Question 1

-According to the above table.what is the total manufacturing overhead variance for the total product cost flexible budget variance?

Accepted Answer

A) $725 F 
B) $350 U 
C) $725 U 
D) $425 F 
A) $725 F 
B) $350 U 
C) $725 U 
D) $425 F

Question 2

Global Engineering's actual operating income for the current year is $58,000.The flexible budget operating income for actual sales volume is $39,000,while the static budget operating income is $53,000.What is the sales volume variance for operating income?

Accepted Answer

A) $14,000 favorable 
B) $5000 unfavorable 
C) $14,000 unfavorable 
D) $5000 favorable 
A) $14,000 favorable 
B) $5000 unfavorable 
C) $14,000 unfavorable 
D) $5000 favorable

Question 3

What does the variable overhead efficiency variance measure?

Accepted Answer

The variable overhead efficien

Question 4

A cost variance measures the difference in quantities of actual inputs used and the standard quantity of inputs allowed for the actual number of units produced.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an example of a direct materials efficiency standard?

Accepted Answer

A) $40 per direct labor hour 
B) 50 square feet per unit 
C) $0.95 per square foot 
D) 6 direct labor hours per unit 
A) $40 per direct labor hour 
B) 50 square feet per unit 
C) $0.95 per square foot 
D) 6 direct labor hours per unit

Question 6

Dixon,Inc.uses a standard cost system.On December 31,the last day of the accounting period,the account balances include the following:   What is the net operating income on a standard cost income statement of the company for the year ended December 31?

Accepted Answer

A) $8,780 
B) $6,290 
C) $8,470 
D) $7,530 
A) $8,780 
B) $6,290 
C) $8,470 
D) $7,530

Question 7

A favorable variance reflects a decrease in operating income.

Accepted Answer

A) True 
 B)False

Question 8

What does the fixed overhead cost variance measure?

Accepted Answer

The fixed overhead cost varian

Question 9

Managers should look at any variance that is significant.

Accepted Answer

A) True 
 B)False

Question 10

A favorable flexible budget variance in sales revenue suggests a(n)________.

Accepted Answer

A) increase in sales price per unit 
B) increase in volume 
C) decrease in variable cost per unit 
D) decrease in fixed costs 
A) increase in sales price per unit 
B) increase in volume 
C) decrease in variable cost per unit 
D) decrease in fixed costs

Question 11

SeaKist Marine Stores Company manufactures decorative fittings for luxury yachts,which require highly skilled labor,and special metallic materials.SeaKist uses standard costs to prepare its flexible budget.For the first quarter of 2016,direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 1.5 pounds per unit; $4 per pound
Labor: 2 hours per unit; $18 per hour
During the first quarter,SeaKist produced 5,000 units of this product.At the end of the quarter,an examination of the direct materials records revealed that the company used 7,000 pounds of direct materials.The direct materials efficiency variance was $2,000 F.Which of the following is a logical explanation for this variance?

Accepted Answer

A) The company used fewer labor hours than allowed by the standards. 
B) The company paid a lower cost per hour for labor than allowed by the standards. 
C) The company used a lower quantity of direct materials than was allowed by the standards. 
D) The company paid a lower cost for the direct materials than allowed by the standards. 
A) The company used fewer labor hours than allowed by the standards. 
B) The company paid a lower cost per hour for labor than allowed by the standards. 
C) The company used a lower quantity of direct materials than was allowed by the standards. 
D) The company paid a lower cost for the direct materials than allowed by the standards.

Question 12

Under a standard cost system,the journal entry to record direct labor includes ________.

Accepted Answer

A) a debit for standard direct labor quantity for actual production times standard direct labor cost per hour 
B) a credit for standard quantity usage for actual production times actual cost per hour 
C) a debit for actual quantity times standard cost per hour 
D) a credit for standard quantity for actual production times standard cost per hour 
A) a debit for standard direct labor quantity for actual production times standard direct labor cost per hour 
B) a credit for standard quantity usage for actual production times actual cost per hour 
C) a debit for actual quantity times standard cost per hour 
D) a credit for standard quantity for actual production times standard cost per hour

Question 13

Favorable and unfavorable variances are netted together in the same way debits and credits are.

Accepted Answer

A) True 
 B)False

Question 14

The static budget,at the beginning of the month,for Wadsworth Company follows: 
$\underline{\text{Static budget:}}$
Sales volume: 2000 units; Sales price: $50.00 per unit
Variable costs: $14.00 per unit; Fixed costs: $25,100 per month
Operating income: $46,900
$\underline{\text{Actual results, at the end of the month, follows:}}$
$\underline{\text{Actual results:}}$
Sales volume: 1900 units; Sales price: $58.00 per unit
Variable costs: $16.5 per unit; Fixed costs: $34,000 per month
Operating income: $44,850
Calculate the flexible budget variance for operating income.

Accepted Answer

A) $3600 U 
B) $3600 F 
C) $1550 F 
D) $15,200 F 
A) $3600 U 
B) $3600 F 
C) $1550 F 
D) $15,200 F

Question 15

When recording direct materials usage,what does an unfavorable direct materials efficiency variance represent? Will this variance have a debit or credit balance?

Accepted Answer

An unfavorable direct materials efficien

Question 16

The flexible budget variance is the difference between expected results in the flexible budget for the actual units sold and the static budget.

Accepted Answer

A) True 
 B)False

Question 17

Argosy Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor.Argosy uses standard costs to prepare its flexible budget.For the first quarter of the year,direct materials and direct labor standards for one of their popular products were as follows: 
Direct materials: 4 pounds per unit; $3 per pound
Direct labor: 4 hours per unit; $17 per hour
Argosy produced 5000 units during the quarter.At the end of the quarter,an examination of the labor costs records showed that the company used 21,000 direct labor hours and actual total direct labor costs were $380,000.The direct labor efficiency variance was $17,000 U.Which of the following is a logical explanation for this variance?

Accepted Answer

A) The company used more labor hours than allowed by the standards. 
B) The company paid a higher cost per hour for labor than allowed by the standards. 
C) The company used a higher quantity of direct materials than allowed by the standards. 
D) The company paid a higher cost for the direct materials than allowed by the standards. 
A) The company used more labor hours than allowed by the standards. 
B) The company paid a higher cost per hour for labor than allowed by the standards. 
C) The company used a higher quantity of direct materials than allowed by the standards. 
D) The company paid a higher cost for the direct materials than allowed by the standards.

Question 18

What does the fixed overhead volume variance measure?

Accepted Answer

The fixed overhead volume variance measu

Question 19

A company is analyzing its month-end results by comparing it to both static and flexible budgets.During the month,the actual sales volume was lower than the expected sales volume as per the static budget.This difference results in an unfavorable ________.

Accepted Answer

A) flexible budget variance for variable costs 
B) sales volume variance for variable costs 
C) flexible budget variance for sales revenue 
D) sales volume variance for sales revenue 
A) flexible budget variance for variable costs 
B) sales volume variance for variable costs 
C) flexible budget variance for sales revenue 
D) sales volume variance for sales revenue

Question 20

The following information relates to Tablerock Manufacturing's overhead costs for the month:
 $\begin{array}{|l|l|}
\hline\text { Static budget variable overhead } & \$ 14,200 \
\hline \text { Static budget fixed overhead } & \$ 5,600 \
\hline \text { Static budget direct labor hours } & 1,000 \text { hours } \
\hline \text { Static budget number of units } & 5,000 \text { units }\\hline
\end{array}$ Tablerock allocates variable manufacturing overhead to production based on standard direct labor hours.
Tablerock reported the following actual results for last month: actual variable overhead,$14,500; actual fixed overhead,$5,400; actual production of 4,700 units at 0.22 direct labor hours per unit.The standard direct labor time is 0.20 direct labor hours per unit.
Compute the variable overhead cost variance.(Round intermediate calculations to two decimal places and the answer to the nearest dollar.)

Accepted Answer

Variable overhead cost variance:	(AC - S

-According to the above table.what is the total manufacturing overhead variance for the total product cost flexible budget variance?

Global Engineering's actual operating income for the current year is $58,000.The flexible budget operating income for actual sales volume is $39,000,while the static budget operating income is $53,000.What is the sales volume variance for operating income?

What does the variable overhead efficiency variance measure?

A cost variance measures the difference in quantities of actual inputs used and the standard quantity of inputs allowed for the actual number of units produced.

Which of the following is an example of a direct materials efficiency standard?

Dixon,Inc.uses a standard cost system.On December 31,the last day of the accounting period,the account balances include the following: What is the net operating income on a standard cost income statement of the company for the year ended December 31?

A favorable variance reflects a decrease in operating income.

What does the fixed overhead cost variance measure?

Managers should look at any variance that is significant.

A favorable flexible budget variance in sales revenue suggests a(n)________.

Under a standard cost system,the journal entry to record direct labor includes ________.

Favorable and unfavorable variances are netted together in the same way debits and credits are.

When recording direct materials usage,what does an unfavorable direct materials efficiency variance represent? Will this variance have a debit or credit balance?

The flexible budget variance is the difference between expected results in the flexible budget for the actual units sold and the static budget.

What does the fixed overhead volume variance measure?

A company is analyzing its month-end results by comparing it to both static and flexible budgets.During the month,the actual sales volume was lower than the expected sales volume as per the static budget.This difference results in an unfavorable ________.

Accounting Information Systems

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 23: Flexible Budgets and Standard Cost Systems

-According to the above table.what is the total manufacturing overhead variance for the total product cost flexible budget variance?

Global Engineering's actual operating income for the current year is $58,000.The flexible budget operating income for actual sales volume is $39,000,while the static budget operating income is $53,000.What is the sales volume variance for operating income?

What does the variable overhead efficiency variance measure?

A cost variance measures the difference in quantities of actual inputs used and the standard quantity of inputs allowed for the actual number of units produced.

Which of the following is an example of a direct materials efficiency standard?

Dixon,Inc.uses a standard cost system.On December 31,the last day of the accounting period,the account balances include the following: What is the net operating income on a standard cost income statement of the company for the year ended December 31?

A favorable variance reflects a decrease in operating income.

What does the fixed overhead cost variance measure?

Managers should look at any variance that is significant.

A favorable flexible budget variance in sales revenue suggests a(n)________.

Under a standard cost system,the journal entry to record direct labor includes ________.

Favorable and unfavorable variances are netted together in the same way debits and credits are.

When recording direct materials usage,what does an unfavorable direct materials efficiency variance represent? Will this variance have a debit or credit balance?

The flexible budget variance is the difference between expected results in the flexible budget for the actual units sold and the static budget.

What does the fixed overhead volume variance measure?

A company is analyzing its month-end results by comparing it to both static and flexible budgets.During the month,the actual sales volume was lower than the expected sales volume as per the static budget.This difference results in an unfavorable ________.

Accounting Information Systems

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters