50+ Standard Costing MCQ | Cost Accounting MCQs (Free Resource)

41. During the month of December 2013, XLNT Ltd. used 5,000 kgs of materials at a total standard cost of Rs 20,000. The material usage variance was Rs 360 (adverse). The standard usage of material (SQ) for the period is
(a) 4,000 kgs
(b) 4,910 kgs
(c) 5,000 kgs
(d) 5,850 kgs
(e) 6,340 kgs

42. The standard units (SQ) were 5,200, the standard price (SP) was Rs 3.25, and the materials quantity variance (MQV) was Rs 325 favourable. The actual units (AQ) were:
(a) 5,300
(b) 5,000
(c) 5,100
(d) 5,200

43. Last month 27,000 direct labour hours were worked at an actual cost of Rs 2,36,385 and the standard direct labour hours of production were 29,880. The standard direct labour cost per hour was Rs 8.50. What was the labour efficiency variance (LEV)?
(a) Rs 17,595 Adverse
(b) Rs 17,595 Favourable
(c) Rs 24,480 Adverse
(d) Rs 24,480 Favourable

44. Consider the following data pertaining to Roy Ltd. for the month of June 2014 :
Actual direct labour hours – 27,600
Standard direct labour hours – 28,000
Total direct labour cost (Rs) – 1,93,200
If direct labour efficiency variance is ` 2,560 (favourable), the direct labour rate variance (LRV) is
(a) Rs 12,252 Adverse
(b) Rs 15,560 Adverse
(c) Rs 15,560 Favourable
(d) Rs 16,560 Adverse
(e) Rs 16,560 Favourable

45. The standard hourly rate was Rs 1.40. The actual rate was Rs 1.30. The labour rate variance was Rs 600, favourable. The actual labour hours (AH) were:
(a) 6,000
(b) 6,400
(c) 1,000
(d) 1,500

46. A Ltd. used 4,538 kgs of material at a standard cost of Rs 2.50 per kg. The material usage variance was Rs 280 (Favourable). The standard usage of material for the period is
(a) 4,700 kgs
(b) 4,650 kgs
(c) 4,600 kgs
(d) 4,588 kgs

47. During the month of September 2010, 7,800 kg. of material was purchased at a total cost of Rs 16,380. The stocks of material increased by 440 kg. It is the company’s policy to value the stocks at standard purchase price. If the material price variance was Rs 1,170 (Adverse), the standard price per kg. of material is
(a) Rs 1.95
(b) Rs 2.10
(c) Rs 2.23
(d) Rs 2.25

48. The standard and the actual requirements of material of a company are as under :
Standard – 2,400 units at the rate of Rs 20 per unit
Actual – 2,600 units at the rate of 19 per unit
The material cost variance is
(a) Rs 2,600 (Adverse)
(b) Rs 1,400 (Favourable)
(c) Rs 2,400 (Adverse)
(d) Rs 1,400 (Adverse)

49. Last month 27,000 direct labour hours were worked at an actual cost of Rs 2,36,385 and the standard direct labour hours of production were 29,880. The standard direct labour cost per hour was Rs 8.50.
What was the labour efficiency variance?
(a) Rs 17,595 Adverse
(b) Rs 17,595 Favourable
(c) Rs 24,480 Adverse
(d) Rs 24,480 Favourable

50. In the four week production period just completed, B Ltd. produced 570 units. The standard labour cost for each unit was Rs 13.50, based on budgeted production of 550 units. The actual labour cost for the period was Rs 8,238.
What was the labour rate variance for the period?
(a) Rs 543 adverse
(b) Rs 543 favourable
(c) Rs 813 adverse
(d) Rs 813 favourable

Answer: 41)4,910 kgs 42)5,100 43)Rs 24,480 Favourable 44)Rs 16,560 Adverse 45)6,000 46)4,650 kgs 47)Rs 1.95 48)Rs 1,400 (Adverse) 49)Rs 24,480 Favourable 50)Rs 543 adverse