Question 1

The "Travel expenses" in the flexible budget for January would have been closest to:

Accepted Answer

A) $13,200 
B) $16,200 
C) $13,444 
D) $16,500 
A) $13,200 
B) $16,200 
C) $13,444 
D) $16,500

Question 2

The revenue variance for May would be closest to:

Accepted Answer

A) $4,150 F 
B) $2,170 F 
C) $2,170 U 
D) $4,150 U 
A) $4,150 F 
B) $2,170 F 
C) $2,170 U 
D) $4,150 U

Question 3

The personnel expenses in the planning budget for December would be closest to:

Accepted Answer

A) $76,620 
B) $77,156 
C) $79,809 
D) $80,776 
A) $76,620 
B) $77,156 
C) $79,809 
D) $80,776

Question 4

The following materials standards have been established for a particular product:   The following data pertain to operations concerning the product for the last month:   What is the materials quantity variance for the month?

Accepted Answer

A) $9,940 U 
B) $15,351 U 
C) $14,484 U 
D) $10,535 U 
A) $9,940 U 
B) $15,351 U 
C) $14,484 U 
D) $10,535 U

Question 5

The materials price variance for June is:

Accepted Answer

A) $7,620 U 
B) $6,825 U 
C) $6,825 F 
D) $7,620 F 
A) $7,620 U 
B) $6,825 U 
C) $6,825 F 
D) $7,620 F

Question 6

The medical supplies in the flexible budget for February would be closest to:

Accepted Answer

A) $17,512 
B) $17,204 
C) $18,087 
D) $18,240 
A) $17,512 
B) $17,204 
C) $18,087 
D) $18,240

Question 7

Bugos Corporation is a service company that measures its output by the number of customers served.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.    When the company prepared its planning budget at the beginning of March, it assumed that 40 customers would have been served.

The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to:

Accepted Answer

A) $91,200 
B) $94,800 
C) $92,600 
D) $102,889 
A) $91,200 
B) $94,800 
C) $92,600 
D) $102,889

Question 8

The amount shown for "Other expenses" in the planning budget for March would have been closest to:

Accepted Answer

A) $30,600 
B) $31,200 
C) $34,591 
D) $30,900 
A) $30,600 
B) $31,200 
C) $34,591 
D) $30,900

Question 9

The net operating income in the flexible budget for January would be closest to:

Accepted Answer

A) $32,823 
B) $40,902 
C) $32,670 
D) $40,784 
A) $32,823 
B) $40,902 
C) $32,670 
D) $40,784

Question 10

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

Accepted Answer

A) $9,081 U 
B) $9,450 F 
C) $9,450 U 
D) $9,081 F 
A) $9,081 U 
B) $9,450 F 
C) $9,450 U 
D) $9,081 F

Question 11

The spending variance for "Travel expenses" for October would have been closest to:

Accepted Answer

A) $300 F 
B) $300 U 
C) $3,200 F 
D) $3,200 U 
A) $300 F 
B) $300 U 
C) $3,200 F 
D) $3,200 U

Question 12

Billafuerte Jeep Tours operates jeep tours in the heart of the Colorado Rockies.The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps.One vehicle used in one tour on one day counts as a jeep.Each jeep has one tour guide.The company uses the following data in its budgeting:   In July, the company budgeted for 496 guests and 233 jeeps.The actual activity for the month was 481 guests and 238 jeeps.
Required:
Prepare the company's planning budget for July.

Accepted Answer

The answer of Billafuerte Jeep Tours operates jeep tours in...

Question 13

Klacic Corporation makes a product with the following standard costs:   The company reported the following results concerning this product in May.   The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased.
Required:
a.Compute the materials quantity variance.
b.Compute the materials price variance.
c.Compute the labor efficiency variance.
d.Compute the labor rate variance.
e.Compute the variable overhead efficiency variance.
f.Compute the variable overhead rate variance.

Accepted Answer

a.SQ = 2,700 units × 8.7 grams per unit

Question 14

The spending variance for total expenses for March would have been closest to:

Accepted Answer

A) $5,300 U 
B) $300 F 
C) $5,300 F 
D) $300 U 
A) $5,300 U 
B) $300 F 
C) $5,300 F 
D) $300 U

Question 15

The spending variance for facility expenses in March would be closest to:

Accepted Answer

A) $78 F 
B) $170 U 
C) $78 U 
D) $170 F 
A) $78 F 
B) $170 U 
C) $78 U 
D) $170 F

Question 16

The materials quantity variance for March is:

Accepted Answer

A) $1,116 F 
B) $1,302 F 
C) $1,302 U 
D) $1,116 U 
A) $1,116 F 
B) $1,302 F 
C) $1,302 U 
D) $1,116 U

Question 17

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

Accepted Answer

A) $268 U 
B) $268 F 
C) $276 F 
D) $276 U 
A) $268 U 
B) $268 F 
C) $276 F 
D) $276 U

Question 18

Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

Accepted Answer

A) True 
 B)False

Question 19

During October, Fryer Corporation budgeted for 30,000 customers, but actually served 33,000 customers.Revenue should be $2.90 per customer served.Wages and salaries should be $27,200 per month plus $0.80 per customer served.Supplies should be $0.60 per customer served.Insurance should be $6,700 per month.Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.

Required:
Prepare the company's flexible budget for October based on the actual level of activity for the month.

Accepted Answer

The answer of During October, Fryer Corporation budgeted for 30,000...

Question 20

In general, the production manager is responsible for the materials price variance.

Accepted Answer

A) True 
 B)False

The "Travel expenses" in the flexible budget for January would have been closest to:

The revenue variance for May would be closest to:

The personnel expenses in the planning budget for December would be closest to:

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?

The materials price variance for June is:

The medical supplies in the flexible budget for February would be closest to:

The amount shown for "Other expenses" in the planning budget for March would have been closest to:

The net operating income in the flexible budget for January would be closest to:

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

The spending variance for "Travel expenses" for October would have been closest to:

The spending variance for total expenses for March would have been closest to:

The spending variance for facility expenses in March would be closest to:

The materials quantity variance for March is:

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

Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

In general, the production manager is responsible for the materials price variance.

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 "Travel expenses" in the flexible budget for January would have been closest to:

The revenue variance for May would be closest to:

The personnel expenses in the planning budget for December would be closest to:

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?

The materials price variance for June is:

The medical supplies in the flexible budget for February would be closest to:

The amount shown for "Other expenses" in the planning budget for March would have been closest to:

The net operating income in the flexible budget for January would be closest to:

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

The spending variance for "Travel expenses" for October would have been closest to:

The spending variance for total expenses for March would have been closest to:

The spending variance for facility expenses in March would be closest to:

The materials quantity variance for March is:

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

Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

In general, the production manager is responsible for the materials price variance.

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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