Question 1

If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a _____ variance.
A)variable
B)rate
C)quantity
D)volume

Accepted Answer

When the actual wage rate paid per hour differs from the standard or expected wage rate, the difference is referred to as a rate variance, specifically a labor rate variance in the context of direct labor costs. This variance measures the difference between what was actually paid to workers and what was expected to be paid according to standard cost accounting practices.

Question 2

The following data are given for Stringer Company:  Overhead is applied on standard labor hours.
-The direct materials quantity variance is
A)$22,800 favorable
B)$22,800 unfavorable
C)$52,000 favorable
D)$52,000 unfavorable

Accepted Answer

The answer of The following data are given for Stringer...

Question 3

The following data are given for Stringer Company:  Overhead is applied on standard labor hours.
-The direct materials price variance is
A)$22,800 unfavorable
B)$22,800 favorable
C)$52,000 unfavorable
D)$52,000 favorable

Accepted Answer

The answer of The following data are given for Stringer...

Question 4

The following data relate to direct labor costs for the current period: Standard costs
36,000 hours at $22.00
Actual costs
35,000 hours at $23.00
The direct labor time variance is
A)$36,000 unfavorable
B)$35,000 unfavorable
C)$23,000 favorable
D)$22,000 favorable

Accepted Answer

The direct labor time variance is calculated as (Standard Hours - Actual Hours) * Standard Rate. Here, it is (36,000 - 35,000) * $22 = 1,000 * $22 = $22,000 favorable, because actual hours worked were less than the standard hours allowed.

Question 5

The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00 per hour and standard costs for 5,000 hours at $23.70 per hour.​ The direct labor rate variance is
A)$1,650 favorable
B)$1,650 unfavorable
C)$1,500 favorable
D)$1,500 unfavorable

Accepted Answer

The direct labor rate variance is calculated as (Actual Rate - Standard Rate) x Actual Hours = (24.00 - 23.70) x 5,500 = $0.30 x 5,500 = $1,650 unfavorable. This is because the actual rate is higher than the standard rate, leading to additional costs.

Question 6

The following data relate to direct labor costs for the current period: Standard costs
6,000 hours at $12.00
Actual costs
7,500 hours at $11.40
The direct labor rate variance is
A)$18,000 unfavorable
B)$4,500 favorable
C)$17,100 unfavorable
D)$3,600 favorable

Accepted Answer

The direct labor rate variance is calculated as (Actual Hourly Rate - Standard Hourly Rate) x Actual Hours Worked. Here, it is ($11.40 - $12.00) x 7,500 = -$0.60 x 7,500 = -$4,500, which is favorable because the actual rate is less than the standard rate.

Question 7

If the price paid per unit differs from the standard price per unit for direct materials, the variance is a _____ variance.
A)variable
B)controllable
C)price
D)volume

Accepted Answer

The variance is a price variance, which occurs when the actual price paid for materials differs from the expected or standard price. This variance helps in analyzing the difference in costs due to changes in the price of materials.

Question 8

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:  The direct labor rate variance is
A)$2,960 unfavorable
B)$4,500 favorable
C)$2,960 favorable
D)$4,500 unfavorable

Accepted Answer

The answer of The standard costs and actual costs for...

Question 9

Lucy Corporation purchased and used 129,000 board feet of lumber in production at a total cost of $1,548,000. Original production had been budgeted for 22,000 units with a standard materials quantity of 5.7 board feet per unit and a standard price of $12 per board foot. Actual production was 23,500 units.​
-The direct materials price variance is
A)$0
B)$59,400 unfavorable
C)$59,400 favorable
D)$6,000 unfavorable

Accepted Answer

The answer of Lucy Corporation purchased and used 129,000 board...

Question 10

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a _____ variance.
A)controllable
B)price
C)quantity
D)rate

Accepted Answer

The variance is a quantity variance because it relates to the difference in the amount of materials used compared to the standard or expected amount, not the price or rate of those materials.

Question 11

Lucy Corporation purchased and used 129,000 board feet of lumber in production at a total cost of $1,548,000. Original production had been budgeted for 22,000 units with a standard materials quantity of 5.7 board feet per unit and a standard price of $12 per board foot. Actual production was 23,500 units.​
-The direct materials quantity variance is
A)$63,000 favorable
B)$63,000 unfavorable
C)$59,400 favorable
D)$59,400 unfavorable

Accepted Answer

The answer of Lucy Corporation purchased and used 129,000 board...

Question 12

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.​ The direct materials quantity variance is
A)$1,020 favorable
B)$1,020 unfavorable
C)$900 favorable
D)$900 unfavorable

Accepted Answer

The answer of Myers Corporation has the following data related...

Question 13

The following data relate to direct labor costs for February:
Actual costs
7,700 hours at $14.00
Standard costs
7,000 hours at $16.00
-The direct labor time variance is
A)$7,700 favorable
B)$7,700 unfavorable
C)$11,200 unfavorable
D)$11,200 favorable

Accepted Answer

The direct labor time variance is unfavorable because the actual hours worked (7,700) exceeded the standard hours allowed (7,000). The unfavorable variance is calculated as follows:Unfavorable variance = (Actual hours - Standard hours) x Standard rate= (7,700 - 7,000) x $16= $11,200

Question 14

The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows:  The direct materials quantity variance is
A)$875 favorable
B)$850 unfavorable
C)$850 favorable
D)$875 unfavorable

Accepted Answer

The answer of The standard costs and actual costs for...

