accounting 201B – Flashcards

What is a standard cost?

A standard cost is

The difference between a budget and a standard is that

Which of the following statements is false?

Budget data are not journalized in cost accounting systems with the exception of

It is possible that a company's financial statements may report inventories at

A standard differs from a budget because a standard

Using standard costs

If standard costs are incorporated into the accounting system,

Which of the following statements about standard costs is false?

The final decision as to what standard costs should be is the responsibility of

The most rigorous of all standards is the

Most companies that use standards set them at

The direct materials quantity standard would not be expressed in

The direct materials quantity standard should

The direct labor quantity standard is sometimes called the direct labor

A manufacturing company would include setup and downtime in their direct

An unfavorable materials quantity variance would occur if

The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing

If actual direct materials costs are greater than standard direct materials costs, it means that

If actual costs are greater than standard costs, there is a(n)

A total materials variance is analyzed in terms of

The purchasing agent of the Poplin, Inc. ordered materials of lower quality in an effort to economize on price. What variance will most likely result?

Which one of the following statements is true?

Variances from standards are

A favorable variance

The total materials variance is equal to the

The total variance is $30,000. The total materials variance is $12,000. The total labor variance is twice the total overhead variance. What is the total overhead variance?

The formula for the materials price variance is

The formula for the materials quantity variance is

A company uses 8,400 pounds of materials and exceeds the standard by 400 pounds. The quantity variance is $1,200 unfavorable. What is the standard price?

A company purchases 20,000 pounds of materials. The materials price variance is $3,000 favorable. What is the difference between the standard and actual price paid for the materials?

A company uses 20,000 pounds of materials for which it paid $4.00 a pound. The materials price variance was $30,000 unfavorable. What is the standard price per pound?

If the materials price variance is $2,400 F and the materials quantity and labor variances are each $1,800 U, what is the total materials variance?

Edgar, Inc. has a materials price standard of $2.00 per pound. Three thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 3,000 pounds, although the standard quantity allowed for the output was 2,700 pounds. Edgar, Inc.'s materials price variance is

Edgar, Inc. has a materials price standard of $2.00 per pound. Three thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 3,000 pounds, although the standard quantity allowed for the output was 2,700 pounds. Edgar, Inc.'s materials quantity variance is

Labor efficiency is measured by the

An unfavorable labor quantity variance may be caused by

The investigation of materials price variance usually begins in the

The investigation of a materials quantity variance usually begins in the

If the labor quantity variance is unfavorable and the cause is inefficient use of direct labor, the responsibility rests with the

A company uses 40,000 gallons of materials for which they paid $9.00 a gallon. The materials price variance was $80,000 favorable. What is the standard price per gallon?

Which one of the following describes the total overhead variance?

The total overhead variance is the difference between the

The predetermined overhead rate for Zane Production Company is $10, comprised of a variable overhead rate of $6 and a fixed rate of $4. The amount of budgeted overhead costs at normal capacity of $300,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $10. Actual overhead for June was $19,000 variable and $12,100 fixed, and standard hours allowed for the product produced in June was 3,000 hours. The total overhead variance is