Reference no: EM132687920

Problem 1: At the end of a period, a significant material quantity variance should be

a. closed to Cost of Goods Sold.

b. allocated among Raw Material, Work in Process, Finished Goods, and Cost of Goods Sold.

c. allocated among Work in Process, Finished Goods, and Cost of Goods Sold.

d. carried forward as a balance sheet account to the next period.

Problem 2: When computing variances from standard costs, the difference between actual and standard price multiplied by actual quantity used yields a

a. combined price-quantity variance.

b. price variance.

c. quantity variance.

d. mix variance.

Problem 3: A company would most likely have an unfavorable labor rate variance and a favorable labor efficiency variance if

a. the mix of workers used in the production process was more experienced than the normal mix.

b. the mix of workers used in the production process was less experienced than the normal mix.

c. workers from another part of the plant were used due to an extra heavy production schedule.

d. the purchasing agent acquired very high quality material that resulted in less spoilage.