Practice Quiz 10

# Practice Quiz 10 - Practice Quiz 10 1 To measure...

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Practice Quiz 10 1. To measure controllable production inefficiencies, which of the following is the best basis for a company to use in establishing the standard hours allowed for the output of one unit of product? A) Average historical performance for the last several years. B) Engineering estimates based on ideal performance. C) Engineering estimates based on attainable performance. D) The hours per unit that would be required for the present workforce to satisfy expected demand over the long run. 2. The variance that is most useful in assessing the performance of the purchasing department manager is: A) the materials quantity variance. B) the materials price variance. C) the labor rate variance. D) the labor efficiency variance. 3. Mayall Corporation is developing standards for its products. Each unit of output of the product requires 0.92 kilogram of a particular input. The allowance for waste and spoilage is 0.02 kilogram of this input for each unit of output. The allowance for rejects is 0.11 kilogram of this input for each unit of output. The standard quantity in kilograms of this input per unit of output should be: A) 0.90 B) 0.92 C) 0.79 D) 1.05 4. Jeffs Corporation is developing direct labor standards. The basic direct labor wage rate is \$14.00 per hour. Employment taxes are 11% of the basic wage rate. Fringe benefits are \$3.24 per direct labor-hour. The standard rate per direct labor-hour should be: A) \$14.00 B) \$9.22 C) \$4.78 D) \$18.78 1

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5. The journal entry below: Work in Process 25,00 0 Direct Labor Efficiency Variance 1,200 Direct Labor Rate Variance 2,000 Accrued Wages Payable 24,20 0 indicates that: A) the total labor variance was \$800, unfavorable. B) employees received an unexpected rate increase during the period. C) more labor time was required to complete the output of the period than was allowed at standard. D) responses a and b are both correct. 6. Persechino Corporation is developing standards for its products. One product requires an input that is purchased for \$82.00 per kilogram from the supplier. By paying cash, the company gets a discount of 2% off this purchase price.
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Practice Quiz 10 - Practice Quiz 10 1 To measure...

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