Question
2. LO 8.1This standard is set at a level that may be reached with reasonable effort. ideal standard attainable standard unattainable standard variance from standard
2. LO 8.1This standard is set at a level that may be reached with reasonable effort.
- ideal standard
- attainable standard
- unattainable standard
- variance from standard
4. LO 8.1This variance is the difference involving spending more or using more than the standard amount.
- favorable variance
- unfavorable variance
- no variance
- variance
6. LO 8.2What are some possible reasons for a material price variance?
- substandard material
- labor rate increases
- labor rate decreases
- labor efficiency
8. LO 8.2When is the material price variance favorable?
- when the actual quantity used is greater than the standard quantity
- when the actual quantity used is less than the standard quantity
- when the actual price paid is greater than the standard price
- when the actual price is less than the standard price
10. LO 8.2When is the material quantity variance favorable?
- when the actual quantity used is greater than the standard quantity
- when the actual quantity used is less than the standard quantity
- when the actual price paid is greater than the standard price
- when the actual price is less than the standard price
12. LO 8.3What are some possible reasons for a labor rate variance?
- hiring of less qualified workers
- an excess of material usage
- material price increase
- utilities usage change
14. LO 8.3When is the labor rate variance favorable?
- when the actual quantity used is greater than the standard quantity
- when the actual quantity used is less than the standard quantity
- when the actual price paid is greater than the standard price
- when the actual price is less than the standard price
16. LO 8.3When is the direct labor time variance favorable?
- when the actual quantity used is greater than the standard quantity
- when the actual quantity used is less than the standard quantity
- when the actual price paid is greater than the standard price
- when the actual price is less than the standard price
18. LO 8.4A flexible budget ________.
- predicts estimated revenues and costs at varying levels of production
- gives actual figures for selling price
- gives actual figures for variable and fixed overhead
- is not used in overhead variance calculations
20. LO 8.4The variable overhead efficiency variance is caused by the difference between which of the following?
- actual and budgeted units
- actual and standard allocation base
- actual and standard overhead rates
- actual units and actual overhead rates
22. LO 8.5Which of the following is a possible cause of an unfavorable material price variance?
- purchasing too much material
- purchasing higher-quality material
- hiring substandard workers
- buying substandard material
24. LO 8.5Which of the following is a possible cause of an unfavorable labor efficiency variance?
- hiring substandard workers
- making too many units
- buying higher-quality material
- paying too much for workers
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