Question 1

Tiny Tots Toys has the following actual and master budget information for the past month:
   Compute the Flexible Budget Amounts to complete the table.

Accepted Answer

@#IMG-DLM& ^a2,800 x (

Question 2

Aurora Sports Company is a leading helmet manufacturer. It produces a variety of different 
helmet styles, but its standard bike helmet requires 1.5 lb. of direct materials (DM), .5 hours of direct labor (DL) time, and 2.5 hours of machine time. MOH costs are applied based on machine hours. DM is expected to cost $14.00 per pound, DL is budgeted at $10 per hour, and cost of machine time is estimated at $2/machine hour for variable-MOH and $4/machine hour for fixed-MOH. The company purchased 30 pounds of materials on account for $450. Production was started on 15 helmets, using 24 pounds of direct materials, 9 direct labor hours at a total cost of $99, and 38 machine hours. Prepare the journal entries for the purchase of the materials and the costs incurred in production of the 15 bike helmets assuming Aurora Sports Company uses standard costing. (Credit MOH costs to Accounts Payable)

Accepted Answer

The answer of Aurora Sports Company is a leading helmet...

Question 3

The total sales variance is also known as the

Accepted Answer

A)  sales price variance. 
B)  simplified sales activity variance 
C)  sales mix variance. 
D)  master budget sales variance. 
A)  sales price variance. 
B)  simplified sales activity variance 
C)  sales mix variance. 
D)  master budget sales variance.

Question 4

Approved budgets become ___________.

Accepted Answer

A)  uncontrollable. 
B)  standards. 
C)  benchmarks. 
D)  control activities. 
A)  uncontrollable. 
B)  standards. 
C)  benchmarks. 
D)  control activities.

Question 5

The formula for the direct materials (DM) efficiency variance is

Accepted Answer

A)  (AQused x AP) - (SQ x SP). 
B)  (AQused x SP) - (SQ x SP). 
C)  (AQused x SP) + (SQ x SP). 
D)  (AQused x AP) - (AQused x SP). 
A)  (AQused x AP) - (SQ x SP). 
B)  (AQused x SP) - (SQ x SP). 
C)  (AQused x SP) + (SQ x SP). 
D)  (AQused x AP) - (AQused x SP).

Question 6

Standard costing uses _________ costs set at the _________ level as product costs in the
General ledger.

Accepted Answer

A)  actual; unit 
B)  budgeted; unit 
C)  actual; total 
D)  budgeted; total 
A)  actual; unit 
B)  budgeted; unit 
C)  actual; total 
D)  budgeted; total

Question 7

Because variance accounts are

Accepted Answer

A)  temporary accounts, they must be closed at year-end. 
B)  temporary accounts, their balances will carry over from one period to the next. 
C)  permanent accounts, they must be closed at year-end. 
D)  permanent accounts, their balances will carry over from one period to the next. 
A)  temporary accounts, they must be closed at year-end. 
B)  temporary accounts, their balances will carry over from one period to the next. 
C)  permanent accounts, they must be closed at year-end. 
D)  permanent accounts, their balances will carry over from one period to the next.

Question 8

Texas Tad's T-shirt Warehouse has a Flexible Budget Variance of $175, favorable and a
Sales Activity Variance of $75, favorable. What is Texas Tad's Master Budget Variance?

Accepted Answer

A)  $100 favorable 
B)  $250 favorable 
C)  $250 unfavorable 
D)  Cannot be determined; not enough information given. 
A)  $100 favorable 
B)  $250 favorable 
C)  $250 unfavorable 
D)  Cannot be determined; not enough information given.

Question 9

Vintendo was at year-end and was disappointed based on its preliminary results. 
Management expected sales volume to be 25,000 handheld video gaming units instead of the actual sales of 23,000 units. The company's budgeted information was as shown below:
   a. Prepare a master budget and a flexible budget for Vintendo.
b. Compare the flexible budget to the master budget, determining the sales activity variances for all budgeted income statement accounts, specifying amount, and whether the variance is favorable (F) or unfavorable (U).
c. When Vintendo finalizes its final results, which of the budgets, master or flexible, should it use to compare actual results to in order to determine variances?

Accepted Answer

a.
 @#IMG-DLM& @#IMG-DLM& b.
 @#IMG-DLM& c. Vintendo should

Question 10

Which of the following variances holds the volume constant between actual and flexible
Budget, and highlights the price difference between actual and budget?

