Solved

Match the Appropriate Code Letter of the Following Item

Question 202

Matching

Match the appropriate code letter of the following item.

Premises:

Responses:

A double-entry system of accounting in which standard costs are used in making entries and variances are recognized in the accounts.

Ideal standards

The difference between actual overhead incurred and overhead budgeted for the standard hours allowed.

Standard costs

Standards based on an efficient level of performance that are attainable under expected operating conditions.

Standard cost accounting system

The difference between normal capacity hours and standard hours allowed times the fixed overhead rate.

Variances

The hours that should have been worked for the units produced.

Materials price variance

Predetermined unit costs that are measures of performance.

Standard hours allowed

The difference between actual hours times the standard rate and standard hours times the standard rate.

Overhead controllable variance

The difference between the actual quantity times the actual price and the actual quantity times the standard price.

Labor quantity variance

Standards based on the optimum level of performance under perfect operating conditions.

Overhead volume variance

The difference between total actual costs and total standard costs.

Normal standards

Premises:

A double-entry system of accounting in which standard costs are used in making entries and variances are recognized in the accounts.

The difference between actual overhead incurred and overhead budgeted for the standard hours allowed.

Standards based on an efficient level of performance that are attainable under expected operating conditions.

The difference between normal capacity hours and standard hours allowed times the fixed overhead rate.

The hours that should have been worked for the units produced.

Predetermined unit costs that are measures of performance.

The difference between actual hours times the standard rate and standard hours times the standard rate.

The difference between the actual quantity times the actual price and the actual quantity times the standard price.

Standards based on the optimum level of performance under perfect operating conditions.

The difference between total actual costs and total standard costs.

Responses:

Ideal standards

Standard costs

Standard cost accounting system

Variances

Materials price variance

Standard hours allowed

Overhead controllable variance

Labor quantity variance

Overhead volume variance

Normal standards

Correct Answer:

Premises:

Responses:

A double-entry system of accounting in which standard costs are used in making entries and variances are recognized in the accounts.

The difference between actual overhead incurred and overhead budgeted for the standard hours allowed.

Standards based on an efficient level of performance that are attainable under expected operating conditions.

The difference between normal capacity hours and standard hours allowed times the fixed overhead rate.

The hours that should have been worked for the units produced.

Predetermined unit costs that are measures of performance.

The difference between actual hours times the standard rate and standard hours times the standard rate.

The difference between the actual quantity times the actual price and the actual quantity times the standard price.

Standards based on the optimum level of performance under perfect operating conditions.

The difference between total actual costs and total standard costs.