Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: What is the direct materials quantity variance for the month? $850 favorable $850 unfavorable $1,950 favorable $1,950 unfavorable 5 points Save Answer QUESTION 2 Disadvantages of using standard costs and variances include all of the following except the excessive cost to keep standards up-to-date. companies that pay employees a salary because direct labor is a fixed cost rather than a variable cost. those manufacturing costs that enter Work in Process Inventory are recorded at standard cost, rather than actual cost. traditional standards can promote unfavorable employee behavior. 5 points Save Answer QUESTION 3 The variable overhead rate variance tells managers whether more or less was spent on variable overhead than they expected for the hours worked. True False 5 points Save Answer QUESTION 4 Standard costs for production inputs are used to develop flexible budgets. True False 5 points Save Answer QUESTION 5 The ________ "shows how well management has controlled overhead costs." overhead flexible budget variance production volume variance quantity variance price variance 5 points Save Answer QUESTION 6 A favorable direct materials price variance and an unfavorable direct materials quantity variance might indicate which of the following? Less expensive, inferior materials requiring less than the standard amount were used in production. Less expensive, inferior materials requiring more than the standard amount were used in production. More expensive, superior materials requiring more than the standard amount were used in production. More expensive, superior materials requiring less than the standard amount were used in production. 5 points Save Answer QUESTION 7 The following information describes a company's usage of direct labor in a recent period: How much is the direct labor efficiency variance? $8,375 favorable $8,375 unfavorable $8,500 unfavorable $8,500 favorable 5 points Save Answer QUESTION 8 How is the fixed overhead budget variance calculated? The difference between the standard fixed overhead rate and the actual fixed overhead rate multiplied by the actual hours used The difference between the standard fixed overhead costs allocated and the budgeted fixed overhead costs The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs The difference between the actual fixed overhead costs incurred and the standard fixed overhead costs allocated 5 points Save Answer QUESTION 9 Which variance is directly impacted if a worker drops the raw material during production and the raw material must be discarded? Direct materials quantity variance Direct materials price variance Direct labor rate variance Direct labor efficiency variance 5 points Save Answer QUESTION 10 How is the variable manufacturing overhead efficiency variance calculated? The difference between the actual overhead rate and the standard overhead rate multiplied by the standard overhead rate The difference between the standard hours allowed and the actual hours used multiplied by the standard overhead rate The difference between the standard hours allowed and the actual hours used The difference between the standard hours allowed and the actual hours used multiplied by the actual overhead rate 5 points Save Answer QUESTION 11 An LCD screen is purchased to be used in the manufacturing of a digital watch. The Standard Price (SP) for the LCD screen used is $40.00. During the month of February, 3,400 screens were purchased and used. The materials price variance was $6,000 unfavorable. The standard number of screens allowed for the actual number of watches manufactured during the period was 25,000 screens. The actual purchase price of each LCD screen may be closest to $39.76 per LCD screen. $40.24 per LCD screen. $38.24 per LCD screen. $41.76 per LCD screen. 5 points Save Answer QUESTION 12 Dozen Bakery makes cupcakes and cookies. Dozen gathered the following information for the current year regarding its use of flour and butter (flour is a direct material for cupcakes and butter is a direct material for cookies): The actual direct material quantity used per batch for Cupcakes may be closest to 2.9 lb. 1.7 lbs. 2.0 lbs. 0.4 lbs. 5 points Save Answer QUESTION 13 A standard cost income statement shows cost of goods sold at standard and then actual cost. True False 5 points Save Answer QUESTION 14 What type of variance results when the actual fixed overhead costs incurred are greater than the budgeted fixed overhead costs? Favorable fixed overhead budget variance Unfavorable fixed overhead budget variance Favorable fixed overhead volume variance Unfavorable fixed overhead volume variance 5 points Save Answer QUESTION 15 Sherwin Chemicals produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows: What is the Standard Price (SP) for bleach? $0.79/oz. $0.88/oz. $0.92/oz. $1.14/oz. 5 points Save Answer QUESTION 16 Litchfield Industries gathered the following information for the month ended June 31: The static budget volume is 5,500 units: Overhead flexible budget: Actual production was 12,000 units. Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs. Actual machine hours worked were 16,000 hours. What is the standard variable overhead rate per machine hour? $3.50 $4.31 $2.47 $3.86 5 points Save Answer QUESTION 17 How is the direct labor efficiency variance calculated? The difference between the standard labor hours allowed and the actual labor hours used multiplied by the actual labor rate The difference between the standard labor hours allowed and the actual labor hours used multiplied by the standard labor rate The difference between the standard labor hours and the actual labor hours used The difference between the standard labor rate and the actual labor rate 5 points Save Answer QUESTION 18 Cost of goods sold is shown at which of the following on a standard cost income statement? Standard cost Actual cost Neither Standard cost nor Actual cost Both Standard cost and Actual cost 5 points Save Answer QUESTION 19 The total direct labor variance is the sum of the direct labor rate variance and the direct labor efficiency variance. True False 5 points Save Answer QUESTION 20 MacBeth Fabrics budgeted to manufacture 1,400 curtains in February. Actual output for March was 1,575 curtains with total direct materials cost of $3,400 and total direct labor cost of $5,250. The direct labor standard is 20 minutes per curtain at a direct labor rate of 17.50 per hour. The direct material standard is 0.75 yards of direct materials per curtain at a cost of $13 per pound. Actual direct labor hours were 275. A variance analysis for February may show a direct labor rate variance of $2,506 favorable. $2,506 unfavorable. $438 favorable. $438 unfavorable.