Cost Accouting TEst 2

Cost Accouting TEst 2 - Cost Accouting Test 2 Question 1...

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Cost Accouting Test 2 Question 1 The standard cost card contains quantities and costs for a. direct material and direct labor only. b. direct labor only. c. direct material, direct labor, and overhead. d. direct material only. Question 2 Which of the following statements regarding standard cost systems is true? a. Standard costs cannot be used for planning purposes since costs normally change in the future. b. Favorable variances are not necessarily good variances. c. The production supervisor is generally responsible for material price variances. d. Managers will investigate all variances from standard. Question 3 A standard cost system may be used in a. neither job order costing nor process costing. b. either job order costing or process costing. c. job order costing, but not process costing. d. process costing, but not job order costing. Question 4 Standard costs may be used for a. product costing. b. planning. c. controlling. d. all of the above. Question 5 A purpose of standard costing is to a. eliminate the need for actual costing for external reporting purposes. b. simplify costing procedures. c. replace budgets and budgeting. d. eliminate the need to account for year-end underapplied or overapplied manufacturing overhead. Question 6 Which of the following factors should not be considered when deciding whether to investigate a variance? a. magnitude of the variance b. trend of the variances over time c. whether the variance is favorable or unfavorable d. likelihood that an investigation will reduce or eliminate future occurrences of the variance Question 7 Marley Company The following July information is for Marley Company: Standards: Material 3.0 feet per unit @ $4.20 per foot Labor 2.5 hours per unit @ $7.50 per hour
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Production 2,750 units produced during the month Material 8,700 feet used; 9,000 feet purchased @ $4.50 per foot Labor 7,000 direct labor hours @ $7.90 per hour (Round all answers to the nearest dollar.) Refer to Marley Company. What is the material price variance (calculated at point of purchase)? Answer a. $2,610 U b. $2,700 U c. $2,700 F d. $2,610 F Question 8 Marley Company The following July information is for Marley Company: Standards: Material 3.0 feet per unit @ $4.20 per foot Labor 2.5 hours per unit @ $7.50 per hour Actual: Production 2,750 units produced during the month Material 8,700 feet used; 9,000 feet purchased @ $4.50 per foot Labor 7,000 direct labor hours @ $7.90 per hour (Round all answers to the nearest dollar.) Refer to Marley Company. What is the material quantity variance? a. $3,105 F b. $1,890 U c. $3,105 U d. $1,050 F Question 9 Marley Company The following July information is for Marley Company: Standards: Material 3.0 feet per unit @ $4.20 per foot Labor 2.5 hours per unit @ $7.50 per hour Actual: Production 2,750 units produced during the month Material 8,700 feet used; 9,000 feet purchased @ $4.50 per foot Labor 7,000 direct labor hours @ $7.90 per hour
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Cost Accouting TEst 2 - Cost Accouting Test 2 Question 1...

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