4. Management Accounting

Standard Costing — Quiz

Test your understanding of standard costing with 5 practice questions.

Practice Questions

Question 1

A company has a standard direct material cost of $8 per unit, based on 2 kg of material at $4 per kg. During the period, 600 units were produced. The actual material used was 1,250 kg at a total cost of $5,000. What is the material price variance?

Question 2

A company has the following data: Standard labor hours per unit = 3 hours, Standard labor rate = 20 per hour, Actual units produced = 400 units, Actual labor hours worked = 1,250 hours, Actual labor cost = $24,000. What is the labor efficiency variance?

Question 3

A company has a standard fixed overhead rate of $15 per machine hour. The budgeted production is 800 units, and each unit requires 2 machine hours. The actual production was 850 units, and the actual fixed overhead incurred was $26,000. What is the fixed overhead volume variance?

Question 4

A company has the following data: Standard variable overhead rate = 6 per direct labor hour, Standard labor hours per unit = 2 hours, Actual units produced = 500 units, Actual variable overhead cost = $6,800, Actual labor hours worked = 1,100 hours. What is the variable overhead efficiency variance?

Question 5

A company set the following standards for its production process: Standard material usage per unit = 5 kg, Standard material price = $7 per kg. During a period, 900 units were produced. The actual material used was 4,500 kg, and the actual cost of material was $30,600. What is the total material variance?