CH10 quiz1

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University of North Texas *

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Course

5130

Subject

Accounting

Date

Jan 9, 2024

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pdf

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8

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11/11/23, 10:59 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 1/8 1. Award: 1 out of 1.00 point Score: 8/10 Points 80 % The following data relate to product no. 33 of Volusia Corporation: Direct labor standard: 5 hours at $14 per hour Direct labor used in production: 45,000 hours at a cost of $639,000 Manufacturing activity: 8,900 units completed The direct-labor efficiency variance is: $7,000 F. $7,000 U. $7,100 F. $7,100 U. None of the answers is correct. 8,900 × 5 = 44,500 hours; 45,000 44,500 = 500; 500 × $14 = $7,000 U.
11/11/23, 10:59 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 2/8 2. Award: 1 out of 1.00 point 3. Award: 0 out of 1.00 point Which of the following would be considered if a company desires to establish a series of practical manufacturing standards? The productivity loss associated with a short-term worker slowdown. Normal defect rates in an assembly process. Highly unusual spoilage rates of direct materials. Quantity discounts associated with purchases of direct materials. Both normal defect rates in an assembly process and quantity discounts associated with purchases of direct materials. Both normal defect rates in an assembly process and quantity discounts associated with purchases of direct materials would be considered in establishing practical manufacturing standards. When the quantity of materials purchased is not equal to the quantity of material used, most companies base the calculation of the material quantity variance on the: quantity of direct materials purchased. quantity of direct materials spoiled. quantity of direct materials that should have been used in achieving actual production. quantity of direct materials actually used. none of the other answers are correct. Material quantity variance is usually based on quantity of direct materials actually used when quantity purchased does not equal quantity used.
11/11/23, 10:59 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 3/8 4. Award: 1 out of 1.00 point 5. Award: 1 out of 1.00 point When considering whether to investigate a variance, managers should consider all of the following except the variance's: size. pattern of recurrence. trends over time. nature, namely, whether it is favorable or unfavorable. controllability. Managers should not consider the nature of the variance; in other words, whether it is favorable or unfavorable when considering an investigation is not a factor. A direct-labor efficiency variance cannot be caused by: inexperienced employees. poor quality raw materials. employee inefficiency. an out-of-date labor time standard. producing fewer finished units than originally planned. A direct-labor efficiency variance cannot be caused by producing fewer finished units than originally planned.
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