Question 1

If the standard cost for an item exceeds the actual cost, the variance is favorable.

Accepted Answer

A) True 
 B)False

Question 2

Better Blankets, Inc. makes a SnuggieBlank using flannel material and trim binding. They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need. The Standard Cost Card for The SnuggieBlank model is shown. 
STANDARD COST CARD

The company reported the following results concerning January:

-
The material quantity variance for Trim used in January is:

Accepted Answer

A)  $5,640 favorable.
B)  $5,640 unfavorable.
C)  $1,440 unfavorable.
D)  $1,440 favorable.E) B) and C)
F) A) and B)

Question 3

The following production information is available for January:
  Actual Hours used 45,000 Actual Rate per hour $15 Standard Rate per hour $14 Standard hours for units produced 47,000\begin{array}{lrr}	ext { Actual Hours used } & 45,000 \	ext { Actual Rate per hour } & \$  15 \	ext { Standard Rate per hour } & \$  14 \	ext { Standard hours for units produced } & 47,000\end{array} Actual Hours used  Actual Rate per hour  Standard Rate per hour  Standard hours for units produced ​45,000$15$1447,000​ 
The direct materials price variance is:

Accepted Answer

A)  $28,000 unfavorable
B)  $45,000 unfavorable
C)  $28,000 favorable
D)  $45,000 favorable E) All of the above
F) A) and C)

Question 4

Explain the process for establishing standard costs for manufactured products. Identify the parties responsible and accountable for the standard.

Accepted Answer

Establishing standard costs for manufact...

Question 5

The cost of utilities consumed in the factory is a good example of

Accepted Answer

A)  a semi-variable cost.
B)  a fixed cost.
C)  a variable cost.
D)  a standard cost.E) B) and D)
F) B) and C)

Question 6

The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

Accepted Answer

A)  the actual cost of the item.
B)  the standard cost of the item.
C)  the price variance.
D)  the budgeted amount for the item.E) B) and D)
F) All of the above

Exam 29: Controlling Manufacturing Costs: Standard Costs

Correct Answer
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If the standard cost for an item exceeds the actual cost, the variance is favorable.

Correct Answer
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Explain the process for establishing standard costs for manufactured products. Identify the parties responsible and accountable for the standard.

Correct Answer
verified
Establishing standard costs for manufact...
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The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

Correct Answer
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Correct Answer
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The cost of utilities consumed in the factory is a good example of

Correct Answer
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Exam 29: Controlling Manufacturing Costs: Standard Costs

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If the standard cost for an item exceeds the actual cost, the variance is favorable.

Correct AnswerverifiedShow Answer

Explain the process for establishing standard costs for manufactured products. Identify the parties responsible and accountable for the standard.

Correct AnswerverifiedEstablishing standard costs for manufact...View AnswerShow Answer

The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The cost of utilities consumed in the factory is a good example of

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Establishing standard costs for manufact...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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