E-PolyLearning

1. If the actual price input is $700, the budgeted price of input is $400 and the actual quantity of input are 50 units, then the price variance will be
a. $15,000
b. $13,000
c. $11,000
d. $9,000
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Answer: (a).$15,000

2. If the actual input price is $150 and the budgeted input price is $80, then the price variance will be
a. $130
b. $70
c. $150
d. $80
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Answer: (b).$70

3. The standard input allows one unit, to be divided by standard cost per output unit, for variable direct cost input to calculate
a. standard price per input unit
b. standard price per output unit
c. standard cost per input unit
d. standard cost per output unit
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Answer: (a).standard price per input unit

4. The consideration of decreased operating income relative to budgeted amount, in static budget is classified as
a. revenue variance
b. cost variance
c. favorable variance
d. unfavorable variance
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Answer: (d).unfavorable variance

5. If the flexible budget variance is $105000, the actual cost is $65000 then the flexible budget cost will be
a. $40,000
b. $50,000
c. $150,000
d. $170,000
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Answer: (a).$40,000

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