1. When more hours of labor time are necessary to complete a job than the standa
ID: 2381461 • Letter: 1
Question
1.
When more hours of labor time are necessary to complete a job than the standard allows, the labor rate variance is unfavorable.
A) True
B) False
2.
Standard costs should generally be based on the actual costs of prior periods.
A) True
B) False
MC
3.
TB 36 The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output; 2.7
atandard variable overhead rate $13.05
The following data pertain to operations for the last month:
ACTUAL HOURS 2,400
Actual total variable manufacturing overhead cost $30,360
Actual output 600 units
What is the variable overhead efficiency variance for the month?
A) $9,219 U
B) $10,179 U
C) $9,867 U
D) $648 U
4.
TB 30 The following labor standards have been established for a particular product:
Standard labour hour per unit 4.0 hours
standard labor rate $12.30 per hour
The following data pertain to operations concerning the product for the last month:
Actual hour worked 7100 hours
actual total cost 89105
actual output 1500 units.
What is the labor efficiency variance for the month?
A) $13,805 U
B) $13,530 U
C) $15,305 U
D) $15,305 F
6.
TB 21 Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the direct labor efficiency variance is unfavorable, the variable overhead efficiency variance will be:
A) favorable.
B) unfavorable.
C) either favorable or unfavorable.
D) zero.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The labor efficiency variance for March is:
A) $2,660 F
B) $2,422 F
C) $2,422 U
D) $2,660 U
10.
TB 139 Fabiano Corporation makes a product whose direct labor standards are 0.5 hours per unit and $23.00 per hour. In February the company produced 3,300 units using 1,640 direct labor-hours. The actual direct labor cost was $38,540.
The labor rate variance for February is:
A) $825 U
B) $820 U
C) $820 F
D) $825 F
Explanation / Answer
1) True 2) False 3) C) $9,867 U 4) B 5) C 6) A 7) D 8) B 9) C 10) D
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.