Question
73) Which of the following will result in an unfavorable direct materials efficiency variance? A) when the actual cost per unit of direct materials exceeds
73) Which of the following will result in an unfavorable direct materials efficiency variance?
A) when the actual cost per unit of direct materials exceeds the standard cost of direct materials
B) when the actual cost per unit of direct materials is less than the standard cost per unit of direct materials
C) when the actual quantity of direct materials used per unit exceeds the standard quantity of direct materials allowed per unit
D) when the actual quantity of direct materials used per unit is less than the standard quantity of direct materials allowed per unit
74) What does a favorable direct materials cost variance indicate?
A) The actual quantity of direct materials used was less than the standard quantity.
B) The actual cost of direct materials purchased was less than the standard cost of direct materials purchased.
C) The actual cost of direct materials purchased was greater than the standard cost of direct materials purchased.
D) The actual quantity of direct materials used was greater than the standard quantity.
77) The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with the factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to the company. Shortly afterward, several experienced and highly skilled workers resigned and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This would produce a(n) ________.
A) favorable direct materials cost variance
B) unfavorable direct labor cost variance
C) unfavorable direct labor efficiency variance
D) favorable direct materials efficiency variance
84) Complete the following table:
Variance | How is the variance calculated? | How does the variance arise? |
Flexible budget |
|
|
Sales volume |
|
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