The standard cost card contains quantities and costs for _______. (Points: 1) direct material only direct labor only direct material and direct labor only direct material, direct labor, and overhead 2. A total variance is best defined as the difference between total _______. (Points: 1) actual cost and total cost applied for the standard output of the period standard cost and total cost applied to production actual cost and total standard cost of the actual input of the period actual cost and total cost applied for the actual output of the period 3. The term standard hours allowed measures _______. (Points: 1) budgeted output at actual hours budgeted output at standard hours actual output at standard hours actual output at actual hours 4. Which of the following factors should not be considered when deciding whether to investigate a variance? (Points: 1) magnitude of the variance trend of the variances over time likelihood that an investigation will reduce or eliminate future occurrences of the variance whether the variance is favorable or unfavorable 5. A company wishing to isolate variances at the point closest to the point of responsibility will determine its material price variance when ______. (Points: 1) material is purchased material is issued to production material is used in production production is completed 6. The standard predominantly used in Western cultures for motivational purposes is a(n) ____ standard. (Points: 1) expected annual ideal practical theoretical 7. Gallagher Corporation. incurred 2,300 direct labor hours to produce 600 units of product. Each unit should take 4 direct labor hours. Gallagher Corporation applies variable overhead to production on a direct labor hour basis. The variable overhead efficiency variance _______. (Points: 1) will be unfavorable will be favorable will depend upon the capacity measure selected to assign overhead to production is impossible to determine without additional information 8. A variable overhead spending variance is caused by ________. (Points: 1) using more or fewer actual hours than the standard hours allowed for the production achieved paying a higher/lower average actual overhead price per unit of the activity base than the standard price allowed per unit of the activity base larger/smaller waste and shrinkage associated with the resources involved than expected both b and c are causes 9. McCoy Company has the following information available for October when 3,500 units were produced (round answers to the nearest dollar). Standards: Material 3.5 pounds per unit @ $4.50 per pound Labor 5.0 hours per unit @ $10.25 per hour Actual: Material purchased 12,300 pounds @ $4.25 Material used 11,750 pounds 17,300 direct labor hours @ $10.20 per hour What is the labor rate variance? (Points: 1) $875 F $865 F $865 U $875 U 10. McCoy Company has the following information available for October when 3,500 units were produced (round answers to the nearest dollar). Standards: Material 3.5 pounds per unit @ $4.50 per pound Labor 5.0 hours per unit @ $10.25 per hour Actual: Material purchased 12,300 pounds @ $4.25 Material used 11,750 pounds 17,300 direct labor hours @ $10.20 per hour What is the labor efficiency variance? (Points: 1) $2,050 F $2,050 U $2,040 U $2,040 F 11. Joint costs are useful for _______. (Points: 1) setting the selling price of a product determining whether to continue producing an item evaluating management by means of a responsibility reporting system determining inventory cost for accounting purposes 12. Each of the following is a method to allocate joint costs except _______. (Points: 1) relative sales value relative net realizable value relative weight, volume, or linear measure average unit cost 13. When allocating joint process cost based on tons of output, all products will _______. (Points: 1) be salable at split-off have the same joint cost per ton have a sales value greater than their costs have no disposal costs at the split-off point 14. Scrap is defined as a _______. (Points: 1) finished unit of product that has no sales value residual of the production process that has limited sales value residual of the production process that can be reworked for sale as an irregular unit of product residual of the production process that has no sales value 15. Waste created by a production process is _______. (Points: 1) accounted for in the same manner as defective units accounted for as an abnormal loss material that can be sold as an irregular product discarded rather than sold 16. In a lumber mill, which of the following would most likely be considered a primary product? (Points: 1) 2 x 4 studs sawdust wood chips tree bark 17. Fisher Company produces three products from a joint process. The products can be sold at split-off or processed further. In deciding whether to sell at split-off or process further, management should _______. (Points: 1) allocate the joint cost to the products based on relative sales value prior to making the decision allocate the joint cost to the products based on a physical quantity measure prior to making the decision subtract the joint cost from the total sales value of the products before determining relative sales value and making the decision ignore the joint cost in making the decision 18. The split-off point is the point at which _______. (Points: 1) output is first identifiable as individual products joint costs are allocated to joint products some products may first be sold all of the above 19. A product may be processed beyond the split-off point if management believes that _______. (Points: 1) its marketability will be enhanced the incremental cost of further processing will be less than the incremental revenue of further processing the joint cost assigned to it is not already greater than its prospective selling price both a and b 20. Which of the following is a commonly used joint cost allocation method? (Points: 1) high-low method regression analysis approximated sales value at split-off method weighted average quantity technique