Question 1

The difference between the total actual overhead cost incurred and the total standard overhead cost applied is the ________.

Accepted Answer

overhead c

Question 2

All of the following are associated with the volume variance except:

Accepted Answer

A) It results from operating at a different capacity than predicted. 
B) Failing to meet expected production results from lower customer demand. 
C) The volume variance is based solely on fixed overhead. 
D) It is considered to be under management's control. 
E) It is considered outside the control of the product manager. 
A) It results from operating at a different capacity than predicted. 
B) Failing to meet expected production results from lower customer demand. 
C) The volume variance is based solely on fixed overhead. 
D) It is considered to be under management's control. 
E) It is considered outside the control of the product manager.

Question 3

Regent,Inc.uses the following standard to produce a single unit of its product: overhead $6 (2 hrs.@ $3/hr.).The flexible budget for overhead is $100,000 plus $1 per direct labor hour.Actual data for the month show overhead costs of $150,000,and 24,000 units produced.The overhead volume variance is:

Accepted Answer

A) $10,000 favorable. 
B) $12,000 favorable. 
C) $4,000 unfavorable. 
D) $16,000 unfavorable. 
E) $36,000 unfavorable. 
A) $10,000 favorable. 
B) $12,000 favorable. 
C) $4,000 unfavorable. 
D) $16,000 unfavorable. 
E) $36,000 unfavorable.

Question 4

A company uses the following standard costs to produce a single unit of output.  
During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.
-Based on this information,the total direct materials cost variance for the month was:

Accepted Answer

A) $4,000 unfavorable 
B) $4,000 favorable 
C) $5,800 favorable 
D) $5,800 unfavorable 
E) $1,800 favorable 
A) $4,000 unfavorable 
B) $4,000 favorable 
C) $5,800 favorable 
D) $5,800 unfavorable 
E) $1,800 favorable

Question 5

A company uses the following standard costs to produce a single unit of output.  
During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.
-Based on this information,the direct labor efficiency variance for the month was:

Accepted Answer

A) $3,650 favorable 
B) $2,450 favorable 
C) $1,200 unfavorable 
D) $1,200 favorable 
E) $2,450 unfavorable 
A) $3,650 favorable 
B) $2,450 favorable 
C) $1,200 unfavorable 
D) $1,200 favorable 
E) $2,450 unfavorable

Question 6

Management by exception means that managers focus on the most significant differences between actual costs and standard costs.

Accepted Answer

A) True 
 B)False

Question 7

A standard that takes into account the reality that some loss usually occurs with any process under normal application of the process is known as a ________ standard.

Accepted Answer

The answer of A standard that takes into account the...

Question 8

Job #411 was budgeted to require 3.5 hours of labor at $11.00 per hour.However,it was completed in 3 hours by a person who worked for $14.00 per hour.What is the total labor cost variance for Job #4115?

Accepted Answer

The answer of Job #411 was budgeted to require 3.5...

Question 9

During November,Glime Company allocated overhead to products at the rate of $26.00 per direct labor hour.This figure was based on 80% of capacity or 1,600 direct labor hours.However,Glime Company operated at only 70% of capacity,or 1,400 direct labor hours.Budgeted overhead at 70% of capacity is $38,900,and overhead actually incurred was $38,000.What is the company's volume variance for November? (Indicate whether the variance is favorable or unfavorable)

Accepted Answer

The answer of During November,Glime Company allocated overhead to products...

Question 10

A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z.The company has just produced 1,000 units of this product,using 5,200 pounds of Material J that cost $9,880.The direct materials quantity variance is:

Accepted Answer

A) $400 unfavorable. 
B) $120 favorable. 
C) $400 favorable. 
D) $520 favorable. 
E) $520 unfavorable. 
A) $400 unfavorable. 
B) $120 favorable. 
C) $400 favorable. 
D) $520 favorable. 
E) $520 unfavorable.

Question 11

Georgia,Inc.has collected the following data on one of its products.The actual cost of direct materials used is:

Accepted Answer

A) $133,750. 
B) $150,000. 
C) $106,250. 
D) $158,750. 
E) $120,000. 
A) $133,750. 
B) $150,000. 
C) $106,250. 
D) $158,750. 
E) $120,000.

Question 12

Beluga Corp.has developed standard costs based on a predicted operating level of 352,000 units of production,which is 80% of capacity.Variable overhead is $281,600 at this level of activity,or $0.80 per unit.Fixed overhead is $440,000.The standard costs per unit are:
   Beluga actually produced 330,000 units at 75% of capacity and actual costs for the period were:
   Calculate the following variances and indicate whether each variance is favorable or unfavorable:

Accepted Answer

The answer of Beluga Corp.has developed standard costs based on...

