Question

Budgeted cost of a single unit Standard based on perfect conditions Standard based on attainable conditions Standard quantity of direct materials multiplied by standard price of direct Should explain direct labor rate variances Should know why the company was able to purchase materials at a better Tells managers how much of the total variance is due to using a larger or smaller quantity of direct materials than expected Tells managers how much of the total labor variance is due to using a greater or lesser amount of time than anticipated Should be explain more about the direct materials quantity variance Tells managers whether more or less was spent on variable overhead than expected for the allocation base amount (number of machine hours/number of direct labor hours) Tells how much of the total variable manufacturing overhead variance is due to using more/fewer hours of the allocation base than anticipated for the actual volume of output Tells managers how much of the total variance is due to paying a higher or lower price than expected for the direct materials purchased Tells managers how much of the direct labor variance is due to paying a higher or lower hourly rate than anticipated

1. Standard cost 2. Ideal standard 3. Practical standard 4. Standard cost of direct materials per unit 5. Direct materials price variance 6. Direct materials quantity variance 7. Purchasing supervisor 8. Production supervisor 9. Direct labor rate variance 10. Direct labor efficiency variance 11. Variable overhead rate variance 12. Variable overhead spending variance 13. Human Resource Supervisor and Plant Supervisor

Answer 1

The correct match is as follows:

Budgeted cost of a single unit – 1. Standard Cost

Standard based on perfect conditions – 2. Ideal standard

Standard based on attainable conditions – 3. Practical standard

Standard quantity of direct materials multiplied by standard price of direct – 4. Standard cost of direct materials per unit

Should explain direct labor rate variances – 13. Human Resource Supervisor and Plant Supervisor

Should know why the company was able to purchase materials at a better – 7. Purchasing supervisor

Tells managers how much of the total variance is due to using a larger or smaller quantity of direct materials than expected – 6. Direct materials quantity variance

Tells managers how much of the total labor variance is due to using a greater or lesser amount of time than anticipated – 10. Direct labor efficiency variance

Should be explain more about the direct materials quantity variance – 8. Production supervisor

Tells managers whether more or less was spent on variable overhead than expected for the allocation base amount (number of machine hours/number of direct labor hours) – 11. Variable overhead rate variance

Tells how much of the total variable manufacturing overhead variance is due to using more/fewer hours of the allocation base than anticipated for the actual volume of output – 12. Variable overhead spending variance

Tells managers how much of the total variance is due to paying a higher or lower price than expected for the direct materials purchased – 5. Direct materials price variance

Tells managers how much of the direct labor variance is due to paying a higher or lower hourly rate than anticipated – 9. Direct labor rate variance