Minmax Co.'s direct labor information for February is as follows:$\begin{array}{lr} \text { Direct labor hours worked (AQ) } & 33,600 \\ \text { Standard direct labor hours for units manufactured (SQ) } & 35,000 \\ \text { Unfavorable direct labor rate variance } & \$ 11,760 \\ \text { Total payroll for direct labor } & \$ 470,400 \end{array}$The actual direct labor rate per hour (AP) (rounded to two decimal places) for February was:

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.

Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July:$\begin{array}{lrr} \text { Standard quantity of direct materials for the units manufactured (SQ) } & 30,000 \\ \text { Direct materials purchases-actual cost } & \$ 63,000 \\ \text { Standard price per unit of direct materials (SP) } & \$ 2.00 \\ \text { Direct material efficiency variance-favorable } & \$ 4,500 \end{array}$All materials purchased during the month were issued to production. What was the company's direct materials flexible-budget (FB) variance for July (rounded to the nearest dollar)?

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.

Miller has the following information pertaining to its usage of direct labor in a recent period: \[\begin{array} { | l | r | } \hline \text { Total direct labor hours used } & 22,000 \\ \hline \text { Total units manufactured } & 7,200 \\ \hline \text { Actual wage rate per hour } & \$ 15 \\ \hline \text { Standard cost data: } & \\ \hline \text { Wage rate per hour } & \$ 14 \\ \hline \text { Standard hours per unit of output } & 3 \\ \hline \end{array}\] 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.

The answer of Miller has the following information pertaining to...

Mandy Company has the following information from last month: $\begin{array}{lr} \text { Standard direct labor hours allowed for units produced (SQ) } & 3,600 \\ \text { Actual direct labor hours worked (AQ) } & 3,480 \\ \text { Direct labor efficiency variance, favorable (F) } & \$ 5,760 \\ \text { Total payroll } & \$ 187,920 \end{array}$What was Mandy's direct labor rate variance for the month, rounded to the nearest dollar?

A) $15,120 unfavorable. B) $20,880 unfavorable. C) $23,490 unfavorable. D) $42,480 favorable. A) $15,120 unfavorable. B) $20,880 unfavorable. C) $23,490 unfavorable. D) $42,480 favorable.

Mandy Company has the following information from last month: $\begin{array}{lr} \text { Standard direct labor hours for units produced (SQ) } & 3,600 \\ \text { Actual direct labor hours worked (AQ) } & 3,480 \\ \text { Direct labor efficiency variance, favorable (F) } & \$ 5,760 \\ \text { Total payroll } & \$ 187,920 \end{array}$What was Mandy's actual direct labor rate per hour (AP), rounded to two decimal places?

A) $43.20. B) $45.60. C) $48.00. D) $52.20. E) $54.00. A) $43.20. B) $45.60. C) $48.00. D) $52.20. E) $54.00.

Europa Company manufactures only one product. Presented below is direct labor information for November. $\begin{array}{lr} \text { Standard direct labor hours per unit of product } & 3.20 \\ \text { Number of finished units produced } & 6,500 \\ \text { Standard wage rate per direct labor hour (SP) } & \$ 19.20 \\ \text { Total direct labor pavroll for the period } & \$ 359.424\\ \text { Actual wage rate per direct labor hour worked (AP) }&\$16.00 \end{array}$The direct labor efficiency variance for November (to the nearest dollar) was:

A) $26,624 unfavorable. B) $31,949 unfavorable. C) $39,936 favorable. D) $71,885 favorable. E) $103,834 favorable. A) $26,624 unfavorable. B) $31,949 unfavorable. C) $39,936 favorable. D) $71,885 favorable. E) $103,834 favorable.

Europa Company manufactures only one product. Presented below is direct labor information for November. $\begin{array}{lr} \text { Standard direct labor hours per unit of product } & 3.20 \\ \text { Number of finished units produced } & 6,500 \\ \text { Standard wage rate per direct labor hour (SP) } & \$ 19.20 \\ \text { Total direct labor pavroll for the period } & \$ 359.424\\ \text { Actual wage rate per direct labor hour worked (AP) }&\$16.00 \end{array}$The direct labor rate variance for November (to the nearest dollar) was:

A) $26,624 unfavorable. B) $31,949 unfavorable. C) $39,936 favorable. D) $71,885 favorable. E) $103,834 favorable. A) $26,624 unfavorable. B) $31,949 unfavorable. C) $39,936 favorable. D) $71,885 favorable. E) $103,834 favorable.

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

Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital equipment product, Flex 10. Information concerning its operation in June is as follows: Assume that Norio does not maintain an inventory of materials, so that the amount of materials used is equal to the amount of materials purchased. The cost of PPS in the flexible budget for the number of units manufactured this period (rounded to nearest dollar) is:

(Multiple Choice)

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Question 121

A favorable cost variance of significant magnitude:

(Multiple Choice)

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Question 122

Kennedy Inc. has the following data for its operation in August: What was the actual purchase price (AP) per set of direct materials purchased (to two decimal places)?

