Exam 16: Fundamentals of Variance Analysis

In analyzing company operations,the controller of the Jason Corporation found a $250,000 favorable flexible budget revenue variance.The variance was calculated by comparing the actual results with the flexible budget.This variance can be wholly explained by (CMA adapted)

The standard unit cost is used in the calculation of which of the following variance? (CPA adapted)

The standard cost for a unit of output is the standard price per unit of input times the standard number of inputs per one unit of output.

Which of these variances is least significant for cost control?

The basic difference between a master budget and a flexible budget is that a

Is the direct labor price (rate)variance favorable or unfavorable?

The direct labor efficiency variance can be the result of poor supervision or poor scheduling by divisional managers.

A favorable materials price variance coupled with an unfavorable materials usage variance would most likely result from (CMA adapted)

The sales price variance is the actual selling price per unit times the difference between budgeted number of units and the actual number of units sold.

Which of the following statements is (are)true regarding the sales activity variance? (A)The sales activity variance is the actual selling price per unit times the difference between the budgeted units and actual units. (B)If the sales activity variance for sales revenue is unfavorable,then the contribution margin sales activity variance will be unfavorable.

The difference between operating profits in the master budget and operating profits in the flexible budget is called a sales price variance.

When are the following direct materials variances ideally reported?

The Landry Company has developed standards for labor.During June,75 units were scheduled and 100 were produced.Data related to labor are: What is the labor rate variance for June?

An operating budget would not include a

What is the direct labor price (rate)variance for November?

Which of the following direct labor variances uses the standard hours allowed for the actual number of units produced?

What is the fixed overhead spending (budget)variance for May?

Based on past experience,a company has developed the following budget formula for estimating its shipping expenses.The company's shipments average 12 lbs.per shipment: Shipping costs = $16,000 + ($0.50 $\times$ lbs.shipped) The planned activity and actual activity regarding orders and shipments for the current month are given in the following schedule: The actual shipping costs for the month amounted to $21,000.The appropriate monthly flexible budget allowance for shipping costs for the purpose of performance evaluation would be (CMA adapted)

If materials are carried in the direct materials inventory account at standard cost,then it is reasonable to assume that the

Which of the following organizational policies is most likely to result in undesirable managerial behavior? (CMA adapted)