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

Which of the following is not indicated as an advantage of using nonfinancial performance measures,relative to financial performance measures,as part of an operational control system?

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?

Ally Mfg.uses a standard cost system and its July production of 1,800 units involved actual direct labor costs of $242,000 for 5,500 hours worked.The budget for July called for production of 2,000 units with 6,000 direct labor hours at $40.00 per hour. Ally's direct labor rate variance for July is:

Lucky Company's direct labor information for the month of February is as follows: The total standard direct labor cost for the period is:

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

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/unit x $10.00 per kilogram = $40.00/unit;labor: 4 hours/unit 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 total cost of direct materials used in production during July was:

Ally Mfg.uses a standard cost system and its July production of 1,800 units involved actual direct labor costs of $242,000 for 5,500 hours worked.The budget for July called for production of 2,000 units with 6,000 direct labor hours at $40.00 per hour. Ally's direct labor efficiency variance for July is:

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.

Pokeman Bunch Inc. ,manufactures PokeMonster figures and has the following data from its operation for the year just completed. The total operating-income variance is:

A favorable cost variance of significant magnitude:

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/unit x $10.00 per kilogram)$40.00/unit;labor: 4 hours/unit 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 direct labor flexible-budget variance for July 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: Materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit;labor: 4 hours/unit 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 direct labor rate variance for July is:

A flexible budget contains:

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

Operational control systems can be distinguished from financial control systems:

Lucky Company's direct labor information for the month of February is as follows: The direct labor rate variance is:

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 is 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 amount of operating income in the flexible budget (FB)for September was:

Which of the following is not an anticipated benefit of switching to a JIT production system?

Europa Company manufactures only one product.Presented below is direct labor information for November. The total standard direct labor hours in November for the output produced are:

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