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 static-budget variance?

A) $5200 favourable B) $1880 favourable C) $3320 favourable D) $1880 unfavourable A) $5200 favourable B) $1880 favourable C) $3320 favourable D) $1880 unfavourable

Answer the following questions using the information below: The Tornado Dust Removers Corporation manufactures two vacuum cleaners,the Standard and the Supreme.The following information was gathered about the two products: \[\begin{array} { l r r } & \text { Standard } & \text { Supreme } \\ \text { Bud geted sales in urits } & 4000 & 1000 \\ \text { Bud geted selling price } & \$ 300 & \$ 850 \\ \text { Bud geted contribution margin per unit } & \$ 210 & \$ 550 \\ \text { Actual sales in units } & 3500 & 1500 \\ \text { Actual selling price } & \$ 325 & \$ 840 \end{array}\] -More insight into the sales-quantity variance can be gained by subdividing it into:

A) the sales-mix variance and the sales-volume variance. B) the flexible-budget variance and the sales-volume variance. C) a cost hierarchy. D) the market-share variance and the market-size variance. A) the sales-mix variance and the sales-volume variance. B) the flexible-budget variance and the sales-volume variance. C) a cost hierarchy. D) the market-share variance and the market-size variance.

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 material efficiency variance is:

A) $468.75 favourable. B) $543.75 favourable. C) $468.75 unfavourable. D) $543.75 unfavourable. A) $468.75 favourable. B) $543.75 favourable. C) $468.75 unfavourable. D) $543.75 unfavourable.

Answer the following questions using the information below: As part of the budgeting process,Lillee's Petanque Company developed the following static budget for August.Lillee is in the process of preparing the flexible budget and understanding the results.The actual results are for the month of August. $\begin{array}{lrlr} &\text { Actual } & \text { Flexible } & \text { Static } \\ &\text { Results } & \text { Budget } & \text { Budget }\\ \text { Sales volume (in units) } & 20000 &\underline{\quad\quad} & 25000 \\ & & & \\ \text { Sales revenues } & \$ 1000000 & \$ & \$ 1250000 \\ \text { Variable costs } & \underline{512000} & \$ \underline{\quad\quad}& \underline{600000} \\ & & & \\ \text { Contribution margin } & 488000 & \$ & 650000 \\ & & &\\ \text { Fixed costs } & 458000 & \$ \underline{\quad\quad}& 450000 \\ \text { Operating profit } & \$ 30000 & \$ \underline{\quad\quad}& \$ 200000 \end{array}$ -The flexible-budget variance for variable costs is:

A) $32 000 unfavourable. B) $32 000 favourable. C) $120 000 unfavourable. D) $120 000 favourable. A) $32 000 unfavourable. B) $32 000 favourable. C) $120 000 unfavourable. D) $120 000 favourable.

Answer the following questions using the information below: Robert Jones Industries (RJ),developed standard costs for direct material and direct labour.In 2018,RJ estimated the following standard costs for one of their major products,the 10-litre wine barrel. \[\begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\ \text { Direct materials } & 0.10 \mathrm {~kg} & \$ 30 \text { per } \mathrm { kg } \\ \text { Direct labour } & 0.05 \text { hours } & \$ 15 \text { per hour } \end{array}\] During June,RJ produced and sold 5000 containers using 490 kg of direct materials at an average cost per kg of $32 and 250 direct manufacturing labour-hours at an average wage of $15.25 per hour. -June's direct manufacturing labour price variance is:

A) $62.50 unfavourable. B) $62.50 favourable. C) $3811.75 unfavourable. D) None of these answers are correct. A) $62.50 unfavourable. B) $62.50 favourable. C) $3811.75 unfavourable. D) None of these answers are correct.

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

Give at least three good reasons why an unfavourable efficiency variance for direct manufacturing labour might be reported. _ _

(Essay)

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Question 121

The MOST likely explanation of the above direct manufacturing labour variances is that:

(Multiple Choice)

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(30)

Question 122

Standard costs complicate product costing.

(True/False)

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(33)

Question 123

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 static-budget variance?

(Multiple Choice)

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Question 124

Managers and management accountants use variances to evaluate _______________ after decisions are implemented.

(Multiple Choice)

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Question 125

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)(BQ)] is the:

(Multiple Choice)

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Question 126

__________ analysis provides suggestions for further investigation,not conclusive evidence of good or bad performance.

(Multiple Choice)

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Question 127

Variances often affect each other.

