Revised Summer 2016 Chapter Review True / False Questions A quantity standard allowed for actual output is the amount of input that should go into a single unit of the product. True False 2. A standard cost card shows what the company should spend to produce a single unit of product based on expected production for the coming period True False 3. The direct material quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price. True False 4. The variable overhead rate variance is the difference between the actual variable overhead rate and the standard variable overhead rate multiplied by the actual value of the cost driver True False 5. In calculating the material price variance, the actual quantity is equal to the quantity of material that the company used in production. True False 6. An unfavorable labor efficiency variance indicates that the actual number of direct labor hours worked was greater than the number of direct labor hours that should have been worked for the output attained. True False 7. Ideal standards are used more often than practical standards. True False 8. The volume variance measures the difference between the fixed overhead incurred and budgeted True False 9. The controllable variance is calculated only for variable overhead True False 10. The controllable variance means that the level of production controls the amount of overhead spending True False Page 12 of 20