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

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:

Europa Company manufactures only one product.Presented below is direct labor information for November. The direct labor flexible-budget variance is:

Prokp Co.'s records for April disclosed the following data relating to direct labor: Prokp's total standard direct labor hours for units produced in April were:

Luanna Inc.manufactures game consoles.Some of the company's data was misplaced.Use the following information to replace the lost data. The amount B is:

Shade Company adopted a standard cost system several years ago.The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms x $12.00 per kilogram)= $60.00/unit.Direct labor (3.5 hours x $20.00 per hour)= $70.00/unit.All materials were issued at the beginning of processing.The operating data shown below were taken from the records for December: The actual total cost of direct materials used in production is:

For a direct material,which one of the following is the difference between the actual and standard unit price of the direct material multiplied by the actual quantity of the material purchased?

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 direct labor hours per unit of output at $28 per labor hour.The standard direct labor hours for the units manufactured is 20 percent more than the total direct labor hours actually worked in August.What were the total standard hours allowed for the units manufactured in August?

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):

Discuss some major differences between static and flexible budgets.

A company's master budget for October is to manufacture and sell 30,000 units for a total of $270,000 with total variable costs of $180,000 and total fixed costs of $24,000.The company actually manufactured and sold 32,000 units and generated $45,000 of operating income in October.The flexible-budget operating income in October is:

The flexible-budget variable cost variance includes all of the following except:

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%:

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 x $7.00 per kilogram)= $84.00/unit;direct labor (8 hours/unit x $12.00 per 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:

Sarheen,Inc.maintains no inventories and has collected the following data on one of its products for the most recent period:

The primary purpose of calculating standard cost variances each period is:

Pokeman Bunch Inc. ,manufactures PokeMonster figures and has the following data from its operation for the year just completed. The amount C is:

Miller has the following information pertaining to its usage of direct labor in a recent period:

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

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: Materials: (4 kilograms x $10.00 per kilogram)$40.00/unit.Labor: (4 hours x $18.00 per hour)$72.00/unit.All materials are issued at the beginning of processing.The operating data shown below were taken from the records for July: The actual direct materials purchase price per kilogram in July was:

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?