Question 1

When management sets expectations that are high, achievable, and clearly communicated

Accepted Answer

A)  unfavorable variances will always result. 
B)  employees will normally work to reach the high standards if they feel the company is committed to their success. 
C)  poor employee performance evaluations will happen, and workers miss out on expected incentives. 
D)  flexibility and creativity for employees is stifled. 
A)  unfavorable variances will always result. 
B)  employees will normally work to reach the high standards if they feel the company is committed to their success. 
C)  poor employee performance evaluations will happen, and workers miss out on expected incentives. 
D)  flexibility and creativity for employees is stifled.

Question 2

Which variance isolates and quantifies the change in sales prices?

Accepted Answer

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

Question 3

Dairy Delites had the following projected and incurred the following production and cost data shown below:
  What is the Variable-MOH Price Variance?

Accepted Answer

A)  $161 unfavorable 
B)  $161 favorable 
C)  $373 unfavorable 
D)  $373 favorable 
A)  $161 unfavorable 
B)  $161 favorable 
C)  $373 unfavorable 
D)  $373 favorable

Question 4

Explain how standard costs and variances are reported.

Accepted Answer

The general ledger accounts DM Inventory

Question 5

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

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 6

An efficiency variance compares the

Accepted Answer

A)  actual quantity used of each input (DM, DL, or variable MOH) to the standard quantity allowed for each input, at its actual cost. 
B)  actual cost incurred for the input (DM, DL, or variable-MOH) to the standard cost allowed for the actual input quantity. 
C)  actual quantity used of each input (DM, DL, or variable-MOH) to the standard quantity allowed for each input, at its standard cost. 
D)  actual cost incurred for the input (DM, DL, or variable-MOH) to the standard cost allowed for the standard input quantity. 
A)  actual quantity used of each input (DM, DL, or variable MOH) to the standard quantity allowed for each input, at its actual cost. 
B)  actual cost incurred for the input (DM, DL, or variable-MOH) to the standard cost allowed for the actual input quantity. 
C)  actual quantity used of each input (DM, DL, or variable-MOH) to the standard quantity allowed for each input, at its standard cost. 
D)  actual cost incurred for the input (DM, DL, or variable-MOH) to the standard cost allowed for the standard input quantity.

Question 7

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

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 8

Companies using standard costing have ________ controls over production costs.

Accepted Answer

A)  tight 
B)  flexible 
C)  weak 
D)  variable 
A)  tight 
B)  flexible 
C)  weak 
D)  variable

Question 9

Bear Mountain Sporting Goods has the following actual and standard costs for producing a 
specified quantity of camping kits:
   Determine the Direct Materials (DM) Price Variance and DM Efficiency Variance for the camping kits for Bear Mountain Sporting Goods.

Accepted Answer

Direct Materials (DM) Price Variance = (

Question 10

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

Accepted Answer

A)  $45 favorable 
B)  $45 unfavorable 
C)  $60 favorable 
D)  $60 unfavorable 
A)  $45 favorable 
B)  $45 unfavorable 
C)  $60 favorable 
D)  $60 unfavorable

Question 11

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

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

Pancho's Taco Stand has the following costs related to the production of each taco.
   Compute the standard cost to make one taco.

Accepted Answer

The answer of Pancho's Taco Stand has the following costs...

Question 13

Santini Shoe Company had the following data for its Women's shoes and Men's shoes for the last quarter:
  What is the Total Sales Quantity Variance for Santini Shoe Company for last quarter?

Accepted Answer

A)  $884 favorable 
B)  $884 unfavorable 
C)  $23,888 favorable 
D)  $23,888 unfavorable 
A)  $884 favorable 
B)  $884 unfavorable 
C)  $23,888 favorable 
D)  $23,888 unfavorable

Question 14

Great Plains Company has provided its financial manager the following information for the 
past year:
   Determine the Simplified Sales Activity Variance and the Comprehensive Sales Activity
Variance for Great Plains Company.

Accepted Answer

Simplified Sales Activity Variance = Fle

Question 15

Which of the following statements regarding standard costing is not correct?

Accepted Answer

A) Establishing and maintaining standard costs and the efficient process to sustain cost stability requires great attention to detail. 
B)  A key benefit of standard costing is that using variance analysis one year helps inform planning and budgeting for the next year. 
C)  At the beginning of the period, before variances are known, management reviews standards that are in place for that period and considers updating them. 
D)  Setting standards for direct materials, direct labor and manufacturing overhead is an iterative process. 
A) Establishing and maintaining standard costs and the efficient process to sustain cost stability requires great attention to detail. 
B)  A key benefit of standard costing is that using variance analysis one year helps inform planning and budgeting for the next year. 
C)  At the beginning of the period, before variances are known, management reviews standards that are in place for that period and considers updating them. 
D)  Setting standards for direct materials, direct labor and manufacturing overhead is an iterative process.

