Standard Costing and Variances Quiz
7 multiple-choice questions with answers and explanations · 1 easy, 5 medium, 1 hard
Standard costs and the direct materials price and quantity variances and direct labour rate and efficiency variances.
- 1What Is a Standard Cost?A standard cost is:easy
- 2Direct Materials Price Variance: The CalculationThe standard price of a material is $4.00 per kg. During the month 5,000 kg were purchased and used at $4.30 per kg. What is the direct materials price variance?medium
- 3Direct Materials Quantity Variance: The CalculationThe standard is 2 kg of material per unit at $5 per kg. Production of 1,000 units used 2,150 kg. What is the direct materials quantity (usage) variance?medium
- 4Direct Labour Rate Variance: The CalculationThe standard labour rate is $15 per hour. During the month 4,000 hours were worked at a total cost of $62,000. What is the direct labour rate variance?medium
- 5Direct Labour Efficiency Variance: The CalculationThe standard is 0.5 labour hours per unit at $20 per hour. Production of 3,000 units took 1,400 hours. What is the direct labour efficiency variance?medium
- 6Materials Price Variance: Who Is Usually Responsible?An unfavourable direct materials PRICE variance is normally the responsibility of:medium
- 7Direct Materials Variances: Price Variance When Price and Usage Both DifferThe standard is 3 kg per unit at $6 per kg. Actual production of 2,000 units used 6,300 kg costing $36,540 in total. What is the direct materials PRICE variance?hard