8.If the Standard Quantity of Direct Materials to produce a unit of Inventory is 5 litres, and the actual number of total Litres used to produce two units of Inventory was 8, then what is the Direct Materials Quantity variance if each litre's Standard Cost to purchase is $1.00:

a.$2.00 Unfavourable

b.$4.00 Unfavourable

c.$4.00 Favourable

d.$2.00 Favourable

9.An Unfavourable Direct Labour Efficiency Variance in a factory would most likely be caused by:

a.The recent hiring of new inexperienced employees on the factory assembly line

b.A recent increase in wages due to a new Union Agreement being signed

c.The recent hiring of new inexperienced sales people

d.Having to give more hours than expected to Indirect Labour

10.The salaried receptionist at a Law Firm is an example of:

a.Fixed Overhead

b.Variable Overhead

c.Indirect Labour

d.Direct Labour

11.If the Plant Manager was budgeted to be paid $96,000 a year and was actually paid $9,000 in the month of June, then this would contribute to the following type of Variance in the month of June:

a)$1,000 Unfavourable Budget Variance

b)$1,000 Favourable Budget Variance

c)$1,000 Unfavourable Spending Variance

d)$1,000 Favourable Spending Variance

12.If the standard cost of lubricants was determined to be $2.00 per can and the actual cost for May was $1.75 per can then this would likely contribute to what type of Variance in the month of May:

a.Favourable Spending Variance

b.Favourable Price Variance

c.Favourable Efficiency Variance

d.Favourable Volume Variance

13.A Favourable Direct Materials Quantity Variance most likely would result from:

a.The purchase of high quality materials from a supplier

b.Hiring new inexperienced employees on the factory assemly line

c.Adding to the marketing staff

d.Finding a lower cost supplier

14.The Variable Overhead Efficiency Variance is only useful if:

a.There is a correlation between machine and labour hours

b.It's being used in a factory setting

c.Machine hours are really the actual hours the machine was used

d.Actual machine Hours differ from budgeted machine hours

15.in a highly automated factory where it only takes a small number of employees to work on the assemply line during produciton, the most likely denominator to be used in the calculation of a pre-determined overhead rate would be:

a.Direct Labour dollars

b.a combination of Direct Labour and Machine hours

c.Machine hours

d.Direct Labour Hours

16.Which of the following is not an advantage of a Standard Costing system:

a.Improves Accountability

b.Minimizes ongoing inefficiciencies

c.Promotes efficiency

d.The Cost of setting up the system