Question 1

If the standard hours allowed are less than the standard hours at normal capacity, the volume variance

Accepted Answer

A) cannot be calculated. 
B) will be favourable. 
C) will be unfavourable. 
D) will be greater than the spending variance. 
A) cannot be calculated. 
B) will be favourable. 
C) will be unfavourable. 
D) will be greater than the spending variance.

Question 2

Use the following information for questions 
A company developed the following per-unit standards for its product: 5 kilograms of direct materials at $3 per kilogram.Last month, 1,000 kilograms of direct materials were purchased for $2,900.Also last month, 700 kilograms of direct materials were used to produce 135 units.
-What was the direct materials price variance for last month?

Accepted Answer

A) $12,100 favourable 
B) $100 favourable 
C) $12,100 unfavourable 
D) $100 unfavourable 
A) $12,100 favourable 
B) $100 favourable 
C) $12,100 unfavourable 
D) $100 unfavourable

Question 3

A variance is the difference between actual costs and standard costs.

Accepted Answer

A) True 
 B)False

Question 4

EKPN Co.produces wooden boxes.The company's standards per box require 6 boards, each costing $10 per board, and half of an hour of direct labour.The standard labour rate is $15 per hour.In August, EKPN Co.Purchased 12,000 boards for a total cost of $123,000.It used 11,500 boards to manufacture 1,900 boxes.Total labour hours were 1,000 hours, and total labour costs were $16,250.What was the material quantity variance for August?

Accepted Answer

A) $5,000 U 
B) $5,000 F 
C) $1,000 U 
D) $1,000 F 
A) $5,000 U 
B) $5,000 F 
C) $1,000 U 
D) $1,000 F

Question 5

EKPN Co.produces wooden boxes.The company's standards per box require 6 boards, each costing $10 per board, and half of an hour of direct labour.The standard labour rate is $15 per hour.In August, EKPN Co.Purchased 12,000 boards for a total cost of $123,000.It used 11,500 boards to manufacture 1,900 boxes.Total labour hours were 1,000 hours, and total labour costs were $16,250. What was the labour price variance?

Accepted Answer

A) $1,250 U 
B) $1,250 F 
C) $4,250 F 
D) $4,250 U 
A) $1,250 U 
B) $1,250 F 
C) $4,250 F 
D) $4,250 U

Question 6

The total overhead budget variance is equal to the

Accepted Answer

A) sum of the total materials variance and the total labour variance. 
B) difference between the total materials variance and the total labour variance. 
C) difference between the actual overhead costs and the overhead costs applied to the work done. 
D) total variance minus the spending variance and the volume variance. 
A) sum of the total materials variance and the total labour variance. 
B) difference between the total materials variance and the total labour variance. 
C) difference between the actual overhead costs and the overhead costs applied to the work done. 
D) total variance minus the spending variance and the volume variance.

Question 7

The perspectives included in the balanced scorecard approach include all of the following EXCEPT the

Accepted Answer

A) internal process perspective. 
B) capacity utilization perspective. 
C) learning and growth perspective. 
D) customer perspective. 
A) internal process perspective. 
B) capacity utilization perspective. 
C) learning and growth perspective. 
D) customer perspective.

Question 8

Which of the following would generally NOT be a cause to adjust standard cost rates in a service industry?

Accepted Answer

A) wage rate increase for the cleaners 
B) electricity charges from the municipality 
C) salary increases for management 
D) cleaning supplies increases from suppliers 
A) wage rate increase for the cleaners 
B) electricity charges from the municipality 
C) salary increases for management 
D) cleaning supplies increases from suppliers

Question 9

If the labour quantity variance is unfavourable and the cause is inefficient use of direct labour, the responsibility rests with the

Accepted Answer

A) sales department. 
B) production department. 
C) budget office. 
D) controller's department. 
A) sales department. 
B) production department. 
C) budget office. 
D) controller's department.

Question 10

All of the following variances are reported to the production department EXCEPT the

Accepted Answer

A) labour price variance. 
B) materials price variance. 
C) overhead controllable variance. 
D) labour price and materials price variances. 
A) labour price variance. 
B) materials price variance. 
C) overhead controllable variance. 
D) labour price and materials price variances.

Question 11

Ideal standards

Accepted Answer

A) are rigorous but attainable. 
B) are the standards generally used in a master budget. 
C) reflect optimal performance under perfect operating conditions. 
D) will always motivate employees to achieve the maximum output. 
A) are rigorous but attainable. 
B) are the standards generally used in a master budget. 
C) reflect optimal performance under perfect operating conditions. 
D) will always motivate employees to achieve the maximum output.

