Flexible Budgets and Standard Costs MCQs

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The Sydney Manufacturing Company uses a fixed budget of 80,000 direct labour hours, with planned overhead cost of $400,000 for variable overhead and $...






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Which of the following is true?






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The materials price variance may be computed by:






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The actual materials price (AP) was $3.50, the actual quantity (AQ) of material was 5,100 units, and the materials price variance (PV) was $1,275 unfa...






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Leland Manufacturing produced 3,700 units of finished product, using 15,000 pounds of raw material. Sixteen thousand pounds were purchased for $158,40...






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Which of the following is correct with regard to using the standard quantity to compute materials variances? Standard quantity used:






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The standard units (SQ) were 5,200, the standard price (SP) was $3.25, and the materials quantity variance (QV) was $325 favourable. The actual units ...






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Which of the following is correct with regard to using the standard unit price to compute materials variances? Standard unit price used:






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An unfavourable materials quantity variance may be the result of:






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Which of the following is correct with regard to the standard labour hours being used to compute labour variances? Standard labour hours used:






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The labour rate variance may be computed by:






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The standard cost of one unit of product includes 2 hours of direct labour at $7.50 per hour. The company’s labour rate variance was $80, unfavourab...






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Which of the following is correct with regard to using the standard labour rate to compute labour variances? Standard labour rate used:






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The standard hourly rate was $1.40. The actual rate was $1.30. The labour rate variance was $600, favourable. The actual labour hours:






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The Big Company’s expected production volume was 36,000 units at 9,000 hours of labour. The fixed overhead rate is $3 per hour at 36,000 units. Actu...






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The Big Company’s expected production volume was 36,000 units at 9,000 hours of labour. The variable overhead rate is $5 per hour. Actual variable o...






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The overhead variances for Big Company were: Variable overhead spending variance: $450 unfavourable. Variable overhead efficiency variance: $750 fav...






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Under a standard costing system, the overhead variances are recorded when:






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Under a standard cost system, the materials quantity variance was recorded at $500 unfavourable, the materials price variance was recorded at $1,620 f...