Fickle Factory Ltd produces unique large ceramic frogs. The accountant has collected the following information regarding standard costs. \[\begin{array} { | l | l | } \hline \text { Praductim Input } & \text { Standard Cast } \\ \hline \text { Direct Materials } & \begin{array} { l } 2 \text { kilos of raw material } \\ \text { Each kilo } = \$ 5 \end{array} \\ \hline \text { Direct Labour } & \begin{array} { l } \text { 1 hour } \\ \text { Direct Labour is charged at } \$ 10 \text { per hour } \end{array} \\ \hline \text { Variable Overhead } &\$ 2 \text { per direct labour hour } \\ \hline \text { Fixed Overhead } & \$ 4 \text { per frog } \\ \hline \end{array}\] Total fixed overhead for the year is estimated to be $80,000. The selling price for each frog is $45. Actual sales and production was 22,000 The flexible budget for direct materials the year is:

A) $200,000 B) $100,000 C) $220,000 D) $10,000 A) $200,000 B) $100,000 C) $220,000 D) $10,000

Exam 8: Flexible Budgets, Standard Costs and Variance Analysis

Fickle Factory Ltd produces unique large ceramic frogs. The accountant has collected the following information regarding standard costs. Praductim Input Standard Cast Direct Materials 2 kilos of raw material Each kilo =\ 5 Direct Labour 1 hour Direct Labour is charged at \ 10 per hour Variable Overhead \ 2 per direct labour hour Fixed Overhead \ 4 per frog Total fixed overhead for the year is estimated to be $80,000. The selling price for each frog is $45. Actual sales and production was 22,000 The flexible budget for direct materials the year is:

(Multiple Choice)

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Question 21

Efficiency variances provide information about how economically resources have been used.

(True/False)

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Question 22

Ideal standards make allowances for unexpected events.

(True/False)

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Question 23

Which of the following is the same amount in the master budget and the flexible budget?

(Multiple Choice)

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Question 24

Ideal standards assume:

(Multiple Choice)

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Question 25

Variances in standard costing can be separated in the following categories; direct materials, direct labour, fixed overhead and variable overhead.

(True/False)

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Question 26

Thai Connection Ltd is a travel agency. They budget monthly costs of $50,000 plus $125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were $53,000 fixed costs and $65,000 variable costs. The static budget for June is:

(Multiple Choice)

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Question 27

Sensitivity analysis can be used to estimate the effects of deviations from budget assumptions.

(True/False)

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Question 28

Standards should be reviewed periodically.

(True/False)

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Question 29

If variances show that the operations are better than expected the appropriate management action is to continue monitoring to ensure it is maintained and modify future operating plans accordingly.

(True/False)

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Question 30

Interactions between employee incentives and variances may result in incentives creating unanticipated problems.

(True/False)

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Question 31

There are two reasons for calculating variances; bookkeeping and monitoring.

(True/False)

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Question 32

Management by exception means that managers investigate:

(Multiple Choice)

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Question 33

Thai Connection Ltd is a travel agency. They budget monthly costs of $50,000 plus $125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were $53,000 fixed costs and $65,000 variable costs. The flexible budget for June is:

(Multiple Choice)

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Question 34

Standard costs are established under operating plan assumptions which include: I $\quad$ Volume of production activity II $\quad$ Just in time inventory management III $\quad$ Prices and quality of inputs

(Multiple Choice)

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Question 35

One element of variance analysis is identifying reasons for variances.

(True/False)

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Question 36

A standard cost variance can be broken down into a price variance and a direct variance.

(True/False)

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Question 37

Managers can study the difference between the static budget and the flexible budget to identify ways to improve future operations.

(True/False)

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Question 38

How do managers decide which variances are important enough to investigate? I $\quad$ When the variance is unfavourable II $\quad$ When the variance is larger than a specified amount or percentage III $\quad$ When the variance trends are increasing

(Multiple Choice)

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Question 39

Another name for master budget is static budget.

(True/False)

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Question 40

Showing 21 - 40 of 76

Efficiency variances provide information about how economically resources have been used.

Ideal standards make allowances for unexpected events.

Which of the following is the same amount in the master budget and the flexible budget?

Ideal standards assume:

Variances in standard costing can be separated in the following categories; direct materials, direct labour, fixed overhead and variable overhead.

Thai Connection Ltd is a travel agency. They budget monthly costs of $50,000 plus $125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were $53,000 fixed costs and $65,000 variable costs. The static budget for June is:

Sensitivity analysis can be used to estimate the effects of deviations from budget assumptions.

Standards should be reviewed periodically.

If variances show that the operations are better than expected the appropriate management action is to continue monitoring to ensure it is maintained and modify future operating plans accordingly.

Interactions between employee incentives and variances may result in incentives creating unanticipated problems.

There are two reasons for calculating variances; bookkeeping and monitoring.

Management by exception means that managers investigate:

Thai Connection Ltd is a travel agency. They budget monthly costs of $50,000 plus $125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were $53,000 fixed costs and $65,000 variable costs. The flexible budget for June is:

Standard costs are established under operating plan assumptions which include: I $\quad$ Volume of production activity II $\quad$ Just in time inventory management III $\quad$ Prices and quality of inputs

One element of variance analysis is identifying reasons for variances.

A standard cost variance can be broken down into a price variance and a direct variance.

Managers can study the difference between the static budget and the flexible budget to identify ways to improve future operations.

How do managers decide which variances are important enough to investigate? I $\quad$ When the variance is unfavourable II $\quad$ When the variance is larger than a specified amount or percentage III $\quad$ When the variance trends are increasing

Another name for master budget is static budget.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job and Process Costing Systems

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

Exam 8: Flexible Budgets, Standard Costs and Variance Analysis

Efficiency variances provide information about how economically resources have been used.

Ideal standards make allowances for unexpected events.

Which of the following is the same amount in the master budget and the flexible budget?

Ideal standards assume:

Variances in standard costing can be separated in the following categories; direct materials, direct labour, fixed overhead and variable overhead.

Thai Connection Ltd is a travel agency. They budget monthly costs of $50,000 plus $125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were $53,000 fixed costs and $65,000 variable costs. The static budget for June is:

Sensitivity analysis can be used to estimate the effects of deviations from budget assumptions.

Standards should be reviewed periodically.

If variances show that the operations are better than expected the appropriate management action is to continue monitoring to ensure it is maintained and modify future operating plans accordingly.

Interactions between employee incentives and variances may result in incentives creating unanticipated problems.

There are two reasons for calculating variances; bookkeeping and monitoring.

Management by exception means that managers investigate:

Thai Connection Ltd is a travel agency. They budget monthly costs of $50,000 plus $125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were $53,000 fixed costs and $65,000 variable costs. The flexible budget for June is:

Standard costs are established under operating plan assumptions which include: I \quad Volume of production activity II \quad Just in time inventory management III \quad Prices and quality of inputs

One element of variance analysis is identifying reasons for variances.

A standard cost variance can be broken down into a price variance and a direct variance.

Managers can study the difference between the static budget and the flexible budget to identify ways to improve future operations.

How do managers decide which variances are important enough to investigate? I \quad When the variance is unfavourable II \quad When the variance is larger than a specified amount or percentage III \quad When the variance trends are increasing

Another name for master budget is static budget.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job and Process Costing Systems

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

Standard costs are established under operating plan assumptions which include: I $\quad$ Volume of production activity II $\quad$ Just in time inventory management III $\quad$ Prices and quality of inputs

How do managers decide which variances are important enough to investigate? I $\quad$ When the variance is unfavourable II $\quad$ When the variance is larger than a specified amount or percentage III $\quad$ When the variance trends are increasing