1. Standards differ from budgets in that:
a. budgets but not standards may be used in valuing inventories.
b. budgets but not standards may be journalized and posted.
c. budgets are a total amount and standards are a unit amount.
d. only budgets contribute to management planning and control.
2. Which of the following is incorrect about a standard cost accounting system?
a. It is applicable to job order costing.
b. It is applicable to process costing.
c. It reports only favorable variances.
d. It keeps separate accounts for each variance.
3. In producing product AA, 6,300 pounds of materials were used at a cost of $1.10 per pound. The standard was 6,000 pounds at $1.00 per pound. The direct materials quantity variance is:
a. $330 unfavorable.
b. $300 unfavorable.
c. $600 unfavorable.
d. $630 unfavorable.
4. In the Wetzel Company 20,000 direct labor hours were worked when standard hours were 21,000 and the actual pay rate was $6.30 when the standard rate was $6.50. The labor quantity variance is:
a. $6,300 favorable.
b. $6,300 unfavorable.
c. $6,500 favorable.
d. $6,500 unfavorable.
5. Using the data in question 4, the labor price variance is:
a. $4,000 unfavorable.
b. $4,000 favorable.
c. $4,200 unfavorable.
d. $4,200 favorable.