students zone

Chapter 19 - Muliple-choice questions

1. The formula for the direct materials price variance is:
   1.   ?    (standard price per unit - actual price per unit) x standard quantity
   2.   ?    (standard quantity - actual quantity) x standard price per unit
   3.   ?    (standard price per unit - actual price per unit) x actual quantity
   4.   ?    (standard quantity - actual quantity) x actual price per unit.
2. The formula for the direct materials usage variance is:
   1.   ?    (standard price per unit - actual price per unit) x standard quantity
   2.   ?    (standard quantity - actual quantity) x standard price per unit
   3.   ?    (standard price per unit - actual price per unit) x actual quantity
   4.   ?    (standard quantity - actual quantity) x actual price per unit.
3. The formula for the direct labour efficiency variance is:
   1.   ?    (standard rate per hour - actual rate per hour) x actual hours
   2.   ?    (standard hours - actual hours) x actual rate per hour
   3.   ?    (standard hours - actual hours) x standard rate per hour
   4.   ?    (standard rate per hour - actual rate per hour) x standard hours.
4. The formula for the direct labour rate variance is:
   1.   ?    (standard rate per hour - actual rate per hour) x actual hours
   2.   ?    (standard hours - actual hours) x actual rate per hour
   3.   ?    (standard hours - actual hours) x standard rate per hour
   4.   ?    (standard rate per hour - actual rate per hour) x standard hours.
5. A favourable direct materials price variance arises when:
   1.   ?    more materials are used than planned
   2.   ?    more is paid per unit of materials than planned
   3.   ?    less is paid per unit of materials than planned
   4.   ?    the quantity of materials used is less than planned.
6. Standard costing is used for:
   1.   ?    motivation
   2.   ?    planning
   3.   ?    control
   4.   ?    all of these