Question 1

The materials price variance for January is:

Accepted Answer

A) $2,482 F 
B) $2,740 U 
C) $2,482 U 
D) $2,740 F 
A) $2,482 F 
B) $2,740 U 
C) $2,482 U 
D) $2,740 F B

Question 2

Jungman Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours.  
 The company produced 4,600 units of this product in November.
Required:
a.What is the total standard cost of one unit of this product?
b.What was the standard ounces allowed for the actual output of this product in November?
c.What was the standard hours allowed for the actual output of this product in November?

Accepted Answer

a.   b.SQ = 4,600 units × 6.9 ounces per unit = 31,740 ounces
c.SH = 4,600 units × 0.50 hours per unit = 2,300 hours

Question 3

The labor efficiency variance for the month is closest to:

Accepted Answer

A) $3,876 U 
B) $4,199 F 
C) $4,199 U 
D) $3,876 F 
A) $3,876 U 
B) $4,199 F 
C) $4,199 U 
D) $3,876 F D

Question 4

The raw materials quantity variance for the month is closest to:

Accepted Answer

A) $50 U 
B) $57 U 
C) $57 F 
D) $50 F 
A) $50 U 
B) $57 U 
C) $57 F 
D) $50 F

Question 5

An unfavorable materials quantity variance indicates that:

Accepted Answer

A) actual usage of material exceeds the standard material allowed for output. 
B) standard material allowed for output exceeds the actual usage of material. 
C) actual material price exceeds standard price. 
D) standard material price exceeds actual price. 
A) actual usage of material exceeds the standard material allowed for output. 
B) standard material allowed for output exceeds the actual usage of material. 
C) actual material price exceeds standard price. 
D) standard material price exceeds actual price.

Question 6

The labor rate variance for March is:

Accepted Answer

A) $4,120 U 
B) $3,270 U 
C) $4,120 F 
D) $3,270 F 
A) $4,120 U 
B) $3,270 U 
C) $4,120 F 
D) $3,270 F

Question 7

Dunbar Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.67 per unit of output.Last month the company had a $9,604 favorable spending variance for supplies.During that month, 19,600 units were produced.Budgeted activity for the month had been 19,200 units.The actual cost per unit for indirect materials must have been closest to:

Accepted Answer

A) $1.73 
B) $2.67 
C) $2.18 
D) $1.69 
A) $1.73 
B) $2.67 
C) $2.18 
D) $1.69

Question 8

The materials price variance for October is:

Accepted Answer

A) $15,000 Unfavorable 
B) $15,000 Favorable 
C) $25,000 Unfavorable 
D) $25,000 Favorable 
A) $15,000 Unfavorable 
B) $15,000 Favorable 
C) $25,000 Unfavorable 
D) $25,000 Favorable

Question 9

Hermansen Corporation produces large commercial doors for warehouses and other facilities.In the most recent month, the company budgeted production of 5,100 doors.Actual production was 5,400 doors.According to standards, each door requires 3.8 machine-hours.The actual machine-hours for the month were 20,880 machine-hours.The standard supplies cost is $7.90 per machine-hour.The actual supplies cost for the month was $152,063.Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:

Accepted Answer

A) $10,045 F 
B) $10,045 U 
C) $2,844 F 
D) $2,844 U 
A) $10,045 F 
B) $10,045 U 
C) $2,844 F 
D) $2,844 U

Question 10

The spending variance for power cost for the month should be:

Accepted Answer

A) $1,900 F 
B) $1,900 U 
C) $380 U 
D) $380 F 
A) $1,900 F 
B) $1,900 U 
C) $380 U 
D) $380 F

Question 11

Sade Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours.   The company has reported the following actual results for the product for December:   Required:
a.Compute the variable overhead rate variance for December.
b.Compute the variable overhead efficiency variance for December.

