Question

Multiple Choice Question 129

Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Dillon used 3,100 pounds of materials at a total cost of $18,135. Dillon’s materials price variance is

$1,050 F.

$135 U.

$465 F.

$600 F.

Multiple Choice Question 81

Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only 3,300 units. Total yards used for production were 3,960. How much is the total materials variance?

$3,960 F

$48,600 U

$4,860 U

$900 U

Multiple Choice Question 51

Standard costs

may show past cost experience.

help establish expected future costs.

all of these.

are the budgeted cost per unit in the present.

Multiple Choice Question 68

Allowance for spoilage is part of the direct

labor price standard.

labor quantity standard.

materials price standard.

materials quantity standard.

Multiple Choice Question 99

A company uses 8,400 pounds of materials and exceeds the standard by 300 pounds. The quantity variance is $1,800 unfavorable. What is the standard price?

$2

$4

Cannot be determined from the data provided.

$6

Multiple Choice Question 152

The balanced scorecard approach

evaluates performance using about 10 different perspectives in order to effectively incorporate all areas of the organization.

uses rather vague, open statements when setting objectives in order to allow managers and employees flexibility.

normally sets the financial objectives first, and then sets the objectives in the other perspectives to accomplish the financial objectives.

uses only financial measures to evaluate performance.

Multiple Choice Question 78

Hofburg’s standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $2 per pound and $7 per hour. The standard overhead rate is $8 per direct labor hour. The total standard cost of Hofburg’s product is

$14.50.

$26.50.

$22.50.

$17.00.

Multiple Choice Question 54

If a company is concerned with the potential negative effects of establishing standards, it should

set loose standards that are easy to fulfill.

not employ any standards.

set tight standards in order to motivate people.

offer wage incentives to those meeting standards.

Multiple Choice Question 56

Ideal standards

are rigorous but attainable.

reflect optimal performance under perfect operating conditions.

will always motivate employees to achieve the maximum output.

are the standards generally used in a master budget.

Multiple Choice Question 122

Shipp, Inc. manufactures a product requiring two pounds of direct material. During 2013, Shipp purchases 24,000 pounds of material for $99,200 when the standard price per pound is $4. During 2013, Shipp uses 22,000 pounds to make 12,000 products. The standard direct material cost per unit of finished product is

$8.00.

$8.53.

$8.27.

$9.01.

Multiple Choice Question 113

Monster Company produces a product requiring 3 direct labor hours at $16.00 per hour. During January, 2,000 products are produced using 6,300 direct labor hours. Monster’s actual payroll during January was $98,280. What is the labor quantity variance?

$2,520 F

$4,800 U

$4,800 F

$2,280 U

Multiple Choice Question 103

Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds.

Edgar, Inc.’s materials price variance is

$120 U.

$1,200 U.

$1,200 F.

$1,080 U.

Multiple Choice Question 105

Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds.

Edgar, Inc.’s total materials variance is

$2,400 F.

$2,520 U.

$2,520 F.

$2,400 U.

Multiple Choice Question 73

Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively. The standard direct labor rate per hour is

$15.90.

$15.60.

$12.30.

$12.00.

Multiple Choice Question 41

The difference between a budget and a standard is that

a budget expresses a total amount, while a standard expresses a unit amount.

a budget expresses what costs were, while a standard expresses what costs should be.

a budget expresses management’s plans, while a standard reflects what actually happened.

standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system.