Question 1

Which of the following is not true regarding engineering studies?

Accepted Answer

A) They can determine the most efficient way to operate. 
B) They are often achievable by operating personnel. 
C) They provide very rigorous guidelines. 
D) All of these statements are true. 
E) More than two of these statements are true. 
A) They can determine the most efficient way to operate. 
B) They are often achievable by operating personnel. 
C) They provide very rigorous guidelines. 
D) All of these statements are true. 
E) More than two of these statements are true.

Question 2

The ____________________ measures the difference between the actual costs of materials and their budgeted costs for actual level of activity.

Accepted Answer

total vari

Question 3

Figure 10-2. Highland Company's standard cost is $250,000.The allowable deviation is $\pm$10%.Its actual costs for six months are
  Refer to Figure 10-2.The variance that is higher than the upper control limit is

Accepted Answer

A) $220,000 
B) $280,000 
C) $265,000 
D) $235,000 
A) $220,000 
B) $280,000 
C) $265,000 
D) $235,000

Question 4

Ideal standards can be achieved under efficient operating conditions.

Accepted Answer

A) True 
 B)False

Question 5

Standard cost systems can enhance operational control through the use of

Accepted Answer

A) efficiency variances which indicate the need for corrective action. 
B) price variances which indicate the need for better spending control. 
C) standard costs which indicate the desired cost of a unit of input. 
D) actual costs which indicate the price received for units sold. 
E) All of these. 
A) efficiency variances which indicate the need for corrective action. 
B) price variances which indicate the need for better spending control. 
C) standard costs which indicate the desired cost of a unit of input. 
D) actual costs which indicate the price received for units sold. 
E) All of these.

Question 6

During April,Rain Gear Unlimited produced 5,500 umbrellas from nylon that costs $0.45 per yard,which is $0.05 cheaper than the standard cost.It also used 3,000 direct labor hours at a rate of $6.50.Its direct materials standard is 1 yard per umbrella.Its direct labor standard is 0.5 hour per umbrella.
Its materials usage variance was a favorable $500 and its labor rate variance was a favorable $900.

Accepted Answer

The answer of During April,Rain Gear Unlimited produced 5,500 umbrellas...

Question 7

During June,Cisco Company produced 12,000 chainsaw blades.The standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound.Cisco determined that it had a favorable materials usage variance of $1,000 for June.Calculate the actual quantity of materials Cisco used.

Accepted Answer

A) 17,875 pounds 
B) 12,125 pounds 
C) 11,875 pounds 
D) 18,125 pounds 
A) 17,875 pounds 
B) 12,125 pounds 
C) 11,875 pounds 
D) 18,125 pounds

Question 8

Warwick Company has the following information concerning its direct labor:

Accepted Answer

The answer of Warwick Company has the following information concerning...

Question 9

Figure 10-1. Flying High Company manufactures model airplanes.During the month,it manufactured 10,000 airplanes.Each one used an average of 6.5 direct labor hours and an average of 1.5 sheets of aluminum.It normally manufactures 7,500 airplanes.Materials and labor standards for making the airplanes are:
  Refer to Figure 10-1.Compute the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes.

Accepted Answer

A) 15,000 sheets 
B) 10,000 sheets 
C) 7,500 sheets 
D) 11,250 sheets 
A) 15,000 sheets 
B) 10,000 sheets 
C) 7,500 sheets 
D) 11,250 sheets

Question 10

Figure 10-8. The Perfect Tool Company (South America Division)produced 80,000 saw blades during the year.It took 1.5 hours of labor per blade at a rate of $8.50 per hour.However,its standard labor rate is $8.00.Its labor efficiency variance was an unfavorable $40,000.
Refer to Figure 10-8.What is the journal entry to record both labor variances?

Accepted Answer

A) Work In Process 920,000 Labor Rate Variance 60,000
Labor Efficiency Variance 40.000
Accrued Payroll 1,020,000 
B) Work In Process 960,000 Labor Rate Variance 57,500
Labor Efficiency Variance 40,000
Accrued Payroll 1,057,500 
C) Work In Process 920,000 Labor Rate Variance 60,000
Labor Efficiency Variance 40,000
Accrued Payroll 940,000 
D) Work In Process 960,000 Labor Rate Variance 57,500
Labor Efficiency Variance 40,000
Accrued Payroll 977,500 
A) Work In Process 920,000 Labor Rate Variance 60,000
Labor Efficiency Variance 40.000
Accrued Payroll 1,020,000 
B) Work In Process 960,000 Labor Rate Variance 57,500
Labor Efficiency Variance 40,000
Accrued Payroll 1,057,500 
C) Work In Process 920,000 Labor Rate Variance 60,000
Labor Efficiency Variance 40,000
Accrued Payroll 940,000 
D) Work In Process 960,000 Labor Rate Variance 57,500
Labor Efficiency Variance 40,000
Accrued Payroll 977,500

Question 11

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

Accepted Answer

The answer of ______________ focuses on the continuous reduction of...

Question 12

In a standard cost system,costs are assigned to all of the following,except for

Accepted Answer

A) direct materials. 
B) direct labor. 
C) variable overhead. 
D) fixed overhead. 
E) none of these. 
A) direct materials. 
B) direct labor. 
C) variable overhead. 
D) fixed overhead. 
E) none of these.

