INDICATE THE BEST ANSWER To EACH oF THE FOLLSWING BUE PUT YOUR ANSWERS TO NOS. 1-5 ON THE SCAN TRON FORM True/False Indicate whether the statement is true or false Ifthe standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at S17, the rate variance was $1,200 favorable 1. The variance from standard for factory overhead cost resulting from operating at a level above or below 100% of normal capacity is termed volume variance. 2. Multiple Choice dentiy the choice that best completes the statement or amswers the question. 3. Which of the following conditions normally would not indicate that standard costs should be revised? The engineering department has revised product specifications in responding to customer a. suggestions. b. The company has signed a new union contract which increases the factory wages on average by $2.00 an hour. Actual costs differed from standard costs for the preceding week. c. d. The world price of raw materials increased. The standard price and quantity of direct materials are separated because: GAAP reporting requires, this separation direct materials prices are controlled by the purchasing department, and quantity used is controlled by the production department standard quantities are more difficult to estimate than standard prices standard prices change more frequently than standard quantities a. b. c. d. 5. If at the end of the fiscal year the variances from standard are significant, the variances should be transferred to the: a. work in process account b. cost of goods sold account c. finished goods account d. work in process, cost of goods sold, and finished goods accounts