Question 1

The degree to which inputs are used in relation to a given level of outputs

Accepted Answer

The answer of The degree to which inputs are used...

Question 2

A flexible budget adjusts for changes in sales volume and other cost- driver activities.

Accepted Answer

A) True 
 B)False

Question 3

The master budget variance is the variance of actual results from the master budget.

Accepted Answer

A) True 
 B)False

Question 4

The difference between the actual cost- driver activity and the amount allowed for the actual output achieved costed at the standard variable overhead rate

Accepted Answer

Variable o

Question 5

Identify which of the following statements about "perfection standards" is true.

Accepted Answer

A)  It is generally believed that they have a negative influence on employee morale. 
B)  They usually result in unfavorable variances. 
C)  They are expressions of the most efficient performance possible. 
D)  All of these answers are correct. 
A)  It is generally believed that they have a negative influence on employee morale. 
B)  They usually result in unfavorable variances. 
C)  They are expressions of the most efficient performance possible. 
D)  All of these answers are correct.

Question 6

Megan Company's master budget sales were $223,000. Actual sales were $220,000. Sales in the prior year were $219,000. The master budget variance for sales was:

Accepted Answer

A)  $4,000 favorable 
B)  $4,000 unfavorable 
C)  $3,000 unfavorable 
D)  $3,000 favorable 
A)  $4,000 favorable 
B)  $4,000 unfavorable 
C)  $3,000 unfavorable 
D)  $3,000 favorable

Question 7

Differences between the master budget and the flexible budget are due to:

Accepted Answer

A)  poor usage of material and labor 
B)  a combination of price and material variances 
C)  actual activity differing from expected activity levels 
D)  problems of cost control 
A)  poor usage of material and labor 
B)  a combination of price and material variances 
C)  actual activity differing from expected activity levels 
D)  problems of cost control

Question 8

Domino Company's variable selling and administrative cost is $48,000 when production is 6,000 units. are the variable selling and administrative expenses for 7,000 and 8,000 units, respectively.

Accepted Answer

A)  $56,000 and $64,000 
B)  $48,000 and $48,000 
C)  $64,000 and $56,000 
D)  None of these answers is correct. 
A)  $56,000 and $64,000 
B)  $48,000 and $48,000 
C)  $64,000 and $56,000 
D)  None of these answers is correct.

Question 9

A favorable expense variance is when budgeted expenses are less than actual expenses.

Accepted Answer

A) True 
 B)False

Question 10

Checker Company's depreciation cost is $63,000 when production is 21,000 units. are the total depreciation expenses for 15,000 and 20,000 units, respectively.

Accepted Answer

A)  $45,000 and $60,000 
B)  $63,000 and $63,000 
C)  $60,000 and $45,000 
D)  None of these answers is correct. 
A)  $45,000 and $60,000 
B)  $63,000 and $63,000 
C)  $60,000 and $45,000 
D)  None of these answers is correct.

Question 11

The Frosty Company makes mugs for which the following standards have been developed: $$\begin{array} { l l l } 
& \text { Standard Inputs } & \text { Standard Price } \
& \text { Expected for E ach } & \text { Expected per } \
& \text { Unit of Output } & \text { Unit of Output } \
\text { Direct materials } & 6 \text { ounces } & \$ 2 \text { per ounce } \
\text { Direct labor } & 3.2 \text { hours } & \$ 9 \text { per hour }
\end{array}$$ 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 $10.00. is the standard direct- material cost for each mug produced.

Accepted Answer

A)  $12.00 
B)  $32.00 
C)  $9.00 
D)  $13.20 
A)  $12.00 
B)  $32.00 
C)  $9.00 
D)  $13.20

Question 12

The usage and efficiency variances are different.

Accepted Answer

A) True 
 B)False

Question 13

Identify which of the following is not an example of "efficient" performance.

Accepted Answer

A)  Direct material used per unit was less than expected. 
B)  Direct labor hours per unit were less than expected. 
C)  More outputs were achieved with less inputs than predicted. 
D)  More goods were produced and sold than anticipated. 
A)  Direct material used per unit was less than expected. 
B)  Direct labor hours per unit were less than expected. 
C)  More outputs were achieved with less inputs than predicted. 
D)  More goods were produced and sold than anticipated.

Question 14

Effectiveness is indicated by:

Accepted Answer

A)  flexible- budget variances 
B)  sales- activity variances 
C)  master budget variances 
D)  All of these answers are correct. 
A)  flexible- budget variances 
B)  sales- activity variances 
C)  master budget variances 
D)  All of these answers are correct.

Question 15

One of the first questions a manager should consider when explaining a large variance is whether expectations were valid.

Accepted Answer

A) True 
 B)False

Question 16

The following data pertain to October operations for the Janice Company: $\begin{array}{lll}&\text { Actual Inputs } & \text { Actual Price } \
&\text { for Each Unit } & \text { per Unit } \
&\text { of Output } & \text { of Input }\
\text { Direct material } & 11 \text { yards } & \$ 12 \text { per yard } \
\text { Direct labor } & 4.2 \text { hours } & \$ 8 \text { per hour }
\end{array}$ Actual output was 1,000 units. Janice Company's per unit standards call for 15 yards of direct material at
$10.00 per yard and 4 hours of direct labor at $9.50 per hour. Janice Company purchased 11,000 yards of material.
Required:
Compute the price and usage variances for direct material and direct labor.

Accepted Answer

Direct material:
Price variance = 11,000

Question 17

The cost most likely to be attained

Accepted Answer

The answer of The cost most likely to be attained...

Question 18

A price variance is favorable if:

Accepted Answer

A)  actual quantity exceeds standard quantity 
B)  actual cost exceeds standard cost 
C)  standard quantity exceeds actual quantity 
D)  standard cost exceeds actual cost 
A)  actual quantity exceeds standard quantity 
B)  actual cost exceeds standard cost 
C)  standard quantity exceeds actual quantity 
D)  standard cost exceeds actual cost

Question 19

The degree to which a goal, objective, or target is met

Accepted Answer

The answer of The degree to which a goal, objective,...

Question 20

Favorable variances do not require investigation.

Accepted Answer

A) True 
 B)False

The degree to which inputs are used in relation to a given level of outputs

A flexible budget adjusts for changes in sales volume and other cost- driver activities.

The master budget variance is the variance of actual results from the master budget.

The difference between the actual cost- driver activity and the amount allowed for the actual output achieved costed at the standard variable overhead rate

Identify which of the following statements about "perfection standards" is true.

Megan Company's master budget sales were $223,000. Actual sales were $220,000. Sales in the prior year were $219,000. The master budget variance for sales was:

Differences between the master budget and the flexible budget are due to:

Domino Company's variable selling and administrative cost is $48,000 when production is 6,000 units. are the variable selling and administrative expenses for 7,000 and 8,000 units, respectively.

A favorable expense variance is when budgeted expenses are less than actual expenses.

Checker Company's depreciation cost is $63,000 when production is 21,000 units. are the total depreciation expenses for 15,000 and 20,000 units, respectively.

The usage and efficiency variances are different.

Identify which of the following is not an example of "efficient" performance.

Effectiveness is indicated by:

One of the first questions a manager should consider when explaining a large variance is whether expectations were valid.

The cost most likely to be attained

A price variance is favorable if:

The degree to which a goal, objective, or target is met

Favorable variances do not require investigation.

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

Exam 8: Flexible Budget and Variance Analysis

The degree to which inputs are used in relation to a given level of outputs

A flexible budget adjusts for changes in sales volume and other cost- driver activities.

The master budget variance is the variance of actual results from the master budget.

The difference between the actual cost- driver activity and the amount allowed for the actual output achieved costed at the standard variable overhead rate

Identify which of the following statements about "perfection standards" is true.

Megan Company's master budget sales were $223,000. Actual sales were $220,000. Sales in the prior year were $219,000. The master budget variance for sales was:

Differences between the master budget and the flexible budget are due to:

Domino Company's variable selling and administrative cost is $48,000 when production is 6,000 units. are the variable selling and administrative expenses for 7,000 and 8,000 units, respectively.

A favorable expense variance is when budgeted expenses are less than actual expenses.

Checker Company's depreciation cost is $63,000 when production is 21,000 units. are the total depreciation expenses for 15,000 and 20,000 units, respectively.

The usage and efficiency variances are different.

Identify which of the following is not an example of "efficient" performance.

Effectiveness is indicated by:

One of the first questions a manager should consider when explaining a large variance is whether expectations were valid.

The cost most likely to be attained

A price variance is favorable if:

The degree to which a goal, objective, or target is met

Favorable variances do not require investigation.

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