Ch 11 practice problems

Ch 11 practice problems - Chapter 11 Practice Problems 1....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11 Practice Problems 1. The general model for calculating a quantity variance is: A. actual quantity of inputs used x (actual price - standard price). B. standard price x (actual quantity of inputs used - standard quantity allowed for output). C. (actual quantity of inputs used at actual price) - (standard quantity allowed for output at standard price). D. actual price x (actual quantity of inputs used - standard quantity allowed for output). Answer: B 2. An unfavorable materials quantity variance indicates that: A. actual usage of material exceeds the standard material allowed for output. B. standard material allowed for output exceeds the actual usage of material. C. actual material price exceeds standard price. D. standard material price exceeds actual price. Answer: A 3. The materials price variance should be computed: A. when materials are purchased. B. when materials are used in production. C. based upon the amount of materials used in production when only a portion of materials purchased is actually used. D. based upon the difference between the actual quantity of inputs and the standard quantity allowed for output times the standard price. Answer: A 4. A favorable materials price variance coupled with an unfavorable material usage variance would most likely result from: A. labor efficiency problems. B. machine efficiency problems. C. the purchase and use of higher than standard quality material. D. the purchase and use of lower than standard quality material. Answer: D
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
5. Under a standard cost system, the materials price variances are usually the responsibility of the: A. production manager. B. sales manager. C. purchasing manager. D. engineering manager. Answer: C 6. A favorable labor rate variance indicates that A. actual hours exceed standard hours. B. standard hours exceed actual hours. C. the actual rate exceeds the standard rate. D. the standard rate exceeds the actual rate. Answer: D
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/19/2011 for the course BUSMKT 103 taught by Professor Johnson during the Spring '10 term at Pittsburgh.

Page1 / 10

Ch 11 practice problems - Chapter 11 Practice Problems 1....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online