This quiz works best with JavaScript enabled. Home > Accounting > Cost Accounting > Standard Costing > Standard Costing – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Standard Costing Quiz 2 (14 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Excess direct labor wages resulting from overtime premium will be disclosed in which type of variance? A) Labor rate. B) Labor efficiency. C) Yield. D) Quantity. Show Answer Correct Answer: A) Labor rate. 2. A Standard cost is A) A predetermined costs based on a preconceived benchmark. B) Determined by industry standards. C) All of the above. D) None of above. Show Answer Correct Answer: A) A predetermined costs based on a preconceived benchmark. 3. Which of the following unfavorable variances would be directly affected by the relative position of a production process on a learning curve? A) Labor efficiency. B) Material price. C) Material mix. D) Labor rate. Show Answer Correct Answer: A) Labor efficiency. 4. The third step of the standard costing process is A) Determination of actual cost. B) Determination of causes and taking correction action. C) Comparison of actual costs and standard cost. D) Establishing standards. Show Answer Correct Answer: C) Comparison of actual costs and standard cost. 5. Which of the following is not a standard production cost is ..... A) Standard raw material costs. B) Standard administration fee. C) Standard factory overhead. D) Standard labor cost. Show Answer Correct Answer: B) Standard administration fee. 6. The direct materials quantity standard would not be expressed in A) Meter. B) RM. C) Kilogram. D) Liter. Show Answer Correct Answer: B) RM. 7. During July actual labour costs amounted to RM19, 800, the standard rate of pay was RM4.50 per hour and the labour rate variance amounted to RM225 adverse. The actual hours worked were: A) 4, 450. B) 1, 012.5. C) 4, 400. D) 4, 350. Show Answer Correct Answer: D) 4, 350. 8. Which of the following cannot be a reason of unfavorable direct materials quantity variance? A) Frequent power failures. B) Unmotivated workers. C) Lack of supervision. D) Uneconomical order size. Show Answer Correct Answer: D) Uneconomical order size. 9. A manager can be blamed for ..... adverse variance. A) Reduction in cost. B) Non controllable. C) Controllable. D) Improvement in quality. Show Answer Correct Answer: C) Controllable. 10. The standard that requires maximum efficiency and perfect execution is... A) Cost standard. B) Achievable standards. C) Currently attainable standard. D) Ideal standard. Show Answer Correct Answer: D) Ideal standard. 11. ..... can be achieved under efficient operating conditions A) Ideal standards. B) Attainable standards. C) Margin standards. D) Variance standards. Show Answer Correct Answer: B) Attainable standards. 12. The labour rate variance may be computed by A) (Actual rate-Standard hours) X Actual hours. B) (Actual hours-Standard hours) X Standard price. C) (Actual hours-Standard rate) X Actual hours. D) (Actual rate-Standard rate) x Acutal hours worked hours. Show Answer Correct Answer: D) (Actual rate-Standard rate) x Acutal hours worked hours. 13. Which of the following cost allocation methods would be used to determine the lowest price that could be quoted for a special order that would utilize idle capacity within production area? A) Job order. B) Process. C) Variable. D) Standard. Show Answer Correct Answer: C) Variable. 14. The estimated expenses of budgeted production refers to the: A) Production cost. B) Budgeted cost. C) Standard cost. D) Actual cost. Show Answer Correct Answer: B) Budgeted cost. ← PreviousRelated QuizzesCost Accounting QuizzesAccounting QuizzesStandard Costing Quiz 1 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books