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STANDARD COSTS mcq homework

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Question;a177. The following information;was taken from the annual manufacturing overhead cost budget of Fergie;Manufacturing.;Variable;manufacturing overhead costs $92,400;Fixed;manufacturing overhead costs $55,440;Normal;production level in labor hours 30,800;Normal;production level in units 5,775;Standard;labor hours per unit 4;During the year, 5,600 units were;produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200.;Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing;overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's;total overhead variance is;a. $1,680;U.;b. $6,160;U.;c. $7,840;U.;d. $22,400;U.;a178. The following information;was taken from the annual manufacturing overhead cost budget of Fergie;Manufacturing.;Variable;manufacturing overhead costs $92,400;Fixed;manufacturing overhead costs $55,440;Normal;production level in labor hours 30,800;Normal;production level in units 5,775;Standard;labor hours per unit 4;During the year, 5,600 units were;produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200.;Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing;overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's;controllable overhead variance is;a. $1,680;U.;b. $6,160;U.;c. $7,840;U.;d. $22,400;U.;a179. The following information;was taken from the annual manufacturing overhead cost budget of Fergie;Manufacturing.;Variable;manufacturing overhead costs $92,400;Fixed;manufacturing overhead costs $55,440;Normal;production level in labor hours 30,800;Normal;production level in units 5,775;Standard;labor hours per unit 4;During the year, 5,600 units were;produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200.;Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing;overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's;volume overhead variance is;a. $1,680;U.;b. $6,160;U.;c. $7,840;U.;d. $22,400;U.;180. All of the following are advantages of;standard costs except they;a. facilitate;management planning.;b. are;useful in setting selling prices.;c. simplify;costing in inventories.;d. increase net income.;181. Standards based on the optimum level of performance under;perfect operating conditions are;a. attainable;standards.;b. ideal;standards.;c. normal;standards.;d. practical standards.;182. The direct;materials price standard should include an amount for all of the;following except;a. receiving;costs.;b. storing;costs.;c. handling;costs.;d. normal spoilage costs.;183. The standard unit cost is used in the;calculation of which of the following variances?;Materials Price;Variance Materials Quantity;Variance;a. No No;b. No Yes;c. Yes No;d. Yes Yes;184. The difference between the actual labor;rate multiplied by the actual labor hours worked and the standard labor rate;multiplied by the standard labor hours is the;a. total;labor variance.;b. labor;price variance.;c. labor;quantity variance.;d. labor;efficiency variance.;185. The;formula for the labor price variance is;a. (AH);x (SR) less (SH) x (SR).;b. (AH);x (AR) less (AH) x (SR).;c. (AH);x (AR) less (SH) x (SR).;d. (AH) x (SR) less (AH) x (SR).;186. Which department is;usually responsible for a labor price variance attributable to misallocation of;workers?;a. Quality;control;b. Purchasing;c. Engineering;d. Production;187. In reporting;variances;a. promptness;is relatively unimportant.;b. management;normally investigates all variances.;c. the;reports should facilitate management by exception.;d. the;reports are not departmentalized.;Ans: C, LO: 6, Bloom: K, Difficulty: Easy, Min: 1;AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement;AICPA PC: None, IMA: Cost Management;a188. A standard cost system may be used in;Job Order Costing Process Costing;a. No No;b. Yes No;c. No Yes;d. Yes Yes;a189. The;formula for computing the overhead volume variance is;a. fixed;overhead rate times (actual hours less standard hours allowed).;b. variable;overhead rate times (actual hours less standard hours allowed).;c. fixed;overhead rate times (normal capacity hours less standard hours;allowed).;d. variable;overhead rate times (normal capacity hours less standard hours;allowed).;a190. The overhead;controllable variance is the difference between the;a. budgeted;overhead based on standard hours allowed and the overhead applied to;production.;b. budgeted;overhead based on standard hours allowed and budgeted overhead based on actual;hours worked.;c. actual;overhead and the overhead applied to production.;d. actual;overhead and budgeted overhead based on standard hours allowed.

 

Paper#41723 | Written in 18-Jul-2015

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