Question 1

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

Accepted Answer

The answer of ______________ focuses on the continuous reduction of...

Question 2

During January, 7,000 direct labor hours were worked at a standard cost of $20 per hour. If the direct labor rate variance for January was $17,500 favorable, the actual cost per direct labor hour must be

Accepted Answer

A)  $17.50. 
B)  $20.00. 
C)  $22.50. 
D)  $25.00. 
A)  $17.50. 
B)  $20.00. 
C)  $22.50. 
D)  $25.00.

Question 3

During June, Cisco Company produced 12,000 chainsaw blades. The standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound. The actual cost was $7 per pound. The actual pounds of steel that Cisco purchased were 19,500 pounds. All materials purchased were used. Calculate Cisco's materials usage variance.

Accepted Answer

A)  $10,500 U 
B)  $12,000 F 
C)  $12,000 U 
D)  $10,500 F 
A)  $10,500 U 
B)  $12,000 F 
C)  $12,000 U 
D)  $10,500 F

Question 4

PURE Inc. produces flavored waters, sold in gallons. Recently the company adopted the following materials standard for one gallon of its raspberry flavored water:

Accepted Answer

The answer of PURE Inc. produces flavored waters, sold in...

Question 5

MATCHING
Match each item with the correct statement below.
a.
Quantity Standards
b.
Ideal Standards
c.
Price Standards
d.
Standard Cost Sheet
e.
Upper Control Limit
f.
Currently Attainable Standards
g.
Kaizen Standards
-Standards of perfection that require absolute efficiency.

Accepted Answer

The answer of MATCHING
Match each item with the correct statement...

Question 6

A kaizen standard reflects the realized improvements for the past periods and a search for more improvements for the future.

Accepted Answer

A) True 
 B)False

Question 7

The ______________________ can be used to compute the total amount of inputs allowed for the actual output.

Accepted Answer

unit quant

Question 8

Figure 10-7.
During April, a small roofing company purchased 700 bundles of a certain type of shingle at a price of $35 per bundle, $8 more than the standard price. Its standard quantity of this type of shingle is 725 bundles.
-Refer to Figure 10-7. What is the journal entry to record the purchase of materials?

Accepted Answer

A)  Materials 19,575
Materials Price Variance 5,800
Accounts Payable 25,375 
B)  Materials 24,500
Materials Price Variance 5,600
Accounts Payable 18,900 
C)  Materials 18,900
Materials Price Variance 5,600
Accounts Payable 24,500 
D)  Materials 25,375
Materials Price Variance 5,800
Accounts Payable 19,575 
A)  Materials 19,575
Materials Price Variance 5,800
Accounts Payable 25,375 
B)  Materials 24,500
Materials Price Variance 5,600
Accounts Payable 18,900 
C)  Materials 18,900
Materials Price Variance 5,600
Accounts Payable 24,500 
D)  Materials 25,375
Materials Price Variance 5,800
Accounts Payable 19,575

Question 9

An unfavorable price variance occurs whenever the actual prices are greater than the standard prices.

Accepted Answer

A) True 
 B)False

Question 10

The amount of input that should be used per unit of output is known as the _______________.

Accepted Answer

quantity d

Question 11

An unfavorable usage variance would occur when the actual usage of inputs is greater than the standard usage.

Accepted Answer

A) True 
 B)False

Question 12

The standard quantity of materials allowed can be calculated by multiplying the unit labor standard by the actual output.

Accepted Answer

A) True 
 B)False

Question 13

Managers develop price standards when they determine what amount should be paid for the quantity of input to be used.

Accepted Answer

A) True 
 B)False

Question 14

Figure 10-9.
James Company manufactures t-shirts. During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour. The materials and labor standards for manufacturing the t-shirts are:
   It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
-Refer to Figure 10-9. What is the entry to record the issuance and usage of materials?

Accepted Answer

A)  Work in Process 4,500,000
Materials Usage Variance 300,000
Materials 4,800,000 
B)  Work in Process 4,200,000
Materials Usage Variance 300,000
Materials 4,500,000 
C)  Work in Process 4,200,000
Materials Usage Variance 300,000
Materials 3,900,000 
D)  Work in Process 4,500,000
Materials Usage Variance 300,000
Materials 4,200,000 
A)  Work in Process 4,500,000
Materials Usage Variance 300,000
Materials 4,800,000 
B)  Work in Process 4,200,000
Materials Usage Variance 300,000
Materials 4,500,000 
C)  Work in Process 4,200,000
Materials Usage Variance 300,000
Materials 3,900,000 
D)  Work in Process 4,500,000
Materials Usage Variance 300,000
Materials 4,200,000

Question 15

Eider Company has the following information:

Accepted Answer

@#IMG-DLM& Since the materials price var

Question 16

Claire Company uses a standard costing system. The following information pertains to direct labor costs for February:   How many actual labor hours were worked during February for Claire Company?

