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

Differences in expectation levels lead to two basic types of standards in a standard cost system:

A ______________ standard gets progressively tighter over time:

The column heading identified as A is:

What was Mandy's direct labor flexible-budget variance for the month?

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?

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

How many units of the product were produced in August?

Rachael Hair Products shows the following budgeted and actual data for the first quarter of the current fiscal year: Required: 1. What type of financial control system might the company use to determine whether the company met its short-term financial objectives? 2. For the first quarter of the year, what was the total master (static) budget variance? 3. In general, into what two component variances can the master (static) budget variance be decomposed? What is the meaning of each of these two variances? 4. Comment specifically on the financial performance of this company during the 1^st quarter. 5. What are the primary limitations of traditional financial-control models?

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

The total sales revenue in the master budget for September was:

The actual amount of operating income earned in September was:

The direct materials usage ratio for a given period is:

A materials efficiency variance can be caused by all of the following except:

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.

Shoemaker Perkins Company uses a standard cost system and had 400 pounds of raw material X15 on hand on September 1. The standard cost is $10 per pound. The standard calls for 2 pounds of material X15 for each unit of the product manufactured. The company manufactured 600 units of the product in September, and had 500 pounds of Material X-15 in stock on September 30. The actual price for Material X-15 purchased during the month was $1 per pound below the standard cost. The material usage variance in September was $3,000 unfavorable. What is the purchase-price variance for Material X in September?

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

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

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

The amount F is:

Which one of the following is the difference between the actual hourly wage rate and the standard hourly wage rate, multiplied by the actual direct labor hours worked during a period?