Exam 8: Flexible Budgets and Variance Analysis

Orange Company had the following information available: Expected Costs and Selling Price Based on 5,000 units: In the flexible budget at 10,000 units,what is the total manufacturing cost?

(Multiple Choice)

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Question 21

What are some common causes of unfavorable quantity variances for direct labor?

(Essay)

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Question 22

The following information is for Kickapoo Corporation: Direct Materials(measured in pounds) What is the direct material flexible budget variance?

(Multiple Choice)

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Question 23

The variable overhead spending variance is the difference between the actual variable overhead cost and the amount of variable overhead cost budgeted for the actual level of cost driver activity.

(True/False)

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Question 24

Effectiveness is indicated by the ________ variances.

(Multiple Choice)

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Question 25

The following data was obtained for a company that makes statutes: During the month of July,the company actually produced 1,000 statutes,which is 100 units less than expected.Direct material purchased and used amounted to 5,500 pounds at a cost of $12.50 per pound.Actual direct labor was 1,450 hours at an actual cost of $13.00 per hour. Required: A)Compute the price and quantity variances for direct materials. B)Compute the price and quantity variances for direct labor.

(Essay)

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Question 26

The direct materials price variance is based on the standard quantity of inputs allowed for the actual output.

(True/False)

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Question 27

Given the following information: Required: A)Compute the price and quantity variances for direct materials. B)Compute the price and quantity variances for direct labor. C)Compute the spending and efficiency variances for variable overhead.

(Essay)

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Question 28

Currently attainable standards do not make allowances for spoilage and waste.

(True/False)

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Question 29

If actual expenses are less than expected expenses,the expense variance will be unfavorable.

(True/False)

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Question 30

Stein Company planned to produce 12,000 units.This level of production required 20 setups at a cost of $18,000 plus $500 per setup.Actual production was 10,000 units,requiring 15 setups.Actual setup cost was $26,000.What is the flexible budget variance for setup costs?

(Multiple Choice)

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Question 31

If the direct labor price variance is $800 Favorable and the direct labor usage variance is $700 Unfavorable,then ________.

(Multiple Choice)

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Question 32

An example of a favorable variance is ________.

(Multiple Choice)

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Question 33

The flexible budget variance for variable overhead costs is composed of a(n) variance and a(n) variance.

(Multiple Choice)

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Question 34

The sales activity variance for ________ will always be zero.

(Multiple Choice)

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Question 35

Using standard costs is popular with companies in the United States.

(True/False)

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Question 36

The Snowman Company makes mugs for which the following standards have been developed: Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $10.00.What is the standard direct material cost for each mug produced?

(Multiple Choice)

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Question 37

Which statement would NOT be a reason for a flexible budget variance?

(Multiple Choice)

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Question 38

In a manufacturing area of a firm,poor product design and problems with the quality of materials will,more than likely,result in a(n) variance or variance.

(Multiple Choice)

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Question 39

Differentiate between a static budget variance and a flexible budget variance.

(Essay)

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Question 40

Showing 21 - 40 of 143

Orange Company had the following information available: Expected Costs and Selling Price Based on 5,000 units: In the flexible budget at 10,000 units,what is the total manufacturing cost?

What are some common causes of unfavorable quantity variances for direct labor?

The following information is for Kickapoo Corporation: Direct Materials(measured in pounds) What is the direct material flexible budget variance?

The variable overhead spending variance is the difference between the actual variable overhead cost and the amount of variable overhead cost budgeted for the actual level of cost driver activity.

Effectiveness is indicated by the ________ variances.

The direct materials price variance is based on the standard quantity of inputs allowed for the actual output.

Given the following information: Required: A)Compute the price and quantity variances for direct materials. B)Compute the price and quantity variances for direct labor. C)Compute the spending and efficiency variances for variable overhead.

Currently attainable standards do not make allowances for spoilage and waste.

If actual expenses are less than expected expenses,the expense variance will be unfavorable.

Stein Company planned to produce 12,000 units.This level of production required 20 setups at a cost of $18,000 plus $500 per setup.Actual production was 10,000 units,requiring 15 setups.Actual setup cost was $26,000.What is the flexible budget variance for setup costs?

If the direct labor price variance is $800 Favorable and the direct labor usage variance is $700 Unfavorable,then ________.

An example of a favorable variance is ________.

The flexible budget variance for variable overhead costs is composed of a(n) variance and a(n) variance.

The sales activity variance for ________ will always be zero.

Using standard costs is popular with companies in the United States.

Which statement would NOT be a reason for a flexible budget variance?

In a manufacturing area of a firm,poor product design and problems with the quality of materials will,more than likely,result in a(n) variance or variance.

Differentiate between a static budget variance and a flexible budget variance.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 8: Flexible Budgets and Variance Analysis

Orange Company had the following information available: Expected Costs and Selling Price Based on 5,000 units: In the flexible budget at 10,000 units,what is the total manufacturing cost?

What are some common causes of unfavorable quantity variances for direct labor?

The following information is for Kickapoo Corporation: Direct Materials(measured in pounds) What is the direct material flexible budget variance?

The variable overhead spending variance is the difference between the actual variable overhead cost and the amount of variable overhead cost budgeted for the actual level of cost driver activity.

Effectiveness is indicated by the ________ variances.

The direct materials price variance is based on the standard quantity of inputs allowed for the actual output.

Given the following information: Required: A)Compute the price and quantity variances for direct materials. B)Compute the price and quantity variances for direct labor. C)Compute the spending and efficiency variances for variable overhead.

Currently attainable standards do not make allowances for spoilage and waste.

If actual expenses are less than expected expenses,the expense variance will be unfavorable.

Stein Company planned to produce 12,000 units.This level of production required 20 setups at a cost of $18,000 plus $500 per setup.Actual production was 10,000 units,requiring 15 setups.Actual setup cost was $26,000.What is the flexible budget variance for setup costs?

If the direct labor price variance is $800 Favorable and the direct labor usage variance is $700 Unfavorable,then ________.

An example of a favorable variance is ________.

The flexible budget variance for variable overhead costs is composed of a(n)________ variance and a(n)________ variance.

The sales activity variance for ________ will always be zero.

Using standard costs is popular with companies in the United States.

Which statement would NOT be a reason for a flexible budget variance?

In a manufacturing area of a firm,poor product design and problems with the quality of materials will,more than likely,result in a(n)________ variance or ________ variance.

Differentiate between a static budget variance and a flexible budget variance.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

The flexible budget variance for variable overhead costs is composed of a(n) variance and a(n) variance.

In a manufacturing area of a firm,poor product design and problems with the quality of materials will,more than likely,result in a(n) variance or variance.