Question 1

Which department is usually held responsible for an unfavourable materials quantity variance?

Accepted Answer

A)  Marketing. 
B)  Purchasing. 
C)  Engineering. 
D)  Production. 
A)  Marketing. 
B)  Purchasing. 
C)  Engineering. 
D)  Production.

Question 2

Dahl Company,a clothing manufacturer,uses a standard costing system.Each unit of a finished product contains 2 metres of cloth.However,there is unavoidable waste of 20%,calculated on input quantities,when the cloth is cut for assembly.The cost of the cloth is $3 per metre.What is the standard direct material cost for cloth per unit of finished product?

Accepted Answer

A)  $4.80. 
B)  $6.00. 
C)  $7.00. 
D)  $7.50. 
A)  $4.80. 
B)  $6.00. 
C)  $7.00. 
D)  $7.50.

Question 3

How much overhead was applied to products during the period,rounded to the nearest dollar?

Accepted Answer

A)  $93,240. 
B)  $94,483. 
C)  $94,770. 
D)  $96,034. 
A)  $93,240. 
B)  $94,483. 
C)  $94,770. 
D)  $96,034.

Question 4

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

Accepted Answer

A)  $166 unfavourable. 
B)  $422 favourable. 
C)  $585 favourable. 
D)  $1,400 unfavourable. 
A)  $166 unfavourable. 
B)  $422 favourable. 
C)  $585 favourable. 
D)  $1,400 unfavourable.

Question 5

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

Accepted Answer

A)  $2,256 favourable. 
B)  $2,331 favourable. 
C)  $3,089 unfavourable. 
D)  $5,420 favourable. 
A)  $2,256 favourable. 
B)  $2,331 favourable. 
C)  $3,089 unfavourable. 
D)  $5,420 favourable.

Question 6

(Appendix 10C)What were the sales quantity 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.

Question 7

For March,what was the variable overhead spending variance?

Accepted Answer

A)  $6,000 favourable. 
B)  $10,000 unfavourable. 
C)  $12,000 unfavourable. 
D)  $22,000 favourable. 
A)  $6,000 favourable. 
B)  $10,000 unfavourable. 
C)  $12,000 unfavourable. 
D)  $22,000 favourable.

Question 8

From a standpoint of cost control,the most effective time to recognize material price variances is when the materials are placed into production.

Accepted Answer

A) True 
 B)False

Question 9

What was the variable overhead spending variance for the month?

Accepted Answer

A)  $255 favourable. 
B)  $255 unfavourable. 
C)  $10,821 favourable. 
D)  $10,821 unfavourable. 
A)  $255 favourable. 
B)  $255 unfavourable. 
C)  $10,821 favourable. 
D)  $10,821 unfavourable.

Question 10

Dodge Company produces a single product.The company has set the following standards for materials and labour:   
During the past month,the company purchased 7,000 kilograms of direct materials at a cost of $26,250.All of this material was used in the production of 1,300 units of product.Direct labour cost totalled $55,125 for the month.The following variances have been computed:   
Required:
a)For direct materials,compute the standard price per kilogram,the standard quantity allowed for materials in total for the month's production,and the standard quantity per unit of product.
b)For direct labour,compute the actual direct labour cost per hour for the month and the labour rate variance.

Accepted Answer

a)The actual cost of material per kilogr

Question 11

Warner Manufacturing has established the following master flexible budget for the current year:   
   
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 120,000 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 12

(Appendix 10C)What was the market share variance for last year?

Accepted Answer

A)  $16,537.50 unfavourable. 
B)  $18,375.00 favourable. 
C)  $18,375.00 unfavourable. 
D)  $21,875.00 favourable.Variance = (2,100 - 52,500 * 2,000/40,000)* 35 = $18,375 unfavourable. 
A)  $16,537.50 unfavourable. 
B)  $18,375.00 favourable. 
C)  $18,375.00 unfavourable. 
D)  $21,875.00 favourable.Variance = (2,100 - 52,500 * 2,000/40,000)* 35 = $18,375 unfavourable.

Question 13

What was the labour efficiency variance for November?

Accepted Answer

A)  $550 unfavourable. 
B)  $1,050 unfavourable. 
C)  $1,600 favourable. 
D)  $1,600 unfavourable. 
A)  $550 unfavourable. 
B)  $1,050 unfavourable. 
C)  $1,600 favourable. 
D)  $1,600 unfavourable.

Question 14

What is the standard variable overhead rate per direct labour hour?

Accepted Answer

A)  $6.91. 
B)  $6.95. 
C)  $7.00. 
D)  $7.12. 
A)  $6.91. 
B)  $6.95. 
C)  $7.00. 
D)  $7.12.

Question 15

What was the materials price variance for November?

Accepted Answer

A)  $810 favourable. 
B)  $810 unfavourable. 
C)  $2,310 favourable. 
D)  $2,310 unfavourable. 
A)  $810 favourable. 
B)  $810 unfavourable. 
C)  $2,310 favourable. 
D)  $2,310 unfavourable.

Question 16

The fixed overhead volume variance is due to which of the following?

Accepted Answer

A)  Inefficient or efficient use of whatever the denominator activity is. 
B)  Inefficient or efficient use of overhead resources. 
C)  A difference between the denominator activity and the standard hours allowed for the actual output of the period. 
D)  A shift in the amount of hours required to produce the actual output. 
A)  Inefficient or efficient use of whatever the denominator activity is. 
B)  Inefficient or efficient use of overhead resources. 
C)  A difference between the denominator activity and the standard hours allowed for the actual output of the period. 
D)  A shift in the amount of hours required to produce the actual output.

Question 17

What was the fixed overhead budget variance for the year?

Accepted Answer

A)  $8,000 favourable. 
B)  $10,000 unfavourable. 
C)  $17,000 unfavourable. 
D)  $74,000 favourable. 
A)  $8,000 favourable. 
B)  $10,000 unfavourable. 
C)  $17,000 unfavourable. 
D)  $74,000 favourable.

Question 18

In a standard costing system,under- or overapplied fixed overhead is equal to the sum of the fixed overhead budget variance and the fixed overhead volume variance.

Accepted Answer

A) True 
 B)False

Question 19

For August,what was the variable overhead efficiency variance?

Accepted Answer

A)  $0. 
B)  $1,800 favourable. 
C)  $2,200 favourable. 
D)  $2,200 unfavourable. 
A)  $0. 
B)  $1,800 favourable. 
C)  $2,200 favourable. 
D)  $2,200 unfavourable.

Question 20

Dori's choice of a production volume as a denominator for calculating its predetermined overhead rate will have NO effect on which of the following?

Accepted Answer

A)  The fixed portion of this rate,which is used for applying costs to production. 
B)  The variable portion of this rate,which is used for applying costs to production. 
C)  The fixed overhead budget variance. 
D)  The fixed overhead volume variance. 
A)  The fixed portion of this rate,which is used for applying costs to production. 
B)  The variable portion of this rate,which is used for applying costs to production. 
C)  The fixed overhead budget variance. 
D)  The fixed overhead volume variance.

Which department is usually held responsible for an unfavourable materials quantity variance?

How much overhead was applied to products during the period,rounded to the nearest dollar?

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

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

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

For March,what was the variable overhead spending variance?

From a standpoint of cost control,the most effective time to recognize material price variances is when the materials are placed into production.

What was the variable overhead spending variance for the month?

(Appendix 10C)What was the market share variance for last year?

What was the labour efficiency variance for November?

What is the standard variable overhead rate per direct labour hour?

What was the materials price variance for November?

The fixed overhead volume variance is due to which of the following?

What was the fixed overhead budget variance for the year?

In a standard costing system,under- or overapplied fixed overhead is equal to the sum of the fixed overhead budget variance and the fixed overhead volume variance.

For August,what was the variable overhead efficiency variance?

Dori's choice of a production volume as a denominator for calculating its predetermined overhead rate will have NO effect on which of the following?

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

Which department is usually held responsible for an unfavourable materials quantity variance?

How much overhead was applied to products during the period,rounded to the nearest dollar?

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

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

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

For March,what was the variable overhead spending variance?

From a standpoint of cost control,the most effective time to recognize material price variances is when the materials are placed into production.

What was the variable overhead spending variance for the month?

(Appendix 10C)What was the market share variance for last year?

What was the labour efficiency variance for November?

What is the standard variable overhead rate per direct labour hour?

What was the materials price variance for November?

The fixed overhead volume variance is due to which of the following?

What was the fixed overhead budget variance for the year?

In a standard costing system,under- or overapplied fixed overhead is equal to the sum of the fixed overhead budget variance and the fixed overhead volume variance.

For August,what was the variable overhead efficiency variance?

Dori's choice of a production volume as a denominator for calculating its predetermined overhead rate will have NO effect on which of the following?

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