Answer the following questions using the information below: The Broken Hill Dustbusters Corporation manufactures two types of vacuum cleaners,the Terminator for commercial building use and the Dustmaid for residences.Budgeted and actual operating data for the year 2018 were as follows: \[\begin{array} { l r r r } \text { Static Budget } & \text { Terminator } & \text { Dustmaid } & \text { Total } \\ \text { Number sold } & 5000 & 20000 & 25000 \\ \text { Contribution margin } & \$ 1500000 & \$ 3000000 & \$ 4500000 \\ & & & \\ \text { Actual Results } & \text { Terminator } & \text { Dustmaid } & \text { Total } \\ \hline \text { Number sold } & 4000 & 28000 & 32000 \\ \text { Contribution margin } & \$ 1280000 & \$ 3920000 & \$ 5200000 \end{array}\] Prior to the beginning of the year,a consulting firm estimated the total volume for vacuum cleaners of the Terminator and Dustmaid category to be 250 000 units,but actual industry volume was 256 000 units. -What is the market-share variance?

A) $360 000 U B) $108 000 F C) $1 152 000 F D) $1 260 000 F A) $360 000 U B) $108 000 F C) $1 152 000 F D) $1 260 000 F

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: \[\begin{array} { l r r } & \text { Standard } & \text { Supreme } \\ \text { Bud geted sales in urits } & 4000 & 1000 \\ \text { Bud geted selling price } & \$ 300 & \$ 850 \\ \text { Bud geted contribution margin per unit } & \$ 210 & \$ 550 \\ \text { Actual sales in units } & 3500 & 1500 \\ \text { Actual selling price } & \$ 325 & \$ 840 \end{array}\] -What is the budgeted sales-mix percentage for the Standard and the Supreme vacuum cleaners,respectively?

A) 0.80 and 0.20 B) 0.20 and 0.80 C) 0.30 and 0.70 D) 0.70 and 0.30 A) 0.80 and 0.20 B) 0.20 and 0.80 C) 0.30 and 0.70 D) 0.70 and 0.30

Answer the following questions using the information below: Bland Corporation 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. \[\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\ \text { Units sold } & 184000 \text { units } & 180000 \text { units } \\ \text { Variable costs } & \$ 901600 & \$ 864000 \\ \text { Fixed costs } & \$ 190000 & \$ 200000 \end{array}\] -What is the static-budget variance of operating profit?

A) $12 400 unfavourable B) $7600 unfavourable C) $12 400 favourable D) $7600 favourable A) $12 400 unfavourable B) $7600 unfavourable C) $12 400 favourable D) $7600 favourable

Answer the following questions using the information below: The Broken Hill Dustbusters Corporation manufactures two types of vacuum cleaners,the Terminator for commercial building use and the Dustmaid for residences.Budgeted and actual operating data for the year 2018 were as follows: \[\begin{array} { l r r r } \text { Static Budget } & \text { Terminator } & \text { Dustmaid } & \text { Total } \\ \text { Number sold } & 5000 & 20000 & 25000 \\ \text { Contribution margin } & \$ 1500000 & \$ 3000000 & \$ 4500000 \\ & & & \\ \text { Actual Results } & \text { Terminator } & \text { Dustmaid } & \text { Total } \\ \hline \text { Number sold } & 4000 & 28000 & 32000 \\ \text { Contribution margin } & \$ 1280000 & \$ 3920000 & \$ 5200000 \end{array}\] Prior to the beginning of the year,a consulting firm estimated the total volume for vacuum cleaners of the Terminator and Dustmaid category to be 250 000 units,but actual industry volume was 256 000 units. -What is the total sales-volume variance in terms of the contribution margin?

A) $900 000 favourable B) $360 000 unfavourable C) $200 000 unfavourable D) $1 260 000 favourable A) $900 000 favourable B) $360 000 unfavourable C) $200 000 unfavourable D) $1 260 000 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 material flexible-budget variance is:

A) $980 unfavourable. B) $300 favourable. C) $680 unfavourable. D) None of these answers are correct. A) $980 unfavourable. B) $300 favourable. C) $680 unfavourable. 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: The Broken Hill Dustbusters Corporation manufactures two types of vacuum cleaners,the Terminator for commercial building use and the Dustmaid for residences.Budgeted and actual operating data for the year 2018 were as follows: Static Budget Terminator Dustmaid Total Number sold 5000 20000 25000 Contribution margin \ 1500000 \ 3000000 \ 4500000 Actual Results Terminator Dustmaid Total Number sold 4000 28000 32000 Contribution margin \ 1280000 \ 3920000 \ 5200000 Prior to the beginning of the year,a consulting firm estimated the total volume for vacuum cleaners of the Terminator and Dustmaid category to be 250 000 units,but actual industry volume was 256 000 units. -What is the market-share variance?

(Multiple Choice)

4.8/5

(31)

Question 161

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 -What is the budgeted sales-mix percentage for the Standard and the Supreme vacuum cleaners,respectively?

(Multiple Choice)

4.8/5

(32)

Question 162

Why would a manager want to calculate the sales-mix and the sales-quantity variances,the market-share and market-size variances? _ _

(Essay)

4.7/5

(33)

Question 163

Answer the following questions using the information below: Bland Corporation 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 184000 units 180000 units Variable costs \ 901600 \ 864000 Fixed costs \ 190000 \ 200000 -What is the static-budget variance of operating profit?

(Multiple Choice)

4.9/5

(27)

Question 164

The direct manufacturing labour price variance is likely to be favourable if higher-skilled workers are put on a job.

(True/False)

4.7/5

(34)

Question 165

To prepare budgets based on actual data from past periods is preferred since past inefficiencies are excluded.

(True/False)

4.9/5

(44)

Question 166

Which type of costing do manufacturing firms as well as firms in the service sector find to be a useful tool. Variant questions

(Multiple Choice)

4.9/5

(37)

Question 167

Which of the following is the process by which a company's products or services are measured relative to the best possible levels of performance? Variant question

(Multiple Choice)

4.7/5

(41)

Question 168

Answer the following questions using the information below: The Broken Hill Dustbusters Corporation manufactures two types of vacuum cleaners,the Terminator for commercial building use and the Dustmaid for residences.Budgeted and actual operating data for the year 2018 were as follows: Static Budget Terminator Dustmaid Total Number sold 5000 20000 25000 Contribution margin \ 1500000 \ 3000000 \ 4500000 Actual Results Terminator Dustmaid Total Number sold 4000 28000 32000 Contribution margin \ 1280000 \ 3920000 \ 5200000 Prior to the beginning of the year,a consulting firm estimated the total volume for vacuum cleaners of the Terminator and Dustmaid category to be 250 000 units,but actual industry volume was 256 000 units. -What is the total sales-volume variance in terms of the contribution margin?

(Multiple Choice)

4.9/5

(31)

Question 169

The term efficiency variance is the direct-cost portion of the flexible-budget variance.

(True/False)

4.7/5

(36)

Question 170

Cost control is the focus of the sales-volume variance.

(True/False)

4.8/5

(35)

Question 171

More insight into the sales-volume variance can be gained by subdividing it into:

(Multiple Choice)

4.7/5

(38)

Question 172

A favourable variance should be ignored by management.

(True/False)

4.9/5

(36)

Question 173

Which of the following is TRUE about a flexible budget? Variant question

(Multiple Choice)

5.0/5

(43)

Question 174

The market-share variance is MOST influenced by:

(Multiple Choice)

4.7/5

(46)

Question 175

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 material flexible-budget variance is:

(Multiple Choice)

4.8/5

(34)

Question 176

From the perspective of control,the direct materials efficiency variance should be isolated at the time of:

(Multiple Choice)

4.7/5

(35)

Question 177

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 (AQ - BQ)BP is the:

(Multiple Choice)

4.9/5

(36)

Question 178

In order to predict costs,it is important to have standard prices for each:

(Multiple Choice)

4.9/5

(49)

Question 179

Flexible-budget quantity calculations focus at the appropriate level of the cost:

(Multiple Choice)

4.9/5

(40)

Question 180

Why would a manager want to calculate the sales-mix and the sales-quantity variances,the market-share and market-size variances? _ _

The direct manufacturing labour price variance is likely to be favourable if higher-skilled workers are put on a job.

To prepare budgets based on actual data from past periods is preferred since past inefficiencies are excluded.

Which type of costing do manufacturing firms as well as firms in the service sector find to be a useful tool. Variant questions

Which of the following is the process by which a company's products or services are measured relative to the best possible levels of performance? Variant question

The term efficiency variance is the direct-cost portion of the flexible-budget variance.

Cost control is the focus of the sales-volume variance.

More insight into the sales-volume variance can be gained by subdividing it into:

A favourable variance should be ignored by management.

Which of the following is TRUE about a flexible budget? Variant question

The market-share variance is MOST influenced by:

From the perspective of control,the direct materials efficiency variance should be isolated at the time of:

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 (AQ - BQ)BP is the:

In order to predict costs,it is important to have standard prices for each:

Flexible-budget quantity calculations focus at the appropriate level of the cost:

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