Question 1

Practical standards are the most effective standards for controlling and motivating workers.

Accepted Answer

A) True 
 B)False

Question 2

Standard costs may be used for

Accepted Answer

A)  product costing. 
B)  planning. 
C)  controlling. 
D)  all of the above. 
A)  product costing. 
B)  planning. 
C)  controlling. 
D)  all of the above.

Question 3

Managers have no ability to control the budget variance.

Accepted Answer

A) True 
 B)False

Question 4

Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units:
  Refer to Strong Manufacturing Company. What is the material quantity variance?

Accepted Answer

A)  $275 F 
B)  $290 F 
C)  $290 U 
D)  $275 U 
A)  $275 F 
B)  $290 F 
C)  $290 U 
D)  $275 U

Question 5

Wimberly Company Wimberly Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar).
  Refer to Wimberly Company. What is the material price variance (based on quantity purchased)?

Accepted Answer

A)  $2,505 F 
B)  $2,505 F. 
C)  $2,625  F 
D) $2,625 F 
A)  $2,505 F 
B)  $2,505 F. 
C)  $2,625  F 
D) $2,625 F

Question 6

Specifications for materials are compiled on a bill of materials.

Accepted Answer

A) True 
 B)False

Question 7

The effect of substituting a non-standard mix of materials during the production process is referred to as a material mix variance.

Accepted Answer

A) True 
 B)False

Question 8

Standards that reflect what is expected to occur are referred to as ______________________________.

Accepted Answer

The answer of Standards that reflect what is expected to...

Question 9

Ponca City Company uses a standard cost accounting system. The following overhead costs and production data are available for September:   The total applied manufacturing overhead for September should be

Accepted Answer

A)  $195,000. 
B)  $197,000. 
C)  $197,500. 
D)  $199,500. 
A)  $195,000. 
B)  $197,000. 
C)  $197,500. 
D)  $199,500.

Question 10

When multiple labor categories are used, the monetary impact of using a higher or lower number of hours than a standard allows is referred to as a labor mix variance.

Accepted Answer

A) True 
 B)False

Question 11

Management would generally expect unfavorable variances if standards were based on which of the following capacity measures?

Accepted Answer

A)  yes no no 
B)  no no no 
C)  no yes yes 
D)  yes yes no 
A)  yes no no 
B)  no no no 
C)  no yes yes 
D)  yes yes no

Question 12

Actual fixed overhead minus budgeted fixed overhead equals the

Accepted Answer

A)  fixed overhead volume variance. 
B)  fixed overhead spending variance. 
C)  noncontrollable variance. 
D)  controllable variance. 
A)  fixed overhead volume variance. 
B)  fixed overhead spending variance. 
C)  noncontrollable variance. 
D)  controllable variance.

Question 13

Bailey Corporation. incurred 2,300 direct labor hours to produce 600 units of product. Each unit should take 4 direct labor hours. Bailey Corporation applies variable overhead to production on a direct labor hour basis. The variable overhead efficiency variance

Accepted Answer

A)  will be unfavorable. 
B)  will be favorable. 
C)  will depend upon the capacity measure selected to assign overhead to production. 
D)  is impossible to determine without additional information. 
A)  will be unfavorable. 
B)  will be favorable. 
C)  will depend upon the capacity measure selected to assign overhead to production. 
D)  is impossible to determine without additional information.

Question 14

A fixed overhead volume variance is a noncontrollable variance.

Accepted Answer

A) True 
 B)False

Question 15

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 Hazelton Company. What is the labor rate variance?

Accepted Answer

A)  $875 F 
B)  $865 F 
C)  $865 U 
D)  $875 U 
A)  $875 F 
B)  $865 F 
C)  $865 U 
D)  $875 U

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

In analyzing manufacturing overhead variances, the volume variance is the difference between the

Accepted Answer

A)  amount shown in the flexible budget and the amount shown in the debit side of the overhead control account. 
B)  predetermined overhead application rate and the flexible budget application rate times actual hours worked. 
C)  budget allowance based on standard hours allowed for actual production for the period and the amount budgeted to be applied during the period. 
D)  actual amount spent for overhead items during the period and the overhead amount applied to production during the period. 
A)  amount shown in the flexible budget and the amount shown in the debit side of the overhead control account. 
B)  predetermined overhead application rate and the flexible budget application rate times actual hours worked. 
C)  budget allowance based on standard hours allowed for actual production for the period and the amount budgeted to be applied during the period. 
D)  actual amount spent for overhead items during the period and the overhead amount applied to production during the period.

