. A variance can best be described as A. benchmarks common to other firms in the same industry. B. differences between planned results and actual results. C. useful for performance evaluations but not making decisions. D. generally accepted accounting principles when standards are used.

2. In the general model, a price variance is calculated as A. (AP AQ) - (AP SQ) B. (AP SQ) - (SP SQ) C. (AP AQ) - (SP AQ) D. (AP AQ) - (SP SQ)

3. In the general model, an efficiency variance is calculated as A. (SP AQ) - (SP SQ) B. (AP SQ) - (SP SQ) C. (AP AQ) - (SP SQ) D. (AP AQ) - (SP AQ)

4. Which variance will be unfavorable due to employees working more hours than allowed for the actual number of units produced? A. Price (rate) B. Efficiency C. Sales activity D. Production volume

5. Which of these variances is least significant for cost control? A. labor price variance B. material quantity variance C. fixed overhead price variance D. production volume variance E. labor efficiency variance

6. The production volume variance is computed by the difference between the A. actual fixed overhead and applied fixed overhead. B. actual fixed overhead and budget at actual level of activity reached. C. actual fixed overhead and budget at denominator level of activity planned. D. budget at actual levels of activity reached and fixed overhead applied.

7. Standard quantities and costs are used for

A. direct material only

B. direct labor only.

C. direct material and direct labor only.

D. direct material, direct labor, and overhead.

8. Which variance will be unfavorable due to the production department using more materials than allowed for the actual number of units produced?

A. Efficiency B. Production volume C. Price (rate) D. Sales activity

9. The material price variance is

A. the difference between the actual cost of material purchased and used and the standard cost of material purchased and used.

B. the difference between the actual cost of material purchased and the standard cost of material used.

C. primarily the responsibility of the production manager.

D. both b and c.

10. In a standard cost system, Work in Process Inventory is ordinarily debited with

A. actual costs of material and labor and a predetermined overhead cost for overhead.

B. standard costs of material and labor and a predetermined overhead cost for overhead.

C. standard costs of material, labor and overhead.

D. actual costs of material, labor and overhead.