Question 1

The direct materials usage (efficiency) variance for June was:

Accepted Answer

A) $13,300 unfavorable. 
B) $26,600 unfavorable. 
C) $29,925 unfavorable. 
D) $34,020 unfavorable. 
A) $13,300 unfavorable. 
B) $26,600 unfavorable. 
C) $29,925 unfavorable. 
D) $34,020 unfavorable.

Question 2

Another name for the total operating income variance for a period is:

Accepted Answer

A) Flexible-budget variance. 
B) Master (static) budget variance. 
C) Sales volume variance. 
D) Total income variance. 
E) Sales mix variance. 
A) Flexible-budget variance. 
B) Master (static) budget variance. 
C) Sales volume variance. 
D) Total income variance. 
E) Sales mix variance.

Question 3

The total direct labor variance for October was:

Accepted Answer

A) $7,000 unfavorable. 
B) $9,000 favorable. 
C) $9,000 Unfavorable. 
D) $32,000 favorable. 
E) $54,000 unfavorable. 
A) $7,000 unfavorable. 
B) $9,000 favorable. 
C) $9,000 Unfavorable. 
D) $32,000 favorable. 
E) $54,000 unfavorable.

Question 4

The standard direct labor rate per hour (SP) is:

Accepted Answer

A) $13.44. 
B) $13.65. 
C) $13.78. 
D) $14.00. 
E) $14.35. 
A) $13.44. 
B) $13.65. 
C) $13.78. 
D) $14.00. 
E) $14.35.

Question 5

Falcon Company uses a standard cost system; as such, all inventories are carried on the books at standard cost. During the most recent period the company manufactured 12,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $1,000 and a favorable direct labor efficiency variance of $275.
Required:
What was the total actual cost of direct labor incurred during the period?

Accepted Answer

Answer may

Question 6

The direct materials usage variance for July was:

Accepted Answer

A) $3,000 favorable. 
B) $43,000 favorable. 
C) $12,000 unfavorable. 
D) $15,000 unfavorable. 
A) $3,000 favorable. 
B) $43,000 favorable. 
C) $12,000 unfavorable. 
D) $15,000 unfavorable.

Question 7

The amount B is:

Accepted Answer

A) $100,300. 
B) $102,000. 
C) $103,440. 
D) $105,600. 
A) $100,300. 
B) $102,000. 
C) $103,440. 
D) $105,600.

Question 8

The direct labor flexible-budget variance of the period is:

Accepted Answer

A) $1,590 favorable. 
B) $5,650 unfavorable. 
C) $7,040 unfavorable. 
D) $9,830 unfavorable. 
A) $1,590 favorable. 
B) $5,650 unfavorable. 
C) $7,040 unfavorable. 
D) $9,830 unfavorable.

Question 9

Discuss some major differences between static and flexible budgets.

Accepted Answer

Answer may vary
Feedback: A static budge

Question 10

James has the following information pertaining to its usage of direct labor in a recent period:   Required:
1. Calculate the labor efficiency variance for the period.
2. Calculate the labor rate variance for the period.
3. Prepare, in proper form, the journal entry to record wage expense for the period, including any associated standard cost variances.

Accepted Answer

Answer may

Question 11

Using continuous-improvement standards likely has the effect(s) of all the following except:

Accepted Answer

A) Reductions in inefficiencies. 
B) Reduced product defects. 
C) Constantly decreasing standard levels. 
D) Improved productivity. 
E) Increasing pressure on employees and managers. 
A) Reductions in inefficiencies. 
B) Reduced product defects. 
C) Constantly decreasing standard levels. 
D) Improved productivity. 
E) Increasing pressure on employees and managers.

Question 12

The direct labor rate 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 13

The direct materials usage ratio for a given period is:

Accepted Answer

A) Defined as the ratio of quantity purchased to quantity used. 
B) Defined as the inverse of the materials quantity variance for the period. 
C) Entered into its own variance account at the end of the period. 
D) A useful indicator of performance by the manufacturing department. 
E) A useful indicator of performance of the purchasing department. 
A) Defined as the ratio of quantity purchased to quantity used. 
B) Defined as the inverse of the materials quantity variance for the period. 
C) Entered into its own variance account at the end of the period. 
D) A useful indicator of performance by the manufacturing department. 
E) A useful indicator of performance of the purchasing department.

Question 14

A company's flexible budget for 15,000 units of production showed sales of $48,000; variable costs of $18,000; and fixed costs of $12,000. The operating income in the master budget for 20,000 units is:

Accepted Answer

A) $8,000. 
B) $13,500. 
C) $24,000. 
D) $28,000. 
E) $30,000. 
A) $8,000. 
B) $13,500. 
C) $24,000. 
D) $28,000. 
E) $30,000.

