1. Which of the following is a purpose of standard costing?

a. To replace budgets and budgeting

b. To simplify costing procedures and expedite cost reports

c. To eliminate under/over applied factory overhead at the end of period

d. To use them as a basis for product costing for external reporting purposes

2. A primary purpose of using a standard cost system is

a. To minimize the cost per unit of production

b. To provide a distinct measure of cost control

c. To make things easier for managers in the production facility

d. To minimize recording of certain recurring business transactions

3. Standard costs are LEAST useful for

a. Measuring production efficiency c. Estimating future costs

b. Simplifying costing procedures d. Determining minimum inventory levels

4. Which of the following is true concerning standard costs?

a. If properly used, standards can help motivate employees.

b. Standard costs are difficult to use with a process-costing system.

c. Standard costs are estimates of costs attainable only under the most ideal conditions, but rarely

practicable.

d. Unfavorable variances, when material in amount, should be investigated, but favorable variances need

not be investigated.

5. A company using very tight standards in standard cost system should expect that

a. No incentive bonus will be paid

b. Most variances will be unfavorable

c. Employees will be strongly motivated to attain the standards

d. Costs will be controlled better that if lower standards were used

6. The materials cost variance is composed of

B a. Quantity and efficiency variances c. Price and mix variances

b. Quantity and price variances d. Mix and yield variances

7. What is the variation in the use of materials at actual prices and use of materials at standard prices?

a. Materials price variance c. Materials mix variance

b. Materials usage variance d. Materials yield variance

8. Ant Company installs solar panels on residential houses. The standard material cost for Type-C house is P 1,250 based

on 1,000 units at a cost of P 1.25 each. During April, Ant Company installed solar panels on 20 Type-C houses, using

22,000 units of materials at a cost of P 1.20 per unit, and a total cost of P 26,400. What is Ant Company's materials

spending (price) variance?

9. Information on Beatle Company's direct materials cost is as follows:

Actual units of direct materials used 20,000

Actual direct materials costs 40,000

Standard price per unit of direct materials P 2.10

Direct material quantity variance, favorable P 3,000

What was Beatle's materials price variance?

10. Information on Termites Company's direct-material costs is as follows:

Standard unit price P 3.60

Actual quantity purchased 1,600

Standard quantity allowed for actual production 1,450

Materials purchase price variance, favorable P 240

What was the actual purchase price per unit, rounded to the nearest centavo?

11. If a company follows the practice of isolating variance at the earliest point in time, what would be the appropriate time

to isolate and recognize a direct material price variance?

a. When material is issued to the requesting department or division

b. When material is purchased

c. When material is used in production

d. When purchase order is originated

12. A credit balance in the materials price variance indicates that

a. Actual price exceeds standard price c. Actual quantity exceeds standard quantity

b. Standard price exceeds actual price d. Standard quantity exceeds actual quantity

13. Roach Company manufactures tables with glass tops. The standard material cost for the glass used per table is P7.80

based on six square-feet of vinyl at a cost of P 1.30 per square-foot. A production run of 1,000 tables in 2021 resulted

to usage of 6,400 square-feet of vinyl at a cost of P 1.20 per square-foot, a total of P 7,680. What was the materials

usage variance resulting from the above production run?

ASAP . WILL RATE UNHELPFUL IF IT TAKES TOO MUCH TIME