Question 1

What was the materials price variance?

Accepted Answer

A)  $420 favourable. 
B)  $420 unfavourable. 
C)  $700 favourable. 
D)  $700 unfavourable. 
A)  $420 favourable. 
B)  $420 unfavourable. 
C)  $700 favourable. 
D)  $700 unfavourable.

Question 2

You have just been hired as the controller of the Eastern Division of Global Manufacturing.Performance records for last year are incomplete,with only the following data available:   
Required:
Prepare a complete analysis of manufacturing overhead for the past year.Indicate actual,standard,and denominator activity levels;variable overhead spending and efficiency variances;and fixed overhead budget and volume variances.

Accepted Answer

Budgeted fixed overhead rate = Fixed ove

Question 3

(Appendix 10C)Yukon Company expressed the total expenses (Y)component of its master budget for March with the cost formula Y = $100,000 + $40 * X,where X represents the expected number of units of its only product to be manufactured and sold.The budgeted average selling price per unit was $65 for budgeted sales volume 5,000 units based on an estimated industry volume of 50,000 units.Reported actual results for February were as follows:   
*Actual industry sales volume was 60,000 units.
Required:
a)Calculate the flexible budget variance and analyze it into sales price variance and cost/expense variance(s).
b)Calculate the sales volume variance and analyze it into market-size (industry volume)variance and market-share variance.
c)On the basis of your analysis in parts (a)and (b),would you recommend a bonus be paid to the sales manager? Why or why not?

Accepted Answer

a)Flexible budget variance
Per unit amou

Question 4

What was the amount of fixed overhead contained in the company's overhead flexible budget for May?

Accepted Answer

A)  $64,125. 
B)  $67,500. 
C)  $68,400. 
D)  $70,275. 
A)  $64,125. 
B)  $67,500. 
C)  $68,400. 
D)  $70,275.

Question 5

Which of the following is NOT true for variable manufacturing overhead costs in a standard costing system?

Accepted Answer

A)  No volume variance is ever reported. 
B)  The flexible variable overhead allowance for the standard hours allowed for the output is the same as the applied total variable overhead. 
C)  The slope of the budgeted variable overhead line is the same as the slope of the applied variable overhead line. 
D)  Any underapplied or overapplied overhead is equal to the variable overhead spending variance. 
A)  No volume variance is ever reported. 
B)  The flexible variable overhead allowance for the standard hours allowed for the output is the same as the applied total variable overhead. 
C)  The slope of the budgeted variable overhead line is the same as the slope of the applied variable overhead line. 
D)  Any underapplied or overapplied overhead is equal to the variable overhead spending variance.

Question 6

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

Accepted Answer

A)  $40,650. 
B)  $41,600. 
C)  $42,981. 
D)  $46,070. 
A)  $40,650. 
B)  $41,600. 
C)  $42,981. 
D)  $46,070.

Question 7

A labour efficiency variance resulting from the use of poor quality materials should be charged to which/whom?

Accepted Answer

A)  The production manager. 
B)  The purchasing agent. 
C)  Manufacturing overhead. 
D)  The engineering department. 
A)  The production manager. 
B)  The purchasing agent. 
C)  Manufacturing overhead. 
D)  The engineering department.

Question 8

What was the direct materials quantity variance for March?

Accepted Answer

A)  $3,500 favourable. 
B)  $3,500 unfavourable. 
C)  $52,500 favourable. 
D)  $52,500 unfavourable. 
A)  $3,500 favourable. 
B)  $3,500 unfavourable. 
C)  $52,500 favourable. 
D)  $52,500 unfavourable.

Question 9

Overhead cost is applied to units based on direct labour hours.For April,total overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labour hours for the month.The standard cost card indicates that each unit of finished product requires 2 direct labour hours.The following data are available for April's activity:  
What was the amount of total overhead cost applied to production for the month of April?

Accepted Answer

A)  $76,000. 
B)  $78,000. 
C)  $79,500. 
D)  $80,000. 
A)  $76,000. 
B)  $78,000. 
C)  $79,500. 
D)  $80,000.

Question 10

What are the standard hours allowed to make one unit of finished product?

Accepted Answer

A)  1.0 hours. 
B)  1.2 hours. 
C)  1.5 hours. 
D)  2.0 hours. 
A)  1.0 hours. 
B)  1.2 hours. 
C)  1.5 hours. 
D)  2.0 hours.

Question 11

Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour.During June,1,000 units were produced using 4,100 hours at $12.20 per hour.What was the direct labour efficiency variance?

Accepted Answer

A)  $1,200 favourable. 
B)  $1,200 unfavourable. 
C)  $2,020 favourable. 
D)  $2,020 unfavourable. 
A)  $1,200 favourable. 
B)  $1,200 unfavourable. 
C)  $2,020 favourable. 
D)  $2,020 unfavourable.

Question 12

The fixed portion of the predetermined overhead rate is used for product costing purposes and has no significance in terms of cost control.

Accepted Answer

A) True 
 B)False

Question 13

(Appendix 10B)To record the use of direct materials in production,the general ledger would include what entry to the Materials Quantity Variance account?

Accepted Answer

A)  $900 debit. 
B)  $900 credit. 
C)  $3,600 debit. 
D)  $3,600 credit. 
A)  $900 debit. 
B)  $900 credit. 
C)  $3,600 debit. 
D)  $3,600 credit.

Question 14

The variable overhead efficiency variance reflects how efficiently variable overhead resources were used.

Accepted Answer

A) True 
 B)False

Question 15

What was the variable overhead efficiency variance for the period,rounded to the nearest dollar?

Accepted Answer

A)  $0. 
B)  $2,075 unfavourable. 
C)  $2.075 favourable. 
D)  $1,760 unfavourable. 
A)  $0. 
B)  $2,075 unfavourable. 
C)  $2.075 favourable. 
D)  $1,760 unfavourable.

Question 16

What was the labour efficiency variance?

Accepted Answer

A)  $1,375 favourable. 
B)  $1,375 unfavourable. 
C)  $1,600 favourable. 
D)  $1,600 unfavourable. 
A)  $1,375 favourable. 
B)  $1,375 unfavourable. 
C)  $1,600 favourable. 
D)  $1,600 unfavourable.

Question 17

What was the variable overhead spending variance for the month?

Accepted Answer

A)  $1,715 favourable. 
B)  $1,715 unfavourable. 
C)  $2,870 favourable. 
D)  $2,870 unfavourable. 
A)  $1,715 favourable. 
B)  $1,715 unfavourable. 
C)  $2,870 favourable. 
D)  $2,870 unfavourable.

Question 18

What was the materials quantity variance for November?

Accepted Answer

A)  $300 unfavourable. 
B)  $1,200 favourable. 
C)  $1,200 unfavourable. 
D)  $1,500 favourable. 
A)  $300 unfavourable. 
B)  $1,200 favourable. 
C)  $1,200 unfavourable. 
D)  $1,500 favourable.

Question 19

What was the variable overhead efficiency variance for March?

Accepted Answer

A)  $6,160 favourable. 
B)  $6,160 unfavourable. 
C)  $6,240 favourable. 
D)  $6,240 unfavourable. 
A)  $6,160 favourable. 
B)  $6,160 unfavourable. 
C)  $6,240 favourable. 
D)  $6,240 unfavourable.

Question 20

What was the fixed overhead budget variance?

Accepted Answer

A)  $1,000 unfavourable. 
B)  $2,000 favourable. 
C)  $2,000 unfavourable. 
D)  $3,000 unfavourable. 
A)  $1,000 unfavourable. 
B)  $2,000 favourable. 
C)  $2,000 unfavourable. 
D)  $3,000 unfavourable.

What was the materials price variance?

What was the amount of fixed overhead contained in the company's overhead flexible budget for May?

Which of the following is NOT true for variable manufacturing overhead costs in a standard costing system?

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

A labour efficiency variance resulting from the use of poor quality materials should be charged to which/whom?

What was the direct materials quantity variance for March?

What are the standard hours allowed to make one unit of finished product?

Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour.During June,1,000 units were produced using 4,100 hours at $12.20 per hour.What was the direct labour efficiency variance?

The fixed portion of the predetermined overhead rate is used for product costing purposes and has no significance in terms of cost control.

(Appendix 10B)To record the use of direct materials in production,the general ledger would include what entry to the Materials Quantity Variance account?

The variable overhead efficiency variance reflects how efficiently variable overhead resources were used.

What was the variable overhead efficiency variance for the period,rounded to the nearest dollar?

What was the labour efficiency variance?

What was the variable overhead spending variance for the month?

What was the materials quantity variance for November?

What was the variable overhead efficiency variance for March?

What was the fixed overhead budget variance?

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

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Exam 10: Standard Costs and Overhead Analysis

What was the materials price variance?

What was the amount of fixed overhead contained in the company's overhead flexible budget for May?

Which of the following is NOT true for variable manufacturing overhead costs in a standard costing system?

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

A labour efficiency variance resulting from the use of poor quality materials should be charged to which/whom?

What was the direct materials quantity variance for March?

What are the standard hours allowed to make one unit of finished product?

Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour.During June,1,000 units were produced using 4,100 hours at $12.20 per hour.What was the direct labour efficiency variance?

The fixed portion of the predetermined overhead rate is used for product costing purposes and has no significance in terms of cost control.

(Appendix 10B)To record the use of direct materials in production,the general ledger would include what entry to the Materials Quantity Variance account?

The variable overhead efficiency variance reflects how efficiently variable overhead resources were used.

What was the variable overhead efficiency variance for the period,rounded to the nearest dollar?

What was the labour efficiency variance?

What was the variable overhead spending variance for the month?

What was the materials quantity variance for November?

What was the variable overhead efficiency variance for March?

What was the fixed overhead budget variance?

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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