Question 15

All of the following are limitations of short-term financial performance indicators except:

Accepted Answer

A) Employees and managers can take actions that improve short-term financial performance at the expense of long-term performance. 
B) Focusing on individual cost variances can result in optimum local but not global (i.e., firm-wide) performance. 
C) Operating personnel may not readily understand or be able to interpret financial-performance indicators. 
D) Senior managers typically find non-financial performance indicators more useful than summary financial-performance indicators. 
A) Employees and managers can take actions that improve short-term financial performance at the expense of long-term performance. 
B) Focusing on individual cost variances can result in optimum local but not global (i.e., firm-wide) performance. 
C) Operating personnel may not readily understand or be able to interpret financial-performance indicators. 
D) Senior managers typically find non-financial performance indicators more useful than summary financial-performance indicators.

Question 16

Ann Jacobson's supervisor has asked her to list any concerns she might have about the proposed development of standards to measure performance and to reward superior performance in her department. Ann's department handles customer calls, directing customer questions and complaints to the appropriate persons within the firm. The company has never before used any performance measure nor paid any performance-related bonuses. It hopes to install a simple but effective system to achieve its twin goals of cost control and performance measurement. Develop the list for Ann based on the information above.

Accepted Answer

Answer may vary
Feedback: (Note: The for

Question 17

Precilla's standard price per pound of direct materials is:

Accepted Answer

A) $4.00. 
B) $5.00. 
C) $6.00. 
D) $10.00. 
E) $12.00. 
A) $4.00. 
B) $5.00. 
C) $6.00. 
D) $10.00. 
E) $12.00.

Question 18

The direct materials purchase-price variance is for June was:

Accepted Answer

A) $63,700 unfavorable. 
B) $65,520 unfavorable. 
C) $69,160 unfavorable. 
D) $95,760 unfavorable. 
A) $63,700 unfavorable. 
B) $65,520 unfavorable. 
C) $69,160 unfavorable. 
D) $95,760 unfavorable.

Question 19

What was the company's direct materials flexible-budget (FB) variance for July?

Accepted Answer

A) $1,500 favorable. 
B) $3,000 unfavorable. 
C) $3,000 favorable. 
D) $7,500 unfavorable. 
E) $7,500 favorable. 
A) $1,500 favorable. 
B) $3,000 unfavorable. 
C) $3,000 favorable. 
D) $7,500 unfavorable. 
E) $7,500 favorable.

Question 20

Prokp's total standard direct labor hours for units produced in April were:

Accepted Answer

A) 890. 
B) 900. 
C) 1,000. 
D) 1,100. 
E) 1,110. 
A) 890. 
B) 900. 
C) 1,000. 
D) 1,100. 
E) 1,110.

The direct materials usage (efficiency) variance for June was:

Another name for the total operating income variance for a period is:

The total direct labor variance for October was:

The standard direct labor rate per hour (SP) is:

The direct materials usage variance for July was:

The amount B is:

The direct labor flexible-budget variance of the period is:

Discuss some major differences between static and flexible budgets.

Using continuous-improvement standards likely has the effect(s) of all the following except:

The direct labor rate variance for October was:

The direct materials usage ratio for a given period is:

A company's flexible budget for 15,000 units of production showed sales of $48,000; variable costs of $18,000; and fixed costs of $12,000. The operating income in the master budget for 20,000 units is:

All of the following are limitations of short-term financial performance indicators except:

Precilla's standard price per pound of direct materials is:

The direct materials purchase-price variance is for June was:

What was the company's direct materials flexible-budget (FB) variance for July?

Prokp's total standard direct labor hours for units produced in April were:

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

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

The direct materials usage (efficiency) variance for June was:

Another name for the total operating income variance for a period is:

The total direct labor variance for October was:

The standard direct labor rate per hour (SP) is:

The direct materials usage variance for July was:

The amount B is:

The direct labor flexible-budget variance of the period is:

Discuss some major differences between static and flexible budgets.

Using continuous-improvement standards likely has the effect(s) of all the following except:

The direct labor rate variance for October was:

The direct materials usage ratio for a given period is:

A company's flexible budget for 15,000 units of production showed sales of $48,000; variable costs of $18,000; and fixed costs of $12,000. The operating income in the master budget for 20,000 units is:

All of the following are limitations of short-term financial performance indicators except:

Precilla's standard price per pound of direct materials is:

The direct materials purchase-price variance is for June was:

What was the company's direct materials flexible-budget (FB) variance for July?

Prokp's total standard direct labor hours for units produced in April were:

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