Exam 15: Cost Control

If it is to be most useful for control purposes, what variance should be reported to the supervisor responsible for the number of pounds of corn syrup used in the manufacture of a candy bar?

If the net of all variances is immaterial relative to the total production costs incurred during the period, the net variance is:

Which of the following is a true statement pertaining to segment income statements?

The standards for one carton of Flavor Rite are:

The total variance for any particular cost component is referred to as the:

A variance is the difference between actual costs and:

Patrick Company manufactures a single product. The original budget for April was based on expected production of 12,000 units; actual production for April was 10,600 units. The original budget and actual costs for the manufacturing department are shown below:

The standards for one case of Saycheles are:

The standards for one case of Peardrax are:

The cost formula for the maintenance department of the Eifel Co. is $6,500 per month plus $3.50 per machine hour used by the production department. a. Calculate the maintenance cost that would be budgeted for the month of May in which 5,700 machine hours are planned to be used. b. Prepare an appropriate performance report for the maintenance department assuming that 5,860 machine hours were actually used in the month of May, and the total maintenance cost incurred was $28,010.

What should the decision rule be to determine what budget variances to investigate?

A performance report for direct labor shows a variance between the budget and actual amounts. This difference is a:

Selected information about American Industries is presented below. American has three operating divisions and requires a 12% return on all investments:

The purchasing agent of an organization acquired some raw materials at a bargain price, even though she knew that their quality was lower than that of the materials customarily used. This action resulted in a favorable raw materials purchase price variance that might very well have been more than offset by:

If the actual level of activity is different from the budgeted level, a _________ budget is prepared for the actual level of activity:

A set of integrated financial and operating performance measures that communicate an organization's priorities associated with achieving strategic goals is known as a:

A favorable materials quantity variance would occur if:

April Corporation developed the following per-unit standards for its product: 2 pounds of direct materials at $3.75 per pound. Last month, 2,000 pounds of direct materials were purchased for $7,600. The direct materials price variance for last month was:

The preferred format for a segmented income statement emphasizes:

ABC, Inc., is segmented into three divisions and the company is concerned about the performance of Division Y. During your analysis of Division Y, you learn that $42,000 of the fixed expenses relate to general corporate expenses and had been allocated equally between the three divisions.