allowed.

The materials price variance is ______.

True or false: All materials variances are generally the responsibility of the production manager.

The material quantity variance reflects the difference between the quantity of materials used in production and the quantity allowed for the actual output.

The materials price variance is the difference between the actual price of materials ______.

When the standard price is higher than the actual price, the materials price variance is ______.

Which of the following statements is true?

The materials price variance is generally the responsibility of the department manager.

The difference between the actual materials used in production and the standard amount allowed for the actual output is reflected in the materials variance.

When the actual quantity of materials used is less than the standard quantity allowed, the material quantity variance is labeled as

The difference between the actual price paid for the material and what should have been paid according to the standard is reflected in the direct materials variance

Which of the following statements are true?

When the standard purchase price is less than the actual price paid for materials, the material price variance is

A materials price variance is equivalent to a labo______ variance and a materials quantity variance is equivalent to a labor_____ variance

The materials price variance is ______.

An unfavorable materials quantity variance occurs when ______.

The standard price of materials is $3.50 per pound and the standard quantity allowed for actual output is 7,000 pounds. If the actual quantity purchased and used was 6,700 pounds, and the actual price per pound was $3.40, the direct materials price variance is $

The materials quantity variance is generally the responsibility of the_______department manager

The standard price of materials is $3.50 per pound and the standard quantity allowed for actual output is 7,000 pounds. If the actual quantity purchased and used was 6,700 pounds, and the actual price per pound was $3.40, the direct materials quantity variance is $

The terms price and quantity are used when computing direct variance, while the terms rate and hours are used when computing direct variances.

Using the information provided, calculate the materials quantity variance.

The difference between the standard and the actual direct labor hourly rates is reflected in the variance.

The materials price variance is calculated using the ______.

When the standard hourly rate is lower than the actual rate, the labor rate variance is ______.

The material variance terms price and quantity are replaced with the terms and when computing direct labor variances.

SP(AQ-SQ) is the formula for the materials variance.

True or false: The labor rate variance measures the productivity of direct labor.

When the actual hourly rate is lower than the standard hourly rate, the labor rate variance is

Which of the following statements are true?

Using the information provided, calculate the materials quantity variance.

True or false: A favorable labor rate variance is always favorable for a company.

The difference between the actual hours used and the standard hours allowed for the actual output is used in the calculation of the labor variance.

The standard price of materials is $4.10 per pound and the standard quantity allowed for actual output is 5,800 pounds. If the actual quantity purchased and used was 6,000 pounds, and the actual price per pound was $4.00, the direct materials price variance is ______.

When demand for a product is insufficient to keep all of the production workers busy and no layoffs occur, an unfavorable variance may occur.

Which of the following statements are true?

The labor efficiency variance is generally the responsibility of the ______ manager.

The labor efficiency variance is the difference between actual hours used and standard hours allowed multiplied by the ______ hourly rate.

The materials price variance is calculated using the ______.

Poor supervision is one possible cause of an unfavorable ______ variance.

If managers consider it unwise to adjust the workforce in response to changes in workload ______.

Unfavorable labor rate variances may occur as a result of ______.

Which of the following statements are correct?

If poor-quality materials results in excessive labor processing time, the manager will probably be held responsible for the labor efficiency variance.

Use the following information to calculate the labor rate variance for Adkinson Company. Actual hours used 5,500 Standard hours allowed 5,800 Actual labor rate $14.75 per hour Standard labor rate $14.00 per hour

Use the following information to calculate the labor efficiency variance for Adkinson Company. Actual hours used 5,500 Standard hours allowed 5,800 Actual labor rate $14.75 per hour Standard rate $14.00 per hour

True or false: Managers reluctance to constantly adjust the workforce in response to decreases in the amount of work that needs to be done often leads to an unfavorable labor efficiency variance.

The same basic formulas used for materials and labor are used to analyze ______ portion of manufacturing overhead.

Excessive inventory on hand, especially in the work in process inventory account, may lead to ______.

The labor efficiency variance is the difference between actual hours used and standard hours allowed multiplied by the ______ hourly rate.

SR(AH - SH) is the formula for the ______ variance.

The same basic formulas used for materials and labor are used to analyze the portion of manufacturing overhead.

Which of the following statements are correct?

When direct labor is used as the overhead allocation base, the variable overhead efficiency variance ______.

The difference between the actual level of activity and the standard activity allowed for the actual output x the variable part of the predetermined overhead rate is the variable overhead variance.

AH(AR - SR) is the formula for the variable overhead variance.

Based on the following information, calculate the variable overhead rate variance. Actual variable overhead cost $15,500 Actual hours used 4,200 Standard hours allowed 4,000 Standard variable overhead rate $3.75 per hour

Most companies compute the material price variance when materials are ______ and the material quantity variance when materials are ______.

The same basic formulas used for materials and labor are used to analyze the portion of manufacturing overhead

Standard costs fit naturally into an integrated system of accounting.

Given the following information, calculate the variable overhead efficiency variance.

When using a standard cost system, ______.

The materials price variance is generally calculated at the time materials are purchased because ______.