Reference no: EM132479659

Question 1 - Carmen Corporation has the following standards for its direct materials:

Standard cost: $8.90 per pound

Standard quantity: 3.00 pounds per product

During the most recent month, the company purchased and used 2,100 pounds of materials costing $17,300 in making 680 products. Compute the materials quantity variance.

a. $534 Favorable

b. $1,390 Unfavorable

c. $1,390 Favorable

d. $534 Unfavorable

Question 2 - The efficiency of workers is most likely to affect which of the following variances?

a. Materials price variance

b. Labor quantity variance

c. Labor price variance

d. Materials quantity variance

Question 3 - When the actual cost of materials differs from standard, the investigation usually starts with which department?

a. Accounting

b. Human Resources

c. Purchasing

d. Production

Question 4 - The quantity of direct materials that should be used per unit of finished goods is known as:

a. direct materials price standard.

b. direct materials quantity standard.

c. direct labor price standard.

d. direct labor quantity standard.

Question 5 - A drug manufacturing company produces significantly more units than budgeted. Because actual and budgeted activity levels significantly differed, it is possible that a static budget will reveal a favorable (unfavorable) variance while a flexible budget will reveal an unfavorable (favorable) variance.

True

False

Question 6 - The rate per hour that should be incurred for direct labor is known as the:

a. direct materials price standard.

b. direct materials quantity standard.

c. direct labor quantity standard.

d. direct labor price standard.