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

Mandy Company has the following direct labor costs last month: What was Mandy's standard direct labor rate per hour?

The "flexible budget" can best be described as a budget that adjusts:

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

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

For operational control,a management accounting system should include:

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

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

Which of the following benefits is not typically associated with a move to a just-in-time (JIT)manufacturing system?

Balt Company maintains a standard cost system;as such,all inventories,including materials,are carried on the books at standard cost.Last period,Balt used 5,000 pounds of Material H to produce 800 units of Product C8.The company has established a standard of 7 pounds of Material H per unit of C8,at a price of $7.50 per pound of material.During the period the inventory for Material H decreased by 2,000 pounds.The company spent $25,000 during the period to purchase material H. Required: (1)Calculate the direct materials purchase-price variance for the period.(2)Calculate the direct materials usage variance for the period.(3)Provide the correct summary journal entry to record the purchase,on credit,of materials during the period.(4)Provide the correct summary journal to record direct materials cost for materials issued to production during the period.

Kennedy Inc.has the following data for its operation in August: What was the direct materials usage variance in August?

Prokp Co.'s records for April disclosed the following data relating to direct labor: Prokp's standard direct labor rate per hour in April was:

Information concerning Johnston Co.'s direct materials costs was as follows: The actual purchase price per pound is:

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 actual hourly rate for direct labor?

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

A "standard cost" is a predetermined amount (e.g. ,cost)that:

Which of the following statements about processing cycle efficiency (PCE)is not true:

The direct materials usage ratio for a given period is:

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 were the total standard hours allowed for the units manufactured during the month?

The Chen Company uses a standard cost system.As such,all of its inventories are carried on the books at standard,not actual,cost.During the most recent accounting period,the company had the following summary transactions: (A)Purchased,on credit,direct materials;the standard cost of these materials was $30,000,while the actual cost was $32,000. (B)Issued to production direct materials.The standard cost of materials that should have been used for this period's output was $35,000,while the standard cost of materials actually used in production during the period was $33,000. (C)Actual direct labor cost,which has been incurred but not yet paid,for the period was $75,000.The standard direct labor cost for this period's output was $80,000.The direct labor efficiency variance for the period was $10,000(F). (D)For the units completed during the period,the standard direct labor cost was $78,000,while the standard direct materials cost was $34,000. (E)For the units sold during the period,the standard materials cost was $30,000,while the standard direct labor cost was $76,000 Required: Given the above information,provide the correct journal entries for the following: (A)Purchase of direct materials (B)Issuance of materials to production. (C)Direct labor cost for the period. (D)The labor and materials cost associated with finished production this period. (E)The labor and materials cost associated with items sold during the period.

Kennedy Inc.has the following data for its operation in August: What was the actual purchase price per unit?