Question 1

The difference between actual input prices and expected input prices multiplied by the actual quantity of inputs used

Accepted Answer

The answer of The difference between actual input prices and...

Question 2

Activity- level variances plus flexible- budget variances equals:

Accepted Answer

A)  total master- budget variances 
B)  total actual variances 
C)  total standard variances 
D)  None of these answers is correct. 
A)  total master- budget variances 
B)  total actual variances 
C)  total standard variances 
D)  None of these answers is correct.

Question 3

Wild West Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. is the master budget variance for processing.

Accepted Answer

A)  $39,000 unfavorable 
B)  $39,000 favorable 
C)  $42,000 favorable 
D)  $42,000 unfavorable 
A)  $39,000 unfavorable 
B)  $39,000 favorable 
C)  $42,000 favorable 
D)  $42,000 unfavorable

Question 4

Sales- activity variances measure how efficient managers have been in meeting the planned sales objective.

Accepted Answer

A) True 
 B)False

Question 5

Breakfast Club Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. is the flexible- budget variance for processing.

Accepted Answer

A)  $3,000 unfavorable 
B)  $39,000 unfavorable 
C)  $3,000 favorable 
D)  None of these answers is correct. 
A)  $3,000 unfavorable 
B)  $39,000 unfavorable 
C)  $3,000 favorable 
D)  None of these answers is correct.

Question 6

Ideal standards make no provisions for waste, spoilage, and machine breakdowns.

Accepted Answer

A) True 
 B)False

Question 7

A static budget is another name for the:

Accepted Answer

A)  operating budget 
B)  master budget 
C)  financial budget 
D)  strategic budget 
A)  operating budget 
B)  master budget 
C)  financial budget 
D)  strategic budget

Question 8

The flexible budget is identical to the master budget in format.

Accepted Answer

A) True 
 B)False

Question 9

Perfection standards and ideal standards are different.

Accepted Answer

A) True 
 B)False

Question 10

Panther Company had a favorable flexible- budget direct- material variance. In this case it would not be possible for the direct- material price and usage variances, respectively, to be:

Accepted Answer

A)  favorable and unfavorable 
B)  favorable and favorable 
C)  unfavorable and favorable 
D)  unfavorable and unfavorable 
A)  favorable and unfavorable 
B)  favorable and favorable 
C)  unfavorable and favorable 
D)  unfavorable and unfavorable

Question 11

Actual results might differ from the master budget because:

Accepted Answer

A)  revenues or variable costs per unit of activity were not as expected 
B)  fixed costs per period were not as expected 
C)  sales and other cost- driver activities were not the same as originally forecasted 
D)  All of these answers are correct. 
A)  revenues or variable costs per unit of activity were not as expected 
B)  fixed costs per period were not as expected 
C)  sales and other cost- driver activities were not the same as originally forecasted 
D)  All of these answers are correct.

Question 12

An expected cost is the cost that is least likely to be attained.

Accepted Answer

A) True 
 B)False

Question 13

If actual expenses are less than expected expenses, the expense variance in the performance report will be unfavorable.

Accepted Answer

A) True 
 B)False

Question 14

The usage variance can be calculated by multiplying the expected input price by the difference between:

Accepted Answer

A)  the quantity of inputs actually used and the quantity of inputs that should have been used for actual output 
B)  the standard inputs allowed and projected inputs allowed for expected output 
C)  the quantity of inputs actually used and the quantity of inputs that should have been used for projected output 
D)  the standard inputs allowed and projected inputs allowed at actual output 
A)  the quantity of inputs actually used and the quantity of inputs that should have been used for actual output 
B)  the standard inputs allowed and projected inputs allowed for expected output 
C)  the quantity of inputs actually used and the quantity of inputs that should have been used for projected output 
D)  the standard inputs allowed and projected inputs allowed at actual output

Question 15

McQueen Company planned to produce and sell 950 units at a total cost of $177,000. Actual production was 950 units at a cost of $172,000, McQueen Company was:

Accepted Answer

A)  effective 
B)  efficient 
C)  inefficient 
D)  ineffective 
A)  effective 
B)  efficient 
C)  inefficient 
D)  ineffective

Question 16

John Company planned to produce 12,000 units. This level of activities required 20 set- ups at a cost of $18,000 plus $500 per set- up. Actual sales were 10,000 units, requiring 15 set- ups and 12,000 machine hours. Actual set- up cost was $26,000. _ _ is the master budget amount for set- ups.