Accepted Answer

A)  Flexible budget variance 
B)  Master budget variance 
C)  Sales activity variance 
D)  Manufacturing overhead (MOH) efficiency variance 
A)  Flexible budget variance 
B)  Master budget variance 
C)  Sales activity variance 
D)  Manufacturing overhead (MOH) efficiency variance

Question 11

Match the following term with its appropriate definition by including the correct letter in the blank next to the term.
-Evaluate Performance

Accepted Answer

A) schedule for production, labor purchases and manufacturing overhead 
B) differences between actual and budgeted outcomes 
C) approved budgeted numbers 
D) logical, systematic identification of sources of problems to fix them and avoid recurrence 
E) assess work effort to achieve benchmarks
F)activities to prevent deviations from budget
G)inspire employees to unleash their potential 
A) schedule for production, labor purchases and manufacturing overhead 
B) differences between actual and budgeted outcomes 
C) approved budgeted numbers 
D) logical, systematic identification of sources of problems to fix them and avoid recurrence 
E) assess work effort to achieve benchmarks
F)activities to prevent deviations from budget
G)inspire employees to unleash their potential

Question 12

Treasured Trinkets Company has the following information:
   Complete the table by computing the Flexible Budget Variances and Sales Activity Variances, indicating whether the variance is either favorable (F) or unfavorable (U).

Accepted Answer

The answer of Treasured Trinkets Company has the following information:
...

Question 13

Which of the following is performed once the current budget is created?

Accepted Answer

A)  Variance analysis 
B)  Troubleshooting 
C)  Operational plans 
D)  Performance evaluation 
A)  Variance analysis 
B)  Troubleshooting 
C)  Operational plans 
D)  Performance evaluation

Question 14

Which of the following spotlights the change in volume between the flexible budget sales level and the master budget sales level?

Accepted Answer

A)  Sales Mix Variance 
B)  Sales Price Variance 
C)  Master Budget Sales Variance 
D)  Simplified Sales Activity Variance 
A)  Sales Mix Variance 
B)  Sales Price Variance 
C)  Master Budget Sales Variance 
D)  Simplified Sales Activity Variance

Question 15

Which variance helps management address what quantity of direct material (DM) inputs
Should have been used in making the actual volume of units?

Accepted Answer

A)  Direct material (DM) price variance 
B)  Direct material (DM) efficiency variance 
C)  Direct labor (DL) price variance 
D)  Direct labor (DL) efficiency variance 
A)  Direct material (DM) price variance 
B)  Direct material (DM) efficiency variance 
C)  Direct labor (DL) price variance 
D)  Direct labor (DL) efficiency variance

Question 16

Which of the following would not be a key transaction-related standard costing journal entry for variable-MOH costs?

Accepted Answer

A)  Actual Variable-MOH costs are recorded as debits to Variable-MOH Control account. 
B)  As units are completed, the applied cost is debited to WIP Inventory account and credited to Variable-MOH Control account. 
C)  As units are completed, the applied cost is credited to the WIP Inventory account and debited to the Variable-MOH Control account. 
D)  Specific variable-MOH price variances and/or efficiency variances are recognized as the Variable-MOH Control account is closed out. 
A)  Actual Variable-MOH costs are recorded as debits to Variable-MOH Control account. 
B)  As units are completed, the applied cost is debited to WIP Inventory account and credited to Variable-MOH Control account. 
C)  As units are completed, the applied cost is credited to the WIP Inventory account and debited to the Variable-MOH Control account. 
D)  Specific variable-MOH price variances and/or efficiency variances are recognized as the Variable-MOH Control account is closed out.

Question 17

Match the following term with its appropriate definition by including the correct letter in the blank next to the term.
-Plan

Accepted Answer

A) schedule for production, labor purchases and manufacturing overhead 
B) differences between actual and budgeted outcomes 
C) approved budgeted numbers 
D) logical, systematic identification of sources of problems to fix them and avoid recurrence 
E) assess work effort to achieve benchmarks
F)activities to prevent deviations from budget
G)inspire employees to unleash their potential 
A) schedule for production, labor purchases and manufacturing overhead 
B) differences between actual and budgeted outcomes 
C) approved budgeted numbers 
D) logical, systematic identification of sources of problems to fix them and avoid recurrence 
E) assess work effort to achieve benchmarks
F)activities to prevent deviations from budget
G)inspire employees to unleash their potential

Question 18

Explain why a change in sales volume warrants the use of a flexible budget.

Accepted Answer

Whenever actual sales volume differs fro

Question 19

Synergix Technologies has been working on the company's year-end variance analysis. 
Budgeted fixed-MOH costs were $153,000 for the planned 12,000 tablets to be produced. Per the standard cost sheets, fixed-MOH was applied based on DL hours and every unit required 3 DL hours. Actual fixed-MOH costs totaled $158,000 for the year corresponding to 12,400 tablets being produced. Calculate the Fixed-MOH Price Variance and Fixed-MOH Volume Variance for Synergix Technologies.

