1. If a company purchases raw materials on account for $19830 when the standar

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    1. If a company purchases raw materials on account for $19830 when the standard cost is $18900 it will

    a. debit Materials Price Variance for $930

    b. credit Materials Price Variance for $930

    c. debit Materials Quantity Variance for $930

    d. credit Materials Quantity Variance for $930

    2. If a company issues raw materials to production at a cost of $18900 when the standard cost is $18300 it will

    a. debit Materials Price Variance for $600

    b. credit Materials Price Variance for $600

    c. debit Materials Quantity Variance for $600

    d. credit Materials Quantity Variance for $600

    3. If a company incurs direct labor cost of $82000 when the standard cost is $84000 it will

    a. debit Labor Price Variance for $2000

    b. credit Labor Price Variance for $2000

    c. debit Labor Quantity Variance for $2000

    d. credit Labor Quantity Variance for $2000

    4. If a company assigns factory Labor to production at a cost of $84000 when standard cost is $80000 it will:

    a. debit Labor Price Variance for $4000

    b. credit Labor Price Variance for $4000

    c. debit Labor Quantity Variance for $4000

    d. credit Labor Quantity Variance for $4000

    5. The overhead variances measure whether overhead costs

    Are Effectively Managed Were Used Efficiently

    a. Controllable Controllable and Volume

    b. Controllable Volume

    c. Controllable and Volume Controllable

    d. Volume Controllable

    6. The overhead volume variance is:

    a. actual overhead less overhead budgeted for actual hours

    b. actual overhead less overhead budgeted for standard hours allowed

    c. overhead budgeted for actual hours less applied overhead

    d. the fixed overhead rate times the difference between normal capacity hours and standard hours allowed.

    7. Budgeted overhead for Cinnabar Industries at normal capacity of 30000 direct labor hours is $6 per hour variable and $4 per hour fixed. in May $310000
    of overhead was incurred in working 31500 hours when 32000 standard hours were allowed. The overhead controllable variance is:

    a. $5000 favorable

    b. $2000 favorable

    c. $10000 favorable

    d. $10000 unfavorable

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