Managerial Accounting Quiz #3

The flexible budget variance is the difference between the ________.

The difference between cost variances and efficiency variances pertains to ________.

Cavalaris Products uses a standard cost system. Overhead costs are allocated based on direct labor hours. In the first quarter, Cavalaris had an unfavorable cost variance for variable overhead costs. Which of the following scenarios is a reasonable explanation for this variance?

When a manufacturing company uses a standard cost system, the direct materials cost variance is recorded at the time direct materials are issued in production.

The efficiency variance measures ________.

Which of the following is not a flexible budget variance? A. total direct labor variance B. total direct materials variance C. total variable overhead variance D. total fixed overhead variance

Which of the following is a reason companies use standard costs? A. to enhance customer loyalty B. to ensure the accuracy of the financial records C. to set sales prices of products and services D. to share best practices with other companies

Cake Lady Bakery is famous for its frosted fruit cake. The main ingredient of the cake is dried fruit, which Cake Lady purchases by the pound. In addition, the production requires a certain amount of direct labor. Cake Lady uses a standard cost system, and at the end of the first quarter, there was an unfavorable direct labor cost variance. Which of the following is a logical explanation for that variance?

The person probably most responsible for the direct labor efficiency variance is