Question 1

What is the sales revenue in the flexible budget?

Accepted Answer

A) $139,000. 
B) $156,000. 
C) $169,000. 
D) $180,000. 
A) $139,000. 
B) $156,000. 
C) $169,000. 
D) $180,000.

Question 2

The following data pertains to the direct materials cost for the month of October: What is the direct materials efficiency (quantity)variance?

Accepted Answer

A) $950 favorable 
B) $950 unfavorable 
C) $1,000 favorable 
D) $1,000 unfavorable 
E) $50 unfavorable 
A) $950 favorable 
B) $950 unfavorable 
C) $1,000 favorable 
D) $1,000 unfavorable 
E) $50 unfavorable

Question 3

What is the master budget sales revenue?

Accepted Answer

A) $124,000. 
B) $148,000. 
C) $156,000. 
D) $180,000. 
A) $124,000. 
B) $148,000. 
C) $156,000. 
D) $180,000.

Question 4

Given the following information in standard costing: What is the total direct labor cost variance?

Accepted Answer

A) $3,160,favorable 
B) $3,160,unfavorable 
C) $2,360,favorable 
D) $2,360,unfavorable 
A) $3,160,favorable 
B) $3,160,unfavorable 
C) $2,360,favorable 
D) $2,360,unfavorable

Question 5

What is the master budget contribution margin?

Accepted Answer

A) $52,000. 
B) $47,500. 
C) $45,000. 
D) $39,000. 
A) $52,000. 
B) $47,500. 
C) $45,000. 
D) $39,000.

Question 6

What is the direct labor efficiency variance for November?

Accepted Answer

A) $1,800 
B) $1,900 
C) $2,000 
D) $2,090 
E) $2,200 
A) $1,800 
B) $1,900 
C) $2,000 
D) $2,090 
E) $2,200

Question 7

The slope of the flexible budget-line is the

Accepted Answer

A) selling price per unit. 
B) variable cost per unit. 
C) fixed cost per unit. 
D) contribution margin per unit. 
E) operating profit per unit. 
A) selling price per unit. 
B) variable cost per unit. 
C) fixed cost per unit. 
D) contribution margin per unit. 
E) operating profit per unit.

Question 8

Which department is customarily held responsible for an unfavorable materials quantity variance?

Accepted Answer

A) Quality control. 
B) Purchasing. 
C) Engineering. 
D) Production. 
A) Quality control. 
B) Purchasing. 
C) Engineering. 
D) Production.

Question 9

The intercept of the flexible budget-line is total

Accepted Answer

A) sales. 
B) variable costs. 
C) fixed costs. 
D) contribution margin. 
E) assets. 
A) sales. 
B) variable costs. 
C) fixed costs. 
D) contribution margin. 
E) assets.

Question 10

Dickey Company had total underapplied overhead of $15,000.Additional information is as follows: What is the actual total overhead for the period?

Accepted Answer

A) $50,000 
B) $45,000 
C) $80,000 
D) $87,000 
A) $50,000 
B) $45,000 
C) $80,000 
D) $87,000

Question 11

A flexible budget adjusts the static budget to reflect the actual activity level achieved during the period.

Accepted Answer

A) True 
 B)False

Question 12

In general,the direct labor efficiency variance is the responsibility of the

Accepted Answer

A) purchasing agent. 
B) company president. 
C) production manager. 
D) industrial engineering. 
E) marketing department. 
A) purchasing agent. 
B) company president. 
C) production manager. 
D) industrial engineering. 
E) marketing department.

Question 13

Which of the following is not an alternative name for the production volume variance?

Accepted Answer

A) capacity variance 
B) idle capacity variance 
C) denominator variance 
D) fixed overhead efficiency variance 
A) capacity variance 
B) idle capacity variance 
C) denominator variance 
D) fixed overhead efficiency variance

Question 14

What was Goodman's standard direct-labor rate?

Accepted Answer

A) $3.54 
B) $3.80 
C) $4.00 
D) $5.80 
A) $3.54 
B) $3.80 
C) $4.00 
D) $5.80

Question 15

Which of the following is the most probable reason a company would experience an unfavorable labor rate variance and a favorable labor efficiency variance?

Accepted Answer

A) The mix of workers assigned to the particular job was heavily weighted towards the use of higher paid experienced individuals. 
B) The mix of workers assigned to the particular job was heavily weighted towards the use of new relatively low paid unskilled workers. 
C) Because of the production schedule,workers from other production areas were assigned to assist this particular process. 
D) Defective materials caused more labor to be used in order to produce a standard unit. 
A) The mix of workers assigned to the particular job was heavily weighted towards the use of higher paid experienced individuals. 
B) The mix of workers assigned to the particular job was heavily weighted towards the use of new relatively low paid unskilled workers. 
C) Because of the production schedule,workers from other production areas were assigned to assist this particular process. 
D) Defective materials caused more labor to be used in order to produce a standard unit.

Question 16

The sales price variance is the difference between the actual sales revenues and the

Accepted Answer

A) budgeted selling price multiplied by the budgeted number of units sold. 
B) budgeted selling price multiplied by the actual number of units sold. 
C) actual selling price multiplied by the budgeted number of units sold. 
D) actual selling price multiplied by the actual number of units sold. 
A) budgeted selling price multiplied by the budgeted number of units sold. 
B) budgeted selling price multiplied by the actual number of units sold. 
C) actual selling price multiplied by the budgeted number of units sold. 
D) actual selling price multiplied by the actual number of units sold.

Question 17

What were the actual direct labor hours worked during the month?

Accepted Answer

A) 5,000. 
B) 4,800. 
C) 4,200. 
D) 4,000. 
E) 3,400. 
A) 5,000. 
B) 4,800. 
C) 4,200. 
D) 4,000. 
E) 3,400.

Question 18

A favorable variance is not necessarily good,and an unfavorable variance is not necessarily bad.

Accepted Answer

A) True 
 B)False

Question 19

Is the production volume variance favorable or unfavorable?

Accepted Answer

A) favorable 
B) unfavorable 
A) favorable 
B) unfavorable

Question 20

Is the production volume variance favorable or unfavorable?

Accepted Answer

A) favorable 
B) unfavorable 
A) favorable 
B) unfavorable

What is the sales revenue in the flexible budget?

The following data pertains to the direct materials cost for the month of October: What is the direct materials efficiency (quantity)variance?

What is the master budget sales revenue?

Given the following information in standard costing: What is the total direct labor cost variance?

What is the master budget contribution margin?

What is the direct labor efficiency variance for November?

The slope of the flexible budget-line is the

Which department is customarily held responsible for an unfavorable materials quantity variance?

The intercept of the flexible budget-line is total

Dickey Company had total underapplied overhead of $15,000.Additional information is as follows: What is the actual total overhead for the period?

A flexible budget adjusts the static budget to reflect the actual activity level achieved during the period.

In general,the direct labor efficiency variance is the responsibility of the

Which of the following is not an alternative name for the production volume variance?

What was Goodman's standard direct-labor rate?

Which of the following is the most probable reason a company would experience an unfavorable labor rate variance and a favorable labor efficiency variance?

The sales price variance is the difference between the actual sales revenues and the

What were the actual direct labor hours worked during the month?

A favorable variance is not necessarily good,and an unfavorable variance is not necessarily bad.

Is the production volume variance favorable or unfavorable?

Is the production volume variance favorable or unfavorable?

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Additional Topics in Variance Analysis

Nonfinancial and Multiple Measures of Performance

Filters

Exam 16: Fundamentals of Variance Analysis

What is the sales revenue in the flexible budget?

The following data pertains to the direct materials cost for the month of October: What is the direct materials efficiency (quantity)variance?

What is the master budget sales revenue?

Given the following information in standard costing: What is the total direct labor cost variance?

What is the master budget contribution margin?

What is the direct labor efficiency variance for November?

The slope of the flexible budget-line is the

Which department is customarily held responsible for an unfavorable materials quantity variance?

The intercept of the flexible budget-line is total

Dickey Company had total underapplied overhead of $15,000.Additional information is as follows: What is the actual total overhead for the period?

A flexible budget adjusts the static budget to reflect the actual activity level achieved during the period.

In general,the direct labor efficiency variance is the responsibility of the

Which of the following is not an alternative name for the production volume variance?

What was Goodman's standard direct-labor rate?

Which of the following is the most probable reason a company would experience an unfavorable labor rate variance and a favorable labor efficiency variance?

The sales price variance is the difference between the actual sales revenues and the

What were the actual direct labor hours worked during the month?

A favorable variance is not necessarily good,and an unfavorable variance is not necessarily bad.

Is the production volume variance favorable or unfavorable?

Is the production volume variance favorable or unfavorable?

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Additional Topics in Variance Analysis

Nonfinancial and Multiple Measures of Performance

Filters