Question 13

Gardener's Market manufactures hedgers.During the year,it manufactured 5,000 hedgers,using 4.2 hours of direct labor per hedger at a rate of $8.The materials and labor standards for manufacturing the hedgers are:
   Gardener's Market actually purchased and used 53,000 units of direct materials at a price of $2.25 per unit.
Required:

Accepted Answer

The answer of Gardener's Market manufactures hedgers.During the year,it manufactured...

Question 14

Which of the following is true regarding direct labor variances?

Accepted Answer

A) The labor efficiency variance measures the difference between what was paid to direct laborers and what should have been paid. 
B) The labor rate and labor efficiency variances will always add up to the total labor variance. 
C) The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that should have been used. 
D) The labor rate variance measures the difference between the labor hours that were originally budgeted and the labor hours that should have been used. 
E) The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that were originally budgeted. 
A) The labor efficiency variance measures the difference between what was paid to direct laborers and what should have been paid. 
B) The labor rate and labor efficiency variances will always add up to the total labor variance. 
C) The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that should have been used. 
D) The labor rate variance measures the difference between the labor hours that were originally budgeted and the labor hours that should have been used. 
E) The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that were originally budgeted.

Question 15

Which of the following is true regarding the disposition of materials and labor variances?

Accepted Answer

A) The variances for materials and labor are closed directly to Cost of Goods Sold regardless of materiality. 
B) If the materials price variance is material,it is prorated among Materials Inventory,Materials Usage Variance,Work in Process,and Finished Goods. 
C) The materials usage variance and the labor variances,if material,are prorated among Work in Process,Finished Goods,and Cost of Goods Sold. 
D) The materials usage variance and the labor variances are always prorated among Work in Process,Finished Goods,and Cost of Goods Sold. 
E) The materials usage variance and the labor variances are always closed to Cost of Goods Sold. 
A) The variances for materials and labor are closed directly to Cost of Goods Sold regardless of materiality. 
B) If the materials price variance is material,it is prorated among Materials Inventory,Materials Usage Variance,Work in Process,and Finished Goods. 
C) The materials usage variance and the labor variances,if material,are prorated among Work in Process,Finished Goods,and Cost of Goods Sold. 
D) The materials usage variance and the labor variances are always prorated among Work in Process,Finished Goods,and Cost of Goods Sold. 
E) The materials usage variance and the labor variances are always closed to Cost of Goods Sold.

Question 16

The materials price variance is computed using the actual quantity of materials used,and the materials usage variance is computed using the actual quantity of materials purchased.

Accepted Answer

A) True 
 B)False

Question 17

The ______________________ can be used to compute the total amount of inputs allowed for the actual output.

Accepted Answer

unit quant

Question 18

The sum of the labor rate and labor efficiency variances will always add up to the total labor variance.

Accepted Answer

A) True 
 B)False

Question 19

The __________________ provides the products data needed to calculate the standard unit cost.

Accepted Answer

The answer of The __________________ provides the products data needed...

Question 20

Which of the following is true regarding currently attainable standards?

Accepted Answer

A) They can be achieved under efficient operating conditions. 
B) Allowance is made for normal breakdowns,interruptions,etc. 
C) They are challenging but achievable. 
D) They tend to achieve higher performance levels from personnel. 
E) All of these. 
A) They can be achieved under efficient operating conditions. 
B) Allowance is made for normal breakdowns,interruptions,etc. 
C) They are challenging but achievable. 
D) They tend to achieve higher performance levels from personnel. 
E) All of these.

Which of the following is not true regarding engineering studies?

The ____________________ measures the difference between the actual costs of materials and their budgeted costs for actual level of activity.

Ideal standards can be achieved under efficient operating conditions.

Standard cost systems can enhance operational control through the use of

Warwick Company has the following information concerning its direct labor:

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

In a standard cost system,costs are assigned to all of the following,except for

Which of the following is true regarding direct labor variances?

Which of the following is true regarding the disposition of materials and labor variances?

The materials price variance is computed using the actual quantity of materials used,and the materials usage variance is computed using the actual quantity of materials purchased.

The ______________________ can be used to compute the total amount of inputs allowed for the actual output.

The sum of the labor rate and labor efficiency variances will always add up to the total labor variance.

The __________________ provides the products data needed to calculate the standard unit cost.

Which of the following is true regarding currently attainable standards?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 10: Standard Costing: a Managerial Control Tool

Which of the following is not true regarding engineering studies?

The ____________________ measures the difference between the actual costs of materials and their budgeted costs for actual level of activity.

Figure 10-2. Highland Company's standard cost is $250,000.The allowable deviation is ±\pm± 10%.Its actual costs for six months are Refer to Figure 10-2.The variance that is higher than the upper control limit is

Ideal standards can be achieved under efficient operating conditions.

Standard cost systems can enhance operational control through the use of

Warwick Company has the following information concerning its direct labor:

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

In a standard cost system,costs are assigned to all of the following,except for

Which of the following is true regarding direct labor variances?

Which of the following is true regarding the disposition of materials and labor variances?

The materials price variance is computed using the actual quantity of materials used,and the materials usage variance is computed using the actual quantity of materials purchased.

The ______________________ can be used to compute the total amount of inputs allowed for the actual output.

The sum of the labor rate and labor efficiency variances will always add up to the total labor variance.

The __________________ provides the products data needed to calculate the standard unit cost.

Which of the following is true regarding currently attainable standards?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters