Question 1

Standard costs can be used in conjunction with job-order costing but NOT with process costing.

Accepted Answer

A) True 
 B)False  False

Question 2

What was the variable overhead efficiency variance for the month?

Accepted Answer

A)  $1,155 unfavourable. 
B)  $1,190 favourable. 
C)  $1,190 unfavourable. 
D)  $1,680 favourable. 
A)  $1,155 unfavourable. 
B)  $1,190 favourable. 
C)  $1,190 unfavourable. 
D)  $1,680 favourable. A

Question 3

What was the materials quantity variance for the month?

Accepted Answer

A)  $1,260 unfavourable. 
B)  $1,309 unfavourable. 
C)  $10,880 unfavourable. 
D)  $11,220 unfavourable. 
A)  $1,260 unfavourable. 
B)  $1,309 unfavourable. 
C)  $10,880 unfavourable. 
D)  $11,220 unfavourable. A

Question 4

Standard costs should generally be based on the actual costs of prior periods.

Accepted Answer

A) True 
 B)False

Question 5

For March,what was the fixed overhead volume variance?

Accepted Answer

A)  $80,000 favourable. 
B)  $80,000 unfavourable. 
C)  $96,000 favourable. 
D)  $96,000 unfavourable. 
A)  $80,000 favourable. 
B)  $80,000 unfavourable. 
C)  $96,000 favourable. 
D)  $96,000 unfavourable.

Question 6

(Appendix 10B)Drake Company purchased materials on account.The entry to record the purchase of materials having a standard cost of $1.50 per kilogram from a supplier at $1.60 per kilogram would include which of the following?

Accepted Answer

A)  A credit to Raw Materials Inventory. 
B)  A debit to Work in Process. 
C)  A credit to Materials Price Variance. 
D)  A debit to Materials Price Variance. 
A)  A credit to Raw Materials Inventory. 
B)  A debit to Work in Process. 
C)  A credit to Materials Price Variance. 
D)  A debit to Materials Price Variance.

Question 7

What was the total predetermined overhead rate,rounded to the nearest cent?

Accepted Answer

A)  $21.16. 
B)  $21.26. 
C)  $21.80. 
D)  $21.90. 
A)  $21.16. 
B)  $21.26. 
C)  $21.80. 
D)  $21.90.

Question 8

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Accepted Answer

A)  $1,225 favourable. 
B)  $2,720 unfavourable. 
C)  $2,811 unfavourable. 
D)  $3,945 unfavourable. 
A)  $1,225 favourable. 
B)  $2,720 unfavourable. 
C)  $2,811 unfavourable. 
D)  $3,945 unfavourable.

Question 9

Wattis Manufacturing has established the following master flexible budget:

Manufacturing overhead is applied on the basis of machine hours.At standard,each unit of product requires one machine hour to complete.
Required:
a)The denominator activity level is 150,000 units.What are the predetermined variable and fixed manufacturing overhead rates?
b)Actual data for the year were as follows:

Accepted Answer

@#IMG-DLM& 
Compute the variable overhead spending

Question 10

Which of the following statements is NOT correct?

Accepted Answer

A)  If the denominator level of activity and the standard hours allowed for the output of the period are the same,then there is no volume variance. 
B)  If the denominator level of activity is greater than the standard hours allowed for the output of the period,then the volume variance is unfavourable. 
C)  If the denominator level of activity is greater than the standard hours allowed for the output of the period,then the volume variance is favourable. 
D)  The volume variance is the most appropriate measure of the utilization of plant facilities. 
A)  If the denominator level of activity and the standard hours allowed for the output of the period are the same,then there is no volume variance. 
B)  If the denominator level of activity is greater than the standard hours allowed for the output of the period,then the volume variance is unfavourable. 
C)  If the denominator level of activity is greater than the standard hours allowed for the output of the period,then the volume variance is favourable. 
D)  The volume variance is the most appropriate measure of the utilization of plant facilities.

Question 11

What was the total variance for variable overhead for January?

Accepted Answer

A)  $40 favourable. 
B)  $85 favourable. 
C)  $100 unfavourable. 
D)  $125 favourable. 
A)  $40 favourable. 
B)  $85 favourable. 
C)  $100 unfavourable. 
D)  $125 favourable.

Question 12

Which one of the following variances is MOST controllable by a production supervisor?

Accepted Answer

A)  Materials price variance. 
B)  Materials quantity variance. 
C)  Fixed overhead volume variance. 
D)  Variable overhead spending variance. 
A)  Materials price variance. 
B)  Materials quantity variance. 
C)  Fixed overhead volume variance. 
D)  Variable overhead spending variance.

Question 13

The following standards for variable manufacturing overhead have been established for a company that makes only one product:  
The following data pertain to operations for the last month:  
What was the variable overhead efficiency variance for the month?

Accepted Answer

A)  $0. 
B)  $16,817 unfavourable. 
C)  $580 unfavourable. 
D)  $17,397 unfavourable. 
A)  $0. 
B)  $16,817 unfavourable. 
C)  $580 unfavourable. 
D)  $17,397 unfavourable.

Question 14

(Appendix 10C)A favourable sales volume variance for a single-product firm necessarily implies a favourable market share variance.

Accepted Answer

A) True 
 B)False

Question 15

The economic impact of the inability to reach a target denominator level of activity would best be measured by which of the following?

