Question 1

As the terms are used in the budgeting process, it is possible for a company to be effective at the same time it is inefficient.

Accepted Answer

A) True 
 B)False  True

Question 2

The Clamen Company makes table lamps, for which the following standards have been developed:
   During October, production of 100 lamps was expected, but 110 lamps were actually completed.
Direct materials purchased and used were 2,100 pounds at an actual price of $2.20 per pound.
Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00.
-The direct-material price variance for October is

Accepted Answer

A)  $420 unfavourable. 
B)  $420 favourable. 
C)  $400 favourable. 
D)  $400 unfavourable. 
A)  $420 unfavourable. 
B)  $420 favourable. 
C)  $400 favourable. 
D)  $400 unfavourable. A

Question 3

The variance of actual results from the master budget.

Accepted Answer

Master-budget variance

Question 4

Underapplied overhead is always the difference between the budgeted overhead and the overhead applied.

Accepted Answer

A) True 
 B)False

Question 5

The following data apply to Walker Corporation for the year 20X4.
  
-For Product Y, the standard price per unit was

Accepted Answer

A)  $11.00 per pound. 
B)  $5.33 per pound. 
C)  $10.75 per pound. 
D)  $10.00 per pound. 
A)  $11.00 per pound. 
B)  $5.33 per pound. 
C)  $10.75 per pound. 
D)  $10.00 per pound.

Question 6

Levels of performance that can be achieved by realistic levels of effort.

Accepted Answer

Currently

Question 7

Use the following information to answer the next question(s):
The standard cost sheet for one of the Vitton Company's products is presented below.
   *Rate based on expected activity of 12,000 hours
The following results for last year were recorded.
  
-The materials price variance is

Accepted Answer

A)  $7,800 unfavourable. 
B)  $7,800 favourable. 
C)  $8,400 unfavourable. 
D)  $8,400 favourable. 
A)  $7,800 unfavourable. 
B)  $7,800 favourable. 
C)  $8,400 unfavourable. 
D)  $8,400 favourable.

Question 8

The total flexible-budget variance can be broken down into a price variance and a usage variance.

Accepted Answer

A) True 
 B)False

Question 9

The following data are for Parker Corporation for 20X4.
  
-The total of the sales-activity variances is

Accepted Answer

A)  $8,000 favourable. 
B)  $8,000 unfavourable. 
C)  $7,000 favourable. 
D)  $7,000 unfavourable. 
A)  $8,000 favourable. 
B)  $8,000 unfavourable. 
C)  $7,000 favourable. 
D)  $7,000 unfavourable.

Question 10

Use the following information to answer the next question(s):
The standard cost sheet for one of the Vitton Company's products is presented below.
   *Rate based on expected activity of 12,000 hours
The following results for last year were recorded.
  
-The variable overhead spending variance is

Accepted Answer

A)  $4,500 favourable. 
B)  $4,500 unfavourable. 
C)  $4,800 favourable. 
D)  $4,800 unfavourable. 
A)  $4,500 favourable. 
B)  $4,500 unfavourable. 
C)  $4,800 favourable. 
D)  $4,800 unfavourable.

Question 11

A carefully determined cost per unit that should be attained.

Accepted Answer

The answer of A carefully determined cost per unit that...

Question 12

The difference between applied and budgeted fixed overhead is the production-volume variance.

Accepted Answer

A) True 
 B)False

Question 13

A cost system that applies actual direct materials and actual direct-labour costs to products or services but uses standards for applying overhead is known as a standard costing system.

Accepted Answer

A) True 
 B)False

Question 14

The following information pertains to Finger Company:
   S1U1P1*S1S1P0Direct labour is measured in hours
-The direct-labour usage variance is

Accepted Answer

A)  $11,000 favourable. 
B)  $11,000 unfavourable. 
C)  $10,000 favourable. 
D)  $10,000 unfavourable. 
A)  $11,000 favourable. 
B)  $11,000 unfavourable. 
C)  $10,000 favourable. 
D)  $10,000 unfavourable.

Question 15

The Clamen Company makes table lamps, for which the following standards have been developed:
   During October, production of 100 lamps was expected, but 110 lamps were actually completed.
Direct materials purchased and used were 2,100 pounds at an actual price of $2.20 per pound.
Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00.
-The direct-labour price variance for the month of October is

Accepted Answer

A)  $600 unfavourable. 
B)  $600 favourable. 
C)  $590 unfavourable. 
D)  $590 favourable. 
A)  $600 unfavourable. 
B)  $600 favourable. 
C)  $590 unfavourable. 
D)  $590 favourable.

Question 16

A variance that occurs when actual expenses are more than budgeted expenses.

Accepted Answer

Unfavourab

Question 17

A company had the following information pertaining to two different cases:
  
-The total overhead variance in Case X was

Accepted Answer

A)  $126,000 unfavourable. 
B)  $16,000 favourable. 
C)  $4,000 favourable. 
D)  $134,000 favourable. 
A)  $126,000 unfavourable. 
B)  $16,000 favourable. 
C)  $4,000 favourable. 
D)  $134,000 favourable.

Question 18

Use the following information to answer the next question(s):
The standard cost sheet for one of the Vitton Company's products is presented below.
   *Rate based on expected activity of 12,000 hours
The following results for last year were recorded.
  
-The materials usage variance is

Accepted Answer

A)  $4,000 favourable. 
B)  $4,000 unfavourable. 
C)  $6,000 favourable. 
D)  $6,000 unfavourable. 
A)  $4,000 favourable. 
B)  $4,000 unfavourable. 
C)  $6,000 favourable. 
D)  $6,000 unfavourable.

Question 19

The following data are for the month of August for Murdock Corporation, a company that makes saucers.   During the month of August, the company actually produced 1,000 saucers, which is 50 units less than expected. Direct material purchased and used amounted to 10,500 pounds at a cost of $6.25 per pound. Actual direct labour was 2,900 hours at an actual cost of $10.50 per hour.
Required:
a. What is the standard cost per saucer for direct material and direct labour?
b. Compute the price and usage variances for direct material and direct labour.

Accepted Answer

a. Direct material standard co

Question 20

The following information is for Doran Corporation:
   S1U1P1*S1S1P0Direct material is measured in pounds
-The price variance for direct material is

Accepted Answer

A)  $30,000 favourable. 
B)  $30,000 unfavourable. 
C)  $31,000 unfavourable. 
D)  $31,000 favourable. 
A)  $30,000 favourable. 
B)  $30,000 unfavourable. 
C)  $31,000 unfavourable. 
D)  $31,000 favourable.

As the terms are used in the budgeting process, it is possible for a company to be effective at the same time it is inefficient.

The variance of actual results from the master budget.

Underapplied overhead is always the difference between the budgeted overhead and the overhead applied.

The following data apply to Walker Corporation for the year 20X4. -For Product Y, the standard price per unit was

Levels of performance that can be achieved by realistic levels of effort.

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The materials price variance is

The total flexible-budget variance can be broken down into a price variance and a usage variance.

The following data are for Parker Corporation for 20X4. -The total of the sales-activity variances is

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The variable overhead spending variance is

A carefully determined cost per unit that should be attained.

The difference between applied and budgeted fixed overhead is the production-volume variance.

A cost system that applies actual direct materials and actual direct-labour costs to products or services but uses standards for applying overhead is known as a standard costing system.

The following information pertains to Finger Company: ^*Direct labour is measured in hours -The direct-labour usage variance is

A variance that occurs when actual expenses are more than budgeted expenses.

A company had the following information pertaining to two different cases: -The total overhead variance in Case X was

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The materials usage variance is

The following information is for Doran Corporation: ^*Direct material is measured in pounds -The price variance for direct material is

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters

Exam 12: Flexible Budgets and Variance Analysis

As the terms are used in the budgeting process, it is possible for a company to be effective at the same time it is inefficient.

The variance of actual results from the master budget.

Underapplied overhead is always the difference between the budgeted overhead and the overhead applied.

The following data apply to Walker Corporation for the year 20X4. -For Product Y, the standard price per unit was

Levels of performance that can be achieved by realistic levels of effort.

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The materials price variance is

The total flexible-budget variance can be broken down into a price variance and a usage variance.

The following data are for Parker Corporation for 20X4. -The total of the sales-activity variances is

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The variable overhead spending variance is

A carefully determined cost per unit that should be attained.

The difference between applied and budgeted fixed overhead is the production-volume variance.

A cost system that applies actual direct materials and actual direct-labour costs to products or services but uses standards for applying overhead is known as a standard costing system.

The following information pertains to Finger Company: *Direct labour is measured in hours -The direct-labour usage variance is

A variance that occurs when actual expenses are more than budgeted expenses.

A company had the following information pertaining to two different cases: -The total overhead variance in Case X was

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The materials usage variance is

The following information is for Doran Corporation: *Direct material is measured in pounds -The price variance for direct material is

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters

The following information pertains to Finger Company: ^*Direct labour is measured in hours -The direct-labour usage variance is

The following information is for Doran Corporation: ^*Direct material is measured in pounds -The price variance for direct material is