1. If a company purchases raw materials on account for $19,830 when the standard cost is $18,900, it will
a. debit Materials Price Variance for $930
b. credit Materials Price Variance for $930
c. debit Materials Quantity Variance for $930
d. credit Materials Quantity Variance for $930
2. If a company issues raw materials to production at a cost of $18,900 when the standard cost is $18,300, it will
a. debit Materials Price Variance for $600
b. credit Materials Price Variance for $600
c. debit Materials Quantity Variance for $600
d. credit Materials Quantity Variance for $600
3. If a company incurs direct labor cost of $82,000 when the standard cost is $84,000, it will
a. debit Labor Price Variance for $2,000
b. credit Labor Price Variance for $2,000
c. debit Labor Quantity Variance for $2,000
d. credit Labor Quantity Variance for $2,000
4. If a company assigns factory Labor to production at a cost of $84,000 when standard cost is $80,000, it will:
a. debit Labor Price Variance for $4,000
b. credit Labor Price Variance for $4,000
c. debit Labor Quantity Variance for $4,000
d. credit Labor Quantity Variance for $4,000
5. The overhead variances measure whether overhead costs
Are Effectively Managed Were Used Efficiently
a. Controllable Controllable and Volume
b. Controllable Volume
c. Controllable and Volume Controllable
d. Volume Controllable
6. The overhead volume variance is:
a. actual overhead less overhead budgeted for actual hours
b. actual overhead less overhead budgeted for standard hours allowed
c. overhead budgeted for actual hours less applied overhead
d. the fixed overhead rate times the difference between normal capacity hours and standard hours allowed.
7. Budgeted overhead for Cinnabar Industries at normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. in May, $310,000, of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead controllable variance is:
a. $5,000 favorable
b. $2,000 favorable
c. $10,000 favorable
d. $10,000 unfavorable