Accepted Answer

Fixed-MOH Price Variance = Actual Fixed-

Question 20

Cubana Candles produces and sells custom candles. Last month it had the following product
Sales volume and pricing data:
  What is the flexible budget variance for Cubana Candles?

Accepted Answer

A)  $10 favorable 
B)  $10 unfavorable 
C)  $20 favorable 
D)  $20 unfavorable 
A)  $10 favorable 
B)  $10 unfavorable 
C)  $20 favorable 
D)  $20 unfavorable

Tiny Tots Toys has the following actual and master budget information for the past month: Compute the Flexible Budget Amounts to complete the table.

The total sales variance is also known as the

Approved budgets become ___________.

The formula for the direct materials (DM) efficiency variance is

Standard costing uses _ costs set at the _ level as product costs in the General ledger.

Because variance accounts are

Texas Tad's T-shirt Warehouse has a Flexible Budget Variance of $175, favorable and a Sales Activity Variance of $75, favorable. What is Texas Tad's Master Budget Variance?

Which of the following variances holds the volume constant between actual and flexible Budget, and highlights the price difference between actual and budget?

Match the following term with its appropriate definition by including the correct letter in the blank next to the term. -Evaluate Performance

Treasured Trinkets Company has the following information: Complete the table by computing the Flexible Budget Variances and Sales Activity Variances, indicating whether the variance is either favorable (F) or unfavorable (U).

Which of the following is performed once the current budget is created?

Which of the following spotlights the change in volume between the flexible budget sales level and the master budget sales level?

Which variance helps management address what quantity of direct material (DM) inputs Should have been used in making the actual volume of units?

Which of the following would not be a key transaction-related standard costing journal entry for variable-MOH costs?

Match the following term with its appropriate definition by including the correct letter in the blank next to the term. -Plan

Explain why a change in sales volume warrants the use of a flexible budget.

Cubana Candles produces and sells custom candles. Last month it had the following product Sales volume and pricing data: What is the flexible budget variance for Cubana Candles?

Cost Accounting Has Purpose

Refresher on Cost Terms Road Map

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Cost Accounting Has Purpose

Mastering the Master Budget

Capital Budgeting Choices and Decisions

Job Costing

Activity- Based Costing

Process Costing

Absorption Versus Variable Costing

Data Analytics

Support Department Costing

Joint Costs and Decision-Making

The Art and Science of Pricing to Optimize Revenue

Management Control Systems and Transfer Pricing

Business Strategy, Performance Measurement, and the Balanced Scorecard

Filters

Exam 10: Variance Analysis and Standard Costing

Tiny Tots Toys has the following actual and master budget information for the past month: Compute the Flexible Budget Amounts to complete the table.

The total sales variance is also known as the

Approved budgets become ___________.

The formula for the direct materials (DM) efficiency variance is

Standard costing uses _________ costs set at the _________ level as product costs in the General ledger.

Because variance accounts are

Texas Tad's T-shirt Warehouse has a Flexible Budget Variance of $175, favorable and a Sales Activity Variance of $75, favorable. What is Texas Tad's Master Budget Variance?

Which of the following variances holds the volume constant between actual and flexible Budget, and highlights the price difference between actual and budget?

Match the following term with its appropriate definition by including the correct letter in the blank next to the term. -Evaluate Performance

Treasured Trinkets Company has the following information: Complete the table by computing the Flexible Budget Variances and Sales Activity Variances, indicating whether the variance is either favorable (F) or unfavorable (U).

Which of the following is performed once the current budget is created?

Which of the following spotlights the change in volume between the flexible budget sales level and the master budget sales level?

Which variance helps management address what quantity of direct material (DM) inputs Should have been used in making the actual volume of units?

Which of the following would not be a key transaction-related standard costing journal entry for variable-MOH costs?

Match the following term with its appropriate definition by including the correct letter in the blank next to the term. -Plan

Explain why a change in sales volume warrants the use of a flexible budget.

Cubana Candles produces and sells custom candles. Last month it had the following product Sales volume and pricing data: What is the flexible budget variance for Cubana Candles?

Cost Accounting Has Purpose

Refresher on Cost Terms Road Map

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Cost Accounting Has Purpose

Mastering the Master Budget

Capital Budgeting Choices and Decisions

Job Costing

Activity- Based Costing

Process Costing

Absorption Versus Variable Costing

Data Analytics

Support Department Costing

Joint Costs and Decision-Making

The Art and Science of Pricing to Optimize Revenue

Management Control Systems and Transfer Pricing

Business Strategy, Performance Measurement, and the Balanced Scorecard

Filters

Standard costing uses _ costs set at the _ level as product costs in the General ledger.