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

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

The term "processing cycle efficiency" (PCE):

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 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 efficiency variance for July was:

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

McElroy Company has prepared the following master budget for 2010.Although McElroy has the capacity to manufacture 50,000 units,management expected the likely demand for its product to be 40,000 units in 2010;as such,it prepared the master budget to manufacture and sell 40,000 units.In early January 2011,the company was pleasantly surprised to find out that it manufactured and sold 45,000 units in 2010.

The total operating-income variance for a period reveals whether a company has achieved:

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

Rachael Hair Products shows the following budgeted and actual data for the first quarter of the current fiscal year:

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 direct materials usage variance for December is:

An organization planned to use $82 of material per unit of output,but it actually used $80 per unit.During this period,the company planned to make 1,200 units,but actually produced only 1,000 units.The flexible budget amount for materials is:

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?

The effect on sales,expenses,or operating income of changes in units sold is measured by the:

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

Lucky Company's direct labor information for the month of February is as follows: The actual direct labor rate per hour 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 sales revenue in the master budget for September was:

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

Which of the following is not a plausible cause of a direct labor efficiency variance?

The difference between the total actual sales revenue of a period and the total flexible-budget sales revenue for the units sold during the period is the:

Which of the following is not considered a basic business process?