Question 1

Among characteristics that distinguish service and manufacturing firms are the:

Accepted Answer

A) Absence of output inventory in service firms. 
B) Existence of labor-intensive products in manufacturing firms. 
C) Rendering of identical services in a service firm. 
D) Capital intensiveness of service firms. 
E) Organizational structure of service firms. 
A) Absence of output inventory in service firms. 
B) Existence of labor-intensive products in manufacturing firms. 
C) Rendering of identical services in a service firm. 
D) Capital intensiveness of service firms. 
E) Organizational structure of service firms.

Question 2

Megan,Inc.uses the following standard costs per unit for one of its products: Direct labor (2 hrs @ $5/hr)= $10;overhead (2 hrs @ $2.50/hr)= $5.The flexible budget for overhead is $120,000 plus $1 per direct labor hour (DLH).Actual data for the month show total overhead costs of $225,000,total fixed overhead of $123,000,85,000 hours worked,and 40,000 units produced.The overhead production-volume variance is:

Accepted Answer

A) $0. 
B) $3,000 unfavorable. 
C) $5,000 unfavorable. 
D) $20,000 unfavorable. 
E) None of the above. 
A) $0. 
B) $3,000 unfavorable. 
C) $5,000 unfavorable. 
D) $20,000 unfavorable. 
E) None of the above.

Question 3

Which of the following statements about variable overhead costs is true?

Accepted Answer

A) The underlying model for control and product-costing purposes is the same for variable overhead. 
B) The amount of variable overhead applied to production is a function of the denominator output volume and the actual quantity of the cost-allocation base (cost driver)used to apply overhead. 
C) The total variable overhead cost variance can be decomposed into a production-volume variance and a flexible-budget variance. 
D) For control purposes,the actual quantity of the cost-allocation base (cost driver)is used. 
E) Standard costs can be used for control,but not product-costing,purposes. 
A) The underlying model for control and product-costing purposes is the same for variable overhead. 
B) The amount of variable overhead applied to production is a function of the denominator output volume and the actual quantity of the cost-allocation base (cost driver)used to apply overhead. 
C) The total variable overhead cost variance can be decomposed into a production-volume variance and a flexible-budget variance. 
D) For control purposes,the actual quantity of the cost-allocation base (cost driver)is used. 
E) Standard costs can be used for control,but not product-costing,purposes.

Question 4

ABN Corp.has the following information about its standards and production activity in May:

Accepted Answer

Required:Calculate and show calculations

Question 5

The following information is available from Thinnews Co. ,a company that uses machine hours to apply factory overhead:  
Under a three-variance breakdown (decomposition)of the total factory overhead variance,the factory overhead efficiency variance is:

Accepted Answer

A) $400 favorable. 
B) $600 unfavorable. 
C) $1,400 favorable. 
D) $1,400 unfavorable. 
E) $2,000 favorable. 
A) $400 favorable. 
B) $600 unfavorable. 
C) $1,400 favorable. 
D) $1,400 unfavorable. 
E) $2,000 favorable.

Question 6

A standard costing system will produce the same income as an actual costing system when end-of-period standard cost variances are assigned:

Accepted Answer

A) Only to work-in-process (WIP)inventory. 
B) Only to finished goods inventory. 
C) To work-in-process and finished goods inventories. 
D) Entirely to cost of goods sold. 
E) To cost of goods sold and all inventory accounts. 
A) Only to work-in-process (WIP)inventory. 
B) Only to finished goods inventory. 
C) To work-in-process and finished goods inventories. 
D) Entirely to cost of goods sold. 
E) To cost of goods sold and all inventory accounts.

Among characteristics that distinguish service and manufacturing firms are the:

Which of the following statements about variable overhead costs is true?

ABN Corp.has the following information about its standards and production activity in May:

The following information is available from Thinnews Co. ,a company that uses machine hours to apply factory overhead: Under a three-variance breakdown (decomposition)of the total factory overhead variance,the factory overhead efficiency variance is:

A standard costing system will produce the same income as an actual costing system when end-of-period standard cost variances are assigned:

Cost Management and Strategy

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Profit Planning: Cost-Volume-Profit Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing,Theory of Constraints,and Strategic Pricing

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

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 15: Operational Performance Measurement: Indirect-Cost Variances and Resource- Capacity Management

Among characteristics that distinguish service and manufacturing firms are the:

Which of the following statements about variable overhead costs is true?

ABN Corp.has the following information about its standards and production activity in May:

The following information is available from Thinnews Co. ,a company that uses machine hours to apply factory overhead: Under a three-variance breakdown (decomposition)of the total factory overhead variance,the factory overhead efficiency variance is:

A standard costing system will produce the same income as an actual costing system when end-of-period standard cost variances are assigned:

Cost Management and Strategy

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Profit Planning: Cost-Volume-Profit Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing,Theory of Constraints,and Strategic Pricing

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

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers

Management Compensation, Business Analysis, and Business Valuation

Filters