1.From the options below, select the statement that best describes a basic standard.

a. All are incorrect.

b. A standard which is based on current price levels. current standard
c. A standard which assumes an efficient level of operation, but which includes
allowances for factors such as normal loss, waste and machine downtime. attainable standard
d. A standard which is kept unchanged over a period of time.
e. A standard set at an ideal level, which makes no allowance for normal losses, waste
and machine downtime. ideal standard

2. K has the following budget and actual data: actual in standard HOUR rate - Amount actual with absorbed budget
Price per hour & hour per unit budget absorbed to actual.
- Budget fixed overhead cost: $1,248,480
- Budget production (units): 20,400 Budget hour price: 1.248.480/104.040= $12
- Budget labour hours: 104,040 Budget hour per unit: 104.040/20.400= 5.1h
Budget hour use in actual units: 5.1*20.000= 102.000h
- Actual fixed overhead cost: $1,366,620
- Actual production (units): 20,000 Budget labors cost :102.000*12=$1.224.000
Actual labors cost: $12* 100.000h= $1.200.000
- Actual labour hours: 100,000
The favourable fixed overhead efficiency variance is - $___24,000____

3. Harvey LTD uses standard absorption costing and in September, the below
information was recorded.
Budget Actual

Output and sales (units) 13,600 12,400

Selling price per unit $30 $32

Variable cost per unit $12 $12

Total fixed overhead $29,600 $30,200

The sales price variance for September was:
a. $24,800 Favourable = (32-30)*12400
b. $24,800 Adverse
c. $25,600 Adverse
d. $25,600 Favourable

4. 4Es Ltd. repairs and refinishes antique furniture. Manufacturing overhead at 4Es is
applied to production on the basis of standard direct labor-hours.
Which overhead variance(s) at 4Es would be Answer 1
unfavorably affected if a significant amount of variable overhead spending variance
glue is being wasted by inexperienced direct fixed overhead budget variance
labor workers? fixed overhead volume variance
variable overhead efficiency variance

Which overhead variance(s) at 4Es would be Answer 2

unfavorably affected if the cost of solvents used variable overhead spending variance
to strip the old paint and varnish from the fixed overhead budget variance
furniture unexpectedly doubles in price? fixed overhead volume variance
variable overhead efficiency variance
 Which overhead variance(s) at 4Es would be
favorably affected if the actual direct
labor-hours incurred are less than the standard
direct labor-hours allowed for output?
Answer 3
variable overhead spending variance
fixed overhead budget variance
fixed overhead volume variance
variable overhead efficiency variance

5. The materials price variance for the month of January was $2,000 (F) and the usage
variance was $450 (F). The standard material usage per unit is 6 kg, and the standard
material price is $3.00 per kg. 600 units were produced in the period and there was no
change in inventory levels during the period.
Material purchases in the period were
Trả lời: ……. kg.
3450kg
6. A company operates a standard absorption costing system. The following fixed
production overhead data are available for the latest period:
- Budgeted Output: 6,000 units
- Budgeted Fixed Production Overhead: £30,000
- Actual Fixed Production Overhead: £39,000
- Fixed Production Overhead Total Variance: £3,000 adverse
The actual level of production for the period was nearest to:
a. All are incorrect
b. 9,700 units
c. 12,000 units
d. 7,000 units
e. 7,400 units

7. Which of the statement(s) below is/ are correct? (Chọn nhiều đáp án)
a. Responsibility for the overhead efficiency variance should be assigned to whoever is
responsible for control of the activity base underlying the flexible budget.
b. A favorable variable overhead efficiency variance indicates that overhead has been
used efficiently.
c. In a standard cost system, overhead is applied on the basis of the actual level of
activity rather than the standard level of activity allowed for the output of a period.
d. The budget variance for fixed overhead represents the difference between actual
fixed overhead costs incurred and the amount of fixed overhead applied to work in
process.
e. The activity base for a flexible budget should usually be expressed in units of activity
rather than in dollars.
f. The volume variance for fixed overhead is an activity-related variance based on the
difference between the denominator level of activity and the standard level of activity
allowed for the output of a period.

8. Match the variance with its most likely cause: (nối cột trái với 1 trong các đáp án cột
phải)
Labour rate variance Answer 1
Machine power costs per hour were higher than standard
Unexpected pay award
Less experienced employees were used than standard
Increase in costs charged by a supplier
Increased wastage due to a machine malfunction
Improved operating procedures for assembling workers

Material price variance Answer 2

Machine power costs per hour were higher than standard
Unexpected pay award
Less experienced employees were used than
standardIncrease in costs charged by a supplier
Increased wastage due to a machine malfunction
Improved operating procedures for assembling workers

Favourable labour Answer 3

efficiency variance Machine power costs per hour were higher than standard
Unexpected pay award
Less experienced employees were used than standard
Increase in costs charged by a supplier
Increased wastage due to a machine malfunction
Improved operating procedures for assembling workers

Material usage variance Answer 4

Machine power costs per hour were higher than standard
Unexpected pay award
Less experienced employees were used than standard
Increase in costs charged by a supplier
Increased wastage due to a machine malfunction
Improved operating procedures for assembling workers

