Which of the following statements are true? a. The standard price of materials should include delivery charges and any discounts. b. In general, the production manager is responsible for the materials price variance. C. An unfavorable materials quantity variance occurs when the actual quantity used in production is less than the standard quantity allowed for the actual output of the period. d. If skilled workers with high hourly rates of pay are given duties that require little skill and call for lower hourly rates of pay, this will result in a favorable labor rate variance. e. If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have a favorable labor efficiency variance and unfavorable variable overhead efficiency variance for the same period.

Which of the following statements are true? a. The standard price of materials should include delivery charges and any discounts. b. In general, the production manager is responsible for the materials price variance. C. An unfavorable materials quantity variance occurs when the actual quantity used in production is less than the standard quantity allowed for the actual output of the period. d. If skilled workers with high hourly rates of pay are given duties that require little skill and call for lower hourly rates of pay, this will result in a favorable labor rate variance. e. If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have a favorable labor efficiency variance and unfavorable variable overhead efficiency variance for the same period.

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Description: Which of the following statements are true?a. The standard price of materials should include delivery charges and any discounts.b. In general, the production manager is responsible for the materials price variance.C. An unfavorable materials quantit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is false? A. The departmental and traditional costing methods create cost distortions when there is significant costs associated with batch activities. B. The manufacturing overhead is applied to product by applying the POHR to actual cost drivers that occur during the production period C. The activity based costing system provides the most accurate product costing results D. Actual manufacturing overhead costs and the actual cost driver amounts are used to create the predetermined overhead rate (POHR)
Assume a company purchased direct material at less than its normal price but it was of such poor quality that the workers struggled significantly to make it into the finished product. So to try to make up for some of the time lost, the manufacturing supervisor brought in more senior level workers from another part of the factory. Given these two situations, which of the following variances would likely occur? Multiple Choice An unfavorable material quantity variance and a favorable material price variance. A favorable material quantity variance and an unfavorable material price variance. A favorable material quantity variance and a favorable labor rate variance. A favorable labor rate variance and an unfavorable labor efficiency variance. A favorable labor efficiency variance and a favorable labor rate variance.
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A labor rate variance is due solely to the difference Between budgeted materials price and actual materials price Between budgeted direct labor hours and actual direct labor hours Between budgeted sales volume and actual sales volume Between budgeted labor price and actual labor price
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