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

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

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 master budget operating income for September was:

The arrival of new manufacturing techniques such as automation,flexible manufacturing systems,and cluster or cell manufacturing has:

Minmax Co.'s direct labor information for February is as follows: The actual direct labor rate per hour is:

The difference between the flexible-budget operating income and the actual operating income in a period is the:

Precilla Company uses a standard costing system that allows 2 pounds of direct materials for one finished unit.During July,the company purchased 40,000 pounds of direct materials for $210,000 and manufactured 12,000 finished units.The standard direct materials cost allowed for the units manufactured is $120,000.The performance report shows that Pricilla has an unfavorable direct materials usage variance of $5,000.Also,the company records any price variance for materials at time of purchase. Precilla's standard price per pound of direct materials 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 total amount of variable costs in the flexible budget for September was:

A "currently attainable standard" emphasizes:

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

Sheldon Company manufactures only one product and uses a standard cost system.During the past month,the manufacturing operations had the following variances: Direct labor rate variance $30,000 Favorable.Direct labor efficiency variance 50,000 Unfavorable Sheldon allows 5 standard direct labor hours per unit produced,and its standard direct labor hourly rate is $50.During the month,the company used 25 percent more direct labor hours than the standard allowed.How many units of the product were produced during the past month?

The total operating-income variance for any period:

Minmax Co.'s direct labor information for February is as follows: The total standard direct labor cost for the units manufactured in February is:

Roncy Manufacturing uses enhanced powder plastics (EPP)to manufacture high-pressure boards,Dura-Plastic.Information concerning its operation in June was as follows: The direct materials usage (efficiency)variance for June was:

Europa Company manufactures only one product.Presented below is direct labor information for November. The actual direct labor hours worked during November was:

A company's flexible budget for 15,000 units of production showed sales of $48,000;variable costs of $18,000;and fixed costs of $12,000.The operating income in the master budget for 20,000 units is:

Customer-response time (CRT)is defined as:

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

Patterson,Inc.wishes to evaluate,in summary fashion,its financial performance for the most recent period.The budget and the actual operating results for this period are presented below.

Traditional financial control systems have recently been criticized because:

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 actual amount of operating income earned in September was: