Sample Quiz #4 Questions – based on Chapters 10 and 11
1. The raw material used in a production process is, after
purchase without recourse, inspected and experience has shown
that of every 6 units inspected, 5 are acceptable and 1 is
unusable. The company requires three units of acceptable raw
material to make one unit of its product. What is the necessary
purchase of raw material to make 75 units of product?
A.
B.
C.
D.
225
75
300
270
2. A company requires three units of raw material to make one
unit of its product. After production, the finished units are
inspected. On average, of five units inspected only four are
acceptable for sale to customers. If the company used 450 units
of raw material, how many good units of its product were
produced?
A.
B.
C.
D.
450
150
360
120
3. A company’s fixed manufacturing cost in a period is
described as follows. The budget was $280. The volume
variance at the end of the period was $28F based on an
application rate of $7 per product unit. What was the budgeted
production in units of product for the period?
A.
B.
C.
D.
36
40
44
45
4. A company’s fixed manufacturing cost for a period is
described as follows. The budget was $280. The estimated
production was 40 units of product. Fixed overhead was under
applied by $22. Applied fixed overhead was $308. What was
the budget variance for the period?
A.
B.
C.
D.
$22F
$50U
$22U
$28F
5. The data for a company’s production in the first period of
operation is the following:
A.
B.
C.
D.
$210F
$240U
$720F
$720U
A.
B.
C.
D.
$832U
$800U
$832F
$390U
Labor hours worked
Standard labor per product unit
Standard labor rate
Quantity produced
Cost of labor
600 hours
105 minutes
$9.60 per hour
300
$6,000
What is the labor rate variance for the period?
6. The data for a company’s production in the first period of
operation is the following:
Units of raw material used
Standard amount of raw material per
product unit
Standard price per unit of raw material
Quantity produced
780
3.2 units
$16.00
260
What is the quantity variance for material for the period?
5/29/2016
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Sample Quiz #4 Questions – based on Chapters 10 and 11
7. The data for a company’s production in the first period of
operation is the following:
Labor hours worked
Standard labor per product unit
Standard labor rate
Quantity produced
Cost of labor
28 hours
15 minutes
$12.00 per hour
100
$336
A.
B.
C.
D.
20
24
25
28
What are the standard labor hours for the production of the
period?
A company has the following facts for its fixed overhead cost: budgeted, $96; incurred, $102;
quantity produced, 18; and applied, $108.
8. What was the budgeted quantity?
A.
B.
C.
D.
14
16
18
20
9. What is the spending variance?
A.
B.
C.
D.
$14.25F
$14.25U
$8.25F
$6.00U
A company has the following facts for its fixed overhead cost: budgeted, $56; incurred, $50;
quantity produced, 10; and planned output, 8 units.
Q#
Answer
5/29/2016
10. What was the applied amount?
A.
B.
C.
D.
50
56
65
70
11. What is the volume variance?
A.
B.
C.
D.
$14F
$14U
$6F
$6U
1.
D
2.
D
3.
B
4.
B
5.
B
6.
C
7.
C
8.
B
9.
D
10.
D
11.
A
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