A) are estimates of costs attainable only under the most ideal conditions. B) are difficult to use with a process costing system. C) can,if properly used,help motivate employees. D) require that significant unfavorable variances be investigated,but do not require that significant favorable variances be investigated. A) are estimates of costs attainable only under the most ideal conditions. B) are difficult to use with a process costing system. C) can,if properly used,help motivate employees. D) require that significant unfavorable variances be investigated,but do not require that significant favorable variances be investigated.

Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Genesis produced 5,000 units: $\begin{array}{ll}\text { Standard: }\\ \text { DLH per unit } & 3.00\\ \text { Variable overhead per DLH } & \$ 1.80 \\ \text { Fixed overhead per DLH } & \$ 3.25 \\ \text { Budgeted variable overhead } & \$ 27,250\\ \text { Budgeted fixed overhead } & \$ 49,500\\\\\text { Actual: }\\ \text {Direct labor hours }&16,000\\ \text { Variable overhead}&\$31,325\\ \text { Fixed overhead}&\$49,750\\ \end{array}$ Refer to Genesis Company.Using the four-variance approach,what is the volume variance?

A) $ 750 F B) $ 750 U C) $1,000 F D) $1,000 U A) $ 750 F B) $ 750 U C) $1,000 F D) $1,000 U

Exam 7: Standard Costing and Variance Analysis

The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead spending variance.

(True/False)

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Question 61

The difference between the actual wages paid to employees and the standard wages for all hours worked is the labor efficiency variance.

(True/False)

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Question 62

The difference between standard quantity allowed and quantity used for a unit of output is known as an ______________________________.

(Short Answer)

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Question 63

A budget variance is a controllable variance.

(True/False)

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Question 64

Bugs Be Gone Company manufactures a product effective in controlling beetles.The company uses a standard cost system and a flexible budget.Standard cost of a gallon is as follows: The flexible budget system provides for $50,000 of fixed overhead at normal capacity of 10,000 direct labor hours.Variable overhead is projected at $1 per direct labor hour. Actual results for the period indicated the following: Required:

(Essay)

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Question 65

Standard costs

(Multiple Choice)

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Question 66

An operations flow document shows all processes necessary to manufacture one unit of a product.

(True/False)

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Question 67

Why are fixed overhead variances considered noncontrollable?

(Essay)

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Question 68

The two components of total material/labor variance are and _____

(Essay)

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Question 69

Explain the source of fixed overhead spending and volume variances and how these variances are computed.

(Essay)

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Question 70

The price variance reflects the difference between the quantity of inputs used and the standard quantity allowed for the output of a period.

(True/False)

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Question 71

When multiple labor categories are used,the financial effect of using a different mix of workers in a production process is referred to as a labor mix variance.

(True/False)

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Question 72

Which of the following factors should not be considered when deciding whether to investigate a variance?

(Multiple Choice)

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Question 73

In a just-in-time inventory system,

(Multiple Choice)

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Question 74

Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Genesis produced 5,000 units: Standard: DLH per unit 3.00 Variable overhead per DLH \ 1.80 Fixed overhead per DLH \ 3.25 Budgeted variable overhead \ 27,250 Budgeted fixed overhead \ 49,500 Actual: Direct labor hours 16,000 Variable overhead \3 1,325 Fixed overhead \4 9,750 Refer to Genesis Company.Using the four-variance approach,what is the volume variance?

(Multiple Choice)

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Question 75

The difference between budgeted variable overhead for actual hours and standard overhead is the __________________________________________________.

(Short Answer)

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Question 76

Hazelton Company Hazelton Company has the following information available for December when 3,500 units were produced (round answers to the nearest dollar). Refer to Hazleton Company.Assume that the company computes the material price variance on the basis of material issued to production.What is the total material variance?

(Multiple Choice)

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Question 77

Classic Cleaning Company Classic Cleaning Company manufactures a cleaning solvent.The company employs both skilled and unskilled workers.To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor.The standard and actual material and labor information is presented below: Standard: Material A: 30.25 gallons @ $1.25 per gallon Material B: 24.75 gallons @ $2.00 per gallon Skilled Labor: 4 hours @ $12 per hour Unskilled Labor: 2 hours @ $ 7 per hour Actual: Material A: 10,716 gallons purchased and used @ $1.50 per gallon Material B: 17,484 gallons purchased and used @ $1.90 per gallon Skilled labor hours: 1,950 @ $11.90 per hour Unskilled labor hours: 1,300 @ $7.15 per hour During the current month Classic Cleaning Company manufactured 500 55-gallon drums. Round all answers to the nearest whole dollar. Refer to Classic Cleaning Company.What is the total material price variance?

(Multiple Choice)

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Question 78

The variancemost useful in evaluating plant utilization is the

(Multiple Choice)

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Question 79

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead volume variance.

(True/False)

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Question 80

Showing 61 - 80 of 220

The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead spending variance.

The difference between the actual wages paid to employees and the standard wages for all hours worked is the labor efficiency variance.

The difference between standard quantity allowed and quantity used for a unit of output is known as an ______________________________.

A budget variance is a controllable variance.

Standard costs

An operations flow document shows all processes necessary to manufacture one unit of a product.

Why are fixed overhead variances considered noncontrollable?

The two components of total material/labor variance are and _____

Explain the source of fixed overhead spending and volume variances and how these variances are computed.

The price variance reflects the difference between the quantity of inputs used and the standard quantity allowed for the output of a period.

When multiple labor categories are used,the financial effect of using a different mix of workers in a production process is referred to as a labor mix variance.

Which of the following factors should not be considered when deciding whether to investigate a variance?

In a just-in-time inventory system,

The difference between budgeted variable overhead for actual hours and standard overhead is the __________________________________________________.

The variancemost useful in evaluating plant utilization is the

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead volume variance.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 7: Standard Costing and Variance Analysis

The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead spending variance.

The difference between the actual wages paid to employees and the standard wages for all hours worked is the labor efficiency variance.

The difference between standard quantity allowed and quantity used for a unit of output is known as an ______________________________.

A budget variance is a controllable variance.

Standard costs

An operations flow document shows all processes necessary to manufacture one unit of a product.

Why are fixed overhead variances considered noncontrollable?

The two components of total material/labor variance are ______________________________ and ___________________________________

Explain the source of fixed overhead spending and volume variances and how these variances are computed.

The price variance reflects the difference between the quantity of inputs used and the standard quantity allowed for the output of a period.

When multiple labor categories are used,the financial effect of using a different mix of workers in a production process is referred to as a labor mix variance.

Which of the following factors should not be considered when deciding whether to investigate a variance?

In a just-in-time inventory system,

The difference between budgeted variable overhead for actual hours and standard overhead is the __________________________________________________.

The variancemost useful in evaluating plant utilization is the

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead volume variance.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

The two components of total material/labor variance are and _____