Question 1

Which of the following is NOT true about Kaizen Standards?

Accepted Answer

A)  Kaizen standards are the standards used for continuous improvement. 
B)  Kaizen standards are a currently attainable standard that reflects planned improvement. 
C)  Kaizen standards are constantly changing. 
D)  Kaizen standards are the standards used in traditional costing systems. 
A)  Kaizen standards are the standards used for continuous improvement. 
B)  Kaizen standards are a currently attainable standard that reflects planned improvement. 
C)  Kaizen standards are constantly changing. 
D)  Kaizen standards are the standards used in traditional costing systems.

Question 2

All variances accounts are __________ at the end of the operating year.

Accepted Answer

The answer of All variances accounts are __________ at the...

Question 3

Which of the following equations measures a price variance?

Accepted Answer

A)  AQ ´ (AP - SP) 
B)  SP ´ (AQ - SQ) 
C)  SQ ´ (AP - SP) 
D)  (AQ - SQ) ´ (AP - SP) 
A)  AQ ´ (AP - SP) 
B)  SP ´ (AQ - SQ) 
C)  SQ ´ (AP - SP) 
D)  (AQ - SQ) ´ (AP - SP)

Question 4

Which of the following people is most likely responsible for an unfavorable variable overhead efficiency variance?

Accepted Answer

A)  production supervisor 
B)  accountant 
C)  personnel director 
D)  supplier 
A)  production supervisor 
B)  accountant 
C)  personnel director 
D)  supplier

Question 5

Price standards specify amounts and quantity standards specify prices.

Accepted Answer

A) True 
 B)False

Question 6

Figure 9-3 Alumni Manufacturing Company has the following information pertaining to a normal monthly activity of 10,000 units:
Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit.
Standard factory overhead rates per direct labor hour are:
  Refer to Figure 9-3. What is the fixed overhead volume variance for Alumni?

Accepted Answer

A)  $10,000 (F) 
B)  $-0- 
C)  $4,000 (F) 
D)  $6,000 (U) 
A)  $10,000 (F) 
B)  $-0- 
C)  $4,000 (F) 
D)  $6,000 (U)

Question 7

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products.   The company records materials price variances at the time of purchase.
The direct labor rate variance is

Accepted Answer

A)  $12,000 favorable. 
B)  $8,000 favorable. 
C)  $12,000 unfavorable. 
D)  $8,000 unfavorable. 
A)  $12,000 favorable. 
B)  $8,000 favorable. 
C)  $12,000 unfavorable. 
D)  $8,000 unfavorable.

Question 8

Mulligan Company uses standard costing for direct materials and direct labor. Management would like to use standard costing for variable and fixed overhead.
The following monthly cost functions were developed for manufacturing overhead items:
   The cost functions are considered reliable within a relevant range of 20,000 to 40,000 direct labor hours. The company expects to operate at 25,000 direct labor hours per month.
Information for the month of June is as follows:
   Required:

Accepted Answer

@#IMG-DLM& c. Work in process $128,250
Variable ov

Question 9

Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February:   How many actual labor hours were worked during February for Montana Company?

Accepted Answer

A)  10,000 
B)  12,000 
C)  1,200 
D)  2,000 
A)  10,000 
B)  12,000 
C)  1,200 
D)  2,000

Question 10

__________ standards are the standards used for continuous improvement.

Accepted Answer

The answer of __________ standards are the standards used for...

Question 11

Figure 9-3 Alumni Manufacturing Company has the following information pertaining to a normal monthly activity of 10,000 units:
Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit.
Standard factory overhead rates per direct labor hour are:
  Refer to Figure 9-3. What is the fixed overhead spending variance for Alumni?

Accepted Answer

A)  $10,000 (U) 
B)  $6,000 (U) 
C)  $4,000 (F) 
D)  $-0- 
A)  $10,000 (U) 
B)  $6,000 (U) 
C)  $4,000 (F) 
D)  $-0-

Question 12

Price/rate variances focus on the differences between

Accepted Answer

A)  actual and standard inputs multiplied by actual prices. 
B)  actual and standard unit prices of an input multiplied by the actual quantity of inputs. 
C)  actual and standard inputs multiplied by standard prices. 
D)  actual and standard unit prices of an input multiplied by the budgeted quantity of inputs. 
A)  actual and standard inputs multiplied by actual prices. 
B)  actual and standard unit prices of an input multiplied by the actual quantity of inputs. 
C)  actual and standard inputs multiplied by standard prices. 
D)  actual and standard unit prices of an input multiplied by the budgeted quantity of inputs.

