ACCT 2302 (Ch. 7 Anserws) - Chapter 7 Review 1. Standards...

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Chapter 7 Review 1. Standards that represent levels of operation that can be attained with reasonable effort are called: normal standards 2. Manufacturing companies use standard costs for the following except: Variable costs 3. The principle of exceptions allows managers to focus on correcting variances between standard costs and actual costs. 4. Several people play an essential part in setting standards. Which of the following is incorrect as to setting standards? Quality managers provide quality measures that will be used to evaluate rejects. 5. Periodic comparisons between planned objectives and actual performance are reported in: budget performance reports 6. The standard price and quantity of direct materials are separated because: direct materials prices are controlled by the purchasing department, and quantity used is controlled by the production department 7. Standard costs are divided into which of the following components? Price Standard and Quantity Standard 8. A favorable cost variance occurs when Standard costs are more than actual costs. 9. Total manufacturing cost variance includes: Direct materials cost variance, direct labor cost variance, factory overhead cost variance 10. The following data relate to direct materials costs for November: Actual costs 4,700 pounds at $5.40 Standard costs 4,500 pounds at $6.00 What is the direct materials price variance? $2,820 favorable 11. The following data relate to direct materials costs for November: Actual costs 4,700 pounds at $5.40 Standard costs 4,500 pounds at $6.00 What is the direct materials quantity variance? $1,200 unfavorable 12. If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed: quantity variance 13. If the price paid per unit differs from the standard price per unit for direct materials, the variance is termed: price variance 14.
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This note was uploaded on 10/01/2011 for the course ACCT 2302 taught by Professor Dr. during the Spring '11 term at University of Houston-Victoria.

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ACCT 2302 (Ch. 7 Anserws) - Chapter 7 Review 1. Standards...

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