# Standard Costing MCQs

### Reviewed by Subject Matter Experts

Updated on March 26, 2023

This multiple choice question (MCQ) test covers standard costing. You can use it to assess how much you've learned about this topic.

1. Which of the following is true of standards?
2. Standards that can be attained only under the best circumstances are referred to as:
3. Which of the following equations can be used to calculate a material price variance?
4. Who is most likely to be held responsible for a material price variance?
5. Which of the following equations can be used to calculate a material quantity variance?
6. To produce a particular batch of product, Foster Corporation paid its workers \$12.00 per hour for 4,000 hours of work. The standards for the quantity of work represented by the batch were \$12.50 per hour and 4,400 hours. What was the labor efficiency variance?
7. The firm's direct-labor rate variance was \$4,800 unfavorable. Actual labor was 24,000 direct labor hours, at a cost of \$168,000 for 25,000 units of finished product requiring 1 hour of direct labor each, at standard. What is the standard rate per direct labor hour?
8. Which of the following is not an advantage of standard costing?
9. Which of the following is not a criticism of a standard costing system?
10. The organization budgeted \$400,000 for 40,000 hours of direct labor to complete 16,000 units of finished product. The firm used 42,000 direct labor hours and completed 17,000 units of finished product. What is the direct labor rate variance?

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## Standard Costing MCQs FAQs

### True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

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