B2

Question 0

DM quantity usage variance

Answer 0

(Actual - Standard quantity) x Standard price

Question 1

DM price variance

Answer 1

(Actual - Standard price) x Actual quantity

Question 2

DL rate variance

Answer 2

(Actual - Standard rate) x Actual hours worked

Question 3

DL efficiency variance

Answer 3

(Actual - Standard hours worked) x Standard rate

Question 4

ABA BSA

Answer 4

1. Actual OH costs incurred
2. (Actual DLH worked x Standard rate per DLH) + Budgeted FOH
3. (Standard DLH allowed x Standard rate per DLH) + Budgeted FOH
4. Standard total OH rate per DLH x Standard DLH allowed

Question 5

Sales price variance

Answer 5

(Actual - Budget SP per unit)

x

Actual sold units

Question 6

Sales volume variance

Answer 6

(Actual - Budget sales units)

x

Standard CM per unit

Question 7

Sales mix variance

Answer 7

(Actual - Budget mix ratio)

x

Actual sold units

x

Budget CM per unit of that product

Question 8

Sales quantity variance

Answer 8

(Actual - Budget units sold)

x

Budget mix ratio

x

Budget CM per unit of that product

Question 9

Cost-based pricing is associated with:

Answer 9

Price stability, price justification, and fixed-cost recovery.

Question 10

Best basis upon which cost standards should be set to measure controllable production inefficiencies is:

Answer 10

Engineering standards based on attainable performance.