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NOTICE: This test covers only chapters 8 & 9. Your test will cover chapter 11 also. I will try to find some problems for you from chapter 11. Good luck! Accounting 203 Test 3 Chapters 8,9 1. A favorable material price variance coupled with an unfavorable material usage variance would most likely result from: A) machine efficiency problems. B) the purchase and use of lower than standard quality material. C) labor efficiency problems. D) the purchase and use of higher than standard quality material. 2. If the labor efficiency variance is unfavorable, then: A) the standard rate exceeded the actual rate. B) the actual rate exceeded the standard rate. C) standard hours allowed for the actual output exceeded actual hours. D) actual hours exceeded standard hours allowed for the actual output. 3. Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the direct labor efficiency variance is unfavorable, the variable overhead efficiency variable will be: A) either favorable or unfavorable. B) zero. C) unfavorable. D) favorable. 4. The terms standard quantity allowed or standard hours allowed means: A) the actual input in units multiplied by the standard output allowed. B) the actual output in units multiplied by the standard input allowed. C) the standard output in units multiplied by the standard input allowed. D) the actual output in units multiplied by the standard output allowed. Version 1 Page 1 5. The following materials standards have been established for a particular product: Standard quantity per unit of output ... 5.3 meters Standard price ..................................... $17.20 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased ................... 8,100 meters Actual cost of materials purchased ....... $141,345 Actual materials used in production...... 7,600 meters Actual output......................................... 1,400 units What is the materials price variance for the month? A) $2,025 U B) $8,600 U C) $8,725 U D) $3,141 U 6. The following materials standards have been established for a particular product: Standard quantity per unit of output ... 5.3 meters Standard price ..................................... $17.20 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased ................... 8,100 meters Actual cost of materials purchased ....... $141,345 Actual materials used in production...... 7,600 meters Actual output......................................... 1,400 units What is the materials quantity variance for the month? A) $2,025 U B) $8,600 U C) $3,096 U D) $3,141 U Version 1 Page 2 7. The standard cost card for one unit of a certain finished product shows the following: Standard Quantity or Hours Standard Pric or Rate Direct materials.................................. 10 pounds $ ? per pound Direct labor ........................................ Direct labor .... View Full Document

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