Pts 1 dif moderate obj 9 3 nat aacsb analytic 33

PTS: 1 DIF: Moderate OBJ: 9-3 NAT: AACSB Analytic
33. Refer to Figure 9-2. What is the journal entry to record labor variances?
a. Work in Process 6,072
Payroll 6,072
b. Payroll 6,072
Work in Process 6,072
c. Work in Process 6,000
Labor Efficiency Variance 552
Labor Rate Variance 480
Payroll 6,072
d. Work in Process 6,000
Labor Rate Variance 552
Labor Efficiency Variance 480
Payroll 6,072
ANS: D PTS: 1 DIF: Difficult OBJ: 9-3
NAT: AACSB Analytic
34. As a general rule, an investigation of a variance should be undertaken only if the
PTS: 1 DIF: Moderate OBJ: 9-3
NAT: AACSB Reflective
9-10

35. The _______________ is the standard plus the allowable deviation.
PTS: 1 DIF: Easy OBJ: 9-3
NAT: AACSB Reflective
36. A materials price variance would NOT be caused by
PTS: 1 DIF: Difficult OBJ: 9-3
NAT: AACSB Reflective
37. Which of the following factors would cause an unfavorable material quantity variance?
a. using poorly maintained machinery
b. using higher quality materials
c. using more highly skilled workers
d. receiving discounts for purchasing larger than normal quantities
ANS: A PTS: 1 DIF: Moderate OBJ: 9-3
NAT: AACSB Reflective
38. Which of the following factors would cause an unfavorable labor rate variance?
PTS: 1 DIF: Moderate OBJ: 9-3
NAT: AACSB Reflective
39. Using more highly skilled direct laborers might affect which of the following variances?