Question 13

The difference between actual price per unit of input and the standard price per unit of input results in a:

Accepted Answer

A) Standard variance. 
B) Quantity variance. 
C) Volume variance. 
D) Controllable variance. 
E) Price variance. 
A) Standard variance. 
B) Quantity variance. 
C) Volume variance. 
D) Controllable variance. 
E) Price variance.

Question 14

A company provided the following direct materials cost information.Compute the total direct materials cost variance.

Accepted Answer

A) $2,500 Favorable. 
B) $78,250 Favorable. 
C) $78,250 Unfavorable. 
D) $80,750 Favorable. 
E) $80,750 Unfavorable. 
A) $2,500 Favorable. 
B) $78,250 Favorable. 
C) $78,250 Unfavorable. 
D) $80,750 Favorable. 
E) $80,750 Unfavorable.

Question 15

Fletcher Company collected the following data regarding production of one of its products.
 
-Compute the variable overhead cost variance.

Accepted Answer

A) $18,000 favorable. 
B) $4,000 favorable. 
C) $18,000 unfavorable. 
D) $18,300 favorable. 
E) $14,300 unfavorable. 
A) $18,000 favorable. 
B) $4,000 favorable. 
C) $18,000 unfavorable. 
D) $18,300 favorable. 
E) $14,300 unfavorable.

Question 16

Within the same flexible budget performance report,it is impossible to have both favorable and unfavorable variances.

Accepted Answer

A) True 
 B)False

Question 17

Firenze Company's fixed budget for the first quarter of the calendar year appears below.Prepare flexible budgets that show variable costs per unit,fixed costs and two different flexible budgets for sales volumes of 22,000 and 24,000.

Accepted Answer

The answer of Firenze Company's fixed budget for the first...

Question 18

The following information describes a company's usage of direct labor in a recent period.The direct labor efficiency variance is:

Accepted Answer

A) $29,000 unfavorable. 
B) $29,000 favorable. 
C) $22,500 unfavorable. 
D) $52,500 favorable. 
E) $52,500 unfavorable. 
A) $29,000 unfavorable. 
B) $29,000 favorable. 
C) $22,500 unfavorable. 
D) $52,500 favorable. 
E) $52,500 unfavorable.

Question 19

The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the direct materials price variance?

Accepted Answer

A) $47,000 unfavorable. 
B) $47,000 favorable. 
C) $50,000 unfavorable. 
D) $50,000 favorable. 
E) $3,000 favorable. 
A) $47,000 unfavorable. 
B) $47,000 favorable. 
C) $50,000 unfavorable. 
D) $50,000 favorable. 
E) $3,000 favorable.

Question 20

Hatter,Inc.allocates fixed overhead at a rate of $17 per direct labor hour.This amount is based on 90% of capacity or 3,600 direct labor hours for 6,000 units.During July,Hatter produced 5,500 units.Budgeted fixed overhead is $66,000,and overhead incurred was $67,000.
Required: Determine the volume variance for July.

Accepted Answer

The answer of Hatter,Inc.allocates fixed overhead at a rate of...

Exam 21: Flexible Budgets and Standard Costs

The difference between the total actual overhead cost incurred and the total standard overhead cost applied is the ________.

All of the following are associated with the volume variance except:

Management by exception means that managers focus on the most significant differences between actual costs and standard costs.

A standard that takes into account the reality that some loss usually occurs with any process under normal application of the process is known as a ________ standard.

Job #411 was budgeted to require 3.5 hours of labor at $11.00 per hour.However,it was completed in 3 hours by a person who worked for $14.00 per hour.What is the total labor cost variance for Job #4115?

A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z.The company has just produced 1,000 units of this product,using 5,200 pounds of Material J that cost $9,880.The direct materials quantity variance is:

Georgia,Inc.has collected the following data on one of its products.The actual cost of direct materials used is:

The difference between actual price per unit of input and the standard price per unit of input results in a:

A company provided the following direct materials cost information.Compute the total direct materials cost variance.

Fletcher Company collected the following data regarding production of one of its products. -Compute the variable overhead cost variance.

Within the same flexible budget performance report,it is impossible to have both favorable and unfavorable variances.

Firenze Company's fixed budget for the first quarter of the calendar year appears below.Prepare flexible budgets that show variable costs per unit,fixed costs and two different flexible budgets for sales volumes of 22,000 and 24,000.

The following information describes a company's usage of direct labor in a recent period.The direct labor efficiency variance is:

The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the direct materials price variance?

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

Filters