Which of the following journal entries would be used to record a variance that arose when materials with a standard price of $5.00 per unit were purchased at a price of $4.00 per unit

a.

Direct Materials Inventory	XXXX
Direct Materials Quantity Variance	XXXX
Accounts Payable		XXXX

b.

Direct Materials Inventory	XXXX
Direct Materials Price Variance	XXXX
Accounts Payable		XXXX

c.

Direct Materials Inventory	XXXX
Direct Materials Price Variance		XXXX
Accounts Payable		XXXX

d.

Direct Materials Inventory	XXXX
Direct Materials Quantity Variance		XXXX
Accounts Payable		XXXX

Which of the following statements is true

a. Companies that use a normal costing system will record direct materials and direct labor variances.

b. Any company that calculates variances will need to close those variances at the end of the accounting period.

c. Companies that use standard costing systems record variances in temporary accounts that must be closed at the end of an accounting period.

d. All of the statements are true.

Marston Co. applies fixed overhead on the basis of machine hours. At the end of the year the company had a fixed overhead volume variance of $5,000 U. Based on this information,

a. Marston made fewer units than budgeted.

b. Marston made more units than budgeted.

c. Marston spent more on fixed overhead than budgeted.

d. Marston spent less on fixed overhead than budgeted.

A costing system where direct material and direct labor are recorded at actual cost, and overhead is applied to products using a predetermined overhead rate is referred to as

a. variable costing.

b. normal costing.

c. standard costing.

d. full costing.

When using a standard costing system, at what amount will the inventory and cost of goods sold amounts be reported on the financial statements?

a.Inventory at actual and Cost of Goods Sold at actual

b.Inventory at standard and Cost of Goods Sold at standard

c.Inventory at standard and Cost of Goods Sold at actual

d.Inventory at actual and Cost of Goods Sold at standard