ACCT 2302 Exam 3 Questions with Verified Solutions Latest Update 2025/2026
When actual cost is higher than budgeted cost it is........ - Answers unfavorable variance
Based on Predicted production of 10,000 units a company expects $100,000 of variable cost
and $110,000 of fixed cost. The flexible budget amounts for variable and fixed costs at 8,000
units of production is..... - Answers Fixed cost = $110,000 Variable cost = $80,000
VC : ( (100,000/1,000)*8,000= $80,000)
A company makes concrete blocks. Each block requires 10 pounds of concrete at $5 per
pounds and 0.5 direct labor hours at $40 per hour. Overhead is assigned at a rate of $100 per
labor hour. What is the standard cost to make one unit? - Answers = $120
( (10*5)+(0.5 **40)+(0.5*100) = $120 )
A company makes concrete blocks. Each block requires 10 pounds of concrete at $5 per
pounds and 0.5 direct labor hours at $40 per hour. Overhead is assigned at a rate of $100 per
labor hour. Assume the actual cost to manufacture one statue was $100. What is the cost
variance? - Answers = $20 FAVORABLE
( $120-$100 = $20)
Actual cost is 5,000 pounds at $4 per pound. Standard cost is 4,000 pounds at $5 per pound.
What is the direct material price variance? - Answers = $5,000 FAVORABLE
( ($5-4) * 5,000 = $5,000 F.)
Actual cost is 5,000 pounds at $4 per pound. Standard cost is 4,000 pounds at $5 per pound.
What is the direct material quantity variance? - Answers = $5,000 UNFAVORABLE
( $5 * 1,000 = $5,000 U.)
Who is responsible for the unfavorable material quantity variance? - Answers
Actual cost is 5,000 hours at $40 per hour. Standard cost is 6,000 at $35 per hour. What is the
direct labor rate variance? - Answers = $25,000 UNFAVORABLE
When actual cost is higher than budgeted cost it is........ - Answers unfavorable variance
Based on Predicted production of 10,000 units a company expects $100,000 of variable cost
and $110,000 of fixed cost. The flexible budget amounts for variable and fixed costs at 8,000
units of production is..... - Answers Fixed cost = $110,000 Variable cost = $80,000
VC : ( (100,000/1,000)*8,000= $80,000)
A company makes concrete blocks. Each block requires 10 pounds of concrete at $5 per
pounds and 0.5 direct labor hours at $40 per hour. Overhead is assigned at a rate of $100 per
labor hour. What is the standard cost to make one unit? - Answers = $120
( (10*5)+(0.5 **40)+(0.5*100) = $120 )
A company makes concrete blocks. Each block requires 10 pounds of concrete at $5 per
pounds and 0.5 direct labor hours at $40 per hour. Overhead is assigned at a rate of $100 per
labor hour. Assume the actual cost to manufacture one statue was $100. What is the cost
variance? - Answers = $20 FAVORABLE
( $120-$100 = $20)
Actual cost is 5,000 pounds at $4 per pound. Standard cost is 4,000 pounds at $5 per pound.
What is the direct material price variance? - Answers = $5,000 FAVORABLE
( ($5-4) * 5,000 = $5,000 F.)
Actual cost is 5,000 pounds at $4 per pound. Standard cost is 4,000 pounds at $5 per pound.
What is the direct material quantity variance? - Answers = $5,000 UNFAVORABLE
( $5 * 1,000 = $5,000 U.)
Who is responsible for the unfavorable material quantity variance? - Answers
Actual cost is 5,000 hours at $40 per hour. Standard cost is 6,000 at $35 per hour. What is the
direct labor rate variance? - Answers = $25,000 UNFAVORABLE