Adverse variable overhead Answer 5

efficiency variance Machine power costs per hour were higher than standard
Unexpected pay award
Less experienced employees were used than standard
Increase in costs charged by a supplier
Increased wastage due to a machine malfunction
Improved operating procedures for assembling workers

9. L uses a standard costing system. The standard cost card for one of its products
shows that the product should use 6 kgs of material P per finished unit, and that the
standard price per kg is $6.75. L values its inventory of materials at standard prices.
During November x1, when the budgeted production level was 2,000 units, 2,192 units
were made. The actual quantity of material P used was 13,050 kgs and material L
inventories were reduced by 500 kgs. The cost of the material L which was purchased
was $72,900.
The material price and usage variances for November x1 were:
a. All are incorrect
b. Price variance: -11,812.50 (F) - Usage variance: 688.50 (A)
c. Price variance: -15,185.50 (F) - Usage variance: -450.00 (F)
d. Price variance: -11,812.50 (F) - Usage variance: -688.50 (F)
e. Price variance: -15,187.50 (F) - Usage variance: 450.00 (A)
10. From the options below, determine whether the definition of fixed overhead
volume variance below is TRUE or FALSE.
The difference between budgeted and actual fixed overhead expenditure true/false

The difference between the standard fixed overhead cost specified in the true/false
original budget and the same volume of fixed overheads, but at the actual
prices incurred

The difference between the standard fixed overhead cost specified for the true/false
production achieved, and the actual fixed overhead cost incurred
 The difference between the budgeted value of the fixed overheads and the true/false
standard fixed overheads absorbed by actual production

11. ABC Ltd's standard cost of material X which is used to assemble their final
product is as follows: 4kg @ £3.25 = £13.00.
1,500 units were produced for the period. This gave a material usage variance of
£2,438 adverse, with material stock for the period rising by 800kg.
The quantity of material purchased for this period was
Trả lời:...7550.. kg.

12. Determine the statements below are TRUE or FALSE.

A labor efficiency debit balance indicates that less labor time was spent on true/false
production than was called for by the standard.

If variable manufacturing overhead is applied based on direct labor-hours, it true/false

is impossible to have a favorable labor efficiency variance and unfavorable
variable overhead efficiency variance for the same period.

An unfavorable materials quantity variance occurs when the actual quantity true/false
used in production is less than the standard quantity allowed for the actual
output of the period.

There can be no volume variance for variable overhead. true/false

Ideal standards may be better than practical standards when managers true/false
seek continual improvement.

13. Please answer all parts of the question.

RBK Ltd operates a standard absorption costing system. Details of budgeted and
actual figures are as follows:
 Budget Actual

Sales volume (units) 100,000 110,000

Selling price per unit $24 $21

Selling price per unit $17 $13

Total cost per unit $18 $19

The favourable sales volume profit variance for the period was $____
Trả lời: 60000
(input answer without commas).

Bài tương tự câu 13

14. Nitche Enterprises has a standard cost system in which manufacturing overhead
is applied to units of product on the basis of standard direct labor-hours (DLHs). The
company has provided the following data concerning its fixed manufacturing
overhead costs for last year:
- Total actual fixed overhead cost incurred: $42,000
- Fixed overhead cost overapplied: $6,000
- Number of units produced: 12,500
- Volume variance, unfavorable: $3,600
- Standard labor-hours per unit: 1.6 DLHs
The fixed portion of the predetermined overhead rate last year was __$2.40 per DLH___
.
The budgeted fixed overhead cost last year was __$51,600___

.
The budget variance for fixed overhead last year was __$9,600 F____

.
$2.88 per DLH / $3.84 per DLH / $1.80 per DLH / $2.40 per DLH
$42,000 / $51,600 / $41,000 / $44,400
$2,400 F / $9,600 U / $9,600 F / $2,400 U

15. Saracens Ltd operates a standard marginal costing system. An extract from the
standard cost card for the labour costs of one of its products is as follows:
Labour cost (standard): 5 hours x 12 = $60
Actual results for the period were as follows:
Production: 11,500 units
Labour rate variance: $45,000 adverse
Labour efficiency variance: $30,000 adverse
The actual rate paid per direct labour was $__12.75_____

16. The following data has been extracted from the budget of XL Plc:
Activity (Machine hours) Overhead cost (£)
2,000 £5,000
2,400 £5,800
3,600 £8,200
In November 2018, the actual activity was 2,550 machine hours and the actual
overhead cost incurred was £6,512.
The overhead expenditure variance was £ 412 Favourable/ Adverse.

