1. Standard costs may be used as a management tool to controlcosts by

a. including standard costs and variances in the generalledger.

b. None of these choices are correct.

c. Both of these choices are correct.

d. excluding standard costs and variances in the generalledger.

2. The Strawberry Mansion Company reported the following:

Standard hours per unit	2.5hours
Standard rate per hour	$16.00
Actual hours used	12,560
Actual rate per hour	$15.50
Number of units produced	4,900

Determine the direct labor rate variance:

a. $6,125 unfavorable

b. $6,280 unfavorable

c. $6,280 favorable

d. $6,125 favorable

3,

When standard quantity exceeds actual quantity, the resultis

a. a favorable direct materials quantity variance.

b. an unfavorable direct materials price variance.

c. a favorable direct materials price variance.

d. an unfavorable direct materials quantity variance.

4.

Douglas Industries produced 5,500 units of product that required2.5 standard hours per unit. The standard variable overhead costper unit is $3.00 per hour. The actual variable factory overheadwas $39,000. Determine the variable factory overhead controllablevariance.

a. $6,600 favorable

b. $2,250 favorable

c. $2,250 unfavorable

d. $6,600 unfavorable

Answer rating: 100% (QA)

Question Answer Explanation 1 a 2 c 3 a 4lb Standard costs variances are included in the general l... View the full answer