Answer the following questions using the information below: Hunter Valley Orchards (HVO),developed standard costs for direct material and direct labour.In 2018,HVO estimated the following standard costs for one of their most well-loved products,the HVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. \[\begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\ \text { Direct materials } & 1.5 \mathrm {~kg} & \$ 7.25 \text { per } \mathrm { kg } \\ \text { Direct labour } & 0.25 \text { hours } & \$ 14.00 \text { per hour } \end{array}\] During September,HVO produced and sold 1200 pies using 1875 kg of direct materials at an average cost per kg of $7.00 and 280 direct labour hours at an average wage of $14.25 per hour. -September's direct labour flexible-budget variance is:

A) $210.00 favourable. B) $210.00 unfavourable. C) $280.00 unfavourable. D) $280.00 favourable. A) $210.00 favourable. B) $210.00 unfavourable. C) $280.00 unfavourable. D) $280.00 favourable. A

Answer the following questions using the information below: Shepparton Water Sports has prepared the following flexible budget for September and is in the process of interpreting the variances.F denotes a favourable variance and U denotes an unfavourable variance. \[\begin{array} { l r r r } & \text { Flexible } & { \text { Variances } } \\ & \underline { \text { Budget } } & \text { Price } & \text { Efficlency } \\ \text { Material A } & \$ 20000 & \$ 1000 \mathrm {~F} & \$ 3000 \mathrm { U } \\ \text { Material B } & 30000 & 500 \mathrm { U } & 1500 \mathrm {~F} \\ \text { Direct mantufacturing labour } & 40000 & 500 \mathrm { U } & 2500 \mathrm {~F} \end{array}\] -The actual amount spent for direct manufacturing labour was:

A) $42 000. B) $43 000. C) $40 000. D) $38 000. A) $42 000. B) $43 000. C) $40 000. D) $38 000. D

Answer the following questions using the information below: Cootamundra Industries (CI),developed standard costs for direct material and direct labour.In 2018,CI estimated the following standard costs for one of their major products,the 30-litre heavy-duty plastic container. \[\begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\ \text { Direct materials } & 0.20 \mathrm {~kg} & \$ 26 \text { per } \mathrm { kg } \\ \text { Direct labour } & 0.10 \text { hours } & \$ 14 \text { per hour } \end{array}\] During July,CI produced and sold 10 000 containers using 2200 kg of direct materials at an average cost per kg of $24 and 1050 direct manufacturing labour hours at an average wage of $14.75 per hour. -July's direct manufacturing labour flexible-budget variance is:

A) $787.50 favourable. B) $700.00 unfavourable. C) $1487.50 unfavourable. D) None of these answers are correct. A) $787.50 favourable. B) $700.00 unfavourable. C) $1487.50 unfavourable. D) None of these answers are correct.

Answer the following questions using the information below: As part of the budgeting process,Garden Gnomes Incorporated had developed the following static budget for the third quarter.Garden Gnomes is in the process of preparing the flexible budget and understanding the results.The actual information relates to the third quarter. $\begin{array}{lrlr} &\text { Actual } & \text { Flexible } & \text { Static } \\ &\text { Results } & \text { Budget } & \text { Budget }\\ \text { Sales volume (in units) } & 13000 & \underline{\quad\quad} & 12000 \\ & & & \\ \text { Sales revenues } & \$ 257500 & \$ &\$ 250000 \\ \text { Variable costs } & 154000 & \$\underline{\quad\quad} &\underline{180000} \\ & & & \\ \text { Contribution margin } & 103500 & \$ & 70000 \\ & & & \\ \text { Fixed costs } & 50500 & \$\underline{\quad\quad} & 49500 \\ \text { Operating profit } & \$ 53000 & \$\underline{\quad\quad} & \$ 20500 \end{array}$ -The PRIMARY reason for high actual operating profits was:

A) lower sales volume than planned. B) higher sales volume than planned. C) the variable-cost variance. D) increased fixed costs. A) lower sales volume than planned. B) higher sales volume than planned. C) the variable-cost variance. D) increased fixed costs.

Answer the following questions using the information below: Some of Bondi Appliances financial data has been misplaced.Use the following information to replace the lost data: $\begin{array}{|c|c|c|c|c|c|} \hline &\text { Actual } & \text { Flexible-Budget } & \text { Flexible } & \text { Sales-Volume } & \text { Static } \\ &\text { Results } & \text { Variances } & \text { Budget } & \text { Variances } & \text { Budget }\\ \hline \text { Units sold } & 225000 & & 225000 & & 206250 \\ \hline \text { Revenues } & \$ 84160 & \$ 2000 \mathrm{~F} & \text { (A) } & \$ 2800 \mathrm{U} & (B)\\ \hline \begin{array}{l} \text { Variable } \\ \text {costs } \end{array} & \text { (C) } & \$ 400 \mathrm{U} & \$ 31720 & \$ 4680 \mathrm{~F} & \$ 36400 \\ \hline \text { Fixed costs } & \$ 16560 & \$ 1720 \mathrm{~F} & \$ 18280 & 0 & \$ 18 280\\ \hline \begin{array}{l} \text { Operating } \\ \text { profit } \end{array} & \$ 354 & \text { (D) } & 332160 & \text { (E) } & \$20280\\ \hline \end{array}$ -What is the total flexible-budget variance (D)?

A) $680 favourable B) $0 C) $3320 favourable D) $120 unfavourable A) $680 favourable B) $0 C) $3320 favourable D) $120 unfavourable

Answer the following questions using the information below: Barossa Valley Wines used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit. \[\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\ \text { Units sold } & 495000 \text { units } & 500000 \text { units } \\ \text { Variable costs } & \$ 1250000 & \$ 1500000 \\ \text { Fixed costs } & \$ 925000 & \$ 900000 \end{array}\] -What is the static-budget variance of variable costs?

A) $200 000 favourable B) $250 000 unfavourable C) $250 000 favourable D) $50 000 unfavourable A) $200 000 favourable B) $250 000 unfavourable C) $250 000 favourable D) $50 000 unfavourable

Answer the following questions using the information below: Some of Bondi Appliances financial data has been misplaced.Use the following information to replace the lost data: $\begin{array}{|c|c|c|c|c|c|} \hline &\text { Actual } & \text { Flexible-Budget } & \text { Flexible } & \text { Sales-Volume } & \text { Static } \\ &\text { Results } & \text { Variances } & \text { Budget } & \text { Variances } & \text { Budget }\\ \hline \text { Units sold } & 225000 & & 225000 & & 206250 \\ \hline \text { Revenues } & \$ 84160 & \$ 2000 \mathrm{~F} & \text { (A) } & \$ 2800 \mathrm{U} & (B)\\ \hline \begin{array}{l} \text { Variable } \\ \text {costs } \end{array} & \text { (C) } & \$ 400 \mathrm{U} & \$ 31720 & \$ 4680 \mathrm{~F} & \$ 36400 \\ \hline \text { Fixed costs } & \$ 16560 & \$ 1720 \mathrm{~F} & \$ 18280 & 0 & \$ 18 280\\ \hline \begin{array}{l} \text { Operating } \\ \text { profit } \end{array} & \$ 354 & \text { (D) } & 332160 & \text { (E) } & \$20280\\ \hline \end{array}$ -What are the actual variable costs (C)?

A) $31 320 B) $32 120 C) $27 040 D) $36 400 A) $31 320 B) $32 120 C) $27 040 D) $36 400

Answer the following questions using the information below: Cootamundra Industries (CI),developed standard costs for direct material and direct labour.In 2018,CI estimated the following standard costs for one of their major products,the 30-litre heavy-duty plastic container. \[\begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\ \text { Direct materials } & 0.20 \mathrm {~kg} & \$ 26 \text { per } \mathrm { kg } \\ \text { Direct labour } & 0.10 \text { hours } & \$ 14 \text { per hour } \end{array}\] During July,CI produced and sold 10 000 containers using 2200 kg of direct materials at an average cost per kg of $24 and 1050 direct manufacturing labour hours at an average wage of $14.75 per hour. -July's direct manufacturing labour efficiency variance is:

A) $700.00 unfavourable. B) $487.50 favourable. C) $262.50 favourable. D) None of these answers are correct. A) $700.00 unfavourable. B) $487.50 favourable. C) $262.50 favourable. D) None of these answers are correct.

Exam 12: Flexible Budgets, Direct Cost Variances and Management Control

Answer the following questions using the information below: Hunter Valley Orchards (HVO),developed standard costs for direct material and direct labour.In 2018,HVO estimated the following standard costs for one of their most well-loved products,the HVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. Budgeted quantity Budgeted price Direct materials 1.5 \ 7.25 per Direct labour 0.25 hours \ 14.00 per hour During September,HVO produced and sold 1200 pies using 1875 kg of direct materials at an average cost per kg of $7.00 and 280 direct labour hours at an average wage of $14.25 per hour. -September's direct labour flexible-budget variance is:

Free

(Multiple Choice)

4.8/5

(36)

Question 1

Correct Answer:

Verified

A

Answer the following questions using the information below: Shepparton Water Sports has prepared the following flexible budget for September and is in the process of interpreting the variances.F denotes a favourable variance and U denotes an unfavourable variance. Flexible Variances Price Efficlency Material A \ 20000 \ 1000 \ 3000 Material B 30000 500 1500 Direct mantufacturing labour 40000 500 2500 -The actual amount spent for direct manufacturing labour was:

Free

(Multiple Choice)

4.9/5

(37)

Question 2

Correct Answer:

Verified

D

Standard costing provides valuable information for the management and control of materials,labour and other activities related to production.

Free

(True/False)

4.8/5

(42)

Question 3

Correct Answer:

Verified

True

For ____________ items,a favourable variance occurs when actual revenues exceed budgeted revenues.

(Multiple Choice)

4.8/5

(33)

Question 4

Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual;B = Budgeted;P = Price;Q = Quantity. -The best label for the formula [(AP)(AQ)- (BP)(AQ)] is the:

(Multiple Choice)

4.8/5

(44)

Question 5

ABC systems classify the costs of various activities into a cost:

(Multiple Choice)

4.8/5

(41)

Question 6

A shift towards a mix of products with a lower contribution margin per unit will MOST likely result in a(n):

(Multiple Choice)

4.9/5

(40)

Question 7

Answer the following questions using the information below: Cootamundra Industries (CI),developed standard costs for direct material and direct labour.In 2018,CI estimated the following standard costs for one of their major products,the 30-litre heavy-duty plastic container. Budgeted quantity Budgeted price Direct materials 0.20 \ 26 per Direct labour 0.10 hours \ 14 per hour During July,CI produced and sold 10 000 containers using 2200 kg of direct materials at an average cost per kg of $24 and 1050 direct manufacturing labour hours at an average wage of $14.75 per hour. -July's direct manufacturing labour flexible-budget variance is:

(Multiple Choice)

4.9/5

(36)

Question 8

Answer the following questions using the information below: As part of the budgeting process,Garden Gnomes Incorporated had developed the following static budget for the third quarter.Garden Gnomes is in the process of preparing the flexible budget and understanding the results.The actual information relates to the third quarter. Actual Flexible Static Results Budget Budget Sales volume (in units) 13000 12000 Sales revenues \ 257500 \ \ 250000 Variable costs 154000 underline Contribution margin 103500 \ 70000 Fixed costs 50500 underline 49500 Operating profit \ 53000 underline \ 20500 -The PRIMARY reason for high actual operating profits was:

(Multiple Choice)

4.9/5

(45)

Question 9

What is benchmarking,and how is it useful to a company? _ _

(Essay)

4.7/5

(48)

Question 10

___________ costing provides valuable information for the management and control of materials,labour and other activities related to production.

(Multiple Choice)

4.8/5

(37)

Question 11

Answer the following questions using the information below: Some of Bondi Appliances financial data has been misplaced.Use the following information to replace the lost data: Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget Units sold 225000 225000 206250 Revenues \ 84160 \ 2000 (A) \ 2800 (B) Variable costs (C) \ 400 \ 31720 \ 4680 \ 36400 Fixed costs \ 16560 \ 1720 \ 18280 0 \ 18280 Operating profit \ 354 (D) 332160 (E) \2 0280 -What is the total flexible-budget variance (D)?

(Multiple Choice)

4.7/5

(35)

Question 12

Manufacturing firms as well as firms in the service sector find standard costing to be a useful tool.

(True/False)

4.7/5

(41)

Question 13

For revenue items,a favourable variance occurs when actual revenues exceed budgeted revenues.

(True/False)

4.7/5

(37)

Question 14

Activity-based costing systems focus on individual ____________ as the fundamental cost objects.

(Multiple Choice)

4.8/5

(39)

Question 15

Answer the following questions using the information below: Barossa Valley Wines used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit. Actual Budgeted Units sold 495000 units 500000 units Variable costs \ 1250000 \ 1500000 Fixed costs \ 925000 \ 900000 -What is the static-budget variance of variable costs?

(Multiple Choice)

4.7/5

(38)

Question 16

The explanation that lower-quality materials were purchased is MOST likely for:

(Multiple Choice)

4.7/5

(33)

Question 17

Answer the following questions using the information below: Some of Bondi Appliances financial data has been misplaced.Use the following information to replace the lost data: Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget Units sold 225000 225000 206250 Revenues \ 84160 \ 2000 (A) \ 2800 (B) Variable costs (C) \ 400 \ 31720 \ 4680 \ 36400 Fixed costs \ 16560 \ 1720 \ 18280 0 \ 18280 Operating profit \ 354 (D) 332160 (E) \2 0280 -What are the actual variable costs (C)?

(Multiple Choice)

4.9/5

(39)

Question 18

Managers often use variance analysis when evaluating the performance of their subordinates.

(True/False)

4.8/5

(35)

Question 19

Answer the following questions using the information below: Cootamundra Industries (CI),developed standard costs for direct material and direct labour.In 2018,CI estimated the following standard costs for one of their major products,the 30-litre heavy-duty plastic container. Budgeted quantity Budgeted price Direct materials 0.20 \ 26 per Direct labour 0.10 hours \ 14 per hour During July,CI produced and sold 10 000 containers using 2200 kg of direct materials at an average cost per kg of $24 and 1050 direct manufacturing labour hours at an average wage of $14.75 per hour. -July's direct manufacturing labour efficiency variance is:

(Multiple Choice)

4.9/5

(39)

Question 20

Standard costing provides valuable information for the management and control of materials,labour and other activities related to production.

For ____________ items,a favourable variance occurs when actual revenues exceed budgeted revenues.

Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual;B = Budgeted;P = Price;Q = Quantity. -The best label for the formula [(AP)(AQ)- (BP)(AQ)] is the:

ABC systems classify the costs of various activities into a cost:

A shift towards a mix of products with a lower contribution margin per unit will MOST likely result in a(n):

What is benchmarking,and how is it useful to a company? _ _

___________ costing provides valuable information for the management and control of materials,labour and other activities related to production.

Manufacturing firms as well as firms in the service sector find standard costing to be a useful tool.

For revenue items,a favourable variance occurs when actual revenues exceed budgeted revenues.

Activity-based costing systems focus on individual ____________ as the fundamental cost objects.

The explanation that lower-quality materials were purchased is MOST likely for:

Managers often use variance analysis when evaluating the performance of their subordinates.

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Exam 12: Flexible Budgets, Direct Cost Variances and Management Control

Standard costing provides valuable information for the management and control of materials,labour and other activities related to production.

For ____________ items,a favourable variance occurs when actual revenues exceed budgeted revenues.

Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual;B = Budgeted;P = Price;Q = Quantity. -The best label for the formula [(AP)(AQ)- (BP)(AQ)] is the:

ABC systems classify the costs of various activities into a cost:

A shift towards a mix of products with a lower contribution margin per unit will MOST likely result in a(n):

What is benchmarking,and how is it useful to a company? _____________________________________________________________________________________________ _____________________________________________________________________________________________

___________ costing provides valuable information for the management and control of materials,labour and other activities related to production.

Manufacturing firms as well as firms in the service sector find standard costing to be a useful tool.

For revenue items,a favourable variance occurs when actual revenues exceed budgeted revenues.

Activity-based costing systems focus on individual ____________ as the fundamental cost objects.

The explanation that lower-quality materials were purchased is MOST likely for:

Managers often use variance analysis when evaluating the performance of their subordinates.

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

What is benchmarking,and how is it useful to a company? _ _