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314 Chap 8 PDF Free
314 Chap 8 PDF Free
When computing variances from standard costs, the difference between actual and standard price multiplied by actual quantity yields:
What is the entry to record the direct labor cost and variances?
Answer:
3. If a company follows a practice of isolating variances at the earliest point in time, what would be the appropriate time to isolate and
recognize a direct material price variance?
4. Alyssa Corporation uses a standard cost system. Direct labor information for Product CER for the month of October is as follows:
Answer: 1,500
5. In a standard cost system, when the materials price variance is recorded at the time the material is purchased, the materials purchase price
variance is obtained by multiplying the:
Answer: Actual quantity purchased by the difference between actual price and standard price
6. Thomas Company uses a standard cost system and recognizes the materials purchase price variance at the time materials are purchased.
Information for raw materials for Product RBI for the month of October follows:
8. PHI Company began its operations on January 1 and produces a single product that sells for $35.00 per unit. 5,000 units were produced
and 4,000 units were sold during the year.
Standard cost
Answer:
Answer: Is high enough to provide motivation and promote efficiency, but is still attainable.
What is the entry to record the direct materials cost and variances, assuming that the price variance is recorded when the materials are put
into production?
Answer:
13. Earl Company's direct labor costs for the month of January follow:
14. Which of the following terms best identifies the function of standard costs where any deviation from standards can be quickly detected
and responsibility pinpointed so appropriate action may be taken?
Answer: Difference between the actual and standard quantities multiplied by the standard unit price.
Answer: $ 12.00
17. Information relating to direct labor for the McGill Company follow:
Answer:
Answer: $6.50
20. Factors to be considered in setting materials standards include all of the following except:
______________________________________________________________________________________________________________________________________________
William Company -
Work in process 27,000
Labor rate variance 500
Labor efficiency variance 2,500
Payroll 30,000
McGill –
Work in process 48,600
Labor rate variance 2,800
Labor efficiency variance 1,800
Payroll 53,200
Genie Company -
Work in process 12,000
Materials price variance 2,000
Materials quantity variance 1,000
Materials 13,000