Question 1

What was the direct labor flexible-budget (FB) variance for the month?

Accepted Answer

A) $20,000 unfavorable. 
B) $25,000 unfavorable. 
C) $37,500 favorable. 
D) $62,500 unfavorable. 
E) $80,000 unfavorablE.Direct labor flexible-budget (F
B)  variance = total direct labor standard cost variance = labor rate variance + labor efficiency variance = $30,000F (given) + $50,000U (given) = $20,000U. 
A) $20,000 unfavorable. 
B) $25,000 unfavorable. 
C) $37,500 favorable. 
D) $62,500 unfavorable. 
E) $80,000 unfavorablE.Direct labor flexible-budget (F
B)  variance = total direct labor standard cost variance = labor rate variance + labor efficiency variance = $30,000F (given) + $50,000U (given) = $20,000U.

Question 2

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 3

A manufacturer planned to use $82 of materials per unit produced, but in the most recent period it actually used $80 of material per unit produced. During this same period, the company planned to produce 1,200 units, but actually produced only 1,000 units. The flexible-budget variance for materials is:

Accepted Answer

A) $2,000 favorable. 
B) Impossible to determine without additional information. 
C) $14,000 unfavorable 
D) $16,400 unfavorable. 
E) $2,400 unfavorable. 
A) $2,000 favorable. 
B) Impossible to determine without additional information. 
C) $14,000 unfavorable 
D) $16,400 unfavorable. 
E) $2,400 unfavorable.

Question 4

The direct labor rate variance is:

Accepted Answer

A) $36,900 unfavorable. 
B) $37,800 unfavorable. 
C) $55,350 unfavorable. 
D) $56,700 unfavorable. 
E) $73,800 unfavorable. 
A) $36,900 unfavorable. 
B) $37,800 unfavorable. 
C) $55,350 unfavorable. 
D) $56,700 unfavorable. 
E) $73,800 unfavorable.

Question 5

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 6

By convention, short-term financial control is accomplished by all the following except:

Accepted Answer

A) Comparing actual to budgeted financial results. 
B) Calculating a series of cost and revenue variances at the end of the period. 
C) The use of flexible budgets and standard costs. 
D) Explaining the total operating-income variance for a given period. 
E) The use of productivity analysis. 
A) Comparing actual to budgeted financial results. 
B) Calculating a series of cost and revenue variances at the end of the period. 
C) The use of flexible budgets and standard costs. 
D) Explaining the total operating-income variance for a given period. 
E) The use of productivity analysis.

Question 7

Traditional financial control systems have recently been criticized because:

Accepted Answer

A) They use flexible, not static, budgets. 
B) They generally lead to goal-congruent behavior on the part of managers. 
C) They focus more in improving basic business processes than short-term financial results. 
D) They fail to incorporate nonfinancial performance indicators into the evaluation process. 
E) They provide performance data on a real-time basis. 
A) They use flexible, not static, budgets. 
B) They generally lead to goal-congruent behavior on the part of managers. 
C) They focus more in improving basic business processes than short-term financial results. 
D) They fail to incorporate nonfinancial performance indicators into the evaluation process. 
E) They provide performance data on a real-time basis.

Question 8

Discuss some major differences between static and flexible budgets.

Accepted Answer

Answer may vary
Feedback: A static budge

Question 9

The direct materials purchase-price variance is:

Accepted Answer

A) $51,840 favorable. 
B) $56,160 favorable. 
C) $62,208 favorable. 
D) $64,840 favorable. 
E) $72,000 favorable. 
A) $51,840 favorable. 
B) $56,160 favorable. 
C) $62,208 favorable. 
D) $64,840 favorable. 
E) $72,000 favorable.

Question 10

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 11

The actual direct labor rate per hour (AP) is:

Accepted Answer

A) $12.00. 
B) $12.30. 
C) $12.60. 
D) $13.20. 
E) $13.50. 
A) $12.00. 
B) $12.30. 
C) $12.60. 
D) $13.20. 
E) $13.50.

Question 12

Ally's direct labor rate variance for July is:

Accepted Answer

A) $2,000 unfavorable. 
B) $4,000 unfavorable. 
C) $20,000 favorable. 
D) $22,000 unfavorable. 
E) $26,000 unfavorablE.Direct labor rate variance = (AP - SP) × AQ = 5,500 hours (given) × ([$242,000 ÷ 5,500 hours] - $40.00/hour) = 5,500 hours × ($44.00 - $40.00)/hour = $22,000U. 
A) $2,000 unfavorable. 
B) $4,000 unfavorable. 
C) $20,000 favorable. 
D) $22,000 unfavorable. 
E) $26,000 unfavorablE.Direct labor rate variance = (AP - SP) × AQ = 5,500 hours (given) × ([$242,000 ÷ 5,500 hours] - $40.00/hour) = 5,500 hours × ($44.00 - $40.00)/hour = $22,000U.

Question 13

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 14

The actual total cost of direct materials used in production is:

Accepted Answer

A) $458,068. 
B) $459,862. 
C) $461,132. 
D) $462,938. 
E) $478,400. 
A) $458,068. 
B) $459,862. 
C) $461,132. 
D) $462,938. 
E) $478,400.

Question 15

Ally's direct labor efficiency variance for July is:

Accepted Answer

A) $2,000 unfavorable. 
B) $4,000 unfavorable. 
C) $20,000 favorable. 
D) $22,000 unfavorable. 
E) $26,000 unfavorablE.Labor efficiency variance = (AQ - SQ) × SP = (5,500 hrs. - [1,800 units × (6,000 hrs. ÷ 2,000 units]) × $40.00/hr. (given) = (5,500 - 5,400) hours × $40.00/hr. = $4,000U. 
A) $2,000 unfavorable. 
B) $4,000 unfavorable. 
C) $20,000 favorable. 
D) $22,000 unfavorable. 
E) $26,000 unfavorablE.Labor efficiency variance = (AQ - SQ) × SP = (5,500 hrs. - [1,800 units × (6,000 hrs. ÷ 2,000 units]) × $40.00/hr. (given) = (5,500 - 5,400) hours × $40.00/hr. = $4,000U.

Question 16

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 17

The actual direct materials purchase price (AP) per kilogram in July was:

Accepted Answer

A) $8.80. 
B) $9.90. 
C) $10.00. 
D) $10.10. 
E) $11.80. 
A) $8.80. 
B) $9.90. 
C) $10.00. 
D) $10.10. 
E) $11.80.

Question 18

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 19

A standard that assumes perfect implementation and maximum efficiency is called a(n):

Accepted Answer

A) Currently attainable standard. 
B) Practical standard. 
C) Efficiency standard. 
D) Normal standard. 
E) Ideal standard. 
A) Currently attainable standard. 
B) Practical standard. 
C) Efficiency standard. 
D) Normal standard. 
E) Ideal standard.

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.

What was the direct labor flexible-budget (FB) variance for the month?

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

The direct labor rate variance is:

By convention, short-term financial control is accomplished by all the following except:

Traditional financial control systems have recently been criticized because:

Discuss some major differences between static and flexible budgets.

The direct materials purchase-price variance is:

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

The actual direct labor rate per hour (AP) is:

Ally's direct labor rate variance for July 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 actual total cost of direct materials used in production is:

Ally's direct labor efficiency variance for July is:

The direct materials usage variance for July was:

The actual direct materials purchase price (AP) per kilogram in July was:

The total standard direct labor cost for the period is:

A standard that assumes perfect implementation and maximum efficiency is called a(n):

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

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

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

What was the direct labor flexible-budget (FB) variance for the month?

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

The direct labor rate variance is:

By convention, short-term financial control is accomplished by all the following except:

Traditional financial control systems have recently been criticized because:

Discuss some major differences between static and flexible budgets.

The direct materials purchase-price variance is:

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

The actual direct labor rate per hour (AP) is:

Ally's direct labor rate variance for July 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 actual total cost of direct materials used in production is:

Ally's direct labor efficiency variance for July is:

The direct materials usage variance for July was:

The actual direct materials purchase price (AP) per kilogram in July was:

The total standard direct labor cost for the period is:

A standard that assumes perfect implementation and maximum efficiency is called a(n):

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

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

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