Accepted Answer

A)  The amount of the volume variance. 
B)  The contribution margin lost by failing to meet the target denominator level of activity. 
C)  The amount of the fixed overhead budget variance. 
D)  The amount of the variable overhead efficiency variance. 
A)  The amount of the volume variance. 
B)  The contribution margin lost by failing to meet the target denominator level of activity. 
C)  The amount of the fixed overhead budget variance. 
D)  The amount of the variable overhead efficiency variance.

Question 16

If the actual labour hours worked exceed the standard labour hours allowed,what type of variance will occur?

Accepted Answer

A)  Favourable labour efficiency variance. 
B)  Favourable labour rate variance. 
C)  Unfavourable labour efficiency variance. 
D)  Unfavourable labour rate variance. 
A)  Favourable labour efficiency variance. 
B)  Favourable labour rate variance. 
C)  Unfavourable labour efficiency variance. 
D)  Unfavourable labour rate variance.

Question 17

The following labour standards have been established for a particular product:  
The following data pertain to operations concerning the product for the last month:  
What was the labour efficiency variance for the month?

Accepted Answer

A)  $16,029 favourable. 
B)  $16,577 favourable. 
C)  $19,017 favourable. 
D)  $19,017 unfavourable. 
A)  $16,029 favourable. 
B)  $16,577 favourable. 
C)  $19,017 favourable. 
D)  $19,017 unfavourable.

Question 18

What was the amount of fixed manufacturing overhead cost applied to work in process during May?

Accepted Answer

A)  $42,750. 
B)  $61,725. 
C)  $62,700. 
D)  $64,125. 
A)  $42,750. 
B)  $61,725. 
C)  $62,700. 
D)  $64,125.

Question 19

Flick Company uses a standard cost system.Manufacturing overhead is applied to units of product on the basis of direct labour hours.The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000 for variable overhead and $30,000 for fixed overhead.The predetermined overhead rate,including both fixed and variable components,is $2.50 per direct labour hour.The standards call for two direct labour hours per unit of output produced.Last year,the company produced 11,500 units of product and worked 22,000 direct labour hours.Actual costs were $22,500 for variable overhead and $31,000 for fixed overhead.
Required:
a)What is the denominator level of activity?
b)What were the standard hours allowed for the output last year?
c)What was the variable overhead spending variance?
d)What was the variable overhead efficiency variance?
e)What was the fixed overhead budget variance?
f)What was the fixed overhead volume variance?

Accepted Answer

a)Total overhead at the denominator leve

Question 20

(Appendix 10C)What were the sales volume variances for Model X and Model Y,respectively,for last year?

Accepted Answer

A)  $200 favourable and $3,496 favourable. 
B)  $240 favourable and $3,680 favourable. 
C)  $1,250 favourable and $1,900 favourable. 
D)  $1,500 favourable and $2,000 favourable. 
A)  $200 favourable and $3,496 favourable. 
B)  $240 favourable and $3,680 favourable. 
C)  $1,250 favourable and $1,900 favourable. 
D)  $1,500 favourable and $2,000 favourable.

Standard costs can be used in conjunction with job-order costing but NOT with process costing.

What was the variable overhead efficiency variance for the month?

What was the materials quantity variance for the month?

Standard costs should generally be based on the actual costs of prior periods.

For March,what was the fixed overhead volume variance?

(Appendix 10B)Drake Company purchased materials on account.The entry to record the purchase of materials having a standard cost of $1.50 per kilogram from a supplier at $1.60 per kilogram would include which of the following?

What was the total predetermined overhead rate,rounded to the nearest cent?

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Which of the following statements is NOT correct?

What was the total variance for variable overhead for January?

Which one of the following variances is MOST controllable by a production supervisor?

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What was the variable overhead efficiency variance for the month?

(Appendix 10C)A favourable sales volume variance for a single-product firm necessarily implies a favourable market share variance.

The economic impact of the inability to reach a target denominator level of activity would best be measured by which of the following?

If the actual labour hours worked exceed the standard labour hours allowed,what type of variance will occur?

The following labour standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What was the labour efficiency variance for the month?

What was the amount of fixed manufacturing overhead cost applied to work in process during May?

(Appendix 10C)What were the sales volume variances for Model X and Model Y,respectively,for last year?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

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Exam 10: Standard Costs and Overhead Analysis

Standard costs can be used in conjunction with job-order costing but NOT with process costing.

What was the variable overhead efficiency variance for the month?

What was the materials quantity variance for the month?

Standard costs should generally be based on the actual costs of prior periods.

For March,what was the fixed overhead volume variance?

(Appendix 10B)Drake Company purchased materials on account.The entry to record the purchase of materials having a standard cost of $1.50 per kilogram from a supplier at $1.60 per kilogram would include which of the following?

What was the total predetermined overhead rate,rounded to the nearest cent?

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Which of the following statements is NOT correct?

What was the total variance for variable overhead for January?

Which one of the following variances is MOST controllable by a production supervisor?

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What was the variable overhead efficiency variance for the month?

(Appendix 10C)A favourable sales volume variance for a single-product firm necessarily implies a favourable market share variance.

The economic impact of the inability to reach a target denominator level of activity would best be measured by which of the following?

If the actual labour hours worked exceed the standard labour hours allowed,what type of variance will occur?

The following labour standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What was the labour efficiency variance for the month?

What was the amount of fixed manufacturing overhead cost applied to work in process during May?

(Appendix 10C)What were the sales volume variances for Model X and Model Y,respectively,for last year?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters