The _______________ is the standard plus the allowable deviation.

a. upper control limit
b. standard price
c. standard quantity
d. total budget variance

ANS:  A                   

   37.   A materials price variance would NOT be caused by

a. ordering the wrong quality of materials.
b. ordering from the wrong supplier.
c. not taking a quantity discount.
d. requiring laborers to work overtime.

ANS:  D                   

   38.   Which of the following factors would cause an UNFAVORABLE material quantity variance?

a. using poorly maintained machinery
b. using higher quality materials
c. using more highly skilled workers
d. receiving discounts for purchasing larger than normal quantities

ANS:  A                   

   39.   Which of the following factors would cause an UNFAVORABLE labor rate variance?

a. using higher quality materials
b. using low-efficiency workers
c. using more unskilled workers
d. using more highly skilled workers

ANS:  D                   

   40.   Using more highly skilled direct laborers might affect which of the following variances?

a. direct materials usage variance
b. direct labor efficiency variance
c. variable manufacturing overhead efficiency variance
d. all of the above

ANS:    D

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