Question 1

Quest Electronics has the following sales data for the last quarter:
  What is the Master Budget Variance for Quest Electronics for the quarter?

Accepted Answer

A)  $1,000 favorable 
B)  $1,000 unfavorable 
C)  $6,600 favorable 
D)  $6,600 unfavorable 
A)  $1,000 favorable 
B)  $1,000 unfavorable 
C)  $6,600 favorable 
D)  $6,600 unfavorable

Question 2

Identify what the DM Price Variance and DM Efficiency Variance reflect and what questions 
each should address.

Accepted Answer

The DM Price Variance reflects the diffe

Question 3

Kingston Company produces a hover board, which has standard requirements of two hours per board at a direct labor rate per hour of $18. In the last quarter, 2,000 hover boards were produced using 4,200 direct labor hours at rate of $19.00 per hour. The direct labor (DL) efficiency variance for last quarter was

Accepted Answer

A)  $7,200 unfavorable. 
B)  $7,200 favorable. 
C)  $3,600 unfavorable. 
D)  $3,600 favorable. 
A)  $7,200 unfavorable. 
B)  $7,200 favorable. 
C)  $3,600 unfavorable. 
D)  $3,600 favorable.

Question 4

The logical, systematic identification of the source of problems to fix them and avoid their recurrence is called

Accepted Answer

A)  benchmarking. 
B)  targeting. 
C)  troubleshooting. 
D)  budgeting. 
A)  benchmarking. 
B)  targeting. 
C)  troubleshooting. 
D)  budgeting.

Question 5

Minza, Inc. has a favorable Total Sale Mix Variance of $1,245 and a favorable Total Sales 
Quantity Variance of $915. What is Minza's Sales Activity Variance? If the Total Sales Quantity Variance of $915 was unfavorable, instead of favorable, what would the Sales Activity Variance be?

Accepted Answer

Sales Activity Variance = Total Sales Mi

Question 6

How do organizations use budgets to attain goals?

Accepted Answer

Organizations use the combination of bud

Question 7

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

Accepted Answer

A)  $30 favorable 
B)  $30 unfavorable 
C)  $65 favorable 
D)  $65 unfavorable 
A)  $30 favorable 
B)  $30 unfavorable 
C)  $65 favorable 
D)  $65 unfavorable

Question 8

Cost accountants work with which of the following to determine the types and quantities of direct materials inputs that will work best when setting the direct materials standard?

Accepted Answer

A)  Only engineers 
B)  Only purchasing managers 
C) Only manufacturing experts 
D)  Engineers, purchasing managers, and manufacturing experts. 
A)  Only engineers 
B)  Only purchasing managers 
C) Only manufacturing experts 
D)  Engineers, purchasing managers, and manufacturing experts.

Question 9

Quest Electronics has the following sales data for the last quarter:
  What is the Sales Price Variance for Quest Electronics for the quarter?

Accepted Answer

A)  $3,600 favorable 
B)  $3,600 unfavorable 
C)  $4,000 favorable 
D)  $4,000 unfavorable 
A)  $3,600 favorable 
B)  $3,600 unfavorable 
C)  $4,000 favorable 
D)  $4,000 unfavorable

Question 10

Penn Maid Dairy Company provided the following information for the past quarter:
   a. Compute the Variable-MOH price and efficiency variances.
b. Compute the Fixed-MOH price and volume variances.
c. Prepare the journal entries to record the Variable-MOH and Fixed-MOH variances.
d. Prepare the journal entries to close the Variable-MOH and Fixed-MOH variances

Accepted Answer

a. Variable-MOH Price Variance = Actual

Question 11

Which of the following factors would not be considered when setting a direct labor standard?

Accepted Answer

A)  Mix of skilled and unskilled workers 
B)  Observation of production workers in action 
C)  Setting up approved suppliers 
D)  Timing of production workers to manufacture a unit of product 
A)  Mix of skilled and unskilled workers 
B)  Observation of production workers in action 
C)  Setting up approved suppliers 
D)  Timing of production workers to manufacture a unit of product

Question 12

A price variance compares the

Accepted Answer

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

Question 13

Which of the following variances would not be inspected when determining the cause for the comprehensive sales activity variance?

Accepted Answer

A)  Sales mix variance 
B)  Sales quantity variance 
C)  Market size variance 
D)  Sales price variance 
A)  Sales mix variance 
B)  Sales quantity variance 
C)  Market size variance 
D)  Sales price variance

Question 14

Roja Winery has the standard cost data for the production of each bottle of red wine below.
  What is the standard cost per unit for one bottle of red wind for Roja Winery?

Accepted Answer

A)  $11.39 
B)  $13.64 
C)  $14.64 
D)  $15.39 
A)  $11.39 
B)  $13.64 
C)  $14.64 
D)  $15.39

Question 15

Azure Company makes a product that requires a standard six yards of materials per unit. 
The standard price per yard is $4.50. If 3,000 units required 18,500 yards of materials for production, and were purchased at a cost of $4.30 per yard, what is the Direct Materials (DM) Price Variance and (DM) Efficiency Variance?

