Business Question Paper

3119 WordsJun 15, 201313 Pages
BA 213 – Test 3 Review(Ch10,13 and 14) Instructor: Usha Ramanujam 1. Which of the following statements is a good description of the variances that should be investigated under the management by exception concept? A) all variances should be investigated. B) only unfavorable variances should be investigated. C) a small random sample of all variances should be investigated. D) unusually large favorable and unfavorable variances should be investigated. 2. The direct labor standards for a particular product are: 4 hours of direct labor @ $12.00 per direct labor-hour = $48.00 During October, 3,350 units of this product were made, which was 150 units…show more content…
The labor efficiency variance for March is: A) $5,040 U B) $1,200 U C) $1,200 F D) $5,040 F 9. The variable overhead spending variance for March is: A) $200 U B) $600 U C) $600 F D) $200 F 10. The variable overhead efficiency variance for March is: A) $1,050 F B) $1,050 U C) $250 F D) $250 U Use the following to answer questions 11-13: The Collins Company uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes: | |Direct materials |4 gallons at $8 per gallon | | |Direct labor |1 hour at $16 per hour | During July, the company made 6,000 units of product and incurred the following costs: | |Direct materials purchased |26,800 gallons at $8.20 per gallon | | |Direct materials used |25,200 gallons | | |Direct labor used |5,600 hours at $15.30 per hour | 11. The material price variance for July was: A) $5,360 favorable B) $5,360 unfavorable C) $5,040 favorable D) $5,040 unfavorable 12. The materials quantity variance for
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