Idk

Question 1

Evaluating overall overhead variances is an effective means of cost control.
True or false

Answer 1

False

Question 2

A positive variance between the Flexible Budget amount and the Actual Expenses is a favorable variance.
True or False

Answer 2

False

Question 3

Which of the following is a potential reason for an unfavorable Building Rent Expense variance?

Paying rent late and being assessed penalties
Having an insurance claim due to a factory accident
Moving to a less desirable area of town
Increasing fuel costs

Answer 3

Paying rent late and being assessed penalties

Question 4

Variable and Fixed Overhead Variances can be determined by using formula or flexible budgets.
True or false

Answer 4

True

Question 5

Which of the following is needed to compute the standard materials cost per unit?

number of units produced
Cost per unit of material
Labor cost per unit of product
Labor hours per unit of product

Answer 5

Cost per unit of material

Question 6

The standard cost of a product can also be called the budgeted product cost.
True or false

Answer 6

True

Question 7

Which of the following is a possible explanation for an unfavorable direct materials price variance?

Not buying in bulk
Good control of warehouse
New workers
Surplus of materials in the market

Answer 7

Not buying in bulk

Question 8

When determining the direct labor efficiency variance, you must use the actual labor rate.
True or false

Answer 8

False

Question 9

A positive variance is always favorable.
True or false

Answer 9

False