This quiz works best with JavaScript enabled. Home > Cost Accounting > Standard Costing > Standard Costing – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Standard Costing Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The direct materials standard costs would not be expressed in A) Kilogram. B) Liter. C) RM. D) Meter. Show Answer Correct Answer: C) RM. 2. Based on the case in the journal, why does the standard raw material cost experience a loss difference? A) Prices in the market decreased. B) Prices in the market are increasing. C) Standard manufacturing costs > actual costs. D) Actual production costs > standard production costs. Show Answer Correct Answer: D) Actual production costs > standard production costs. 3. What is a standard cost? A) The total number of units times the budgeted amount expected. B) Any amount that appears on a budget. C) The total amount that appears on the budget for product costs. D) The amount management thinks should be incurred to produce a good or service. Show Answer Correct Answer: D) The amount management thinks should be incurred to produce a good or service. 4. A total direct materials variance is analyzed in terms of A) Price and quantity variances. B) Buy and sell variances. C) Quantity and quality variances. D) Tight and loose variances. Show Answer Correct Answer: A) Price and quantity variances. 5. Which of the following cannot be a reason of unfavorable direct materials price variance? A) Excellent employee training program. B) Inefficient standard setting. C) Ineffective purchasing agent. D) Sudden rise price of materials. Show Answer Correct Answer: A) Excellent employee training program. 6. What standard cost variance represents the difference between actual factory overhead incurred and budgeted factory overhead based on actual hours worked A) Volume. B) Spending Variance. C) Efficiency Variance. D) Quantity Variance. Show Answer Correct Answer: B) Spending Variance. 7. When performing input-output variance analysis in standard costing, standard hours allowed is a means of measuring A) Standard output at standard hours. B) Actual output at standard hours. C) Standard output at actual hours. D) Actual output at actual hours. Show Answer Correct Answer: B) Actual output at standard hours. 8. The formula for the labour price variance (LPV) is A) LPV=LPV + LEV. B) LPV=(AR x AH)-(AH x SR). C) LPV=(AR x SR)-(SR x AH). D) LPV =(AR X SR)-(SR X SH). Show Answer Correct Answer: B) LPV=(AR x AH)-(AH x SR). 9. The total variance is RM35, 000. The total materials variance is RM14, 000. The total labor variance is twice the total overhead variance. What is the total overhead variance? A) RM3, 500. B) RM7, 000. C) RM10, 500. D) RM14, 000. Show Answer Correct Answer: B) RM7, 000. 10. If the actual amount of materials used equals the standard amount of materials that should have been used, the difference between the standard cost and actual cost of materials is called A) Quantity variance. B) Cost variance. C) Rate variance. D) Price variance. Show Answer Correct Answer: D) Price variance. 11. If:the standard direct labor rate was RM10 per hour;the direct labor rate variance amounted to RM450 favorable; andthe actual direct labor cost amounted to RM39, 550.The actual direct labor hours worked were: A) 3, 955 hours. B) 4, 500 hours. C) 3, 910 hours. D) 4, 000 hours. Show Answer Correct Answer: D) 4, 000 hours. 12. In producing product AA, 6, 300 pounds of direct materials were used at a cost of $ 1.10 per pound. The standard was 6, 000 pounds at $ 1.00 per pound. The direct materials quantity variance is: A) $ 330 unfavorable. B) $ 300 unfavorable. C) $ 600 unfavorable. D) $ 630 unfavorable. Show Answer Correct Answer: B) $ 300 unfavorable. 13. Using standard costs A) Makes employees less "cost-conscious.". B) Provides a basis for evaluating cost control. C) Makes management by exception more difficult. D) Increases clerical costs. Show Answer Correct Answer: B) Provides a basis for evaluating cost control. 14. A standard that represents the most likely scenario can be referred to as the: A) Ideal standard. B) Basic standard. C) Attainable standard. D) Average standard. Show Answer Correct Answer: C) Attainable standard. 15. ..... cost is used for controlling cost. A) Contract Cost. B) Process Cost. C) Marginal Cost. D) Standard Cost. Show Answer Correct Answer: D) Standard Cost. 16. The investigation of direct materials price variance usually begins in the A) First production department. B) Purchasing department. C) Controller's office. D) Accounts payable department. Show Answer Correct Answer: B) Purchasing department. 17. When using full absorption costing, what cost attendant to an element of production are used in order to compute variances from standard amounts? A) Total costs. B) Variable. C) Fixed costs. D) Controllable costs. Show Answer Correct Answer: A) Total costs. 18. A document that records the standard cost of a single unit of product is known as A) Materials cost card. B) Standard cost card. C) Product expense card. D) None of above. Show Answer Correct Answer: B) Standard cost card. 19. ..... is a difference between standard cost and actual cost. A) Cost Variance. B) Favourable. C) Adverse. D) Neutral. Show Answer Correct Answer: A) Cost Variance. 20. A debit balance in the labor efficiency variance indicates that A) Standard hours exceed actual hours. B) Actual hours exceed standard hours. C) Standard rate and standard hours exceed actual rate and actual hours. D) Actual rate and actual hours exceed standard rate and standard hours. Show Answer Correct Answer: B) Actual hours exceed standard hours. Next →Related QuizzesCost Accounting QuizzesStandard Costing Quiz 2Standard Costing Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books