Question 1

A ______________ standard gets progressively tighter over time:

Accepted Answer

A) Peak-efficiency. 
B) Currently attainable. 
C) Benchmarked. 
D) Flexible-budget. 
E) Continuous-improvement. 
A) Peak-efficiency. 
B) Currently attainable. 
C) Benchmarked. 
D) Flexible-budget. 
E) Continuous-improvement.

Question 2

The total standard direct labor cost for the period is:

Accepted Answer

A) $738,000. 
B) $747,000. 
C) $756,000. 
D) $765,000. 
E) $774,900. 
A) $738,000. 
B) $747,000. 
C) $756,000. 
D) $765,000. 
E) $774,900.

Question 3

What were the total standard hours allowed (SQ) for the units manufactured during the month?

Accepted Answer

A) 1,000. 
B) 2,500. 
C) 4,000. 
D) 5,000. 
E) 6,000. 
A) 1,000. 
B) 2,500. 
C) 4,000. 
D) 5,000. 
E) 6,000.

Question 4

The total operating-income variance for any period:

Accepted Answer

A) Is unaffected by variances between actual and budgeted sales volume. 
B) Can be decomposed into a total flexible-budget variance and a sales-volume variance. 
C) Can be decomposed into a total flexible-budget variance and a sales price variance. 
D) Is equal to the sum of selling and administrative expense variances plus the total sales-volume variance for the period. 
E) Equals the sum of the total flexible-budget variance plus the sales-mix variance for the period. 
A) Is unaffected by variances between actual and budgeted sales volume. 
B) Can be decomposed into a total flexible-budget variance and a sales-volume variance. 
C) Can be decomposed into a total flexible-budget variance and a sales price variance. 
D) Is equal to the sum of selling and administrative expense variances plus the total sales-volume variance for the period. 
E) Equals the sum of the total flexible-budget variance plus the sales-mix variance for the period.

Question 5

The direct labor rate variance for November is:

Accepted Answer

A) $26,624.00 unfavorable. 
B) $31,948.80 unfavorable. 
C) $39,936.00 favorable. 
D) $71,884.80 favorable. 
E) $103,833.60 favorable. 
A) $26,624.00 unfavorable. 
B) $31,948.80 unfavorable. 
C) $39,936.00 favorable. 
D) $71,884.80 favorable. 
E) $103,833.60 favorable.

Question 6

The direct materials usage variance for the period is:

Accepted Answer

A) $307.50 unfavorable. 
B) $307.50 favorable. 
C) $322.50 unfavorable. 
D) $322.50 favorable. 
E) $532.50 favorable. 
A) $307.50 unfavorable. 
B) $307.50 favorable. 
C) $322.50 unfavorable. 
D) $322.50 favorable. 
E) $532.50 favorable.

Question 7

How many units of the product were produced during the past month?

Accepted Answer

A) 800. 
B) 1,000. 
C) 1,200. 
D) 1,500. 
E) 2,000. 
A) 800. 
B) 1,000. 
C) 1,200. 
D) 1,500. 
E) 2,000.

Question 8

During the most recent period Appliance, Inc. manufactured 10,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $3.00. The performance report for the period includes a favorable direct labor rate variance of $2,000, and a favorable direct labor efficiency variance of $500.
Required:
What was the total actual cost of direct labor incurred during the period?

Accepted Answer

Answer may

Question 9

Chemical, Inc., has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom:   The company manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF-2000 and 5,200 direct labor-hours. During the month the company purchased 3,000,000 lbs. of XF-2000 at $0.075 per pound and incurred a total payroll of $182,000 for direct labor. The company records purchases at standard cost and therefore recognizes material price variances at point of purchase.
Required
1. Compute the price and usage variances for direct materials, and the rate and efficiency variances for direct labor.
2. Prepare journal entries to record the preceding events.

Accepted Answer

Answer may vary
Feedback: 1. Direct mate

Question 10

Prokp's total standard direct labor cost for the output in April was:

Accepted Answer

A) $17,600. 
B) $21,600. 
C) $22,400. 
D) $24,000. 
E) $26,400. 
A) $17,600. 
B) $21,600. 
C) $22,400. 
D) $24,000. 
E) $26,400.

Question 11

The materials usage (quantity) variance for June was:

Accepted Answer

A) $3,800 unfavorable. 
B) $3,840 unfavorable. 
C) $5,700 unfavorable. 
D) $5,760 unfavorable. 
E) $8,560 favorablE. 
A) $3,800 unfavorable. 
B) $3,840 unfavorable. 
C) $5,700 unfavorable. 
D) $5,760 unfavorable. 
E) $8,560 favorablE.

Question 12

A firm uses a JIT inventory system and has an unfavorable selling price variance for the period just ended. If the proportion of the total variable manufacturing costs to total sales in both the flexible budget and the actual operating results is 70%:

Accepted Answer

A) The firm has an unfavorable total variable manufacturing cost variance. 
B) The firm has a favorable total variable manufacturing cost variance. 
C) The firm has an unfavorable total flexible-budget variance. 
D) The firm has a favorable contribution margin variance. 
E) The firm has a favorable total flexible-budget variance. 
A) The firm has an unfavorable total variable manufacturing cost variance. 
B) The firm has a favorable total variable manufacturing cost variance. 
C) The firm has an unfavorable total flexible-budget variance. 
D) The firm has a favorable contribution margin variance. 
E) The firm has a favorable total flexible-budget variance.

Question 13

Within the context of the material covered in Chapter 14, define the term "sales-volume variance." List some common causes of the sales-volume variance.

Accepted Answer

Answer may vary
Feedback: The sales volu

Question 14

What is a direct materials usage ratio? For what purpose is this ratio used?

Accepted Answer

Answer may vary
Feedback: The materials

Question 15

Chapter 14 argues that a comprehensive management accounting and control system would include nonfinancial as well as financial performance indicators. Two such nonfinancial performance indicators were discussed in conjunction with organizations that adopt a just-in-time (JIT) production philosophy: customer-response time (CRT) and process cycle efficiency (PCE). Explain each of these two performance indicators.

Accepted Answer

Answer may vary
Feedback: As indicated i

Question 16

The actual direct materials purchase price (AP) per kilogram is:

Accepted Answer

A) $11.80. 
B) $11.96. 
C) $12.04. 
D) $12.20. 
E) $12.50. 
A) $11.80. 
B) $11.96. 
C) $12.04. 
D) $12.20. 
E) $12.50.

Question 17

What was the actual purchase price (AP) per set of direct materials purchased?

Accepted Answer

A) $3.35. 
B) $3.40. 
C) $3.72. 
D) $3.80. 
E) $3.85. 
A) $3.35. 
B) $3.40. 
C) $3.72. 
D) $3.80. 
E) $3.85.

Question 18

The amount D is:

Accepted Answer

A) $12,000. 
B) $15,000. 
C) $16,500. 
D) $18,000. 
E) $33,000. 
A) $12,000. 
B) $15,000. 
C) $16,500. 
D) $18,000. 
E) $33,000.

Question 19

For control purposes, it is usually preferable to calculate the materials price variance:

Accepted Answer

A) At point of purchase (i.e., when the materials are purchased). 
B) At point of production (i.e., when the materials are issued to production). 
C) At the end of the accounting period. 
D) Only if the materials quantity variance is significant in amount. 
E) Only if it is controllable by operating managers. 
A) At point of purchase (i.e., when the materials are purchased). 
B) At point of production (i.e., when the materials are issued to production). 
C) At the end of the accounting period. 
D) Only if the materials quantity variance is significant in amount. 
E) Only if it is controllable by operating managers.

Question 20

Which of the following is different in a flexible budget compared to the master budget for a period?

Accepted Answer

A) Selling price per unit. 
B) Variable cost per unit. 
C) Budgeted fixed cost. 
D) Sales volume. 
E) Budgeted fixed administrative costs. 
A) Selling price per unit. 
B) Variable cost per unit. 
C) Budgeted fixed cost. 
D) Sales volume. 
E) Budgeted fixed administrative costs.

A ______________ standard gets progressively tighter over time:

The total standard direct labor cost for the period is:

What were the total standard hours allowed (SQ) for the units manufactured during the month?

The total operating-income variance for any period:

The direct labor rate variance for November is:

The direct materials usage variance for the period is:

How many units of the product were produced during the past month?

Prokp's total standard direct labor cost for the output in April was:

The materials usage (quantity) variance for June was:

A firm uses a JIT inventory system and has an unfavorable selling price variance for the period just ended. If the proportion of the total variable manufacturing costs to total sales in both the flexible budget and the actual operating results is 70%:

Within the context of the material covered in Chapter 14, define the term "sales-volume variance." List some common causes of the sales-volume variance.

What is a direct materials usage ratio? For what purpose is this ratio used?

The actual direct materials purchase price (AP) per kilogram is:

What was the actual purchase price (AP) per set of direct materials purchased?

The amount D is:

For control purposes, it is usually preferable to calculate the materials price variance:

Which of the following is different in a flexible budget compared to the master budget for a period?

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

A ______________ standard gets progressively tighter over time:

The total standard direct labor cost for the period is:

What were the total standard hours allowed (SQ) for the units manufactured during the month?

The total operating-income variance for any period:

The direct labor rate variance for November is:

The direct materials usage variance for the period is:

How many units of the product were produced during the past month?

Prokp's total standard direct labor cost for the output in April was:

The materials usage (quantity) variance for June was:

A firm uses a JIT inventory system and has an unfavorable selling price variance for the period just ended. If the proportion of the total variable manufacturing costs to total sales in both the flexible budget and the actual operating results is 70%:

Within the context of the material covered in Chapter 14, define the term "sales-volume variance." List some common causes of the sales-volume variance.

What is a direct materials usage ratio? For what purpose is this ratio used?

The actual direct materials purchase price (AP) per kilogram is:

What was the actual purchase price (AP) per set of direct materials purchased?

The amount D is:

For control purposes, it is usually preferable to calculate the materials price variance:

Which of the following is different in a flexible budget compared to the master budget for a period?

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