1. Which of the following variances is the difference between the actual cost of the input...
1. Which of the following variances is the difference between the actual cost of the input and its planned cost?
- Total labor variance
- Materials usage variance
- Total budget variance
- Materials price variance
c
2. Which of the following conditions leads to an unfavorable price variance?
- It occurs when the actual usage of input is greater than the standard usage of input.
- It occurs when the actual price is greater than the standard price.
- It occurs when the standard price is greater than the actual price.
- It occurs when the standard usage of input is greater than the actual usage of input.
3. Platinum Energy Corporation’s standard cost is $700,000. The allowable deviation is ±10%. Its actual costs for three months are:
| January | $630,000 |
| February | 750,000 |
| March | 725,000 |
The upper and lower control limits respectively are:
- $725,000 and $640,000.
- $750,000 and $650,000.
- $760,000 and $640,000.
- $770,000 and $630,000.
Homework Answers
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1.
Which of the following variances is the difference between the
actual cost of the input...
The difference between the actual cost of the input and its planned cost is the total...
The difference between the actual cost of the input and its planned cost is the total budget variance. the usage variance. the price variance. the efficiency variance. the budget variance. 4.5 points Save Answer QUESTION 17 O The labor efficiency variance is calculated by the equation (Standard Hours' Actual Hours) - (Actual Hours 'Standard Rate). (Actual Rate' Actual Hours) - (Standard Rate' Actual Hours). (Actual Hours 'Standard Rate) - (Standard Hours 'Standard Rate). (Standard Hours' Actual Rate) - (Actual
Caps L Shift 29. The difference between the split cost and the standard cost for direct...
Caps L Shift 29. The difference between the split cost and the standard cost for direct materials is called the Select one a Materials Price Variance b Materials Usage Variance eMaterials Eficiency Variance d. Materials Budget Variance e None of the above 30. Which of the following could cause a variable overhead flexible budget variance? a Varlable overhead costs being greater than expected for the given driver usage Select one: b. Variable overhead costs being less than expected for the...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expected, or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to be higher or lower than what was expected. The total manufacturing variance can be broken down...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expected, or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to be higher or lower than what was expected. The total manufacturing variance can be broken down...
Direct Materials Variances The following data relate to the direct materials cost for the production of...
Direct Materials Variances The following data relate to the direct materials cost for the production of 50,000 automobile tires: Actual: 725,000 lbs. at $3.00 per lb. Standard: 730,000 lbs. at $2.95 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ Direct Materials Quantity Variance $...
Direct Materials Variances The following data relate to the direct materials cost for the production of 50,000 automobil...
Direct Materials Variances The following data relate to the direct materials cost for the production of 50,000 automobile tires: Actual: 725,000 lbs. at $3.00 per lb. Standard: 730,000 lbs. at $2.95 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ Direct Materials Quantity Variance $...
17. When computing variances, the difference between standard price multiplied by actual quantity yields a(n): A....
17. When computing variances, the difference between standard price multiplied by actual quantity yields a(n): A. flexible budget B. planning budget C. actual results D. all of these E. none of these 18. When computing standard cost variances, the difference between actual and standard prices yields a(n): A. actual results B. volume variance C. price variance D. quantity variance E. none of these
Which of the following is the difference between the actual cost of materials and the materials...
Which of the following is the difference between the actual cost of materials and the materials cost allowed for the actual level of activity? a.Total materials margin b.Total materials variance c.Total materials regression d.Total materials cost e.None of these choices are correct.
Gauging the Favorableness of Variances When variances occur, they are described as being either favorable or...
Gauging the Favorableness of Variances
When variances occur, they are described as being either
favorable or unfavorable. When actual activity consumes more time
or money than initially planned, an unfavorable variance exists.
However, when actual activity consumes less time or money than
initially planned, a favorable variance exists. Note that the terms
favorable and unfavorable are used, rather than saying that a
variance is good or bad, because until the cause of a variance is
discovered, it is not clear...
Question text Which term describes difference between the actual price of inputs and the standard price...
Question text Which term describes difference between the actual price of inputs and the standard price of inputs? Select one: A. Standard cost variance B. Materials price index C. Price variance D. Inflation index adjustment
The difference between the actual cost of the input and its planned cost is the total budget variance. the usage variance. the price variance. the efficiency variance. the budget variance. 4.5 points Save Answer QUESTION 17 O The labor efficiency variance is calculated by the equation (Standard Hours' Actual Hours) - (Actual Hours 'Standard Rate). (Actual Rate' Actual Hours) - (Standard Rate' Actual Hours). (Actual Hours 'Standard Rate) - (Standard Hours 'Standard Rate). (Standard Hours' Actual Rate) - (Actual
Caps L Shift 29. The difference between the split cost and the standard cost for direct materials is called the Select one a Materials Price Variance b Materials Usage Variance eMaterials Eficiency Variance d. Materials Budget Variance e None of the above 30. Which of the following could cause a variable overhead flexible budget variance? a Varlable overhead costs being greater than expected for the given driver usage Select one: b. Variable overhead costs being less than expected for the...
17. When computing variances, the difference between standard price multiplied by actual quantity yields a(n): A. flexible budget B. planning budget C. actual results D. all of these E. none of these 18. When computing standard cost variances, the difference between actual and standard prices yields a(n): A. actual results B. volume variance C. price variance D. quantity variance E. none of these
Gauging the Favorableness of Variances
When variances occur, they are described as being either
favorable or unfavorable. When actual activity consumes more time
or money than initially planned, an unfavorable variance exists.
However, when actual activity consumes less time or money than
initially planned, a favorable variance exists. Note that the terms
favorable and unfavorable are used, rather than saying that a
variance is good or bad, because until the cause of a variance is
discovered, it is not clear...
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