59. Setting standards

a. Has important behavioral implications

b. Is largely a matter of calculating rates and quantities

c. Should be done to make them as tight as possible

d. Is done only for manufacturing activities

60. A major drawback to setting standards based on historical results is that such standards

a. Can perpetuate inefficiencies

b. Are harder to compute than are engineered standards

c. Are usually too hard to meet because of inflation

d. Are usually not well received by workers.

61. Each finished unit of Product Lui contains 60 pounds of raw material. The manufacturing process must provide for a

20% waste allowance. The raw material can be purchased for a cost of P 2.50 a pound under terms of 2/10, n/30. The

company takes all cash discounts. What is the standard direct material cost of each unit of product Lui?

a. P 180.00 c. P 183.75

b. P 187.50 d. P 176.40

62. The following direct labor information pertains to the manufacture of product Lu:

Time required to make one unit 2 labor hours

Number of direct workers 50

Number of productive hours per week, per worker 40

Weekly wages per worker P 500

Workers' benefit treated as direct labor costs 20% of wages

What is the standard direct labor cost per unit of product Lu?

a. P 30 c. P 15

b. P 24 d. P 12

63. A standard costing system may be used in

a. Process costing but not job-order costing c. Either job-order costing or process costing

b. Job-order costing but not process costing d. Neither process costing nor job-order costing

64. Which one of the following management practices involves concentrating on areas that deserve attention and placing

less attention on areas operating as expected?

a. Management by objectives c. Benchmarking

b. Responsibility accounting d. Management by exception

65. Which of the following is best identified with a system of standard costing?

a. Variable costing c. Contribution margin approach

b. Management by exception d. Standardized accounting system

66. 'Management by exception,' in relation to standard costing, means

a. Only large favorable variance need to be investigated

b. Only large unfavorable variance need to be investigated

c. Only large variances, favorable or unfavorable, need to be investigated

d. Only small variances need to be investigated

67. How should a variance that is significant in amount be treated at the end of an accounting period?

a. Reported as a deferred charge or credit

b. Allocated among work-in-process inventory, finished goods inventory, and cost of goods sold

c. Charged or credited to cost of goods manufactured

d. Allocated among cost of goods manufactured, finished goods inventory, and cost of goods sold

68. What is the normal year-end treatment of immaterial variances recognized in a standard cost system?

a. Allocated among cost of goods manufactured and ending work in process inventory

b. Reclassified to deferred charges until all related production is sold

c. Closed to cost of goods sold in the period in which they arose

d. Capitalized as cost of ending finished goods inventory

69. Standard costing will produce the same results as actual costing when variances are distributed to

B a. CGS c. Income Summary

CGS and inventories d. WIP and finished goods inventory

70. The sum of material price variance and material use variance always equals the difference between

a. Actual and standard material purchases

b. Actual material purchases and standard material use

c. Standard material purchases and standard material use

d. Actual cost of material use and standard cost of materials allowed for production

71. Which of the following is NOT a quantity variance?

a. Material use variance c. Fixed overhead budget variance

b. Labor efficiency variance d. Variable overhead efficiency variance

72. Which variance CANNOT arise under a standard variable costing system?

a. Variable overhead budget variance c. Fixed overhead budget variance

b. Variable overhead efficiency variance d. Fixed overhead volume variance

73. Which item is NOT used to compute the fixed overhead volume variance?

a. Standard fixed cost per unit c. Actual fixed overhead

b. Budgeted fixed overhead d. Actual quantity produced

74. Which variance is LEAST likely affected by hiring workers with less skill than those already working?

a. Labor rate variance c. Material price variance

b. Material use variance d. Variable overhead efficiency variance

I NEED ANSWERS ASAP!!!