1 At the end of the fiscal year, the variances from standard are usually transferred to the finished goods account. Question 1 options: False True Question 2 One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs. Question 2 options: True False Question 3 The predetermined overhead rate for Weed-B-Gone is $10, comprised of a variable overhead rate of $6 and a fixed rate of $4. The amount of budgeted overhead costs at normal capacity of $300,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $10. Actual overhead for June was $19,000 variable and $12,100 fixed, and standard hours allowed for the product produced in June was 3,000 hours. The total overhead variance is Question 3 options: $1,100 unfavorable $1,100 favorable $6,100 unfavorable $6,100 favorable Question 4 At the end of the year, the variances from standard are usually transferred to the work in process account. Question 4 options: False True Question 5 The total standard cost to produce one unit of product is shown Question 5 options: at the bottom of the balance sheet on the standard cost card at the bottom of the income statement in the Work in Process Inventory account Question 6 The following data relate to direct materials costs for November: Actual costs......................................................4,500 pounds at $6.00 Standard costs...................................................4,600 pounds at $5.50 What is the direct materials price variance? Question 6 options: $2,300 U $1,700 U $2,250 U $2,250 F Question 7 The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 5,600 gallons of direct materials that actually cost $21,200 were used to produce 3,000 units of product. The direct materials quantity variance for last month was Question 7 options: $1,200 favorable $1,600 favorable $1,600 unfavorable $2,800 unfavorable Question 8 A standard which represents an efficient level of performance that is attainable under expected operating conditions is called a(n) Question 8 options: tight standard ideal standard loose standard normal standard Question 9 The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing Question 9 options: actual overhead costs by actual activity budgeted overhead costs by actual activity budgeted overhead costs by an expected standard activity index actual overhead costs by an expected standard activity index. Question 10 Breakmorning Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The purchase price is $3 per pound, but a 2% discount is usually taken. Freight costs are $.15 per pound, and receiving and handling costs are $.10 per pound. The hourly wage rate is $10.00 per hour, but a raise which will average $.25 will go into effect soon. payroll taxes are $1.00 per hour, and fringe benefits average $2.00 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively. The standard direct materials price per pound is Question 10 options: $3.00 $3.25 $3.19 $2.94