Question 1

An ________ standard is based on 100% efficiency without any loss or waste.

Accepted Answer

The answer of An ________ standard is based on 100%...

Question 2

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

Accepted Answer

A) $25,450 favorable. 
B) $4,000 favorable. 
C) $4,000 unfavorable. 
D) $21,450 unfavorable.. 
E) $21,450 favorable. 
A) $25,450 favorable. 
B) $4,000 favorable. 
C) $4,000 unfavorable. 
D) $21,450 unfavorable.. 
E) $21,450 favorable.

Question 3

Whidbey Co.fixed budget for the year is shown below:
 
Prepare a flexible budget for Whidbey Co.that shows a detailed budget for its actual sales volume of 42,000 units.Use the contribution margin format.

Accepted Answer

The answer of Whidbey Co.fixed budget for the year is...

Question 4

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

Accepted Answer

A) $6,500 favorable. 
B) $29,000 favorable. 
C) $22,500 unfavorable. 
D) $22,500 favorable. 
E) $6,500 unfavorable. 
A) $6,500 favorable. 
B) $29,000 favorable. 
C) $22,500 unfavorable. 
D) $22,500 favorable. 
E) $6,500 unfavorable.

Question 5

A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs,$20,000.The operating income expected if the company produces and sells 18,000 units is:

Accepted Answer

A) $34,000. 
B) $10,000. 
C) $18,667. 
D) $16,000. 
E) $24,000. 
A) $34,000. 
B) $10,000. 
C) $18,667. 
D) $16,000. 
E) $24,000.

Question 6

Zip-up Company provides the following data developed for its master budget:
   Required:
Prepare flexible budgets for sales of 20,000,22,000 and 24,000 units.Use a contribution margin format.

Accepted Answer

The answer of Zip-up Company provides the following data developed...

Question 7

An unfavorable variance is recorded with a debit because it reflects additional costs higher than the standard cost.

Accepted Answer

A) True 
 B)False

Question 8

The following information relating to a company's overhead costs is available.  Based on this information,the total variable overhead variance is:

Accepted Answer

A) $2,000 favorable. 
B) $6,000 favorable. 
C) $2,000 unfavorable. 
D) $6,000 unfavorable. 
E) $1,000 favorable. 
A) $2,000 favorable. 
B) $6,000 favorable. 
C) $2,000 unfavorable. 
D) $6,000 unfavorable. 
E) $1,000 favorable.

Question 9

Standard costs are preset costs for delivering a product or service under normal conditions.

Accepted Answer

A) True 
 B)False

Question 10

Based on a predicted level of production and sales of 12,000 units,a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000.Based on this information,the budgeted amounts of fixed and variable costs for 15,000 units would be:

Accepted Answer

A) $10,000 of fixed costs and $72,000 of variable costs. 
B) $10,000 of fixed costs and $90,000 of variable costs. 
C) $12,500 of fixed costs and $90,000 of variable costs. 
D) $12,500 of fixed costs and $72,000 of variable costs. 
E) $10,000 of fixed costs and $81,000 of variable costs. 
A) $10,000 of fixed costs and $72,000 of variable costs. 
B) $10,000 of fixed costs and $90,000 of variable costs. 
C) $12,500 of fixed costs and $90,000 of variable costs. 
D) $12,500 of fixed costs and $72,000 of variable costs. 
E) $10,000 of fixed costs and $81,000 of variable costs.

Question 11

Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.

Accepted Answer

The answer of Use the following cost information to calculate...

Question 12

Product A has a sales price of $10 per unit.Based on a 10,000-unit production level,the variable costs are $6 per unit and the fixed costs are $3 per unit.Using a flexible budget for 12,500 units,what is the budgeted operating income from Product A?

Accepted Answer

A) $12,500. 
B) $25,000. 
C) $20,000. 
D) $30,000. 
E) $35,000. 
A) $12,500. 
B) $25,000. 
C) $20,000. 
D) $30,000. 
E) $35,000.

Question 13

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

Accepted Answer

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

Question 14

Sales variance analysis is used by managers for:

Accepted Answer

A) Planning purposes only. 
B) Budgeting purposes only. 
C) Control purposes only. 
D) Planning and control purposes. 
E) Planning and budgeting purposes. 
A) Planning purposes only. 
B) Budgeting purposes only. 
C) Control purposes only. 
D) Planning and control purposes. 
E) Planning and budgeting purposes.

Question 15

Janitor Supply produces an industrial cleaning powder that requires 40 grams of material at $0.10 per gram and 0.25 direct labor hours at $12.00 per hour.Overhead is applied at the rate of $18 per direct labor hour.What is the total standard cost for one unit of product that would appear on a standard cost card?

Accepted Answer

A) $7.00. 
B) $8.50. 
C) $11.50. 
D) $7.50. 
E) $25.00. 
A) $7.00. 
B) $8.50. 
C) $11.50. 
D) $7.50. 
E) $25.00.

Question 16

When computing a price variance,the price is held constant.

Accepted Answer

A) True 
 B)False

Question 17

The following company information is available for March.The direct materials price variance is:

Accepted Answer

A) $5,000 favorable. 
B) $300 favorable. 
C) $5,200 unfavorable. 
D) $5,000 unfavorable. 
E) $5,200 favorable. 
A) $5,000 favorable. 
B) $300 favorable. 
C) $5,200 unfavorable. 
D) $5,000 unfavorable. 
E) $5,200 favorable.

Question 18

A cost variance can be further separated into the quantity variance and the price variance.

Accepted Answer

A) True 
 B)False

Question 19

A company's flexible budget for 12,000 units of production showed sales,$48,000; variable costs,$18,000; and fixed costs,$16,000.The operating income expected if the company produces and sells 16,000 units is:

Accepted Answer

A) $2,667. 
B) $14,000. 
C) $18,667. 
D) $24,000. 
E) $35,000. 
A) $2,667. 
B) $14,000. 
C) $18,667. 
D) $24,000. 
E) $35,000.

Question 20

At the end of the accounting period,immaterial variances are closed to ________.

Accepted Answer

The answer of At the end of the accounting period,immaterial...

Exam 21: Flexible Budgets and Standard Costs

An ________ standard is based on 100% efficiency without any loss or waste.

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

Whidbey Co.fixed budget for the year is shown below: Prepare a flexible budget for Whidbey Co.that shows a detailed budget for its actual sales volume of 42,000 units.Use the contribution margin format.

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

A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs,$20,000.The operating income expected if the company produces and sells 18,000 units is:

Zip-up Company provides the following data developed for its master budget: Required: Prepare flexible budgets for sales of 20,000,22,000 and 24,000 units.Use a contribution margin format.

An unfavorable variance is recorded with a debit because it reflects additional costs higher than the standard cost.

The following information relating to a company's overhead costs is available. Based on this information,the total variable overhead variance is:

Standard costs are preset costs for delivering a product or service under normal conditions.

Based on a predicted level of production and sales of 12,000 units,a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000.Based on this information,the budgeted amounts of fixed and variable costs for 15,000 units would be:

Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.

Product A has a sales price of $10 per unit.Based on a 10,000-unit production level,the variable costs are $6 per unit and the fixed costs are $3 per unit.Using a flexible budget for 12,500 units,what is the budgeted operating income from Product A?

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

Sales variance analysis is used by managers for:

When computing a price variance,the price is held constant.

The following company information is available for March.The direct materials price variance is:

A cost variance can be further separated into the quantity variance and the price variance.

A company's flexible budget for 12,000 units of production showed sales,$48,000; variable costs,$18,000; and fixed costs,$16,000.The operating income expected if the company produces and sells 16,000 units is:

At the end of the accounting period,immaterial variances are closed to ________.

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

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