Standard Costing #1 Quick Test

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Note: Some of the following test questions may not have been covered in the Explanation or Practice Quiz for this topic. For more insight regarding a specific question, use the search box at the top of the page.

1. The standards for the direct materials and direct labor should be __________ amounts.
2. The account Direct Materials Price Variance will have a __________ balance when the variance is unfavorable.
3. The invoice amount for direct materials purchased will be credited to Accounts Payable for the __________ cost.
4. The standard quantity of materials assigned to products is computed by using the actual quantity of __________ __________.
5. The usage and efficiency variances are __________ variances.
6. For the end-of-the-year financial statements, a significant favorable materials price variance that was recorded when the materials were purchased should be prorated or assigned to __________.
7. It is more beneficial for management purposes if the materials price variance is recorded at the time that the materials are __________.
8. Which machine hours are a better indicator of the volume of actual output of products manufactured?
9. The labor rate variance is the difference between the actual labor rate and the standard labor rate multiplied times the __________ hours.
10. The labor efficiency variance is the actual labor hours minus the standard labor hours multiplied times the __________ labor pay rate.
11. The direct labor rate variance is __________ variance.
12. The total labor variance is the difference between the actual dollars of direct labor cost and the amount the direct labor cost should have been for the actual __________.
Select one of the terms that best matches the descriptions listed as items 13 - 22:
Each term is to be used only once.

bill
budgets
efficiency
output
price
rate
standard
unfavorable
usage
variance
13. The standard quantity of materials for a given product can be found in the product’s __________of materials.
14. The difference between an actual cost and a standard cost.
15. The materials variance that is best recorded at the time the materials are purchased.
16. The name often used for the materials quantity variance.
17. The name of the direct labor quantity variance.
18. The name of the direct labor price variance.
19. The units of good products actually manufactured are referred to as the good __________.
20. When the standard hours for the goods manufactured are less than the actual hours, the labor quantity variance is said to be __________.
21. The standard costs are often derived from the company’s annual __________ or profit plan.
22. If the materials price variance is recognized at the time of purchase, the materials are recorded in inventory at their __________ cost.
Use the following information for answering Questions 23 - 31:

A company manufactures only one product and its only direct material is aluminum. A standard cost system is used and the direct materials price variances are recorded at the time that the aluminum is received from the supplier. The data applicable to the direct materials for a recent month include:
23. The total cost actually paid for the aluminum received was $__________.
24. The total cost debited to the direct materials inventory was $__________.
25. The purchase price variance for the month was __________.
26. The amount of the purchase price variance for the month was $__________.
27. The number of pounds of aluminum that should have been used is __________.
28. The materials usage variance for the month was __________.
29. The total amount credited to the direct materials inventory account during the month was $__________.
30. The amount of the materials usage variance was $__________.
31. The total standard direct materials cost for the products manufactured was $__________.
Use the following information for answering Questions 32 - 40:

A company using standard costing has the following direct labor information associated with one of its products.
32. If no overtime was worked, the actual labor cost was $__________.
33. The number of hours allowed for the units produced was __________.
34. The labor efficiency variance was __________.
35. The amount of the labor efficiency variance was $__________.
36. The amount of the labor rate variance was $__________.
37. The labor rate variance was __________.
38. The total standard cost for direct labor for the units manufactured was $__________.
39. The total direct labor variance for the units manufactured was $__________.
40. The total direct labor variance was __________.

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