Question 1

Kaizen costing focuses on the continuous reduction of manufacturing costs of existing products and processes.

Accepted Answer

A) True 
 B)False

Question 2

Meow Meow manufactures gourmet cat food.During the month,it manufactured 5,000 cans of tuna,using 0.10 hours of direct labour per can at a rate of $8.00 per hour.The materials and labour standards for manufacturing the cans of tuna are as follows: $\begin{array}{lr}
\text { Direct materials }(1 \mathrm{~kg} \text { of tuna }(\$ 0.50 \text { per kilogram) } & \$ 0.50 \
\text { Direct materials }(1 \text { can } @ \$ 0.35 \text { per can }) & 0.35 \
\text { Direct labour }(0.20 \text { hour } @ \$ 7.00 \text { per hour }) & 1.40
\end{array}$ The company actually used 4,900 kg of tuna at a price of $0.65 per kg.It also purchased 5,000 cans at a price of $0.45 per can.

Accepted Answer

The answer of Meow Meow manufactures gourmet cat food.During the...

Question 3

Which of the following standards are based on the amount of input that should be used per unit of output?

Accepted Answer

A)  quantity standards 
B)  price standards 
C)  ideal standards 
D)  kaizen standards 
A)  quantity standards 
B)  price standards 
C)  ideal standards 
D)  kaizen standards

Question 4

Green Lawn Corporation wants to produce a new lawnmower.The financial data is as follows: $$\begin{array} { l r } 
\text { Target price: } & \$ 450 \
\text { Target profit: } & \$ 75 \
\text { Estimated cost given current product and process designs: } & \$ 400
\end{array}$$ Other information:
1.Through reverse engineering,Green Lawn found a design improvement that would save $10 per unit.2.It also found that it could purchase a similar component of a different brand at a lower price,which would save $20 per unit.
-Refer to the Figure.What is Green Lawn's new expected profit?

Accepted Answer

A)  $50 
B)  $75 
C)  $80 
D)  $105 
A)  $50 
B)  $75 
C)  $80 
D)  $105

Question 5

Which formula is used to calculate the materials price variance?

Accepted Answer

A)  (actual price × actual quantity)− (standard price × standard quantity) 
B)  (standard price × actual quantity)− (actual price × actual quality) 
C)  (standard price × standard quantity)− (actual price × actual quantity) 
D)  (actual price × actual quantity)− (standard price × actual quantity) 
A)  (actual price × actual quantity)− (standard price × standard quantity) 
B)  (standard price × actual quantity)− (actual price × actual quality) 
C)  (standard price × standard quantity)− (actual price × actual quantity) 
D)  (actual price × actual quantity)− (standard price × actual quantity)

Question 6

Determine if the variance is favourable or unfavourable.
-Actual usage of inputs is less than the standard usage.

Accepted Answer

A) Favourable variance 
B) Unfavourable variance 
A) Favourable variance 
B) Unfavourable variance

Question 7

$$\begin{array} { l r } 
\text { January } & \$ 135,000 \
\text { February } & 120,000 \
\text { March } & 145,000 \
\text { April } & 165,000 \
\text { May } & 170,000 \
\text { June } & 180,000
\end{array}$$
-Refer to the Figure.What are the upper and lower control limits,respectively?

Accepted Answer

A)  $165,000 and $105,000 
B)  $165,000 and $135,000 
C)  $175,000 and $150,000 
D)  $205,000 and $95,000 
A)  $165,000 and $105,000 
B)  $165,000 and $135,000 
C)  $175,000 and $150,000 
D)  $205,000 and $95,000

Question 8

During September,a small roofing company purchased 500 bundles of a certain type of shingle at a price of $35 per bundle,$5 less than the standard price.The company's standard quantity of this type of shingles is 550 bundles.What is the journal entry to record the purchase of materials?

Accepted Answer

A)  Materials 20,000
Materials price variance 2,500
Accounts payable 17,500 
B)  Materials 20,000
Materials price variance 2,500
Accounts payable 22,500 
C)  Materials 17,500
Materials price variance 2,500
Accounts payable 15,000 
D)  Materials 20,000
Materials price variance 2,750
Accounts payable 17,250 
A)  Materials 20,000
Materials price variance 2,500
Accounts payable 17,500 
B)  Materials 20,000
Materials price variance 2,500
Accounts payable 22,500 
C)  Materials 17,500
Materials price variance 2,500
Accounts payable 15,000 
D)  Materials 20,000
Materials price variance 2,750
Accounts payable 17,250

Question 9

Refer to the Figure.At the end of December,Cakers Express found that it had an unfavourable materials price variance of $1,000.What is the flour's standard cost per kilogram?

Accepted Answer

A)  $0.95 
B)  $1.00 
C)  $1.05 
D)  $1.95 
A)  $0.95 
B)  $1.00 
C)  $1.05 
D)  $1.95

Question 10

How are costs assigned in a normal cost system?

