Question 1

What was the labour efficiency variance for the month?

Accepted Answer

A)  $7,230 favourable. 
B)  $7,230 unfavourable. 
C)  $9,030 unfavourable. 
D)  $9,150 unfavourable. 
A)  $7,230 favourable. 
B)  $7,230 unfavourable. 
C)  $9,030 unfavourable. 
D)  $9,150 unfavourable.

Question 2

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

Accepted Answer

A)  $11.94. 
B)  $12.24. 
C)  $13.55. 
D)  $13.87. 
A)  $11.94. 
B)  $12.24. 
C)  $13.55. 
D)  $13.87.

Question 3

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

Accepted Answer

A)  $6,664 favourable. 
B)  $6,732 favourable. 
C)  $13,720 unfavourable. 
D)  $13,860 unfavourable. 
A)  $6,664 favourable. 
B)  $6,732 favourable. 
C)  $13,720 unfavourable. 
D)  $13,860 unfavourable.

Question 4

What was the materials price variance for the month?

Accepted Answer

A)  $3,640 favourable. 
B)  $3,640 unfavourable. 
C)  $4,060 favourable. 
D)  $4,060 unfavourable. 
A)  $3,640 favourable. 
B)  $3,640 unfavourable. 
C)  $4,060 favourable. 
D)  $4,060 unfavourable.

Question 5

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

Accepted Answer

A)  $1,352 unfavourable. 
B)  $1,359 unfavourable. 
C)  $2,550 favourable. 
D)  $3,902 unfavourable. 
A)  $1,352 unfavourable. 
B)  $1,359 unfavourable. 
C)  $2,550 favourable. 
D)  $3,902 unfavourable.

Question 6

A decrease in denominator level of activity will lead to which of the following?

Accepted Answer

A)  A decrease in the fixed portion of the predetermined overhead rate. 
B)  An increase in the fixed portion of the predetermined overhead rate. 
C)  A decrease in the variable portion of the predetermined overhead rate. 
D)  An increase in the variable portion of the predetermined overhead rate. 
A)  A decrease in the fixed portion of the predetermined overhead rate. 
B)  An increase in the fixed portion of the predetermined overhead rate. 
C)  A decrease in the variable portion of the predetermined overhead rate. 
D)  An increase in the variable portion of the predetermined overhead rate.

Question 7

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

Accepted Answer

A)  $18,375.00 favourable. 
B)  $19,687.50 favourable. 
C)  $21,875.00 favourable. 
D)  $21,875.00 unfavourable. 
A)  $18,375.00 favourable. 
B)  $19,687.50 favourable. 
C)  $21,875.00 favourable. 
D)  $21,875.00 unfavourable.

Question 8

The material quantity variance is computed based on the quantity of all materials purchased during the period.

Accepted Answer

A) True 
 B)False

Question 9

What was the variable overhead spending variance for the year?

Accepted Answer

A)  $2,000 favourable. 
B)  $10,000 unfavourable. 
C)  $82,000 unfavourable. 
D)  $110,000 unfavourable. 
A)  $2,000 favourable. 
B)  $10,000 unfavourable. 
C)  $82,000 unfavourable. 
D)  $110,000 unfavourable.

Question 10

Standards can be either theoretical ("impossible dream")or practical (attainable all the time or only part of the time).Theoretically either can be used as the framework for the budgeting process.
Required:
a)What is the major distinction,if any,between a standard amount and a budgeted amount?
b)Which standard,theoretical or practical,provides the better benchmark for evaluating subsequent performance in a budgeting system? Explain.

Accepted Answer

a)One major distinction between a standa

Question 11

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

Accepted Answer

A)  Variable overhead spending variance. 
B)  Variable overhead efficiency variance. 
C)  Fixed overhead budget variance. 
D)  Fixed overhead volume variance. 
A)  Variable overhead spending variance. 
B)  Variable overhead efficiency variance. 
C)  Fixed overhead budget variance. 
D)  Fixed overhead volume variance.

Question 12

(Appendix 10B)A favourable labour efficiency variance would result in a credit balance in the labour efficiency variance account.

Accepted Answer

A) True 
 B)False

Question 13

What was the variable overhead spending variance?

Accepted Answer

A)  $740 favourable. 
B)  $740 unfavourable. 
C)  $820 favourable. 
D)  $820 unfavourable. 
A)  $740 favourable. 
B)  $740 unfavourable. 
C)  $820 favourable. 
D)  $820 unfavourable.

Question 14

The Fletcher Company uses standard costing.The following data are available for October:  
What was the standard quantity of material allowed for October production?

Accepted Answer

A)  23,000 kilograms. 
B)  24,000 kilograms. 
C)  24,500 kilograms. 
D)  25,000 kilograms. 
A)  23,000 kilograms. 
B)  24,000 kilograms. 
C)  24,500 kilograms. 
D)  25,000 kilograms.

Question 15

(Appendix 10C)The sales quantity variance is calculated by holding constant which of the following?

Accepted Answer

A)  The budgeted sales mix percentages. 
B)  The actual sales mix percentages. 
C)  The budgeted contribution margin per unit. 
D)  Both the budgeted sales mix percentages and the budgeted contribution margin per unit. 
A)  The budgeted sales mix percentages. 
B)  The actual sales mix percentages. 
C)  The budgeted contribution margin per unit. 
D)  Both the budgeted sales mix percentages and the budgeted contribution margin per unit.

Question 16

(Appendix 10B)Which of the following entries would correctly record the charging of direct labour costs to Work in Process given an unfavourable labour efficiency variance and a favourable labour rate variance?

Accepted Answer

A)  A debit to Work in Process,and credits to Labour Efficiency Variance,Labour Rate Variance,and Wages Payable. 
B)  A debit to Work in Process and an equal credit to Wages Payable. 
C)  Debits to Work in Process and Labour Efficiency Variance,and credits to Labour Rate Variance and Wages Payable. 
D)  Debits to Work in Process and Labour Rate Variance,and credits to Labour Efficiency Variance and Wages Payable. 
A)  A debit to Work in Process,and credits to Labour Efficiency Variance,Labour Rate Variance,and Wages Payable. 
B)  A debit to Work in Process and an equal credit to Wages Payable. 
C)  Debits to Work in Process and Labour Efficiency Variance,and credits to Labour Rate Variance and Wages Payable. 
D)  Debits to Work in Process and Labour Rate Variance,and credits to Labour Efficiency Variance and Wages Payable.

Question 17

What was the total standard cost for variable overhead for May?

Accepted Answer

A)  $40,000. 
B)  $50,000. 
C)  $56,000. 
D)  $60,000. 
A)  $40,000. 
B)  $50,000. 
C)  $56,000. 
D)  $60,000.

Question 18

If a company follows a practice of isolating variances at the earliest point in time,what would be the appropriate time to isolate and recognize a direct material price variance?

Accepted Answer

A)  When material is issued. 
B)  When material is purchased. 
C)  When material is used in production. 
D)  When production is completeD. 
A)  When material is issued. 
B)  When material is purchased. 
C)  When material is used in production. 
D)  When production is completeD.

Question 19

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

Accepted Answer

A)  $19.30. 
B)  $19.65. 
C)  $19.80. 
D)  $20.15. 
A)  $19.30. 
B)  $19.65. 
C)  $19.80. 
D)  $20.15.

Question 20

What was the direct labour efficiency variance for March?

Accepted Answer

A)  $5,500 favourable. 
B)  $5,500 unfavourable. 
C)  $5,625 favourable. 
D)  $5,625 unfavourable. 
A)  $5,500 favourable. 
B)  $5,500 unfavourable. 
C)  $5,625 favourable. 
D)  $5,625 unfavourable.

What was the labour efficiency variance for the month?

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

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

What was the materials price variance for the month?

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

A decrease in denominator level of activity will lead to which of the following?

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

The material quantity variance is computed based on the quantity of all materials purchased during the period.

What was the variable overhead spending variance for the year?

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

(Appendix 10B)A favourable labour efficiency variance would result in a credit balance in the labour efficiency variance account.

What was the variable overhead spending variance?

The Fletcher Company uses standard costing.The following data are available for October: What was the standard quantity of material allowed for October production?

(Appendix 10C)The sales quantity variance is calculated by holding constant which of the following?

(Appendix 10B)Which of the following entries would correctly record the charging of direct labour costs to Work in Process given an unfavourable labour efficiency variance and a favourable labour rate variance?

What was the total standard cost for variable overhead for May?

If a company follows a practice of isolating variances at the earliest point in time,what would be the appropriate time to isolate and recognize a direct material price variance?

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

What was the direct labour efficiency variance for March?

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 labour efficiency variance for the month?

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

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

What was the materials price variance for the month?

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

A decrease in denominator level of activity will lead to which of the following?

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

The material quantity variance is computed based on the quantity of all materials purchased during the period.

What was the variable overhead spending variance for the year?

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

(Appendix 10B)A favourable labour efficiency variance would result in a credit balance in the labour efficiency variance account.

What was the variable overhead spending variance?

The Fletcher Company uses standard costing.The following data are available for October: What was the standard quantity of material allowed for October production?

(Appendix 10C)The sales quantity variance is calculated by holding constant which of the following?

(Appendix 10B)Which of the following entries would correctly record the charging of direct labour costs to Work in Process given an unfavourable labour efficiency variance and a favourable labour rate variance?

What was the total standard cost for variable overhead for May?

If a company follows a practice of isolating variances at the earliest point in time,what would be the appropriate time to isolate and recognize a direct material price variance?

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

What was the direct labour efficiency variance for March?

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