1. When more hours of labor time are necessary to complete a job than the standard allows, the labor rate variance is unfavorable. A) True B) False

2. Standard costs should generally be based on the actual costs of prior periods. A) True B) False MC

3. TB 36 The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output; 2.7 atandard variable overhead rate $13.05 The following data pertain to operations for the last month: ACTUAL HOURS 2,400 Actual total variable manufacturing overhead cost $30,360 Actual output 600 units What is the variable overhead efficiency variance for the month? A) $9,219 U B) $10,179 U C) $9,867 U D) $648 U

4. TB 30 The following labor standards have been established for a particular product: Standard labour hour per unit 4.0 hours standard labor rate $12.30 per hour The following data pertain to operations concerning the product for the last month: Actual hour worked 7100 hours actual total cost 89105 actual output 1500 units. What is the labor efficiency variance for the month? A) $13,805 U B) $13,530 U C) $15,305 U D) $15,305 F

5. TB 88 Caquias Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for August is: A) $2,360 U B) $2,360 F C) $2,226 U D) $2,226 F

6. TB 21 Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the direct labor efficiency variance is unfavorable, the variable overhead efficiency variance will be: A) favorable. B) unfavorable. C) either favorable or unfavorable. D) zero.

7. TB 101 Landram Corporation makes a product with the following standard costs: In March the company produced 4,700 units using 10,230 kilos of the direct material and 2,210 direct labor-hours. During the month, the company purchased 10,800 kilos of the direct material at a cost of $76,680. The actual direct labor cost was $38,233 and the actual variable overhead cost was $11,934.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for March is: A) $2,660 F B) $2,422 F C) $2,422 U D) $2,660 U

8. TB 37 The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead rate variance for the month? A) $1,200 F B) $9,625 F C) $8,425 F D) $990 U

9. TB 65 Snuggs Corporation makes a product with the following standard costs: The company reported the following results concerning this product in October. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for October is: A) $510 U B) $480 F C) $480 U D) $510 F

10. TB 139 Fabiano Corporation makes a product whose direct labor standards are 0.5 hours per unit and $23.00 per hour. In February the company produced 3,300 units using 1,640 direct labor-hours. The actual direct labor cost was $38,540. The labor rate variance for February is: A) $825 U B) $820 U C) $820 F D) $825 F