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MAC 411 - Quiz - Cost and Variance Measures - Answer Key

Standard Costing

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198 views1 page

MAC 411 - Quiz - Cost and Variance Measures - Answer Key

Standard Costing

Uploaded by

Jyrsonmae Galagar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MAC 411 – Performance Management Systems

Cost and Variance Measures


Quiz
A. 994 units C. 1,000 units
1. The standard price and quantity of direct materials B. 1,090 units D. 1,160 units
are separated because:
A. GAAP reporting requires this separation 7. The following direct labor information pertains to the
B. Direct materials prices are controlled by the manufacture of product Glu:
purchasing department, while quantity used is Time required to make one unit 2 DL hours
controlled by the production department Number of direct workers 50
C. Standard quantities are more difficult to Number of productive hours
estimate than standard prices per week, per worker 40
D. Standard prices change more frequently than Weekly wages per worker $500
standard quantities Workers’ benefits treated as
direct labor costs 20% of wages
2. The variance least significant for purposes of What is the standard direct labor cost per unit of
controlling costs is the: product Glu?
A. Material usage variance A. $30 C. $15
B. Variable overhead efficiency variance B. $24 D. $12
C. Fixed overhead spending variance
D. Fixed overhead volume variance 8. Web Company uses a standard cost system in which
manufacturing overhead is applied to units of
3. Which of the following statements concerning product on the basis of machine hours. During
practical standards is incorrect? February, the company used a denominator activity
A. Practical standards can be used for product of 80,000 machine hours in computing its
costing and cash budgeting. predetermined overhead rate. However, only 75,000
B. Practical standards can be attained by the standard machine hours were allowed for the
average worker. month's actual production. If the fixed overhead
C. When practical standards are used, there is no volume variance for February was $6,400
reason to adjust standards if an old machine is unfavorable, then the total budgeted fixed overhead
replaced by a newer, faster machine. cost for the month was:
D. Under practical standards, large variances are A. $96,000 C. $100,000
less likely to occur than under ideal standards. B. $102,400 D. $98,600

4. Which of the following conditions normally would not 9. ABC had a P28,000 favorable volume variance, a
indicate that standard costs should be revised? P25,000 unfavorable variable overhead spending
A. The engineering department has revised product variance, and P12,000 total overapplied overhead.
specifications in responding to customer The fixed overhead budget variance was
suggestions. A. P9,000 favorable
B. The company has signed a new union contract B. P9,000 unfavorable
which increases the factory wages on average by C. P26,000 favorable
P2.00 an hour. D. P26,000 unfavorable
C. Actual costs differed from standard costs for the
preceding week. 10. STA Company’s standard fixed overhead cost is P3
D. The world price of raw materials increased. per direct labor hour based on budgeted fixed costs
of P300,000. The standard allows 2 direct labor hours
5. Managers who properly apply the concept called per unit. During 2024, STA produced 55,000 units of
"management by exception" will: product, incurred P315,000 of fixed overhead costs,
A. Investigate only unfavorable variances. and recorded 106,000 actual hours of direct labor.
B. Investigate only favorable variances. What are the fixed overhead variances?
C. Always investigate unfavorable and favorable Fixed Spending (Budget) Volume
variances regardless of size. A. 15,000 U 30,000 F
D. Investigate only variances of a certain size or B. 33,000 U 30,000 F
scope. C. 15,000 U 18,000 F
D. 33,000 U 18,000 F
6. JKL Company has a standard of 15 parts of
component X costing P1.50 each. JKL purchased
14,910 units of component X for P22,145. JKL
generated a P220 favorable price variance and a
P3,735 favorable quantity variance. If there were no
changes in the component inventory, how many units
of finished product were produced?

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