Accepted Answer

A)  $26,000 
B)  $28,000 
C)  $25,500 
D)  $21,000 
A)  $26,000 
B)  $28,000 
C)  $25,500 
D)  $21,000

Question 17

If the ending inventory of material is greater than beginning inventory, then the direct- material price variance is based on the:

Accepted Answer

A)  quantity used 
B)  standard quantity allowed for actual production 
C)  quantity purchased 
D)  goods actually produced 
A)  quantity used 
B)  standard quantity allowed for actual production 
C)  quantity purchased 
D)  goods actually produced

Question 18

Flexible- budget variances are designed to measure the:

Accepted Answer

A)  effectiveness of operations at actual level of activity 
B)  efficiency of operations at actual level of activity 
C)  efficiency of operations at projected level of activity 
D)  effectiveness of operations at projected level of activity 
A)  effectiveness of operations at actual level of activity 
B)  efficiency of operations at actual level of activity 
C)  efficiency of operations at projected level of activity 
D)  effectiveness of operations at projected level of activity

Question 19

The Frosty Company makes mugs for which the following standards have been developed: $$\begin{array} { l l l } 
& \text { Standard Inputs } & \text { Standard Price } \
& \text { Expected for E ach } & \text { Expected per } \
& \text { Unit of Output } & \text { Unit of Output } \
\text { Direct materials } & 5 \text { ounc es } & \$ 2 \text { per ounce } \
\text { Direct labor } & 1.5 \text { hours } & \$ 8 \text { per hour }
\end{array}$$ Production of 400 mugs was expected in July, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. _ is the direct- material price variance for July.

Accepted Answer

A)  $420 favorable 
B)  $420 unfavorable 
C)  $400 unfavorable 
D)  $400 favorable 
A)  $420 favorable 
B)  $420 unfavorable 
C)  $400 unfavorable 
D)  $400 favorable

Question 20

A flexible budget is different from a variable budget.

Accepted Answer

A) True 
 B)False

The difference between actual input prices and expected input prices multiplied by the actual quantity of inputs used

Activity- level variances plus flexible- budget variances equals:

Wild West Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. is the master budget variance for processing.

Sales- activity variances measure how efficient managers have been in meeting the planned sales objective.

Breakfast Club Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. is the flexible- budget variance for processing.

Ideal standards make no provisions for waste, spoilage, and machine breakdowns.

A static budget is another name for the:

The flexible budget is identical to the master budget in format.

Perfection standards and ideal standards are different.

Panther Company had a favorable flexible- budget direct- material variance. In this case it would not be possible for the direct- material price and usage variances, respectively, to be:

Actual results might differ from the master budget because:

An expected cost is the cost that is least likely to be attained.

If actual expenses are less than expected expenses, the expense variance in the performance report will be unfavorable.

The usage variance can be calculated by multiplying the expected input price by the difference between:

McQueen Company planned to produce and sell 950 units at a total cost of $177,000. Actual production was 950 units at a cost of $172,000, McQueen Company was:

John Company planned to produce 12,000 units. This level of activities required 20 set- ups at a cost of $18,000 plus $500 per set- up. Actual sales were 10,000 units, requiring 15 set- ups and 12,000 machine hours. Actual set- up cost was $26,000. _ _ is the master budget amount for set- ups.

If the ending inventory of material is greater than beginning inventory, then the direct- material price variance is based on the:

Flexible- budget variances are designed to measure the:

A flexible budget is different from a variable budget.

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Overhead Application: Variable and Absorbtion Costing

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

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Exam 8: Flexible Budget and Variance Analysis

The difference between actual input prices and expected input prices multiplied by the actual quantity of inputs used

Activity- level variances plus flexible- budget variances equals:

Wild West Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. is the master budget variance for processing.

Sales- activity variances measure how efficient managers have been in meeting the planned sales objective.

Breakfast Club Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. is the flexible- budget variance for processing.

Ideal standards make no provisions for waste, spoilage, and machine breakdowns.

A static budget is another name for the:

The flexible budget is identical to the master budget in format.

Perfection standards and ideal standards are different.

Panther Company had a favorable flexible- budget direct- material variance. In this case it would not be possible for the direct- material price and usage variances, respectively, to be:

Actual results might differ from the master budget because:

An expected cost is the cost that is least likely to be attained.

If actual expenses are less than expected expenses, the expense variance in the performance report will be unfavorable.

The usage variance can be calculated by multiplying the expected input price by the difference between:

McQueen Company planned to produce and sell 950 units at a total cost of $177,000. Actual production was 950 units at a cost of $172,000, McQueen Company was:

John Company planned to produce 12,000 units. This level of activities required 20 set- ups at a cost of $18,000 plus $500 per set- up. Actual sales were 10,000 units, requiring 15 set- ups and 12,000 machine hours. Actual set- up cost was $26,000. _ _ is the master budget amount for set- ups.

If the ending inventory of material is greater than beginning inventory, then the direct- material price variance is based on the:

Flexible- budget variances are designed to measure the:

A flexible budget is different from a variable budget.

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Overhead Application: Variable and Absorbtion Costing

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Filters