Question 13

Price standards are the responsibility of

Accepted Answer

A)  accounting. 
B)  purchasing. 
C)  personnel. 
D)  all of these. 
A)  accounting. 
B)  purchasing. 
C)  personnel. 
D)  all of these.

Question 14

The factors where actual performance differs from planned are called: __________ .

Accepted Answer

The answer of The factors where actual performance differs from...

Question 15

Somalian Corporation uses a standard costing system. Information for the month of May is as follows:   The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows:
  What is the variable overhead efficiency variance for Somalian?

Accepted Answer

A)  $2,000 (U) 
B)  $20,000 (U) 
C)  $4,000 (U) 
D)  $8,000 (U) 
A)  $2,000 (U) 
B)  $20,000 (U) 
C)  $4,000 (U) 
D)  $8,000 (U)

Question 16

Standard costing

Accepted Answer

A)  establishes price and quantity standards for inputs. 
B)  provides journal entry support. 
C)  is not used in unit costing. 
D)  none of these. 
A)  establishes price and quantity standards for inputs. 
B)  provides journal entry support. 
C)  is not used in unit costing. 
D)  none of these.

Question 17

The condition where everything operates perfectly and demands maximum efficiency is called __________ .

Accepted Answer

The answer of The condition where everything operates perfectly and...

Question 18

How are standards developed? What is the difference between ideal and currently attainable standards?

Accepted Answer

Historical experience, engineering studi

Question 19

Developing standards for input prices and quantities allows for a more detailed understanding of flexible budget variances.

Accepted Answer

A) True 
 B)False

Question 20

If actual fixed manufacturing overhead was $55,000 and there was a $1,400 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been

Accepted Answer

A)  $57,400. 
B)  $53,600. 
C)  $54,000. 
D)  $51,700. 
A)  $57,400. 
B)  $53,600. 
C)  $54,000. 
D)  $51,700.

Which of the following is NOT true about Kaizen Standards?

All variances accounts are __________ at the end of the operating year.

Which of the following equations measures a price variance?

Which of the following people is most likely responsible for an unfavorable variable overhead efficiency variance?

Price standards specify amounts and quantity standards specify prices.

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. The company records materials price variances at the time of purchase. The direct labor rate variance is

Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February: How many actual labor hours were worked during February for Montana Company?

__________ standards are the standards used for continuous improvement.

Price/rate variances focus on the differences between

Price standards are the responsibility of

The factors where actual performance differs from planned are called: __________ .

Standard costing

The condition where everything operates perfectly and demands maximum efficiency is called __________ .

How are standards developed? What is the difference between ideal and currently attainable standards?

Developing standards for input prices and quantities allows for a more detailed understanding of flexible budget variances.

If actual fixed manufacturing overhead was $55,000 and there was a $1,400 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 9: Standard Costing: a Functional-Based Control Approach

Which of the following is NOT true about Kaizen Standards?

All variances accounts are __________ at the end of the operating year.

Which of the following equations measures a price variance?

Which of the following people is most likely responsible for an unfavorable variable overhead efficiency variance?

Price standards specify amounts and quantity standards specify prices.

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. The company records materials price variances at the time of purchase. The direct labor rate variance is

Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February: How many actual labor hours were worked during February for Montana Company?

__________ standards are the standards used for continuous improvement.

Price/rate variances focus on the differences between

Price standards are the responsibility of

The factors where actual performance differs from planned are called: __________ .

Standard costing

The condition where everything operates perfectly and demands maximum efficiency is called __________ .

How are standards developed? What is the difference between ideal and currently attainable standards?

Developing standards for input prices and quantities allows for a more detailed understanding of flexible budget variances.

If actual fixed manufacturing overhead was $55,000 and there was a $1,400 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters