1.)The per-unit standards for direct labor are 2 direct labor hours at $15 per

1.)The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1800 units the actual direct labor cost
was $48000 for 3000 direct labor hours worked the total direct labor variance is

2.)The standard number of hours that should have been worked for the output attained is 6000 direct labor hours and
the actual number of direct labor hours worked was 6300. If the direct labor price variance was $3150 unfavorable and the standard rate of pay was $9 per
direct labor hour what was the actual rate of pay for direct labor?

3.)Which one of the following statements is true?

a.

There is no correlation of favorable or unfavorable for price and quantity variances.

b.

Price and quantity variances move in the same direction. If one is favorable the others will be as well.

c.

If the materials price variance is unfavorable then the materials quantity variance must also be unfavorable.

d.

If the materials price variance is unfavorable then the materials quantity variance must be favorable.
4.)Which one of the following describes the total overhead variance?
a.

The difference between what was actually incurred and the flexible budget amount

b.

The difference between what was actually incurred and the total production budget

c.

The difference between the overhead applied and the flexible budget amount

d.

The difference between what was actually incurred and overhead applied

5.)Manufacturing overhead costs are applied to work in process on the basis of
a.

ratio of actual variable to fixed costs.

b.

standard hours allowed.

c.

actual hours worked.

d.

actual overhead costs incurred.

6.)An overhead volume variance is calculated as the difference between normal capacity hours and standard
hours allowed

a.

divided by actual number of hours worked.

b.

times the predetermined fixed overhead rate.

c.

times the total predetermined overhead rate.

d.

times the predetermined variable overhead rate.