Question 16

Bonaventura Boots had the following variances at year-end:
  What is the journal entry to close these variances?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 17

Philly Rug Company produces designer rugs for clients. The standard size rug will require 3 
yards of direct materials (DM), 1 hour of direct labor (DL) time, and 2 hours of machine time. MOH costs are applied based on machine hours. DM is expected to cost $8.00 per yard, DL is budgeted at $12 per hour, and cost of machine time is estimated at $3/machine hour for variable-MOH and $2/machine hour for fixed-MOH. The company purchased 30 yards of materials on account for $255. Production was started on 5 rugs, using 15 yards of direct materials, 6 direct labor hours at a total cost of $66, and 10 machine hours. Prepare the journal entries for the purchase of the materials and the costs incurred in production of the 5 rugs assuming Philly Rug Company uses standard costing. (Credit MOH costs to Accounts Payable)

Accepted Answer

The answer of Philly Rug Company produces designer rugs for...

Question 18

What four variances must be inspected to determine the causes for a Comprehensive Sales 
Activity Variance?

Accepted Answer

The four variances to be inspe

Question 19

Which of the following standards are firm, yet attainable unit benchmarks that allow for the realities of life?

Accepted Answer

A)  Ideal 
B)  Theoretical 
C)  Practical 
D)  Idyllic 
A)  Ideal 
B)  Theoretical 
C)  Practical 
D)  Idyllic

Question 20

Bear Mountain Sporting Goods has the following information from producing a 	specified 
quantity of camping kits:
   Prepare the journal entries to record the actual fixed-MOH costs incurred, application of fixed-MOH to production, and to recognize the Fixed-MOH Variances.

Accepted Answer

The answer of Bear Mountain Sporting Goods has the following...

When management sets expectations that are high, achievable, and clearly communicated

Which variance isolates and quantifies the change in sales prices?

Dairy Delites had the following projected and incurred the following production and cost data shown below: What is the Variable-MOH Price Variance?

Explain how standard costs and variances are reported.

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

An efficiency variance compares the

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

Companies using standard costing have ________ controls over production costs.

Bear Mountain Sporting Goods has the following actual and standard costs for producing a specified quantity of camping kits: Determine the Direct Materials (DM) Price Variance and DM Efficiency Variance for the camping kits for Bear Mountain Sporting Goods.

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

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

Pancho's Taco Stand has the following costs related to the production of each taco. Compute the standard cost to make one taco.

Santini Shoe Company had the following data for its Women's shoes and Men's shoes for the last quarter: What is the Total Sales Quantity Variance for Santini Shoe Company for last quarter?

Great Plains Company has provided its financial manager the following information for the past year: Determine the Simplified Sales Activity Variance and the Comprehensive Sales Activity Variance for Great Plains Company.

Which of the following statements regarding standard costing is not correct?

Bonaventura Boots had the following variances at year-end: What is the journal entry to close these variances?

What four variances must be inspected to determine the causes for a Comprehensive Sales Activity Variance?

Which of the following standards are firm, yet attainable unit benchmarks that allow for the realities of life?

Bear Mountain Sporting Goods has the following information from producing a specified quantity of camping kits: Prepare the journal entries to record the actual fixed-MOH costs incurred, application of fixed-MOH to production, and to recognize the Fixed-MOH Variances.

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

When management sets expectations that are high, achievable, and clearly communicated

Which variance isolates and quantifies the change in sales prices?

Dairy Delites had the following projected and incurred the following production and cost data shown below: What is the Variable-MOH Price Variance?

Explain how standard costs and variances are reported.

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

An efficiency variance compares the

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

Companies using standard costing have ________ controls over production costs.

Bear Mountain Sporting Goods has the following actual and standard costs for producing a specified quantity of camping kits: Determine the Direct Materials (DM) Price Variance and DM Efficiency Variance for the camping kits for Bear Mountain Sporting Goods.

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

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

Pancho's Taco Stand has the following costs related to the production of each taco. Compute the standard cost to make one taco.

Santini Shoe Company had the following data for its Women's shoes and Men's shoes for the last quarter: What is the Total Sales Quantity Variance for Santini Shoe Company for last quarter?

Great Plains Company has provided its financial manager the following information for the past year: Determine the Simplified Sales Activity Variance and the Comprehensive Sales Activity Variance for Great Plains Company.

Which of the following statements regarding standard costing is not correct?

Bonaventura Boots had the following variances at year-end: What is the journal entry to close these variances?

What four variances must be inspected to determine the causes for a Comprehensive Sales Activity Variance?

Which of the following standards are firm, yet attainable unit benchmarks that allow for the realities of life?

Bear Mountain Sporting Goods has the following information from producing a specified quantity of camping kits: Prepare the journal entries to record the actual fixed-MOH costs incurred, application of fixed-MOH to production, and to recognize the Fixed-MOH Variances.

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