17. The definition of the “variable production overhead efficiency variance” is set out
below with blank sections:
“Measures the difference between the variable overhead cost budget __flexed __ on
_actual labour hours__ and the variable overhead cost absorbed by_output
produced___.”
From the options below, choose the correct combination of phrases that completes
the definition.
multiplied/ budgeted output / flexed / output produced / fixed / actual labour hours /output
produced
18. From the options below, select the one good reason NOT to investigate a variance.
a. Cost caused by the variance is less than the cost of the investigation.
b. It would investigate a £15,000 variance if the investigation itself would cost £5,000.
c. The variation is unexpected and large.
d. Cost of the investigation is less than the cost caused by variance.
e. The variation is unexpected and controllable.
19. 4Es Ltd., uses a standard cost system in which it applies manufacturing overhead
to units of product on the basis of standard direct labor-hours. During the month of
September, the company applied $52,000 in fixed manufacturing overhead cost to
units of product. At the end of the month, manufacturing overhead was overapplied
by $3,000. If there was no volume variance in September, then the budgeted fixed
manufacturing overhead cost for the month was $___52,000____

20. At C Company, maintenance is a variable cost that varies directly with machine
hours. The performance report for June showed that actual maintenance costs totaled
$9,600 and that the associated spending variance was $400 unfavorable. If 8,000
machine-hours were actually worked during June, the budgeted maintenance cost per
machine-hour was:
a. All are incorrect
b. $1.15
c. $1.30
d. $1.20
e. $1.25

21. J007 is one of many items produced by H's manufacturing division. Its standard
cost is based on estimated production of 10,000 units per month. The standard cost
schedule for one unit of J007 shows that 4 hours of direct labour are required at $10
per labour hour. The variable overhead rate is $3.50 per direct labour hour. During
November 2018, 11,000 units were produced:
● 56,000 direct labour hours were worked and charged;
● $504,000 was spent on direct labour;
● $220,000 was spent on variable overheads.
The direct labour rate variance for the month is _______ / _______
$56,000 / Adverse / $50,000 / Favourable / $52,000 / $54,000

22. The budgeted selling price of one of BIS Plc’s range of cookies was $12.00 per
packet of cookies. At the beginning of the budget period market prices of sugar
increased significantly and BIS Plc decided to increase the selling price of the cookie
packet by 10% for the whole period.
BIS Plc also decided to increase the amount spent on marketing and as a result actual
sales volumes increased to 31,500 packets which was 5% above the budgeted
volume. The standard contribution per packet was $4.00. However, a contribution of
$4.50 per packet was actually achieved.
The sales price variance for the period was:
a. $31,400 A
b. $37,800 F
c. All are incorrect
d. $31,400 F
e. $37,800 A

23. K uses a standard costing system and has the following labour cost standard in
relation to its products : 10 hours skilled labour at $ 9.50 per hour = $ 95.00 .
During March 20x9 , 6,200 of these products were made which was 250 units less than
budgeted. The labour cost incurred was $ 596,412 and the number of direct labour
hours worked was 62,890 .
The direct labour rate variance was__ 1,043 ( F )__
The direct labour efficiency variance was____8,455 ( A ) __

8,900 ( F ) / 8,455 ( A ) / 8,900 ( A ) / 7,412 ( A ) / 1,043 ( F ) / 8,455 ( F ) / 1,043 ( A ) / 7,412

(F)

24. Drag and drop the calculation methods to match with the variance types:
Variable production overhead efficiency variance

The variable overhead cost of any change from the standard level of labour efficiency,
assuming that labour hours are being used the recovery base for variable overheads
Variable production overhead expenditure variance

The variable overhead cost of any change from the standard labour rate per hour,
assuming that labour hours are being used as the recovery base for variable overheads.

Varibale production averhead total variance

the difference between the variable overhead that should be used for actual output and
variable production overhead actually used

the difference between the variable overhead that should be used for actual output and
variable production overhead actually used

The variable overhead cost of any change from the standard level of labour efficiency,
assuming that labour hours are being used the recovery base for variable overheads
 The variable overhead cost of any change from the standard labour rate per hour,
assuming that labour hours are being used as the recovery base for variable overheads.

25. From the options below, select the statement which is not a limitation of standard
costing.
a. Standard costing can not be used in a service environment
b. It focuses on quantitative measures rather than qualitative measures
c. It can result in a blame culture as department managers are held responsible for
variances
d. Standard costing can not be used in a service environment

26. Which of the following statements about the fixed production overhead volume
variance is true?
a. It is the difference between budgeted overhead expenditure and actual overhead
expenditure
b. It does not exist in a standard absorption costing system
c. It is the same in a standard marginal costing system as in a standard absorption
costing system
d. It does not exist in a standard marginal costing system
e. All are incorrect

27. J Ltd operates a standard absorption costing system. The following fixed
production overhead data is available for one month:
● Budgeted output: 200,000 units
● Budgeted fixed production overhead: £1,000,000
● Actual fixed production overhead: £1,300,000
● Total fixed production overhead variance: £100,000 Adverse
The actual level of production was 240,000units.

28. Jacko Ltd uses standard absorption costing and the following information was
recorded by the company for April:
Budget Actual

Output and sales (units) 6,500 6,000

Selling price per unit €22 €26

Variable cost per unit €8 €8

Total fixed overheads €29,250 €33,000

The fixed overhead volume variance for April was:
a.All are incorrect
b.€4,000 adverse
c.€2,250 adverse
d.€2,100 favourable
e.€2,100 adverse