Reference no: EM13566767

The use of inexpensive, low quality, materials often results in:

A) A favorable materials quantity variance.

B) A favorable labor rate variance.

C) An unfavorable materials quantity variance.

D) An unfavorable materials price variance.

2.An unfavorable overhead volume variance results from:
A) An unfavorable overhead spending variance.
B) Poor decisions made by the production manager.
C) Producing at levels of output which exceed normal output levels.
D) Producing at levels of output which fall short of normal output levels.

3.If fewer units are produced than had been estimated when standard unit costs were determined, there would normally be:

A) A favorable labor efficiency (usage) variance.

B) An unfavorable overhead volume variance.

C) A favorable materials quantity variance.

D) An unfavorable overhead spending variance.

5.Overhead volume variances indicate:

A) Efficient performance.

B) Inefficient performance.

C) Fluctuations in the level of production from month to month.

D) Inadequate budgeting.

7.Which statement is true regarding a standard cost system?

A) Both actual and standard costs are used.

B) Only standard costs are used.

C) If variances occurred, then something negative in the operations has occurred.

D) Standards are used only when actual amounts are not available.

8.The overhead spending variance:

A) Occurs automatically whenever actual production levels differ from the "normal" production level used to compute the standard overhead cost per unit.

B) Is the difference between amounts spent for actual manufacturing overhead costs and the amount applied to production.

C) Is computed as the difference between variable overhead per the flexible budget and actual variable overhead costs incurred.

D) Is the portion of the total overhead variance that is considered "controllable" by the production manager.