Exam 19: Controlling Cost and Profit

Exhibit 19-1 The following information relates to Almira's operations for the month of August: - Refer to Exhibit 19-1. Given the information above, the labor efficiency variance is:

A responsibility center in which the manager is responsible for only revenues and costs is a(n):

Kahlotus Company uses standard costs and a flexible budget for controlling its service activities. In March, the company serviced 11,000 units of its product using 30,000 actual direct labor hours. The actual hourly rate was $19.00. Three direct labor hours is the standard allowance for servicing one unit of product. The standard labor rate is $19.50 per hour.

Which of the following would NOT be part of total over- or underapplied manufacturing overhead?

A variance that provides an opportunity for control over individual overhead items by highlighting the differences between standard and actual costs is the:

If the actual amount spent for fixed manufacturing overhead is greater than the budgeted amount, the result is:

Goal congruence can be achieved by:

Exhibit 19-1 The following information relates to Almira's operations for the month of August: -Refer to Exhibit 19-1. Given the information above, the materials quantity variance is:

Responsibility accounting is the concept that:

Of the following, which is probably the greatest benefit of centralization?

The variance computed by comparing the standard costs at the budgeted activity level with the standard costs at the actual activity level is:

All of the following are criteria for investigating a variance EXCEPT:

Frank Company, which has total assets of $300,000, has an opportunity to invest $80,000 in a new project that will generate a return of $16,000 per year. Given this information, what is the return on this investment?

A materials quantity variance is unfavorable when:

The Clarke Manufacturing Company collected the following information for the month of July:

Exhibit 19-6 Kentucky Corporation has the following operating data for 2011: -Refer to Exhibit 19-6. Given the information above, Kentucky's return on investment is:

Exhibit 19-7 The following figures represent 100% capacity for Starr Manufacturing: Starr Manufacturing normally produces at 100% capacity. During the month of October, the company started and completed 10,000 units of product, using variable manufacturing overhead costs of $20,000. The company used 6,400 direct labor hours in October instead of the 6,000 hours expected for the activity level achieved. -Refer to Exhibit 19-7. Based on the information above, the variable manufacturing overhead applied to Work-in-Process Inventory is:

Responsibility accounting is used in:

Sammamish Company utilizes a standard cost system. The standard quantity for production is 10 pounds of material, and the standard price is $3 per pound. The actual quantity was 9 pounds, and the actual price was $3.20 per pound. Given this information, Sammamish would have a(n):

The difference between the standard price and the actual price multiplied by the actual quantity of materials is the: