1)This standard is set at a level that may be reached with reasonable effort.

A.attainable standard

B.variance from standard

C.ideal standard

D.unattainable standard

2)This variance is the difference involving spending more or using more than the standard amount

A.favorable variance

B.unfavorable variance

C.no variance

D.variance

3)What are some possible reasons for a material price variance?

A.labor efficiency

B.labor rate increases

C.substandard material

D.labor rate decreases

4)When is the material price variance favorable?

A.when the actual price paid is greater than the standard price

B.when the actual price is less than the standard price

C.when the actual quantity used is less than the standard quantity

D.when the actual quantity used is greater than the standard quantity

5)When is the material quantity variance favorable?

A.when the actual price paid is greater than the standard price

B.when the actual quantity used is greater than the standard quantity

C.when the actual quantity used is less than the standard quantity

D.when the actual price is less than the standard price

6)What are some possible reasons for a labor rate variance?

A.an excess of material usage

B.hiring of less qualified workers

C.utilities usage change

D.material price increase

7)When is the labor rate variance favorable?

A.when the actual quantity used is less than the standard quantity

B.when the actual price paid is greater than the standard price

C.when the actual quantity use is greater than the standard quantity

D.when the actual price is less than the standard price

8)When is the direct labor time variance favorable?

A.when the actual price paid is greater than the standard price

B.when the actual quantity used is greater than the standard quantity

C.when the actual quantity used is less than the standard quantity

D.when the actual price is less than the standard price

9)A flexible budget is ___________________.

A.gives actual figures for variable and fixed overhead

B.gives actual figures for selling price

C.predicts estimated revenues and costs at varying levels of production

D.is not used in overhead variance calculations

10)The variable overhead efficiency variance is caused by the difference between which of the following?

A.actual and standard overhead rates

B.actual and budgeted units

C.actual units and actual overhead rates

D.actual and standard allocation base

11)Which of the following is a possible cause of an unfavorable material price variance?

A.hiring substandard workers

B.buying substandard materials

C.purchasing higher-quality material

D.purchasing too much material

12)Which of the following is a possible cause of an unfavorable labor efficiency variance?

A.paying too much for workers

B.making too many units

C.buying higher-quality materials

D.hiring substandard workers