Question 18

Unfavorable variances are represented by debit balances in the overhead account.

Accepted Answer

A) True 
 B)False

Question 19

Moore Company
Moore Company has the following information available for the current year:
   Refer to Moore Company. Compute the labor rate and efficiency variances.

Accepted Answer

The answer of Moore Company
Moore Company has the following information...

Question 20

Discuss how variable and fixed overhead application rates are calculated.

Accepted Answer

The variable overhead application rate i

Practical standards are the most effective standards for controlling and motivating workers.

Standard costs may be used for

Managers have no ability to control the budget variance.

Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units: Refer to Strong Manufacturing Company. What is the material quantity variance?

Wimberly Company Wimberly Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar). Refer to Wimberly Company. What is the material price variance (based on quantity purchased)?

Specifications for materials are compiled on a bill of materials.

The effect of substituting a non-standard mix of materials during the production process is referred to as a material mix variance.

Standards that reflect what is expected to occur are referred to as ______________________________.

Ponca City Company uses a standard cost accounting system. The following overhead costs and production data are available for September: The total applied manufacturing overhead for September should be

When multiple labor categories are used, the monetary impact of using a higher or lower number of hours than a standard allows is referred to as a labor mix variance.

Management would generally expect unfavorable variances if standards were based on which of the following capacity measures?

Actual fixed overhead minus budgeted fixed overhead equals the

Bailey Corporation. incurred 2,300 direct labor hours to produce 600 units of product. Each unit should take 4 direct labor hours. Bailey Corporation applies variable overhead to production on a direct labor hour basis. The variable overhead efficiency variance

A fixed overhead volume variance is a noncontrollable variance.

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 Hazelton Company. What is the labor rate variance?

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

In analyzing manufacturing overhead variances, the volume variance is the difference between the

Unfavorable variances are represented by debit balances in the overhead account.

Moore Company Moore Company has the following information available for the current year: Refer to Moore Company. Compute the labor rate and efficiency variances.

Discuss how variable and fixed overhead application rates are calculated.

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

Practical standards are the most effective standards for controlling and motivating workers.

Standard costs may be used for

Managers have no ability to control the budget variance.

Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units: Refer to Strong Manufacturing Company. What is the material quantity variance?

Wimberly Company Wimberly Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar). Refer to Wimberly Company. What is the material price variance (based on quantity purchased)?

Specifications for materials are compiled on a bill of materials.

The effect of substituting a non-standard mix of materials during the production process is referred to as a material mix variance.

Standards that reflect what is expected to occur are referred to as ______________________________.

Ponca City Company uses a standard cost accounting system. The following overhead costs and production data are available for September: The total applied manufacturing overhead for September should be

When multiple labor categories are used, the monetary impact of using a higher or lower number of hours than a standard allows is referred to as a labor mix variance.

Management would generally expect unfavorable variances if standards were based on which of the following capacity measures?

Actual fixed overhead minus budgeted fixed overhead equals the

Bailey Corporation. incurred 2,300 direct labor hours to produce 600 units of product. Each unit should take 4 direct labor hours. Bailey Corporation applies variable overhead to production on a direct labor hour basis. The variable overhead efficiency variance

A fixed overhead volume variance is a noncontrollable variance.

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 Hazelton Company. What is the labor rate variance?

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

In analyzing manufacturing overhead variances, the volume variance is the difference between the

Unfavorable variances are represented by debit balances in the overhead account.

Moore Company Moore Company has the following information available for the current year: Refer to Moore Company. Compute the labor rate and efficiency variances.

Discuss how variable and fixed overhead application rates are calculated.

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