1. The ________________ variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production.

a. direct materials quantity

b. None of these choices are correct.

c. variable factory overhead controllable

d. fixed factory overhead volume

2.

The Strawberry Mansion Company produced 5,500 cakes that require 3 standard pounds per unit at $3.00 standard price per pound. The company actually used 16,350 pounds in production. Journalize the entry to record the standard direct materials used in production.

a. Materials Dr., 49,050; Work in Process Cr., 49,050.

b. Work in Process Dr., 49,500; Direct Materials Quantity Variance Cr., 450; Materials Cr., 49,050.

c. Work in Process Dr., 49,500; Materials Cr., 49,500.

d. Work in Process Dr., 49,500; Direct Materials Quantity Variance Dr., 450; Materials Cr., 49,950.

3.

Which of the following would not be used to measure quality?

a. number of rejects

b. time to develop new products

c. on-time delivery

d. number of warranty claims

4.

Which of the following nonfinancial performance measures could be used by equipment suppliers?

a. charges to the warranty accrual

b. a decrease in profit margin

c. the elapsed time between a customer order and product delivery

d. an increase in overtime pay