33.

Which of the following would be most effective in a small owner/manager-operated business?

a.cost centers

b.investment centers

c.profit centers

d.centralization

30.

The following data relate to direct labor costs for March:

Rate: standard, $12.00; actual, $12.25 Hours: standard, 18,500; actual, 17,955 Units of production: 9,450

The direct labor time variance is

a.$2,362.50 unfavorable

b.$6,540.00 unfavorable

c.$2,362.50 favorable

d.$6,540.00 favorable

29.

The following data relate to direct materials costs for February: Materials cost per yard: standard, $1.94; actual, $2.05 Yards per unit: standard, 4.61 yards; actual, 5.19 yards Units of production: 9,100 The direct materials quantity variance is

a.$10,819.90 favorable

b.$10,239.32 favorable

c.$10,239.32 unfavorable

d.$10,819.90 unfavorable

28.

The following data relate to direct materials costs for February: Materials cost per yard: standard, $1.94; actual, $2.05 Yards per unit: standard, 4.64 yards; actual, 4.96 yards Units of production: 9,100 The direct materials price variance is

a.$1,001.00 unfavorable

b.$4,964.96 unfavorable

c.$4,964.96 favorable

d.$4,644.64 favorable

24.

The following data are given for Harry Company:

Budgeted production	1,079 units
Actual production	954 units
Materials:
Standard price per ounce	$1.784
Standard ounces per completed unit	12
Actual ounces purchased and used in production	11,791
Actual price paid for materials	$24,172
Labor:
Standard hourly labor rate	$14.52 per hour
Standard hours allowed per completed unit	4.6
Actual labor hours worked	4,913
Actual total labor costs	$79,836
Overhead:
Actual and budgeted fixed overhead	$1,196,000
Standard variable overhead rate	$25.00 per standard labor hour
Actual variable overhead costs	$137,564
Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)

The direct labor rate variance is

a.$16,116.43 unfavorable

b.$8,499.49 favorable

c.$8,499.49 unfavorable

d.$16,116.43 favorable

23.

The following data relate to direct labor costs for February:

Actual costs	7,700 hours at $14.00
Standard costs	7,000 hours at $16.00

The direct labor rate variance is

a.$14,000 favorable

b.$15,400 favorable

c.$14,000 unfavorable

d.$15,400 unfavorable

20.

The following data relate to direct labor costs for the current period:

Standard costs	7,200 hours at $11.90
Actual costs	6,000 hours at $10.50

The direct labor rate variance is

a.$22,680 unfavorable

b.$8,400 favorable

c.$22,680 favorable

d.$14,280 favorable

13.

The standard costs and actual costs for direct materials for the manufacture of 2,000 actual units of product are as follows:

Standard Costs
Direct materials	2,000 kilograms at $8.80
Actual Costs
Direct materials	2,100 kilograms at $8.35

The direct materials quantity variance is

a.$704 favorable

b.$880 unfavorable

c.$880 favorable

d.$704 unfavorable

3.

Which of the following conditions normally would not indicate that standard costs should be revised?

a.The Engineering Department has revised product specifications in responding to customer suggestions.

b.The average price of raw materials increased from $4.68 per pound to $4.82 per pound.

c.The company has signed a new union contract that increases the factory wages on average by $3.50 an hour.

d.Actual costs differed from standard costs for the preceding week.

4.

Standard costs are used in companies for a variety of reasons. Which of the following is not one of the benefits for using standard costs?

a.They are used to estimate the cost of inventory.

b.They are used to control costs.

c.They are used to plan direct materials, direct labor, and variable factory overhead.

d.They are used to indicate where changes in technology and machinery need to be made.

5.

A report that summarizes actual costs, standard costs, and the differences for the units produced is called a

a.zero-based budget report

b.budget performance report

c.master budget

d.budget