ACCTMIS 2300 Final Exam questions
& answers rated A+ 2025/2026
Standards are - ANS ✔✔benchmarks or "norms" for measuring performance
Two types commonly used: - ANS ✔✔Cost (price) standards
Quantity standards
Standards are used for the three variable manufacturing costs: - ANS ✔✔1. Direct Materials
2. Direct Labor
3. Variable Manufacturing Overhead
Standard Cost Card - ANS ✔✔A detailed listing of the standards that should go into making a
unit of product
Variance is - ANS ✔✔any difference between the actual results and standards
Positive variance is referred to as - ANS ✔✔an unfavorable variance (U)
Negative variance is referred to as - ANS ✔✔a favorable variance (F)
DM Price Variance = - ANS ✔✔(AQ x AP) - (AQ x SP)
the AQ in DM price variance represents - ANS ✔✔the actual quantity of direct materials
purchased
, DM Quantity Variance = - ANS ✔✔(AQ x SP) - (SQ x SP)
SQ (for dm quantity variance) = - ANS ✔✔Standard Quantity of DM per Unit x Number of Units
Produced
Direct Labor Rate Variance = - ANS ✔✔(AH x AR) - (AH x SR)
direct labor rate variance measures - ANS ✔✔the difference between what was actually paid to
the direct laborers and what should've been paid
Direct Labor Efficiency Variance = - ANS ✔✔(AH x SR) - (SH x SR)
SH (direct labor efficiency variance) = - ANS ✔✔standard hours of DL per unit x Number of Units
Produced
Total DL Variance = - ANS ✔✔DL Rate Variance + DL Efficiency Variance
Why is a total direct materials variance not calculated? - ANS ✔✔because the two variances
measure direct materials at different points in time
Variable Overhead Spending Variance = - ANS ✔✔Actual Variable Overhead Cost - (AH x SR)
Variable Overhead Efficiency Variance = - ANS ✔✔(AH x SR) - (SH x SR)
SH (variable overhead) = - ANS ✔✔number of units produced x SH per Unit
& answers rated A+ 2025/2026
Standards are - ANS ✔✔benchmarks or "norms" for measuring performance
Two types commonly used: - ANS ✔✔Cost (price) standards
Quantity standards
Standards are used for the three variable manufacturing costs: - ANS ✔✔1. Direct Materials
2. Direct Labor
3. Variable Manufacturing Overhead
Standard Cost Card - ANS ✔✔A detailed listing of the standards that should go into making a
unit of product
Variance is - ANS ✔✔any difference between the actual results and standards
Positive variance is referred to as - ANS ✔✔an unfavorable variance (U)
Negative variance is referred to as - ANS ✔✔a favorable variance (F)
DM Price Variance = - ANS ✔✔(AQ x AP) - (AQ x SP)
the AQ in DM price variance represents - ANS ✔✔the actual quantity of direct materials
purchased
, DM Quantity Variance = - ANS ✔✔(AQ x SP) - (SQ x SP)
SQ (for dm quantity variance) = - ANS ✔✔Standard Quantity of DM per Unit x Number of Units
Produced
Direct Labor Rate Variance = - ANS ✔✔(AH x AR) - (AH x SR)
direct labor rate variance measures - ANS ✔✔the difference between what was actually paid to
the direct laborers and what should've been paid
Direct Labor Efficiency Variance = - ANS ✔✔(AH x SR) - (SH x SR)
SH (direct labor efficiency variance) = - ANS ✔✔standard hours of DL per unit x Number of Units
Produced
Total DL Variance = - ANS ✔✔DL Rate Variance + DL Efficiency Variance
Why is a total direct materials variance not calculated? - ANS ✔✔because the two variances
measure direct materials at different points in time
Variable Overhead Spending Variance = - ANS ✔✔Actual Variable Overhead Cost - (AH x SR)
Variable Overhead Efficiency Variance = - ANS ✔✔(AH x SR) - (SH x SR)
SH (variable overhead) = - ANS ✔✔number of units produced x SH per Unit
