ACCT2302_E3-K (4)

ACCT2302_E3-K (4) - ACCT 2302 Summer II, 2007 Exam 3...

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ACCT 2302 Summer II, 2007 Exam 3 Chapter 10-13 1.Which of the following would produce a materials price variance? A) an excess quantity of materials used. B) an excess number of direct labor-hours worked in completing a job. C) shipping materials to the plant by air freight rather than by truck. D) breakage of materials in production. Answer: C Level: Easy LO: 2 2.The standard price per unit of materials is used in the calculation of which of the following variances? Materials price variance Materials quantity variance A) No No B) No Yes C) Yes No D) Yes Yes Answer: D Level: Medium LO: 2 Source: CPA, adapted 3.In a certain standard costing system direct labor-hours are used as the base for applying variable manufacturing overhead costs. The standard direct labor rate is twice the variable manufacturing overhead rate. Last period the labor efficiency variance was unfavorable. From this information one can conclude that last period the variable overhead efficiency variance was: A) unfavorable and half the labor efficiency variance. B) favorable and half the labor efficiency variance. C) unfavorable and twice the labor efficiency variance. D) favorable and twice the labor efficiency variance. Answer: A Level: Medium LO: 4 4.Which of the following statements is a good description of the variances that should be investigated under the management by exception concept? A) all variances should be investigated. B) only unfavorable variances should be investigated. C) a small random sample of all variances should be investigated. D) unusually large favorable and unfavorable variances should be investigated. Answer: D Level: Medium LO: 8 5.The following materials standards have been established for a particular raw material used in the company's sole product: Standard quantity per unit of output. ....................... 1.0 pound Standard price. ......................................................... $16.60 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased. .................................... 2,200 pounds Actual cost of materials purchased. ........................ $34,650 1 Ercan Sinmaz
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ACCT 2302 Summer II, 2007 Exam 3 Chapter 10-13 Actual materials used in production. ....................... 1,900 pounds Actual output. .......................................................... 2,100 units What is the materials quantity variance for the month? A) $3,320 F B) $3,150 F C) $4,980 U D) $4,725 U Answer: A Level: Easy LO: 2 6.The following materials standards have been established for a particular raw material used in the company's sole product: Standard quantity per unit of output. ....................... 0.1 pound Standard price. ......................................................... $18.20 per pound The following data pertain to operations for the last month: Actual materials purchased. .................................... 5,700 pounds Actual cost of materials purchased. ........................
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ACCT2302_E3-K (4) - ACCT 2302 Summer II, 2007 Exam 3...

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