Which of the following factors would cause an unfavorable material quantity variance?

1.

LO 8.1Why does a company use a standard costing system?

1. to identify variances from actual cost that assist them in maintaining profits
2. to identify nonperformers in the workplace
3. to identify what vendors are unreliable
4. to identify defective materials

2.

LO 8.1This standard is set at a level that may be reached with reasonable effort.

1. ideal standard
2. attainable standard
3. unattainable standard
4. variance from standard

3.

LO 8.1This standard is set at a level that could be achieved if everything ran perfectly.

1. ideal standard
2. attainable standard
3. unattainable standard
4. variance from standard

4.

LO 8.1This variance is the difference involving spending more or using more than the standard amount.

1. favorable variance
2. unfavorable variance
3. no variance
4. variance

5.

LO 8.1This variance is the difference involving spending less, or using less than the standard amount.

1. favorable variance
2. unfavorable variance
3. no variance
4. variance

6.

LO 8.2What are some possible reasons for a material price variance?

1. substandard material
2. labor rate increases
3. labor rate decreases
4. labor efficiency

7.

LO 8.2When is the material price variance unfavorable?

1. when the actual quantity used is greater than the standard quantity
2. when the actual quantity used is less than the standard quantity
3. when the actual price paid is greater than the standard price
4. when the actual price is less than the standard price

8.

LO 8.2When is the material price variance favorable?

1. when the actual quantity used is greater than the standard quantity
2. when the actual quantity used is less than the standard quantity
3. when the actual price paid is greater than the standard price
4. when the actual price is less than the standard price

9.

LO 8.2What are some reasons for a material quantity variance?

1. building rental charges increase
2. labor rate decreases
3. more qualified workers
4. change in the actual cost of materials

10.

LO 8.2When is the material quantity variance favorable?

1. when the actual quantity used is greater than the standard quantity
2. when the actual quantity used is less than the standard quantity
3. when the actual price paid is greater than the standard price
4. when the actual price is less than the standard price

11.

LO 8.2When is the material quantity unfavorable?

1. when the actual quantity used is greater than the standard quantity
2. when the actual quantity used is less than the standard quantity
3. when the actual price paid is greater than the standard price
4. when the actual price is less than the standard price

12.

LO 8.3What are some possible reasons for a labor rate variance?

1. hiring of less qualified workers
2. an excess of material usage
3. material price increase
4. utilities usage change

13.

LO 8.3When is the labor rate variance unfavorable?

1. when the actual quantity used is greater than the standard quantity
2. when the actual quantity used is less than the standard quantity
3. when the actual price paid is greater than the standard price
4. when the actual price is less than the standard price

14.

LO 8.3When is the labor rate variance favorable?

1. when the actual quantity used is greater than the standard quantity
2. when the actual quantity used is less than the standard quantity
3. when the actual price is greater than the standard price
4. when the actual price is less than the standard price

15.

LO 8.3What are some possible reasons for a direct labor time variance?

1. utility usage decrease
2. less qualified workers
3. office supplies spending
4. sales decline

16.

LO 8.3When is the direct labor time variance favorable?

1. when the actual quantity used is greater than the standard quantity
2. when the actual quantity used is less than the standard quantity
3. when the actual price paid is greater than the standard price
4. when the actual price is less than the standard price

17.

LO 8.3When is the direct labor time variance unfavorable?

1. when the actual quantity used is greater than the standard quantity
2. when the actual quantity used is less than the standard quantity
3. when the actual price paid is greater than the standard price
4. when the actual price is less than the standard price

18.

LO 8.4A flexible budget ________.

1. predicts estimated revenues and costs at varying levels of production
2. gives actual figures for selling price
3. gives actual figures for variable and fixed overhead
4. is not used in overhead variance calculations

19.

LO 8.4The variable overhead rate variance is caused by the sum between which of the following?

1. actual and standard allocation base
2. actual and standard overhead rates
3. actual and budgeted units
4. actual units and actual overhead rates

20.

LO 8.4The variable overhead efficiency variance is caused by the difference between which of the following?

1. actual and budgeted units
2. actual and standard allocation base
3. actual and standard overhead rates
4. actual units and actual overhead rates

21.

LO 8.4The fixed factory overhead variance is caused by the difference between which of the following?

1. actual and standard allocation base
2. actual and budgeted units
3. actual fixed overhead and applied fixed overhead
4. actual and standard overhead rates

22.

LO 8.5Which of the following is a possible cause of an unfavorable material price variance?

1. purchasing too much material
2. purchasing higher-quality material
3. hiring substandard workers
4. buying substandard material

23.

LO 8.5Which of the following is a possible cause of an unfavorable material quantity variance?

1. purchasing substandard material
2. hiring higher-quality workers
3. paying more than should have for workers
4. purchasing too much material

24.

LO 8.5Which of the following is a possible cause of an unfavorable labor efficiency variance?

1. hiring substandard workers
2. making too many units
3. buying higher-quality material
4. paying too much for workers

25.

LO 8.5Which of the following is a possible cause of an unfavorable labor rate variance?

1. hiring too many workers
2. hiring higher-quality workers at a higher wage
3. making too many units
4. purchasing too much material