chapter 11

Question 1

Direct Material Price Variance

Answer 1

Actual Quantity Purchased (Actual Price-Standard Price)

Question 2

Direct material quantity variance

Answer 2

Standard Price(actual quantity used-standard quantity allowed)

Question 3

Direct Labor Rate Variance

Answer 3

Actual Hours(Actual Rate-Standard Rate)

Question 4

Direct Labor Efficiency Variance

Answer 4

Standard Rate(Actual Hours-Standard Hours Allowed)

Question 5

standard cost

Answer 5

as a budget for a single unit of product

Question 6

ideal standards(perfection standards)

Answer 6

are standards based on perfect or ideal condition. Do not allow for any poor -quality raw materials, waste in the production process, machine breakdown

Question 7

Practical(attainable)standards

Answer 7

include allowances for normal amounts of waste and inefficiency
best cost benchmark

Question 8

Direct materials price variance definition

Answer 8

tells managers how much of the total variance is due to paying a higher or lower price than expected for the direct materials it purchased

Question 9

directer materials quantity variance definition

Answer 9

tells managers how much the total variance is due to using a larger or smaller quantity of direct materials than expected

Question 10

Direct Labor Rate Variance

Answer 10

tells managers how much of the total labor variance is due to paying a higher or lower hourly wage rate than anticipated

Question 11

direct labor efficiency varance

Answer 11

tells managers how much of the total labor variance is due to using a greater or lesser amount than anticipated