Question 1

The direct labor efficiency variance in February is:

Accepted Answer

A) $13,440 favorable. 
B) $13,650 favorable. 
C) $13,776 favorable. 
D) $14,000 favorable. 
E) $19,110 favorable. 
A) $13,440 favorable. 
B) $13,650 favorable. 
C) $13,776 favorable. 
D) $14,000 favorable. 
E) $19,110 favorable. E

Question 2

The cost of PPS in the flexible budget for the number of units manufactured this period is:

Accepted Answer

A) $259,200. 
B) $280,800. 
C) $311,040. 
D) $324,000. 
E) $360,000. 
A) $259,200. 
B) $280,800. 
C) $311,040. 
D) $324,000. 
E) $360,000. A

Question 3

The term "processing cycle efficiency" (PCE):

Accepted Answer

A) Like manufacturing cycle time, is a measure of operational efficiency. 
B) Is defined as the ratio of manufacturing lead time to delivery time. 
C) Is defined as manufacturing lead time minus delivery time. 
D) Is defined as the ratio of customer-response time to order-delivery time. 
E) Is at an optimum level when PCE = 0. 
A) Like manufacturing cycle time, is a measure of operational efficiency. 
B) Is defined as the ratio of manufacturing lead time to delivery time. 
C) Is defined as manufacturing lead time minus delivery time. 
D) Is defined as the ratio of customer-response time to order-delivery time. 
E) Is at an optimum level when PCE = 0. A

Question 4

The direct materials usage variance for December is:

Accepted Answer

A) $1,800 unfavorable. 
B) $1,800 favorable. 
C) $59,400 unfavorable. 
D) $59,400 favorable. 
A) $1,800 unfavorable. 
B) $1,800 favorable. 
C) $59,400 unfavorable. 
D) $59,400 favorable.

Question 5

The direct labor efficiency variance for October was:

Accepted Answer

A) $3,000 unfavorable. 
B) $20,000 favorable. 
C) $23,000 favorable. 
D) $30,000 unfavorable. 
E) $50,000 unfavorable. 
A) $3,000 unfavorable. 
B) $20,000 favorable. 
C) $23,000 favorable. 
D) $30,000 unfavorable. 
E) $50,000 unfavorable.

Question 6

Klash Company adopted a standard cost system several years ago. The company uses standard costs for all of its inventories. The standard costs for direct materials and labor for its single product are as follows: Materials (12 kilograms/unit × $7.00/kilogram) = $84.00/unit; direct labor (8 hours/unit × $12.00/hour) = $96.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:   Note: number of kilograms issued to production during the period = number of kilograms purchased.
Required:
1. Calculate the standard cost of the actual kilograms of material purchased.
2. Calculate the total standard kilograms for the production of the period (that is, for "equivalent units produced with respect to direct materials")
3. Calculate the total standard cost of materials for the production of the period.
4. Calculate the actual price per kilogram of material of material purchased this period.
5. Calculate the direct labor rate variance.

Accepted Answer

Answer may vary
Feedback: Note

Question 7

Miller has the following information pertaining to its usage of direct labor in a recent period:   Required:
Given the above, determine the company's:
1. Direct labor efficiency variance for the period.
2. Direct labor rate variance for the period.
3. Summary journal entry to record accrued labor costs and associated standard cost variances for the period.

Accepted Answer

Answer may

Question 8

What was Mandy's standard direct labor rate per hour (SP)?

Accepted Answer

A) $43.20. 
B) $45.60. 
C) $48.00. 
D) $52.20. 
A) $43.20. 
B) $45.60. 
C) $48.00. 
D) $52.20.

Question 9

What was the actual hourly rate for direct labor?

Accepted Answer

A) $30. 
B) $36. 
C) $44. 
D) $50. 
E) $56. 
A) $30. 
B) $36. 
C) $44. 
D) $50. 
E) $56.

Question 10

The actual purchase price per pound of PPS used is:

Accepted Answer

A) $5.20. 
B) $5.76. 
C) $6.24. 
D) $6.84. 
E) $7.20. 
A) $5.20. 
B) $5.76. 
C) $6.24. 
D) $6.84. 
E) $7.20.

Question 11

What were the total standard hours allowed for the units manufactured in August?

Accepted Answer

A) 10,000. 
B) 12,000. 
C) 12,500. 
D) 15,000. 
E) 15,625. 
A) 10,000. 
B) 12,000. 
C) 12,500. 
D) 15,000. 
E) 15,625.

Question 12

Define what is meant by the term "just in time production" (JIT). As indicated in your text, management accountants can supply relevant information to management as it considers a move to JIT. In this regard, describe some of the principal advantages of using a JIT system, and then describe some of the incremental costs that would likely be associated with a move to such a system.

Accepted Answer

Answer may vary
Feedback: 1. Definition:

Question 13

Which one of the following, for each direct material used in production, is the difference between the actual units of material used and the total standard units of the direct material that should have been used for the units of the product manufactured during the period, multiplied by the standard unit price of the direct materials?

Accepted Answer

A) Direct materials sales-volume variance. 
B) Direct materials rate variance. 
C) Direct materials usage variance. 
D) Direct materials flexible-budget variance. 
E) Direct materials mix variance. 
A) Direct materials sales-volume variance. 
B) Direct materials rate variance. 
C) Direct materials usage variance. 
D) Direct materials flexible-budget variance. 
E) Direct materials mix variance.

Question 14

The direct labor flexible-budget variance for July was:

Accepted Answer

A) $6,600 unfavorable. 
B) $7,200 unfavorable. 
C) $51,000 favorable. 
D) $58,200 favorable. 
E) $65,400 favorable. 
A) $6,600 unfavorable. 
B) $7,200 unfavorable. 
C) $51,000 favorable. 
D) $58,200 favorable. 
E) $65,400 favorable.

Question 15

The amount D is:

Accepted Answer

A) $26,920. 
B) $33,720. 
C) $35,620. 
D) $42,450. 
E) Impossible to determine without further information. 
A) $26,920. 
B) $33,720. 
C) $35,620. 
D) $42,450. 
E) Impossible to determine without further information.

Question 16

Explain the calculation and interpretation of a sales price variance for any given period. How does this variance relate to the total flexible-budget variance for the period?

Accepted Answer

Answer may vary
Feedback: The sales pric

Question 17

The total variable cost flexible-budget variance includes all of the following except:

Accepted Answer

A) Direct materials variances. 
B) Sales price variance. 
C) Variable selling and administrative expenses variances. 
D) Direct labor variances. 
E) Variable overhead variances. 
A) Direct materials variances. 
B) Sales price variance. 
C) Variable selling and administrative expenses variances. 
D) Direct labor variances. 
E) Variable overhead variances.

Question 18

Balt Company maintains a standard cost system; as such, all inventories, including materials, are carried on the books at standard cost. Last period, Balt used 5,000 pounds of Material H to produce 800 units of Product C8. The company has established a standard of 7 pounds of Material H per unit of C8, at a price of $7.50 per pound of material. During the period the inventory for Material H decreased by 2,000 pounds. The company spent $25,000 during the period to purchase material H.
Required:
1. Calculate the direct materials purchase-price variance for the period.
2. Calculate the direct materials usage variance for the period.
3. Provide the correct summary journal entry to record the purchase, on credit, of materials during the period.
4. Provide the correct summary journal to record direct materials cost for materials issued to production during the period.

Accepted Answer

Answer may

Question 19

The sales volume variance in terms of operating income is:

Accepted Answer

A) $500 favorable. 
B) $1,500 unfavorable. 
C) $1,500 favorable. 
D) $2,500 unfavorable. 
E) $3,000 favorable. 
A) $500 favorable. 
B) $1,500 unfavorable. 
C) $1,500 favorable. 
D) $2,500 unfavorable. 
E) $3,000 favorable.

Question 20

A total variable cost variance (such as for direct materials) can be broken down into separate variances that evaluate:

Accepted Answer

A) Price and efficiency. 
B) Units and cost. 
C) Volume and productivity. 
D) Sales-volume versus sales-mix effects. 
E) Efforts and results. 
A) Price and efficiency. 
B) Units and cost. 
C) Volume and productivity. 
D) Sales-volume versus sales-mix effects. 
E) Efforts and results.

The direct labor efficiency variance in February is:

The cost of PPS in the flexible budget for the number of units manufactured this period is:

The term "processing cycle efficiency" (PCE):

The direct materials usage variance for December is:

The direct labor efficiency variance for October was:

What was Mandy's standard direct labor rate per hour (SP)?

What was the actual hourly rate for direct labor?

The actual purchase price per pound of PPS used is:

What were the total standard hours allowed for the units manufactured in August?

The direct labor flexible-budget variance for July was:

The amount D is:

Explain the calculation and interpretation of a sales price variance for any given period. How does this variance relate to the total flexible-budget variance for the period?

The total variable cost flexible-budget variance includes all of the following except:

The sales volume variance in terms of operating income is:

A total variable cost variance (such as for direct materials) can be broken down into separate variances that evaluate:

Cost Management and Strategy

Implementing Strategy: the Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 14: Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

The direct labor efficiency variance in February is:

The cost of PPS in the flexible budget for the number of units manufactured this period is:

The term "processing cycle efficiency" (PCE):

The direct materials usage variance for December is:

The direct labor efficiency variance for October was:

What was Mandy's standard direct labor rate per hour (SP)?

What was the actual hourly rate for direct labor?

The actual purchase price per pound of PPS used is:

What were the total standard hours allowed for the units manufactured in August?

The direct labor flexible-budget variance for July was:

The amount D is:

Explain the calculation and interpretation of a sales price variance for any given period. How does this variance relate to the total flexible-budget variance for the period?

The total variable cost flexible-budget variance includes all of the following except:

The sales volume variance in terms of operating income is:

A total variable cost variance (such as for direct materials) can be broken down into separate variances that evaluate:

Cost Management and Strategy

Implementing Strategy: the Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters