Question 1

The only way to account for standard cost variances is to adjust income in the current period.

Accepted Answer

A) True 
 B)False

Question 2

Harrison Company had the following information:
  
-What are the total manufacturing costs for 10,000 units?

Accepted Answer

A)  $150,000 
B)  $20,000 
C)  $170,000 
D)  $180,000 
A)  $150,000 
B)  $20,000 
C)  $170,000 
D)  $180,000

Question 3

Woodlund Company had the following information:
  
-What is the net income for 15,000 units?

Accepted Answer

A)  $1,800,000 
B)  $720,000 
C)  $1,620,000 
D)  $600,000 
A)  $1,800,000 
B)  $720,000 
C)  $1,620,000 
D)  $600,000

Question 4

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-What is the cost function?

Accepted Answer

A)  Costs = $ 75,000 + $0.098(Lines) 
B)  Costs = $ 75,000 + $0.068(Lines) 
C)  Costs = $245,000 + $0.068(Lines) 
D)  Cannot be determined 
A)  Costs = $ 75,000 + $0.098(Lines) 
B)  Costs = $ 75,000 + $0.068(Lines) 
C)  Costs = $245,000 + $0.068(Lines) 
D)  Cannot be determined

Question 5

The following data apply to Walker Corporation for the year 20X4.
  
-For product X, the actual quantity used per unit was

Accepted Answer

A)  1.0 pound. 
B)  2.0 pounds. 
C)  3.0 pounds. 
D)  3.5 pounds. 
A)  1.0 pound. 
B)  2.0 pounds. 
C)  3.0 pounds. 
D)  3.5 pounds.

Question 6

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 fixed overhead volume variance is

Accepted Answer

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

Question 7

If actual revenues and expenses exceed expected revenues and expenses, all variances in the performance report will be favourable.

Accepted Answer

A) True 
 B)False

Question 8

Woodlund Company had the following information:
  
-What are the total manufacturing costs for 10,000 units?

Accepted Answer

A)  $600,000 
B)  $80,000 
C)  $680,000 
D)  $720,000 
A)  $600,000 
B)  $80,000 
C)  $680,000 
D)  $720,000

Question 9

Harrison Company had the following information:
  
-What is the net income for 15,000 units?

Accepted Answer

A)  $450,000 
B)  $180,000 
C)  $405,000 
D)  $150,000 
A)  $450,000 
B)  $180,000 
C)  $405,000 
D)  $150,000

Question 10

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-A favourable sales-activity variance means that

Accepted Answer

A)  managers have been efficient in the implementation of a sales budget. 
B)  managers have been effective in accomplishing a planned sales level. 
C)  demand for the company product is strong. 
D)  the sales force has done an excellent job. 
A)  managers have been efficient in the implementation of a sales budget. 
B)  managers have been effective in accomplishing a planned sales level. 
C)  demand for the company product is strong. 
D)  the sales force has done an excellent job.

Question 11

Washington, Inc. has budgeted fixed factory overhead costs at $150,000 per month and variable factory overhead at a rate of $6 per direct-labour hour. The standard direct-labour hours allowed for January production were 18,000. An analysis of the factory overhead indicates that during January there was an unfavourable flexible budget variance of $5,000 and a favourable production volume variance of $3,000.
Required:
a. Compute the actual factory overhead cost for January.
b. Calculate the applied overhead cost for January.

Accepted Answer

a. $5,000 + $150,000

Question 12

In a flexible budget, the fixed costs will remain constant regardless of different levels of activity shown in the budget.

Accepted Answer

A) True 
 B)False

Question 13

The following data apply to Walker Corporation for the year 20X4.
  
-When actual volume is less than expected volume, the fixed overhead volume variance is

Accepted Answer

A)  favourable. 
B)  overapplied. 
C)  unfavourable. 
D)  indeterminable. 
A)  favourable. 
B)  overapplied. 
C)  unfavourable. 
D)  indeterminable.

Question 14

The Garson Company manufactures roofing shingles. The production process involves heating and compressing asphalt into sheets and then rolling coarse sand into the hot asphalt. The sheets are then cooled, cut into shingles, and packaged.
The following standard costs were developed:   The following information is available regarding the company's operations for the period.   Budgeted fixed manufacturing overhead for the period is $60,000 and the standard fixed overhead rate is based on expected capacity of 6,000 direct labour hours.
a. Calculate the standard fixed manufacturing overhead rate.
b. Complete the standard cost card for roofing shingles.
c. Calculate the following variances:

Accepted Answer

a.
SFOR = Estimated Fixed Overhead/Estim

Question 15

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-Flexible-budget variances are designed to measure

Accepted Answer

A)  effectiveness of operations at projected level of activity. 
B)  effectiveness of operations at actual level of activity. 
C)  efficiency of operations at projected level of activity. 
D)  efficiency of operations at actual level of activity. 
A)  effectiveness of operations at projected level of activity. 
B)  effectiveness of operations at actual level of activity. 
C)  efficiency of operations at projected level of activity. 
D)  efficiency of operations at actual level of activity.

Question 16

A company had the following information pertaining to two different cases:
  
-Actual factory overhead cost in Case X was

Accepted Answer

A)  $264,000. 
B)  $384,000. 
C)  $120,000. 
D)  $130,000. 
A)  $264,000. 
B)  $384,000. 
C)  $120,000. 
D)  $130,000.

Question 17

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

Accepted Answer

A)  $10,000 unfavourable. 
B)  $9,000 unfavourable. 
C)  $9,000 favourable. 
D)  $10,000 favourable. 
A)  $10,000 unfavourable. 
B)  $9,000 unfavourable. 
C)  $9,000 favourable. 
D)  $10,000 favourable.

Question 18

The following data apply to Walker Corporation for the year 20X4.
  
-Which costing methods generate fixed overhead volume variances?

Accepted Answer

A)  Normal and standard. 
B)  Standard and actual. 
C)  Actual and normal. 
D)  Actual, normal, and standard. 
A)  Normal and standard. 
B)  Standard and actual. 
C)  Actual and normal. 
D)  Actual, normal, and standard.

Question 19

A company had the following information pertaining to two different cases:
  
-The applied factory overhead cost in Case X was

Accepted Answer

A)  $400,000. 
B)  $136,000. 
C)  $124,000. 
D)  $388,000. 
A)  $400,000. 
B)  $136,000. 
C)  $124,000. 
D)  $388,000.

Question 20

The difference between the actual overhead incurred and the overhead applied.

Accepted Answer

Under/over

The only way to account for standard cost variances is to adjust income in the current period.

Harrison Company had the following information: -What are the total manufacturing costs for 10,000 units?

Woodlund Company had the following information: -What is the net income for 15,000 units?

The following data apply to Walker Corporation for the year 20X4. -For product X, the actual quantity used per unit 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 fixed overhead volume variance is

If actual revenues and expenses exceed expected revenues and expenses, all variances in the performance report will be favourable.

Woodlund Company had the following information: -What are the total manufacturing costs for 10,000 units?

Harrison Company had the following information: -What is the net income for 15,000 units?

In a flexible budget, the fixed costs will remain constant regardless of different levels of activity shown in the budget.

The following data apply to Walker Corporation for the year 20X4. -When actual volume is less than expected volume, the fixed overhead volume variance is

A company had the following information pertaining to two different cases: -Actual factory overhead cost in Case X was

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

The following data apply to Walker Corporation for the year 20X4. -Which costing methods generate fixed overhead volume variances?

A company had the following information pertaining to two different cases: -The applied factory overhead cost in Case X was

The difference between the actual overhead incurred and the overhead applied.

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

The only way to account for standard cost variances is to adjust income in the current period.

Harrison Company had the following information: -What are the total manufacturing costs for 10,000 units?

Woodlund Company had the following information: -What is the net income for 15,000 units?

The following data apply to Walker Corporation for the year 20X4. -For product X, the actual quantity used per unit 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 fixed overhead volume variance is

If actual revenues and expenses exceed expected revenues and expenses, all variances in the performance report will be favourable.

Woodlund Company had the following information: -What are the total manufacturing costs for 10,000 units?

Harrison Company had the following information: -What is the net income for 15,000 units?

In a flexible budget, the fixed costs will remain constant regardless of different levels of activity shown in the budget.

The following data apply to Walker Corporation for the year 20X4. -When actual volume is less than expected volume, the fixed overhead volume variance is

A company had the following information pertaining to two different cases: -Actual factory overhead cost in Case X was

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

The following data apply to Walker Corporation for the year 20X4. -Which costing methods generate fixed overhead volume variances?

A company had the following information pertaining to two different cases: -The applied factory overhead cost in Case X was

The difference between the actual overhead incurred and the overhead applied.

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