Question 12

Use the following information for questions 
Bridgeware Company has a materials price standard of $2.50 per kilogram.Four thousand kilograms of materials were purchased at $2.40 a kilogram.The actual quantity of materials used was 3,500 kilograms, although the standard quantity allowed for the output was 3,400 kilograms.
-Bridgeware Company's materials quantity variance is

Accepted Answer

A) $250 U. 
B) $250 F. 
C) $340 F. 
D) $340 U. 
A) $250 U. 
B) $250 F. 
C) $340 F. 
D) $340 U.

Question 13

Normal standards should be rigorous but attainable.

Accepted Answer

A) True 
 B)False

Question 14

A two-variance analysis of overhead consists of a spending variance and a volume variance.

Accepted Answer

A) True 
 B)False

Question 15

The standard predetermined overhead rate must be based on direct labour hours as the standard activity index.

Accepted Answer

A) True 
 B)False

Question 16

Manufacturing overhead costs are applied to work in process on the basis of

Accepted Answer

A) actual hours worked. 
B) standard hours allowed. 
C) ratio of actual variable to fixed costs. 
D) actual overhead costs incurred. 
A) actual hours worked. 
B) standard hours allowed. 
C) ratio of actual variable to fixed costs. 
D) actual overhead costs incurred.

Question 17

Which of the following would be an objective for the internal process perspective?

Accepted Answer

A) profit per employee 
B) customer retention 
C) training hours 
D) planning accuracy 
A) profit per employee 
B) customer retention 
C) training hours 
D) planning accuracy

Question 18

The most rigorous of all standards is the

Accepted Answer

A) normal standard. 
B) realistic standard. 
C) ideal standard. 
D) conceivable standard. 
A) normal standard. 
B) realistic standard. 
C) ideal standard. 
D) conceivable standard.

Question 19

The fixed overhead variance that indicates whether plant facilities were efficiently used is the

Accepted Answer

A) budget variance. 
B) efficiency variance. 
C) spending variance. 
D) volume variance. 
A) budget variance. 
B) efficiency variance. 
C) spending variance. 
D) volume variance.

Question 20

The learning and growth perspective on the balanced scorecard includes measures monitoring product development, production, delivery, and after-sale service.

Accepted Answer

A) True 
 B)False

If the standard hours allowed are less than the standard hours at normal capacity, the volume variance

A variance is the difference between actual costs and standard costs.

The total overhead budget variance is equal to the

The perspectives included in the balanced scorecard approach include all of the following EXCEPT the

Which of the following would generally NOT be a cause to adjust standard cost rates in a service industry?

If the labour quantity variance is unfavourable and the cause is inefficient use of direct labour, the responsibility rests with the

All of the following variances are reported to the production department EXCEPT the

Ideal standards

Normal standards should be rigorous but attainable.

A two-variance analysis of overhead consists of a spending variance and a volume variance.

The standard predetermined overhead rate must be based on direct labour hours as the standard activity index.

Manufacturing overhead costs are applied to work in process on the basis of

Which of the following would be an objective for the internal process perspective?

The most rigorous of all standards is the

The fixed overhead variance that indicates whether plant facilities were efficiently used is the

The learning and growth perspective on the balanced scorecard includes measures monitoring product development, production, delivery, and after-sale service.

Managerial Accounting

Managerial Cost Concepts and Cost Behaviour Analysis

Job-Order Cost Accounting

Process Cost Accounting

Activity-Based Costing

Decision-Making: Costvolumeprofit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Planning for Capital Investments

Filters

Exam 12: Standard Costs and Balanced Scorecard

If the standard hours allowed are less than the standard hours at normal capacity, the volume variance

A variance is the difference between actual costs and standard costs.

The total overhead budget variance is equal to the

The perspectives included in the balanced scorecard approach include all of the following EXCEPT the

Which of the following would generally NOT be a cause to adjust standard cost rates in a service industry?

If the labour quantity variance is unfavourable and the cause is inefficient use of direct labour, the responsibility rests with the

All of the following variances are reported to the production department EXCEPT the

Ideal standards

Normal standards should be rigorous but attainable.

A two-variance analysis of overhead consists of a spending variance and a volume variance.

The standard predetermined overhead rate must be based on direct labour hours as the standard activity index.

Manufacturing overhead costs are applied to work in process on the basis of

Which of the following would be an objective for the internal process perspective?

The most rigorous of all standards is the

The fixed overhead variance that indicates whether plant facilities were efficiently used is the

The learning and growth perspective on the balanced scorecard includes measures monitoring product development, production, delivery, and after-sale service.

Managerial Accounting

Managerial Cost Concepts and Cost Behaviour Analysis

Job-Order Cost Accounting

Process Cost Accounting

Activity-Based Costing

Decision-Making: Costvolumeprofit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Planning for Capital Investments

Filters