Accepted Answer

A)  10,000 hours 
B)  2,000 hours 
C)  1,200 hours 
D)  12,000 hours 
A)  10,000 hours 
B)  2,000 hours 
C)  1,200 hours 
D)  12,000 hours

Question 17

One reason for adopting a standard cost system is to make product costing easier.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not true about Kaizen Standards?

Accepted Answer

A)  Kaizen standards are the standards used for continuous improvement. 
B)  Kaizen standards are a currently attainable standard that reflects planned improvement. 
C)  Kaizen standards are constantly changing. 
D)  Kaizen standards are the standards used in traditional costing systems. 
A)  Kaizen standards are the standards used for continuous improvement. 
B)  Kaizen standards are a currently attainable standard that reflects planned improvement. 
C)  Kaizen standards are constantly changing. 
D)  Kaizen standards are the standards used in traditional costing systems.

Question 19

To compute the standard direct labor hours allowed, multiply the unit labor standard by the actual output.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not true regarding the use of materials variance information?

Accepted Answer

A)  The purchasing agent has the responsibility for controlling the materials price variance. 
B)  The production manager is generally responsible for materials usage. 
C)  The production manager is concerned with minimizing scrap, waste, and rework. 
D)  The purchasing department is responsible for acquiring quality materials. 
E)  All of these are true. 
A)  The purchasing agent has the responsibility for controlling the materials price variance. 
B)  The production manager is generally responsible for materials usage. 
C)  The production manager is concerned with minimizing scrap, waste, and rework. 
D)  The purchasing department is responsible for acquiring quality materials. 
E)  All of these are true.

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

During January, 7,000 direct labor hours were worked at a standard cost of $20 per hour. If the direct labor rate variance for January was $17,500 favorable, the actual cost per direct labor hour must be

PURE Inc. produces flavored waters, sold in gallons. Recently the company adopted the following materials standard for one gallon of its raspberry flavored water:

MATCHING Match each item with the correct statement below. a. Quantity Standards b. Ideal Standards c. Price Standards d. Standard Cost Sheet e. Upper Control Limit f. Currently Attainable Standards g. Kaizen Standards -Standards of perfection that require absolute efficiency.

A kaizen standard reflects the realized improvements for the past periods and a search for more improvements for the future.

The ______________________ can be used to compute the total amount of inputs allowed for the actual output.

An unfavorable price variance occurs whenever the actual prices are greater than the standard prices.

The amount of input that should be used per unit of output is known as the _______________.

An unfavorable usage variance would occur when the actual usage of inputs is greater than the standard usage.

The standard quantity of materials allowed can be calculated by multiplying the unit labor standard by the actual output.

Managers develop price standards when they determine what amount should be paid for the quantity of input to be used.

Eider Company has the following information:

Claire Company uses a standard costing system. The following information pertains to direct labor costs for February: How many actual labor hours were worked during February for Claire Company?

One reason for adopting a standard cost system is to make product costing easier.

Which of the following is not true about Kaizen Standards?

To compute the standard direct labor hours allowed, multiply the unit labor standard by the actual output.

Which of the following is not true regarding the use of materials variance information?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 10: Standard Costing: a Managerial Control Tool

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

During January, 7,000 direct labor hours were worked at a standard cost of $20 per hour. If the direct labor rate variance for January was $17,500 favorable, the actual cost per direct labor hour must be

PURE Inc. produces flavored waters, sold in gallons. Recently the company adopted the following materials standard for one gallon of its raspberry flavored water:

MATCHING Match each item with the correct statement below. a. Quantity Standards b. Ideal Standards c. Price Standards d. Standard Cost Sheet e. Upper Control Limit f. Currently Attainable Standards g. Kaizen Standards -Standards of perfection that require absolute efficiency.

A kaizen standard reflects the realized improvements for the past periods and a search for more improvements for the future.

The ______________________ can be used to compute the total amount of inputs allowed for the actual output.

An unfavorable price variance occurs whenever the actual prices are greater than the standard prices.

The amount of input that should be used per unit of output is known as the _______________.

An unfavorable usage variance would occur when the actual usage of inputs is greater than the standard usage.

The standard quantity of materials allowed can be calculated by multiplying the unit labor standard by the actual output.

Managers develop price standards when they determine what amount should be paid for the quantity of input to be used.

Eider Company has the following information:

Claire Company uses a standard costing system. The following information pertains to direct labor costs for February: How many actual labor hours were worked during February for Claire Company?

One reason for adopting a standard cost system is to make product costing easier.

Which of the following is not true about Kaizen Standards?

To compute the standard direct labor hours allowed, multiply the unit labor standard by the actual output.

Which of the following is not true regarding the use of materials variance information?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters