Acct chapter 11 100% SOLUTION

Acct chapter 11 100% SOLUTION A(n) ________ is a carefully predetermined cost that is usually expressed on a per unit basis. A) allocated cost B) applied cost C) standard cost D) flexible cost - ANSWER c The type of standard that provides allowances for normal amounts of waste and inefficiency in the production process is referred to as a(n) A) ideal standard. B) perfection standard. C) realistic standard. D) practical standard. - ANSWER d As managers use less and different types of direct materials, which of the following standards do managers focus on to enhance sustainability in the workplace? A) Quantity/Efficiency standard B) Price standard C) Flexible standard D) Both A and B - ANSWER d If the purchasing manager purchased a greater quantity of raw materials than budgeted, but paid the Standard Price (SP), which variance may be affected? A) Materials price variance B) Materials quantity variance C) Both of the variances may be affected D) Neither of the variances may be affected - ANSWER d Which variance is directly impacted if a worker drops the raw material during production and the raw material must be discarded? A) Direct materials quantity variance B) Direct materials price variance C) Direct labor rate variance D) Direct labor efficiency variance - ANSWER a A company uses sugar in producing its product. If the price of sugar doubles, which variance is directly impacted? A) Direct materials quantity variance B) Direct materials price variance C) Direct labor rate variance D) Direct labor efficiency variance - ANSWER b A company's purchasing department negotiates all of the purchasing contracts for raw materials. Which variance is most useful in assessing the performance of the purchasing department? A) Direct materials quantity variance B) Direct materials price variance C) Direct labor rate variance D) Direct labor efficiency variance - ANSWER b Which of the following situations may lead to a favorable direct materials price variance? A) The purchasing manager was able to negotiate a lower purchase price for raw materials. B) A vendor shipped a greater quantity of raw materials than ordered. C) The purchasing manager paid a premium price for a higher quality of raw materials. D) Raw materials waste was substantially reduced in the factory. - ANSWER a The direct materials price variance is calculated as A) the difference in Actual Quantities (AQ) multiplied by the Actual Price (AP) of the input. B) the Actual Quantity (AQP) of direct materials divided by the Actual Quantity (AQ). C) the difference in prices of the Actual Quantity Purchased (AQP) and the Actual Price (AP) multiplied by the Actual Quantity Purchased (AQP) and the Standard Price (SP) of the input purchased. D) the direct materials Actual Quantity Purchased (AQ) divided by the per unit price. - ANSWER c The Standard Quantity (SQ) of direct materials is calculated as A) the budgeted quantity of units less the Standard Quantity (SQ) of units. B) the Standard Quantity (SQ) of input per unit times the number of units budgeted. C) the number of units actually made times the direct materials price standard. D) the Standard Quantity (SQ) of input per unit times the number of units actually made. - ANSWER d 33) A favorable direct materials quantity variance indicates which of the following? A) The actual cost of direct materials was less than the standard cost of direct materials. B) The Standard Quantity (SQ) of direct materials for actual output was less than the Actual Quantity (AQ) of direct materials used. C) The Actual Quantity (AQ) of direct materials used was less than the standard quantity for actual output. D) The Actual Quantity (AQ) of direct materials used was greater than the standard quantity for budgeted output. - ANSWER c A favorable direct materials price variance indicates which of the following? A) The actual cost of materials purchased was greater than the standard cost of materials purchased. B) The standard cost of materials purchased was less than the actual cost of materials purchased. C) The Actual Quantity (AQ) of materials used was less than the standard quantity of materials used for actual production. D) The standard cost of materials purchased was greater than the actual cost of materials purchased - ANSWER d The direct materials flexible budget variance can be divided into which of the following two variances? A) Price variance and the rate variance B) Price variance and the standard variance C) Price variance and the quantity variance D) Quantity variance and the efficiency variance - ANSWER cc A favorable direct materials price variance and an unfavorable direct materials quantity variance might indicate which of the following? A) Less expensive, inferior ma