Question 15

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows:  The direct labor time variance is
A)$1,180 favorable
B)$1,140 unfavorable
C)$1,180 unfavorable
D)$1,140 favorable

Accepted Answer

The answer of The standard costs and actual costs for...

Question 16

The following data relate to direct labor costs for the current period: Standard costs
7,500 hours at $11.70
Actual costs
6,000 hours at $12.00
The direct labor time variance is
A)$18,000 favorable
B)$18,000 unfavorable
C)$17,550 unfavorable
D)$17,550 favorable

Accepted Answer

The direct labor time variance is calculated as (Standard Hours - Actual Hours) * Standard Rate. Here, it is (7,500 - 6,000) * $11.70 = 1,500 * $11.70 = $17,550 favorable, because actual hours worked were less than the standard hours allowed.

Question 17

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows:  The direct materials price variance is
A)$2,750 unfavorable
B)$2,750 favorable
C)$1,500 favorable
D)$1,500 unfavorable

Accepted Answer

The answer of The standard costs and actual costs for...

Question 18

If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a _____ variance.
A)time
B)price
C)quantity
D)rate

Accepted Answer

The time variance is the difference between the actual direct labor hours spent producing a commodity and the standard hours allowed for the production of that commodity.

Question 19

The following data relate to direct labor costs for the current period: Standard costs
9,000 hours at $5.50
Actual costs
8,500 hours at $5.75
The direct labor rate variance is
A)$2,250 unfavorable
B)$2,125 unfavorable
C)$2,250 favorable
D)$2,125 favorable

Accepted Answer

The direct labor rate variance is calculated as (Actual Hourly Rate - Standard Hourly Rate) x Actual Hours Worked. Here, it is ($5.75 - $5.50) x 8,500 = $0.25 x 8,500 = $2,125 unfavorable.

Question 20

The following data relate to direct labor costs for February:
Actual costs
7,700 hours at $14.00
Standard costs
7,000 hours at $16.00
-The direct labor rate variance is
A)$14,000 favorable
B)$14,000 unfavorable
C)$15,400 favorable
D)$15,400 unfavorable

Accepted Answer

The answer of The following data relate to direct labor...

Quiz 23: Evaluating Variances From Standard Costs

If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a _____ variance.

The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials quantity variance is

The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials price variance is

The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at $22.00 Actual costs 35,000 hours at $23.00 The direct labor time variance is

The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00 per hour and standard costs for 5,000 hours at $23.70 per hour. The direct labor rate variance is

The following data relate to direct labor costs for the current period: Standard costs 6,000 hours at $12.00 Actual costs 7,500 hours at $11.40 The direct labor rate variance is

If the price paid per unit differs from the standard price per unit for direct materials, the variance is a _____ variance.

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows: The direct labor rate variance is

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a _____ variance.

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound. The direct materials quantity variance is

The following data relate to direct labor costs for February: Actual costs 7,700 hours at $14.00 Standard costs 7,000 hours at $16.00 -The direct labor time variance is

The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: The direct materials quantity variance is

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: The direct labor time variance is

The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70 Actual costs 6,000 hours at $12.00 The direct labor time variance is

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows: The direct materials price variance is

If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a _____ variance.

The following data relate to direct labor costs for the current period: Standard costs 9,000 hours at $5.50 Actual costs 8,500 hours at $5.75 The direct labor rate variance is

The following data relate to direct labor costs for February: Actual costs 7,700 hours at $14.00 Standard costs 7,000 hours at $16.00 -The direct labor rate variance is

Quiz 23: Evaluating Variances From Standard Costs

If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a _____ variance.

The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials quantity variance is

The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials price variance is

The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at $22.00 Actual costs 35,000 hours at $23.00 The direct labor time variance is

The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00 per hour and standard costs for 5,000 hours at $23.70 per hour.​ The direct labor rate variance is

The following data relate to direct labor costs for the current period: Standard costs 6,000 hours at $12.00 Actual costs 7,500 hours at $11.40 The direct labor rate variance is

If the price paid per unit differs from the standard price per unit for direct materials, the variance is a _____ variance.

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows: The direct labor rate variance is

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a _____ variance.

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound.​ The direct materials quantity variance is

The following data relate to direct labor costs for February: Actual costs 7,700 hours at $14.00 Standard costs 7,000 hours at $16.00 -The direct labor time variance is

The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: The direct materials quantity variance is

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: The direct labor time variance is

The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70 Actual costs 6,000 hours at $12.00 The direct labor time variance is

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows: The direct materials price variance is

If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a _____ variance.

The following data relate to direct labor costs for the current period: Standard costs 9,000 hours at $5.50 Actual costs 8,500 hours at $5.75 The direct labor rate variance is

The following data relate to direct labor costs for February: Actual costs 7,700 hours at $14.00 Standard costs 7,000 hours at $16.00 -The direct labor rate variance is

The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00 per hour and standard costs for 5,000 hours at $23.70 per hour. The direct labor rate variance is

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50 and standard costs for 4,800 pounds of material at $5.10 per pound. The direct materials quantity variance is