If a company follows a practice of isolating variances at the earliest time, the appropriate time to isolate and recognize a direct materials price variance would be when: materials are used in production the materials requisition is prepared the purchase order is originated materials are purchased & @0oo0o Standard costs are least useful for *>es.google.com/forms/d/e/1FAlpQLSe7tRmdaWsP9LK2LZFt91LU74rQtslolFoaTPBOQOd4xUP.. Qa © materials are purchased TYG MO AMS ORG cae Standard costs are least useful for * © Measuring production efficienc; © Simplitying costing procedures @ cetermining minimum inventory levels © sob order production systems Which of the following statements is/are true? ~ | Untavorable vanances occur whenever actual prices or usage are less than standard prices or usage. ang.the opposite for a favorable vanance 2 ° UI, The condition where everything operates perfectly and demands maximum efficiency 15,cAz¢hWhich of the following statements is/are true? * 1 point |. Unfavorable variances occur whenever actual prices or usage are less than standard prices or usage, and the opposite for a favorable vanance. I. The condition where everything operates perfectly and demands maximum efficiency is called ideal standards. © tonly @ sony © Bothtandn © Neither tnor tt Which of tl3e following is true concerning standard costs? ~ © toroperty used, standards can help motivate employeesWhich of the following is true concerning standard costs? * 1 point @ If properly used, standards can help motivate employees. © Unfavorable variances, material in amount, should be investigated together with large favorable variances. C© Standard costs are estimates of costs attainable under the most practical conditions. © Allof the above A purpose of standard costing is to: * © allocate cost with more accuracy © eliminate the need for subjective decisions by managementA purpose of standard costing is to: * © atlocate cost with more accuracy © eliminate the need for subjective decisions by management @ conor costs © aitiof the above Which of the following would least likely cause an unfavorable materials quantity (usage) variance? © materials that do not meet specifications © Iabor that posse: ses skills equal to those required by the standardsWhich of the following would least likely cause an unfavorable materials quantity (usage) variance? © materials that do not meet specifications @ t2v0r that possesses skills equal to those required by the standards © scheduling of substantial overtime © machinery that has not been maintained properly What type of direct material variances for price and usage will arise if the actual number of pounds of materials used was more than standard pounds allowed and actual cost exceeds standard cost? L Usage Price Usage Price @ unfavorable favorable © favorable unfavorable b favorable favorable unfavorable unfavorableWhat type of direct material variances for price and usage will arise if the * 1p actual number of pounds of materials used was more than standard pounds allowed and actual cost exceeds standard cost? Usage Price Usage Price a. unfavorable favorable ¢ favorable unfavorable b. favorable favorable d. unfavorable unfavorable » o a 0@00 b Which of the following is true of currently attainable standards? - OO eon aaseeeeWhich of the following is true of currently attainable standards? * Currently attainable standards can be achieved under efficient operating conditions. Currently attainable standards demand maximum efficiency. Currently attainable standards demand maximum sales price. 000@ Currently attainable standards do not allow for normal breakdowns, interruptions, and less than perfect skill. Which of the following statements is/are true? ~ 1 doth manutacturng and service fms may use standard costing systems Nl The direct matenals usage vanance ts the sum of the actoal Guar quantities of units les and the standard © tonyWhich of the following statements is/are true? * 1 point |. Both manufacturing and service firms may use standard costing systems Il. The direct matenals usage variance is the sum of the actual quantities and the standard quantities of units. @ ony O Monty © Bothtandu O Neither t nor it A manager prepared the following table by which to analyze labor costs for + the month: —Ratual Hours at Actual Hours at Standard Hours at Actual Rate Standard Rate Standard Rate 10.000 9,300 8.820 What vanance was P2007A manager prepared the following table by which to analyze labor costs for * 1 poin: the month: ‘Actual Hours at ‘Actual Hours at ‘Standard Hours at Actual Rate Standard Rate Standard Rate 10.000 9,800 2.820 ‘What variance was P2007 @ avo: etriciency variance. © Labor price variance. © volume variance. © Labor rate variance.moose the best answer among the choices. When a change in the manufact direct labor hours and standard be: uring process increases the numberof + ; IS are unchanged, the resulting variance will © anunfavorable labor usage variance © anunfavorable labor rate variance © 2 favorable labor usage variance @ 2 favorable labor rate variance Uy The most probable reason a company would experience a favorable labor rate variance and an unfavorable labor efficiency variance is that: Cc) Dacause of the production schedule, workers from other production areas were assigned to assist in this particular process“The most probable reason a company would experience a favorable labor + sso rate variance and an unfavorable labor efficiency variance is that: © Reetuee of ne moducin aed workers rom eter rodution areas were the mis of workers assigned tthe pariculr Job was heaviy weighted toward the Une of higher paid, experienced inaiiuals the mit of warkers assigned to the particular job was heavily weighted toward the o@o which variance ie least kel tobe affected by hiking workers with less skill ~ ‘han thoze already working? O vanable overhead ettetoney variance aWhich variance is least likely to be affected by hiring workers with less skill * 3 point than those already working? © Variable overhead efficiency variance. © Labor rate variance. @ Mereriat price variance © Material use variance. A company using very tight standards in a standard cost system should expect that © Most variances will be unkavorable rolled better than if lower standards were used © Costs will be!co Jill be strongly motivated to attain the standard © Employee!Accompany using very tight standards in a standard cost system should expect that Most variances will be unfavorable Costs will be controlled better than if lower standards were used Employees will be strongly motivated to attain the standard 000®@ No incentive bonus will be paid The type of standard that is intended to represent challenging yet attainable ~ results is: & theoretical standard normal standard flexible budget standard 90@0 expected actual standard eeeFor the doughnuts of Antiyaga Co. the Purchasing Manager decided to buy * 1 > 65,000 bags of flour with a quality rating two grades below that which the company normally purchased. This purchase covered about 90% of the flour requirement for the period. As to the material variances, what will be the likely effect? aT 3 = a Uzage variance Unfavorable” Faverable No eect Favorable “Paedeanonce’ “Farsrabie’ __Uninverable_uniowerable Favorable @. Oe Oc & Oe Which of the following factors would cause an unfavorable material quantity variance? aaaWhich of the following factors would cause an unfavorable material quantity variance? 1 © using more highly skilled workers @ v2:N9 poorly maintained machinery © using higher quality materials © ‘receiving discounts for purchasing larger than normal quantitiesA materials price variance would not be caused by * © ordering from the wrong supplier. @ ‘eawiring taborers to work overtime © ordering the wrong quality of materials. © not taking a quantity discount. Which of the following term is best identified with a system of standard cost? @ Management by exceptior © Management by objectives © Marginal costingWhich of the following equations measures the direct labor rate variance? * © @H-swxsr © (AR~ sh) - (SR* AH) @ ar xaty -isr~ any © (SR* AH) - (SR* SH) cm rm rage 40! 6 Clear for Google FormsEEN PIS Sted aWsPSLKZLZFt91LU74rQtelolFo4TpBOQOdaxUP. Q Note: All answers that did not follow instructions will be marked wrong. If the standard quantity (SQ), actual quantity (AQ), standard price (SP), and actual price (AP) are 350 units, 400 units, $13, and $12 respectively, then the total variance is Indicate if your answer is favorable or unfavorable. Example: 1,000 F or 1.000 U (Refer to the instructions for additional details.) e 250U During ¢etober, 10,000-direct labor hours were worked at a standard cost of ~ $10 per hour. If the direct labor rate variance for October was $4,000 favorable, the actual cost per direct labor hour must beDuring October, 10,000 direct labor hours were worked at a standard cost of ~ $10 per hour. If the direct labor rate variance for October was $4,000 favorable, the actual cost per direct labor hour must be 9.60 & During January, 7,715 direct labor hours were worked at a standard cost of $20 per hour. If the direct labor rate variance for January was $17,500 favorable, the actual cost per direct labor hour must be 17.73During June, 16,000 pounds of materials were purchased atacostof$6—* per pound. If there was an unfavorable direct materials price variance of $3,000 in June, the standard cost per pound must be 5.81 Your ans: What is the total labor variance for Antiyaga Co.? ~ Indicate if your answer is favorable or unfavorable. Example: 1,000 F or 1,000 U (Refer to the instructions for additional details.) Antiyaga Go. uses a standard costing system. The following information pertains to direct labor Costs for the manth af Fehnrane pester antWhat is the total labor variance for Antiyaga Co.? * ° Indicate if your answer is favorable or unfavorable. Example: 1,000 F or 1,000 U (Refer to the instructions for additional details.) Antiyaga Co. uses a standard costing system. The following information pertains to direct labor costs for the month of February: | Standard direct labor rate per hour $13.00 Actual direct labor rate per hour 315.50 Labor rate variance $18,000 unfavorable Actual output 7,000 units Standard hours allowed for actual production 10,000 hours Your answ 18,400 F How many actual labor hours were worked during February for Antiyaga Co.?How many actual labor hours were worked during February for Antiyaga co? Antyaga Co. uses a stander seinen co epi stm. Teflon namston ea tc Sind eaten eh ie cacao ee ig Seer Eggeaainerane Serle aamnatr ac peasant veer answer 7,200 hours. & Antiyaga Co. has the following data related to 100 units of final product: =Antiyaga Co. has the following data related to 100 units of final product: * point Indicate if your answer is favorable or unfavorable. Exemple: 1,000 F or 1,000 U (Refer to the instructions for additional details.) Matenals: Standard: 280 pounds at $3.00 per pound Actual: 300 pounds at $2.75 per pound What is the material usage vanance for Antiyaga Co.? Your answe 60 UDuring November, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound. If there was a favorable usage variance of $18,750 for November, the actual quantity of materials used must be «© 93,750 poundsInstructions 1. Do not put peso sign, dollar sign, or any description to your answers (except when specified). Just put the amount/number and use comma (.) as separator. Example: Correct: 30,000 Do not use: P30,000, $30,000, 30,000 units or 30000 Exception: If the problem requires you to indicate whether your answer is favorable or unfavorable, write F if favorable and U if unfavorable. Make sure to provide a space after the number before writing F/U. Example: Correct: 1,000 F or 1,000 U Do not use: 1,000F or 1,000 f 2. If your answer has decimal points, use two decimal places for your final answer. Example: Correct: 30,000.10 or (30,000.10) Do not use: 30,000.1 Note: All answers that did not follow instructions will be marked wrong.{ote: All answers that did not follow instructions will be marked wrong. Information about Antiyaga Co’s direct material costs is as follows: * Standard unit price Actual quantity purchased ‘Standard quantity allowed for actual production Unfavorable materials purchase price variance What was the actual purchase price per unit, rounded to the nearest penny? 215 5 a standard costing system in the manufactur of its 30,000 units of raw material in inventory Vitte f | are required t0 ‘and three units of raw material ee arall any produced ber, the comp: final product In Novem A f fir F - ad for material was 60,000. Antiyaga Co. use single product. T! purchased for 1 wen ctine ane unit OF 3.50 1,600 1,450Antiyaga Co. uses a standard costing system in the manufacture of its single product. The 30,000 units of raw material in inventory were purchased for 105,000, and three units of raw material are required to produce one unit of final product. In November, the company produced 8,000 units of product. The standard allowed for material was 60,000, and there was an unfavorable quantity variance of 2,500. The materials price variance for the units used in November was Indicate if your answer is favorable or unfavorable. Example: 1,000 F or 1,000 U (Refer to the instructions for additional details.) 12,500 U & Lue anete for April are as follows: *Seana ere valit Sees et votes strata ter hes he hay TB deat ol four answer Antiyaga Co's direct labor costs for April are as follows: ~ Indicate if your answer is favorable or unfavorable. Example: 1,000 F or 1,000 U (Refer to the instructions for additional details.) Standard direct labor hours 42,000 Actual direct labor hours 41,200 Total direct labor payroll 247,200 Direct labor efficiency vanance — favorable 3,480 What is Antiyaga Co.'s direct labor rate variance? ~ 749,440 UAntiyaga Co. has a maintenance shop where repairs to its motor vehicles ~~ are done. During last month’s labor strike, certain records were lost. The actual input of direct labor hours was 1,000, and the resulting direct labor efficiency variance was a favorable P800. The standard direct labor rate was P28.00 per hour, but an unexpected labor shortage necessitated the hiring of higher-paid workers for some jobs and had resulted in a rate variance of P3,400. The actual direct labor rate per hour was . 1_28.80 per hourour answer Antiyaga Co. recently used 14,000 labor hours to produce 7,050 completed ~ units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The company’s actual payroll cost amounted to $158,200. If the standard labor cost per hour is $11, Antiyaga Cos labor efficiency variance is: indicate if your answer is favorable or unfavorable. Example: 1. (Refer to the instructions for additional details.) eee te 000 F or 1,000 U account for its only product. e tem to ib. Operating date A company uses a standard cost syS ues ‘he materials standard per unit was 4 IPS: 3° pel wane net anoUA company uses a standard cost system to account for its only product. The materials standard per unit was 4 Ibs. at $5.10 per Ib. Operating data for April were as follows: Indicate if your answer is favorable or unfavorable. Example: 1,000 F or 1,000 U (Refer to the instructions for additional details.) Material used 8,700 Ibs. Cost of material used Number of finished units produced $40,950 2,000 The material usage variance for April was: 3,570 U one The following data relate to product no. 33 of Antiyaga Indicate if your ans rable or unfavorable. Ex: additional details.) ample: er is fav 1,000 F or 1,000 UThe following data relate to product no. 33 of Antiyaga Co.: * Indicate if your answer is favorable or unfavorable. Example: 1,000 F or 1,000 U (Refer to the instructions for additional details.) Direct labor standard: 5 hours at Direct labor used in production $15 per hour Manufacturing activity, product 5,000 hours at a cost of S693,000 no. 33: 8,900 units completed The direct-labor rate vanance !s: : 4: 18,000 U qe Page 6 07 © Clear for