Question 1

When using a flexible budget, a decrease in activity within the relevant range:

Accepted Answer

A) decreases variable cost per unit. 
B) increases variable cost per unit. 
C) decreases total costs. 
D) increases total costs. 
A) decreases variable cost per unit. 
B) increases variable cost per unit. 
C) decreases total costs. 
D) increases total costs.

Question 2

The following data have been provided by Moretta Corporation, a company that produces forklift trucks:   Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:

Accepted Answer

A) $135 U 
B) $135 F 
C) $966 U 
D) $966 F 
A) $135 U 
B) $135 F 
C) $966 U 
D) $966 F

Question 3

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

Accepted Answer

A) $400 F 
B) $3,625 F 
C) $400 U 
D) $3,625 U 
A) $400 F 
B) $3,625 F 
C) $400 U 
D) $3,625 U

Question 4

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

Accepted Answer

A) $600 F 
B) $9,400 U 
C) $600 U 
D) $9,400 F 
A) $600 F 
B) $9,400 U 
C) $600 U 
D) $9,400 F

Question 5

Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports.The cost formula for plane operating costs is $56,840 per month plus $2,874 per flight plus $13 per passenger.The company expected its activity in November to be 86 flights and 255 passengers, but the actual activity was 89 flights and 257 passengers.The actual cost for plane operating costs in November was $305,100.The spending variance for plane operating costs in November would be closest to:

Accepted Answer

A) $2,219 U 
B) $10,867 U 
C) $10,867 F 
D) $2,219 F 
A) $2,219 U 
B) $10,867 U 
C) $10,867 F 
D) $2,219 F

Question 6

Poorly trained workers could have an unfavorable effect on which of the following variances?

Accepted Answer

The answer of Poorly trained workers could have an unfavorable...

Question 7

The administrative expenses in the planning budget for May would be closest to:

Accepted Answer

A) $8,409 
B) $8,386 
C) $8,280 
D) $8,276 
A) $8,409 
B) $8,386 
C) $8,280 
D) $8,276

Question 8

Mongelli Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion.The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms.The Inn's overhead budget for the most recent month appears below:   The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 99 guests?

Accepted Answer

A) $7,793.90 
B) $61,541.00 
C) $8,512.90 
D) $7,739.00 
A) $7,793.90 
B) $61,541.00 
C) $8,512.90 
D) $7,739.00

Question 9

The labor rate variance for the month is closest to:

Accepted Answer

A) $672 U 
B) $616 U 
C) $672 F 
D) $616 F 
A) $672 U 
B) $616 U 
C) $672 F 
D) $616 F

Question 10

Reagen Corporation makes a product with the following standard costs:   The company reported the following results concerning this product in December.   The materials price variance is recognized when materials are purchased.Variable overhead is applied on the basis of direct labor-hours.
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 = 7,700 units × 3.7 liters per unit

Question 11

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

Accepted Answer

A) $86 U 
B) $86 F 
C) $94 U 
D) $94 F 
A) $86 U 
B) $86 F 
C) $94 U 
D) $94 F

Question 12

Hamiter Framing's cost formula for its supplies cost is $1,640 per month plus $9 per frame.For the month of August, the company planned for activity of 572 frames, but the actual level of activity was 573 frames.The actual supplies cost for the month was $7,080.The supplies cost in the planning budget for August would be closest to:

Accepted Answer

A) $7,080 
B) $7,068 
C) $6,788 
D) $6,797 
A) $7,080 
B) $7,068 
C) $6,788 
D) $6,797

Question 13

The materials price variance for September is:

Accepted Answer

A) $1,150 U 
B) $1,150 F 
C) $1,160 F 
D) $1,160 U 
A) $1,150 U 
B) $1,150 F 
C) $1,160 F 
D) $1,160 U

Question 14

A revenue variance is the difference between what the total sales revenue should be, given the actual level of activity of the period, and the actual total sales revenue.

Accepted Answer

A) True 
 B)False

Question 15

The following information relates to the direct labor at Padmaja Manufacturing, Inc.for March:   During March, Padmaja produced 2,100 units.What is Padmaja's labor efficiency variance for March?

Accepted Answer

A) $1,575 Favorable 
B) $2,625 Unfavorable 
C) $3,675 Unfavorable 
D) $3,780 Unfavorable 
A) $1,575 Favorable 
B) $2,625 Unfavorable 
C) $3,675 Unfavorable 
D) $3,780 Unfavorable

Question 16

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 price variance for the month?

Accepted Answer

A) $3,141 U 
B) $2,025 U 
C) $8,600 U 
D) $8,725 U 
A) $3,141 U 
B) $2,025 U 
C) $8,600 U 
D) $8,725 U

Question 17

Rizzio 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 September, the school budgeted for 1,820 students and 173 courses.The actual activity for the month was 2,020 students and 178 courses.
Required:
Prepare the school's planning budget for September.

Accepted Answer

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

Question 18

Mcinerney 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 October, the company budgeted for 325 guests and 91 jeeps.The actual activity for the month was 340 guests and 96 jeeps.
Required:
Prepare the company's flexible budget for the actual level of activity in October.

Accepted Answer

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

Question 19

The amount shown for net operating income in the planning budget for November would have been closest to:

Accepted Answer

A) $26,000 
B) $9,100 
C) $23,500 
D) $22,645 
A) $26,000 
B) $9,100 
C) $23,500 
D) $22,645

Question 20

A partial standard cost card for the single product produced by Mercer Company is given below:

Direct materials: 3 pounds @ $8 per pound
Direct labor: ? hours @ ? per hour

Last period the company produced 4,000 units of product.Cost and other data associated with this production are given below:   
The direct materials purchases variance is computed when the materials are purchased.
Required:
a.Determine the number of pounds of direct materials purchased and used during the period.
b.Determine the materials quantity variance.
c.Determine the standard direct labor rate per direct labor hour.
d.Determine the standard hours allowed for the production of the period.

Accepted Answer

a.Materials price variance = (AQ × AP)-

When using a flexible budget, a decrease in activity within the relevant range:

The following data have been provided by Moretta Corporation, a company that produces forklift trucks: Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:

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

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

Poorly trained workers could have an unfavorable effect on which of the following variances?

The administrative expenses in the planning budget for May would be closest to:

The labor rate variance for the month is closest to:

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

The materials price variance for September is:

A revenue variance is the difference between what the total sales revenue should be, given the actual level of activity of the period, and the actual total sales revenue.

The following information relates to the direct labor at Padmaja Manufacturing, Inc.for March: During March, Padmaja produced 2,100 units.What is Padmaja's labor efficiency variance for March?

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 price variance for the month?

The amount shown for net operating income in the planning budget for November 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

When using a flexible budget, a decrease in activity within the relevant range:

The following data have been provided by Moretta Corporation, a company that produces forklift trucks: Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:

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

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

Poorly trained workers could have an unfavorable effect on which of the following variances?

The administrative expenses in the planning budget for May would be closest to:

The labor rate variance for the month is closest to:

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

The materials price variance for September is:

A revenue variance is the difference between what the total sales revenue should be, given the actual level of activity of the period, and the actual total sales revenue.

The following information relates to the direct labor at Padmaja Manufacturing, Inc.for March: During March, Padmaja produced 2,100 units.What is Padmaja's labor efficiency variance for March?

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 price variance for the month?

The amount shown for net operating income in the planning budget for November 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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