 Question 1

2 out of 2 points
If actual direct materials costs are greater than standard direct materials costs, it means that

Selected  
Answer: the actual unit price of raw materials or the actual quantities of raw materials used was
greater than the standard unit price or standard quantities of raw materials expected.

Correct  
Answer: the actual unit price of raw materials or the actual quantities of raw materials used was
greater than the standard unit price or standard quantities of raw materials expected.

 Question 2
2 out of 2 points
Which of the following statements about overhead variances is false?

Selected Answer:  
The controllable variance pertains solely to fixed costs.

Correct Answer:  
The controllable variance pertains solely to fixed costs.

 Question 3
2 out of 2 points
Standard costs may be used by

Selected Answer:  
All of these answers are correct.

Correct Answer:  
All of these answers are correct.

 Question 4
2 out of 2 points
Denmark Corporation’s variance report for the purchasing department reports 1,000 units of material A
purchased and 2,400 units of material B purchased. It also reports standard prices of $2 for Material A and $3
for Material B. Actual prices reported are $2.10 for Material A and $2.80 for Material B. Denmark should
report a total price variance of

Selected Answer:  
$380 F.

Correct Answer:  
$380 F.

 Question 5
2 out of 2 points
The total overhead variance is the difference between the
 Selected Answer:  
actual overhead costs and overhead costs applied based on standard hours allowed.

Correct Answer:  
actual overhead costs and overhead costs applied based on standard hours allowed.

 Question 6
1 out of 1 points
The overhead volume variance relates only to fixed overhead costs.

Selected Answer:
True
Correct Answer:  True
 Question 7
1 out of 1 points
 
In concept, standards and budgets are essentially the same.

Selected Answer:
True
Correct Answer:  True
 Question 8
1 out of 1 points
Once set, normal standards should not be changed during the year.

Selected Answer:
False
Correct Answer:  False
 Question 9
1 out of 1 points
Standard costs may be incorporated into the accounts in the general ledger.

Selected Answer:
True
Correct Answer:  True
 Question 10
1 out of 1 points
The total overhead variance is the difference between actual overhead costs and overhead costs applied to work
done.
Selected Answer:
True
Correct Answer:  True