1) The management technique whereby managers concentrate on results that are outside the accepted parameters is called management by:

A) Variance.

B) Standard.

C) Exception.

D) Budget.

2) Which of the following variances considers only the cost variance to be included in the calculation of the total production cost flexible budget variance?

A) Total fixed overhead variance

B) Total variable overhead variance

C) Total direct materials variance

D) Total direct labor variance

3) The total variable overhead variance is obtained by adding variable overhead cost variance and:

A) Total manufacturing overhead variance.

B) Total direct labor variance.

C) Fixed overhead cost variance.

D) Variable overhead efficiency variance.

4) The management of Delta Company has calculated the following variances:

When determining the total production cost flexible budget variance, calculate the fixed overhead cost variance of Delta Company.

A) $3,050 F

B) $12,000 U

C) $8,000 U

D) $10,050 F

5) Under a standard costing system, while recording the use of direct materials in the production process, Work-in-Process Inventory is debited with:

A) Standard quantity for actual production times standard cost per unit of raw material.

B) Standard quantity for actual production times actual cost per unit of raw material.

C) Actual quantity times standard cost per unit of raw material.

D) Actual quantity times actual cost per unit of raw material.

Transcribed Image Text:

Direct materials cost variance Direct materials variance Direct labor cost variance Direct labor efficiency variance Total variable overhead variance Total fixed overhead variance $8,000 U efficiency 35,000 F 15,000 F 12,000 U 7,000 F 3,050 F Direct materials cost variance Direct materials variance Direct labor cost variance Direct labor efficiency variance Total variable overhead variance Total fixed overhead variance $8,000 U efficiency 35,000 F 15,000 F 12,000 U 7,000 F 3,050 F

Answer rating: 100% (QA)

1 C Exception 2 A Total fixed overhea... View the full answer