MULTIPLE CHOICE

11. .If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed:

a. rate variance

b. controllable variance

c. price variance

d. quantity variance

e. purchasing variance

12. If the price paid per unit differs from the standard price per unit for direct materials, the variance is termed:

a. Volume variance

b. variable variance

c. controllable variance

d. quantity variance

e. price variance

13. If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is termed:

a. volume variance

b. variable variance

c. rate variance

d. quantity variance

e. controllable variance

14. If the actual direct labors hours spent producing a commodity differs from the standard hours, the variance is termed:

a. rate variance

b. time variance

c. price variance

d. quantity variance

e. uncontrollable variance.

15. The following data relate to direct labor costs for the current period:

Standard costs 6,000 hours at $12.00

Actual costs 7,500 hours at $11.60

What is direct labor time variance?

a. $2,400 favorable

b. $3,000 favorable

c. $15,000 unfavorable

d. $17,400 unfavorable

e. $18,000 unfavorable

16. The following data relate to direct labor costs for the current period:

Standard costs 6,000 hours at $12.00

Actual costs 7,500 hours at $11.60

What is direct labor rate variance?

a. $2,400 favorable

b. $3,000 favorable

c. $15,000 unfavorable

d. $17,400 unfavorable

e. $18,000 unfavorable

17. The following data relate to direct labor costs for the current period:

Standard costs 36,000 hours at $22.50

Actual costs 35,000 hours at $23.00

What is direct labor rate variance?

a. $5,000 favorable

b. $17,500 unfavorable

c. $18,000 unfavorable

d. $22,500 favorable

e. $23,000 favorable

18. . The following data relate to direct labor costs for the current period:

Standard costs 36,000 hours at $22.50

Actual costs 35,000 hours at $23.00

What is direct labor time variance?

a. $5,000 favorable

b. $17,500 unfavorable

c. $18,000 unfavorable

d. $22,500 favorable

e. $23,000 favorable

19. The standard fixed factory overhead rate is based on normal capacity of 50,000 direct labor hours. The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows:

Standard: 40,000 hours at $3 $120,000

Actual: Factory overhead (41,000 direct labor hours) 131,200

If there was an $9,000 unfavorable volume variance for December, what is the standard fixed factory overhead cost rate?

a. $.80

b. $.90

c. $1.00

d. $2.40

e. $3.00

20. The standard fixed factory overhead rate is $10 per direct labor hour($8 for variable factory overhead and $2 for fixed factory overhead) based on normal capacity of 30,000 direct labor hours The standard costs and the actual costs for factory overhead for the production of 5,000 units during the May were as follows:

Standard: 25,000 hours at $10 $250,000

Actual: Variable factory overhead.. 202,500

Fixed factory overhead.... 60,000

What is the amount of the factory overhead volume variance?

a. $10,000 favorable

b. $10,000 unfavorable

c. $12,500 favorable

d. $12,500 unfavorable

e. $20,250 unfavorable