Accepted Answer

Direct Materials (DM) Price Variance = (

Question 16

A sales quantity variance for a given product is computed as

Accepted Answer

A)  (actual volume of all products sold - budgeted volume of all products sold) x actual sales mix of the product x budgeted unit contribution margin of the product. 
B)  (actual volume of all products sold - budgeted volume of all products sold) x budgeted sales mix of the product x actual unit contribution margin of the product. 
C)  (actual volume of all products sold - budgeted volume of all products sold) x actual sales mix of the product x actual unit contribution margin of the product. 
D)  (actual volume of all products sold - budgeted volume of all products sold) x budgeted sales mix of the product x budgeted unit contribution margin of the product. 
A)  (actual volume of all products sold - budgeted volume of all products sold) x actual sales mix of the product x budgeted unit contribution margin of the product. 
B)  (actual volume of all products sold - budgeted volume of all products sold) x budgeted sales mix of the product x actual unit contribution margin of the product. 
C)  (actual volume of all products sold - budgeted volume of all products sold) x actual sales mix of the product x actual unit contribution margin of the product. 
D)  (actual volume of all products sold - budgeted volume of all products sold) x budgeted sales mix of the product x budgeted unit contribution margin of the product.

Question 17

What is a flexible budget, and which variance relates to the flexible budget?

Accepted Answer

The flexible budget adapts the master bu

Question 18

Describe the Master Budget Sales Variance and what factors affect this variance.

Accepted Answer

Revenues are always the product of two f

Question 19

Which of the following costs will transfer from the master budget to the flexible budget unchanged assuming an operating capacity within the relevant range?

Accepted Answer

A)  Fixed costs 
B)  Direct labor 
C)  Direct materials 
D)  Variable manufacturing overhead (MOH) 
A)  Fixed costs 
B)  Direct labor 
C)  Direct materials 
D)  Variable manufacturing overhead (MOH)

Question 20

Midland Mountain Sporting Goods has the following actual and standard variable-MOH 
costs for producing a specified quantity of camping kits:
   Determine the Variable-MOH Price Variance and Variable-MOH Efficiency Variance for the camping kits for Midland Mountain Sporting Goods.

Accepted Answer

Variable-MOH Price Variance = Actual Var

Quest Electronics has the following sales data for the last quarter: What is the Master Budget Variance for Quest Electronics for the quarter?

Identify what the DM Price Variance and DM Efficiency Variance reflect and what questions each should address.

The logical, systematic identification of the source of problems to fix them and avoid their recurrence is called

Minza, Inc. has a favorable Total Sale Mix Variance of $1,245 and a favorable Total Sales Quantity Variance of $915. What is Minza's Sales Activity Variance? If the Total Sales Quantity Variance of $915 was unfavorable, instead of favorable, what would the Sales Activity Variance be?

How do organizations use budgets to attain goals?

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

Cost accountants work with which of the following to determine the types and quantities of direct materials inputs that will work best when setting the direct materials standard?

Quest Electronics has the following sales data for the last quarter: What is the Sales Price Variance for Quest Electronics for the quarter?

Which of the following factors would not be considered when setting a direct labor standard?

A price variance compares the

Which of the following variances would not be inspected when determining the cause for the comprehensive sales activity variance?

Roja Winery has the standard cost data for the production of each bottle of red wine below. What is the standard cost per unit for one bottle of red wind for Roja Winery?

A sales quantity variance for a given product is computed as

What is a flexible budget, and which variance relates to the flexible budget?

Describe the Master Budget Sales Variance and what factors affect this variance.

Which of the following costs will transfer from the master budget to the flexible budget unchanged assuming an operating capacity within the relevant range?

Midland Mountain Sporting Goods has the following actual and standard variable-MOH costs for producing a specified quantity of camping kits: Determine the Variable-MOH Price Variance and Variable-MOH Efficiency Variance for the camping kits for Midland Mountain Sporting Goods.

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

Quest Electronics has the following sales data for the last quarter: What is the Master Budget Variance for Quest Electronics for the quarter?

Identify what the DM Price Variance and DM Efficiency Variance reflect and what questions each should address.

The logical, systematic identification of the source of problems to fix them and avoid their recurrence is called

Minza, Inc. has a favorable Total Sale Mix Variance of $1,245 and a favorable Total Sales Quantity Variance of $915. What is Minza's Sales Activity Variance? If the Total Sales Quantity Variance of $915 was unfavorable, instead of favorable, what would the Sales Activity Variance be?

How do organizations use budgets to attain goals?

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

Cost accountants work with which of the following to determine the types and quantities of direct materials inputs that will work best when setting the direct materials standard?

Quest Electronics has the following sales data for the last quarter: What is the Sales Price Variance for Quest Electronics for the quarter?

Which of the following factors would not be considered when setting a direct labor standard?

A price variance compares the

Which of the following variances would not be inspected when determining the cause for the comprehensive sales activity variance?

Roja Winery has the standard cost data for the production of each bottle of red wine below. What is the standard cost per unit for one bottle of red wind for Roja Winery?

A sales quantity variance for a given product is computed as

What is a flexible budget, and which variance relates to the flexible budget?

Describe the Master Budget Sales Variance and what factors affect this variance.

Which of the following costs will transfer from the master budget to the flexible budget unchanged assuming an operating capacity within the relevant range?

Midland Mountain Sporting Goods has the following actual and standard variable-MOH costs for producing a specified quantity of camping kits: Determine the Variable-MOH Price Variance and Variable-MOH Efficiency Variance for the camping kits for Midland Mountain Sporting Goods.

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