(True/False)

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Question 128

Answer the following questions using the information below: The Tornado Dust Removers Corporation manufactures two vacuum cleaners,the Standard and the Supreme.The following information was gathered about the two products: Standard Supreme Bud geted sales in urits 4000 1000 Bud geted selling price \ 300 \ 850 Bud geted contribution margin per unit \ 210 \ 550 Actual sales in units 3500 1500 Actual selling price \ 325 \ 840 -More insight into the sales-quantity variance can be gained by subdividing it into:

(Multiple Choice)

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Question 129

The sales-quantity variance will be favourable when:

(Multiple Choice)

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Question 130

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 material efficiency variance is:

(Multiple Choice)

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(42)

Question 131

Answer the following questions using the information below: As part of the budgeting process,Lillee's Petanque Company developed the following static budget for August.Lillee is in the process of preparing the flexible budget and understanding the results.The actual results are for the month of August. Actual Flexible Static Results Budget Budget Sales volume (in units) 20000 25000 Sales revenues \ 1000000 \ \ 1250000 Variable costs \ Contribution margin 488000 \ 650000 Fixed costs 458000 \ 450000 Operating profit \ 30000 \ \ 200000 -The flexible-budget variance for variable costs is:

(Multiple Choice)

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Question 132

The flexible budget uses the expected per unit costs found in the standard cost sheet;so the only difference to the static budget is that it is based on the actual sales volume.

(True/False)

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Question 133

Managers must be sure they understand the causes of a variance before using it for performance evaluation.

(True/False)

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Question 134

The presumed cause of a material price variance will determine how a company responds.

(True/False)

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Question 135

Give at least three good reasons why a favourable price variance for direct materials might be reported. _ _

(Essay)

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Question 136

Management by exception is the practice of concentrating on areas not operating as anticipated (such as a cost overrun)and placing less attention on areas operating as anticipated.

(True/False)

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Question 137

Rosewall Company manufacturers tennis rackets.Some of the company's data was misplaced.Use the following information to replace the lost data: Analysis Actual Results Flexible Variances Flexible Budget Sales- Volume Variances Static Budget Units Sold 225000 225000 206500 Revenues \ 84160 \ 2000 () \ 2800 () Variable Costs () \ 400 \ 31720 \ 4680 \ 36400 Fixed Costs \ 16560 \ 1720 \ 18280 \ 18280 Operating profit \ 35480 () \ 32160 (E) \ 30280 Required: a.What are the respective flexible-budget revenues (A)? b.What are the static-budget revenues (B)? c.What are the actual variable costs (C)? d.What is the total flexible-budget variance (D)? e.What is the total sales-volume variance (E)? f.What is the total static-budget variance? _ _

(Essay)

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Question 138

Answer the following questions using the information below: Tiger O'Reilly planned to use $85 of material per unit but actually used $82 of material per unit,and planned to make 1200 units but actually made 1000 units. -The flexible-budget variance is:

(Multiple Choice)

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(28)

Question 139

Answer the following questions using the information below: Robert Jones Industries (RJ),developed standard costs for direct material and direct labour.In 2018,RJ estimated the following standard costs for one of their major products,the 10-litre wine barrel. Budgeted quantity Budgeted price Direct materials 0.10 \ 30 per Direct labour 0.05 hours \ 15 per hour During June,RJ produced and sold 5000 containers using 490 kg of direct materials at an average cost per kg of $32 and 250 direct manufacturing labour-hours at an average wage of $15.25 per hour. -June's direct manufacturing labour price variance is:

(Multiple Choice)

4.9/5

(33)

Question 140

Give at least three good reasons why an unfavourable efficiency variance for direct manufacturing labour might be reported. _ _

The MOST likely explanation of the above direct manufacturing labour variances is that:

Standard costs complicate product costing.

Managers and management accountants use variances to evaluate _______________ after decisions are implemented.

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)(BQ)] is the:

__________ analysis provides suggestions for further investigation,not conclusive evidence of good or bad performance.

Variances often affect each other.

The sales-quantity variance will be favourable when:

The flexible budget uses the expected per unit costs found in the standard cost sheet;so the only difference to the static budget is that it is based on the actual sales volume.

Managers must be sure they understand the causes of a variance before using it for performance evaluation.

The presumed cause of a material price variance will determine how a company responds.

Give at least three good reasons why a favourable price variance for direct materials might be reported. _ _

Management by exception is the practice of concentrating on areas not operating as anticipated (such as a cost overrun)and placing less attention on areas operating as anticipated.

Answer the following questions using the information below: Tiger O'Reilly planned to use $85 of material per unit but actually used $82 of material per unit,and planned to make 1200 units but actually made 1000 units. -The flexible-budget variance is:

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

The MOST likely explanation of the above direct manufacturing labour variances is that:

Standard costs complicate product costing.

Managers and management accountants use variances to evaluate _______________ after decisions are implemented.

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)(BQ)] is the:

__________ analysis provides suggestions for further investigation,not conclusive evidence of good or bad performance.

Variances often affect each other.

The sales-quantity variance will be favourable when:

The flexible budget uses the expected per unit costs found in the standard cost sheet;so the only difference to the static budget is that it is based on the actual sales volume.

Managers must be sure they understand the causes of a variance before using it for performance evaluation.

The presumed cause of a material price variance will determine how a company responds.

Give at least three good reasons why a favourable price variance for direct materials might be reported. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Management by exception is the practice of concentrating on areas not operating as anticipated (such as a cost overrun)and placing less attention on areas operating as anticipated.

Answer the following questions using the information below: Tiger O'Reilly planned to use $85 of material per unit but actually used $82 of material per unit,and planned to make 1200 units but actually made 1000 units. -The flexible-budget variance is:

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

Give at least three good reasons why a favourable price variance for direct materials might be reported. _ _