Accepted Answer

A)  actual direct materials,actual direct labour,and budgeted manufacturing overhead 
B)  actual direct materials,actual direct labour,and actual manufacturing overhead 
C)  budgeted direct materials,standard direct labour,and standard manufacturing overhead 
D)  budgeted direct materials,actual direct labour,and standard manufacturing overhead 
A)  actual direct materials,actual direct labour,and budgeted manufacturing overhead 
B)  actual direct materials,actual direct labour,and actual manufacturing overhead 
C)  budgeted direct materials,standard direct labour,and standard manufacturing overhead 
D)  budgeted direct materials,actual direct labour,and standard manufacturing overhead

Question 11

Direct materials ( 2 sheets of glass $ (\$ 2 $ per sheet)$\quad$$ \$ 4 $
Direct labour (3 hours $ @ \$ 8 $ per hour)$\quad$$\quad$$\quad$$\quad$$\quad$24
-Refer to the Figure.What was the labour efficiency variance?

Accepted Answer

A)  $400,000 U 
B)  $400,000 F 
C)  $440,000 U 
D)  $440,000 F 
A)  $400,000 U 
B)  $400,000 F 
C)  $440,000 U 
D)  $440,000 F

Question 12

The benefits of operational control,however,may not extend to the manufacturing environments that are emphasizing continuous improvement and just-in-time (JIT)purchasing and manufacturing.

Accepted Answer

A) True 
 B)False

Question 13

ZZZZZZ Company produces soft pillows made from goose down.The company uses a standard cost system and has set the following standards for materials and labour for each pillow: $\begin{array}{lr}
\text { Feathers from } 5 \text { large white geese ( } 5 \text { geese }(0) \$ 5&\$25\\text { per goose) }\\text { Fabric to make pillow cases ( } 3 \mathrm{~m} @ \$ 2 \text { per }&6\\text { metre) }\\text { Direct labour (5 hours @ } \$ 8 \text { per hour) }&40\\text { Total prime cost }&\$71
\end{array}$
 During the month,the company produced 1,000 goose down pillows.Actual geese purchased were 5,100,at $4 per goose.Actual fabric purchased was 2,900 m at $2.10 per metre.There were no beginning or ending inventories of geese or fabric.Actual direct labour was 5,200 hours at $7.75 per hour.

Accepted Answer

The answer of ZZZZZZ Company produces soft pillows made from...

Question 14

-Refer to the Figure.What are the costs of leather and direct labour incurred for the production of 150 saddles?

Accepted Answer

A)  $36,000 and $36,000 
B)  $37,200 and $40,000 
C)  $45,000 and $33,750 
D)  $46,500 and $37,500 
A)  $36,000 and $36,000 
B)  $37,200 and $40,000 
C)  $45,000 and $33,750 
D)  $46,500 and $37,500

Question 15

For better control,the materials price variance is computed using the standard quantity of materials used.

Accepted Answer

A) True 
 B)False

Question 16

Which statement applies to ideal standards?

Accepted Answer

A)  Allow for machine breakdowns,slack,or lack of momentary skill. 
B)  Demand minimum efficiency. 
C)  Can be achieved only if everything operates perfectly. 
D)  Can be achieved under efficient operations. 
A)  Allow for machine breakdowns,slack,or lack of momentary skill. 
B)  Demand minimum efficiency. 
C)  Can be achieved only if everything operates perfectly. 
D)  Can be achieved under efficient operations.

Question 17

Determine if the variance is favourable or unfavourable.
-Actual price of inputs is less than the standard price.

Accepted Answer

A) Favourable variance 
B) Unfavourable variance 
A) Favourable variance 
B) Unfavourable variance

Question 18

Direct materials ( $5 \mathrm {~m}$ of denim $@ \$ 2$ per metre)$\quad$$\$ 10$
Direct labour (3 hours $@ \$ 6$ per hour)$\quad$$\quad$$\quad$$\quad$$\quad$18
-Refer to the Figure.What is Allan's labour efficiency variance?

Accepted Answer

A)  $75,000 U 
B)  $75,000 F 
C)  $78,125 U 
D)  $78,125 F 
A)  $75,000 U 
B)  $75,000 F 
C)  $78,125 U 
D)  $78,125 F

Question 19

$\begin{array}{lr}
\text { Direct materials ( } 1 \text { sheet of aluminum } @ \$ 10.00 \text { per sheet) } & \$ 10.00 \
\text { Direct materials (other accessories } @ \$ 8.75) & 8.75 \
\text { Direct labour ( } 6 \text { hours }(07.00 \text { per hour) } & 42.00
\end{array}$
-Refer to the Figure.What is the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes?

Accepted Answer

A)  7,500 sheets 
B)  10,000 sheets 
C)  11,250 sheets 
D)  15,000 sheets 
A)  7,500 sheets 
B)  10,000 sheets 
C)  11,250 sheets 
D)  15,000 sheets

Question 20

-Refer to the Figure.What are the total budget variances for materials and labour,respectively?

Accepted Answer

A)  $1,500 U and $3,750 U 
B)  $1,500 F and $3,750 F 
C)  $7,800 U and $6,250 F 
D)  $7,800 F and $6,250 U 
A)  $1,500 U and $3,750 U 
B)  $1,500 F and $3,750 F 
C)  $7,800 U and $6,250 F 
D)  $7,800 F and $6,250 U

Kaizen costing focuses on the continuous reduction of manufacturing costs of existing products and processes.

Which of the following standards are based on the amount of input that should be used per unit of output?

Which formula is used to calculate the materials price variance?

Determine if the variance is favourable or unfavourable. -Actual usage of inputs is less than the standard usage.

January \ 135,000 February 120,000 March 145,000 April 165,000 May 170,000 June 180,000 -Refer to the Figure.What are the upper and lower control limits,respectively?

During September,a small roofing company purchased 500 bundles of a certain type of shingle at a price of $35 per bundle,$5 less than the standard price.The company's standard quantity of this type of shingles is 550 bundles.What is the journal entry to record the purchase of materials?

Refer to the Figure.At the end of December,Cakers Express found that it had an unfavourable materials price variance of $1,000.What is the flour's standard cost per kilogram?

How are costs assigned in a normal cost system?

Direct materials ( 2 sheets of glass $(\$ 2$ per sheet) $\quad$ $\$ 4$ Direct labour (3 hours $@ \$ 8$ per hour) $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 24 -Refer to the Figure.What was the labour efficiency variance?

The benefits of operational control,however,may not extend to the manufacturing environments that are emphasizing continuous improvement and just-in-time (JIT)purchasing and manufacturing.

-Refer to the Figure.What are the costs of leather and direct labour incurred for the production of 150 saddles?

For better control,the materials price variance is computed using the standard quantity of materials used.

Which statement applies to ideal standards?

Determine if the variance is favourable or unfavourable. -Actual price of inputs is less than the standard price.

Direct materials ( $5 \mathrm {~m}$ of denim $@ \$ 2$ per metre) $\quad$ $\$ 10$ Direct labour (3 hours $@ \$ 6$ per hour) $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 18 -Refer to the Figure.What is Allan's labour efficiency variance?

Direct materials ( 1 sheet of aluminum @\ 10.00 per sheet) \ 10.00 Direct materials (other accessories @\ 8.75) 8.75 Direct labour ( 6 hours (07.00 per hour) 42.00 -Refer to the Figure.What is the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes?

-Refer to the Figure.What are the total budget variances for materials and labour,respectively?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Budgeting, production, cash, and Master Budget

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 10: Standard Costing: a Managerial Control Tool

Kaizen costing focuses on the continuous reduction of manufacturing costs of existing products and processes.

Which of the following standards are based on the amount of input that should be used per unit of output?

Which formula is used to calculate the materials price variance?

Determine if the variance is favourable or unfavourable. -Actual usage of inputs is less than the standard usage.

January \ 135,000 February 120,000 March 145,000 April 165,000 May 170,000 June 180,000 -Refer to the Figure.What are the upper and lower control limits,respectively?

During September,a small roofing company purchased 500 bundles of a certain type of shingle at a price of $35 per bundle,$5 less than the standard price.The company's standard quantity of this type of shingles is 550 bundles.What is the journal entry to record the purchase of materials?

Refer to the Figure.At the end of December,Cakers Express found that it had an unfavourable materials price variance of $1,000.What is the flour's standard cost per kilogram?

How are costs assigned in a normal cost system?

Direct materials ( 2 sheets of glass ($2 (\$ 2 ($2 per sheet) \quad$4 \$ 4 $4 Direct labour (3 hours @$8 @ \$ 8 @$8 per hour) \quad\quad\quad\quad\quad 24 -Refer to the Figure.What was the labour efficiency variance?

The benefits of operational control,however,may not extend to the manufacturing environments that are emphasizing continuous improvement and just-in-time (JIT)purchasing and manufacturing.

-Refer to the Figure.What are the costs of leather and direct labour incurred for the production of 150 saddles?

For better control,the materials price variance is computed using the standard quantity of materials used.

Which statement applies to ideal standards?

Determine if the variance is favourable or unfavourable. -Actual price of inputs is less than the standard price.

Direct materials ( 5 m5 \mathrm {~m}5 m of denim @$2@ \$ 2@$2 per metre) \quad$10\$ 10$10 Direct labour (3 hours @$6@ \$ 6@$6 per hour) \quad\quad\quad\quad\quad 18 -Refer to the Figure.What is Allan's labour efficiency variance?

Direct materials ( 1 sheet of aluminum @\ 10.00 per sheet) \ 10.00 Direct materials (other accessories @\ 8.75) 8.75 Direct labour ( 6 hours (07.00 per hour) 42.00 -Refer to the Figure.What is the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes?

-Refer to the Figure.What are the total budget variances for materials and labour,respectively?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Budgeting, production, cash, and Master Budget

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Direct materials ( 2 sheets of glass $(\$ 2$ per sheet) $\quad$ $\$ 4$ Direct labour (3 hours $@ \$ 8$ per hour) $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 24 -Refer to the Figure.What was the labour efficiency variance?

Direct materials ( $5 \mathrm {~m}$ of denim $@ \$ 2$ per metre) $\quad$ $\$ 10$ Direct labour (3 hours $@ \$ 6$ per hour) $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 18 -Refer to the Figure.What is Allan's labour efficiency variance?