(Multiple Choice)

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Question 123

Minmax Co.'s direct labor information for February is as follows: Direct labor hours worked (AQ) 33,600 Standard direct labor hours for units manufactured (SQ) 35,000 Unfavorable direct labor rate variance \ 11,760 Total payroll for direct labor \ 470,400 The actual direct labor rate per hour (AP) (rounded to two decimal places) for February was:

(Multiple Choice)

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(40)

Question 124

Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July: Standard quantity of direct materials for the units manufactured (SQ) 30,000 Direct materials purchases-actual cost \ 63,000 Standard price per unit of direct materials (SP) \ 2.00 Direct material efficiency variance-favorable \ 4,500 All materials purchased during the month were issued to production. What was the company's direct materials flexible-budget (FB) variance for July (rounded to the nearest dollar)?

(Multiple Choice)

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Question 125

Pokeman Bunch Inc., manufactures Poke Monster figures, and has the following data from its operation for the year just completed.The column heading identified as A is:

(Multiple Choice)

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Question 126

Which one of the following is the difference in direct material costs between the actual cost incurred during the period and the total standard cost in the flexible budget for the units manufactured during the period?

(Multiple Choice)

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Question 127

Miller has the following information pertaining to its usage of direct labor in a recent period: Total direct labor hours used 22,000 Total units manufactured 7,200 Actual wage rate per hour \ 15 Standard cost data: Wage rate per hour \ 14 Standard hours per unit of output 3 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.

(Essay)

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Question 128

Pokeman Bunch Inc., manufactures Poke Monster figures, and has the following data from its operation for the year just completed.The column heading identified as B is:

(Multiple Choice)

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Question 129

Roncy Manufacturing uses enhanced powder plastics (EPP) to manufacture a high-pressure board, Dura-Plastic. Information concerning its operation in June was as follows:The direct materials purchase-price variance for June, to the nearest dollar, was:

(Multiple Choice)

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Question 130

Mandy Company has the following information from last month: Standard direct labor hours allowed for units produced (SQ) 3,600 Actual direct labor hours worked (AQ) 3,480 Direct labor efficiency variance, favorable (F) \ 5,760 Total payroll \ 187,920 What was Mandy's direct labor rate variance for the month, rounded to the nearest dollar?

(Multiple Choice)

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Question 131

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct labor rate variance for July (to nearest dollar) is:

(Multiple Choice)

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Question 132

In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 were fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The total sales revenue in the master budget for September, to the nearest dollar, was:

(Multiple Choice)

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Question 133

Mandy Company has the following information from last month: Standard direct labor hours for units produced (SQ) 3,600 Actual direct labor hours worked (AQ) 3,480 Direct labor efficiency variance, favorable (F) \ 5,760 Total payroll \ 187,920 What was Mandy's actual direct labor rate per hour (AP), rounded to two decimal places?

(Multiple Choice)

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Question 134

A "standard cost" is a predetermined amount (e.g., cost) that:

(Multiple Choice)

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Question 135

A standard that sets the performance criterion at a level that workers with proper training and experience can attain most of the time without extraordinary effort is a(n):

(Multiple Choice)

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Question 136

Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct labor hours per unit of product 3.20 Number of finished units produced 6,500 Standard wage rate per direct labor hour (SP) \ 19.20 Total direct labor pavroll for the period \ 359.424 Actual wage rate per direct labor hour worked (AP) \1 6.00 The direct labor efficiency variance for November (to the nearest dollar) was:

(Multiple Choice)

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Question 137

In September, Larson Inc. sold 40,000 units of its only product for $240,000 and incurred a total cost of $225,000, of which $25,000 was fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The total amount of variable costs in the flexible budget for September, to the nearest dollar, was:

(Multiple Choice)

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Question 138

Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct labor hours per unit of product 3.20 Number of finished units produced 6,500 Standard wage rate per direct labor hour (SP) \ 19.20 Total direct labor pavroll for the period \ 359.424 Actual wage rate per direct labor hour worked (AP) \1 6.00 The direct labor rate variance for November (to the nearest dollar) was:

(Multiple Choice)

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Question 139

Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable; Direct labor efficiency variance = $70,000 (?). The standard calls for 3.0 direct labor hours per unit of output at $28.00 per labor hour (SP). The standard direct labor hours allowed for the units manufactured (SQ) is 20 percent more than the total direct labor hours worked (AQ) in August. How many units (rounded to nearest whole number) of the product were produced in August?

(Multiple Choice)

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Question 140

Showing 121 - 140 of 178

A favorable cost variance of significant magnitude:

Kennedy Inc. has the following data for its operation in August: What was the actual purchase price (AP) per set of direct materials purchased (to two decimal places)?

Pokeman Bunch Inc., manufactures Poke Monster figures, and has the following data from its operation for the year just completed.The column heading identified as A is:

Which one of the following is the difference in direct material costs between the actual cost incurred during the period and the total standard cost in the flexible budget for the units manufactured during the period?

Pokeman Bunch Inc., manufactures Poke Monster figures, and has the following data from its operation for the year just completed.The column heading identified as B is:

Roncy Manufacturing uses enhanced powder plastics (EPP) to manufacture a high-pressure board, Dura-Plastic. Information concerning its operation in June was as follows:The direct materials purchase-price variance for June, to the nearest dollar, was:

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The direct labor rate variance for July (to nearest dollar) is:

A "standard cost" is a predetermined amount (e.g., cost) that:

A standard that sets the performance criterion at a level that workers with proper training and experience can attain most of the time without extraordinary effort is a(n):

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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