Accepted Answer

a.Variable overhead rate variance = (AH

Question 12

Hislop Tech is a for-profit vocational school.The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course.The school uses the following data in its budgeting:

In June, the school budgeted for 1,910 students and 111 courses.The school's income statement showing the actual results for the month appears below:   Required:
Prepare a report showing the school's revenue and spending variances for June.Label each variance as favorable (F)or unfavorable (U).

Accepted Answer

The answer of Hislop Tech is a for-profit vocational school.The...

Question 13

Becka Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct  labor-hours.   The company produced 2,300 units of this product in November.
Required:
a.What is the total standard cost of one unit of this product?
b.What was the standard grams allowed for the actual output of this product in November?
c.What was the standard hours allowed for the actual output of this product in November?

Accepted Answer

a. @#IMG-DLM&_TB2627_00 b.SQ = 2,300 uni

Question 14

The variable overhead efficiency variance for July is:

Accepted Answer

A) $380 F 
B) $399 U 
C) $380 U 
D) $399 F 
A) $380 F 
B) $399 U 
C) $380 U 
D) $399 F

Question 15

In a flexible budget, what will happen to fixed costs as the activity level increases?

Accepted Answer

A) The fixed cost per unit will decrease. 
B) The fixed cost per unit will remain unchanged. 
C) The fixed cost per unit will increase. 
D) Fixed costs are not included in a flexible budget. 
A) The fixed cost per unit will decrease. 
B) The fixed cost per unit will remain unchanged. 
C) The fixed cost per unit will increase. 
D) Fixed costs are not included in a flexible budget.

Question 16

The standard amount of materials allowed for the actual output is closest to:

Accepted Answer

A) 23,310 ounces 
B) 23,300 ounces 
C) 22,687 ounces 
D) 23,940 ounces 
A) 23,310 ounces 
B) 23,300 ounces 
C) 22,687 ounces 
D) 23,940 ounces

Question 17

The wages and salaries in the planning budget for May would be closest to:

Accepted Answer

A) $25,070 
B) $25,009 
C) $23,919 
D) $23,984 
A) $25,070 
B) $25,009 
C) $23,919 
D) $23,984

Question 18

The variable overhead efficiency variance for the month is closest to:

Accepted Answer

A) $46 U 
B) $42 F 
C) $46 F 
D) $42 U 
A) $46 U 
B) $42 F 
C) $46 F 
D) $42 U

Question 19

The labor efficiency variance for the month was:

Accepted Answer

A) $420.00 U 
B) $420.00 F 
C) $415.80 U 
D) $415.80 F 
A) $420.00 U 
B) $420.00 F 
C) $415.80 U 
D) $415.80 F

Question 20

The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to:

Accepted Answer

A) $3,100 U 
B) $13,600 U 
C) $3,100 F 
D) $13,600 F 
A) $3,100 U 
B) $13,600 U 
C) $3,100 F 
D) $13,600 F

The materials price variance for January is:

The labor efficiency variance for the month is closest to:

The raw materials quantity variance for the month is closest to:

An unfavorable materials quantity variance indicates that:

The labor rate variance for March is:

The materials price variance for October is:

The spending variance for power cost for the month should be:

The variable overhead efficiency variance for July is:

In a flexible budget, what will happen to fixed costs as the activity level increases?

The standard amount of materials allowed for the actual output is closest to:

The wages and salaries in the planning budget for May would be closest to:

The variable overhead efficiency variance for the month is closest to:

The labor efficiency variance for the month was:

The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The materials price variance for January is:

The labor efficiency variance for the month is closest to:

The raw materials quantity variance for the month is closest to:

An unfavorable materials quantity variance indicates that:

The labor rate variance for March is:

The materials price variance for October is:

The spending variance for power cost for the month should be:

The variable overhead efficiency variance for July is:

In a flexible budget, what will happen to fixed costs as the activity level increases?

The standard amount of materials allowed for the actual output is closest to:

The wages and salaries in the planning budget for May would be closest to:

The variable overhead efficiency variance for the month is closest to:

The labor efficiency variance for the month was:

The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters