Question 1

Variances indicate

Accepted Answer

A)  the cause of the variance. 
B)  who is responsible for the variance. 
C)  that actual performance is not going according to plan. 
D)  when the variance should be investigated. 
A)  the cause of the variance. 
B)  who is responsible for the variance. 
C)  that actual performance is not going according to plan. 
D)  when the variance should be investigated.

Question 2

All variances accounts are closed out at the end of the year.

Accepted Answer

A) True 
 B)False

Question 3

The costing that establishes price and quantity standards for inputs is called __________ costing.

Accepted Answer

The answer of The costing that establishes price and quantity...

Question 4

Quantity price standards

Accepted Answer

A)  are standard price multiplied by standard quantity. 
B)  specify how much of the quantity of input should be used for the standard price. 
C)  specify how much should be paid for the quantity of input to be used. 
D)  specify how much of the quantity of input should be used for the actual price. 
A)  are standard price multiplied by standard quantity. 
B)  specify how much of the quantity of input should be used for the standard price. 
C)  specify how much should be paid for the quantity of input to be used. 
D)  specify how much of the quantity of input should be used for the actual price.

Question 5

Which of the following equations measures the total budget variance?

Accepted Answer

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

Question 6

The most detailed method to compute overhead variances is the four-variance method.

Accepted Answer

A) True 
 B)False

Question 7

Figure 9-4 San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards:
  During April, the following actual production information was provided:
  Refer to Figure 9-4. What is the materials usage variance?

Accepted Answer

A)  $18,000 (U) 
B)  $ 8,000 (U) 
C)  $ 8,000 (F) 
D)  $10,000 (U) 
A)  $18,000 (U) 
B)  $ 8,000 (U) 
C)  $ 8,000 (F) 
D)  $10,000 (U)

Question 8

During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 pounds at a standard cost of $2.50 per pound. If there was a favorable usage variance of $25,000 for September, the actual quantity of materials used must have been

Accepted Answer

A)  210,000 pounds. 
B)  190,000 pounds. 
C)  105,000 pounds. 
D)  95,000 pounds. 
A)  210,000 pounds. 
B)  190,000 pounds. 
C)  105,000 pounds. 
D)  95,000 pounds.

Question 9

LaPointe Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards:
   During January, the following actual production information was provided:
   Required:
Calculate the labor efficiency and mix and yield variances.

Accepted Answer

Labor mix variance:
SM(Cutting) = (800/1

Question 10

Compare and contrast mix and yield variances.

Accepted Answer

Substituting direct materials or direct

Question 11

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 fixed overhead spending variance for Somalian?

Accepted Answer

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

Question 12

An unfavorable variable overhead spending variance may be caused by

Accepted Answer

A)  the use of excessive quantities of variable overhead items. 
B)  the payment of lower prices for variable overhead items used. 
C)  the use of excessive quantities of the variable overhead allocation base. 
D)  both a and b. 
A)  the use of excessive quantities of variable overhead items. 
B)  the payment of lower prices for variable overhead items used. 
C)  the use of excessive quantities of the variable overhead allocation base. 
D)  both a and b.

Question 13

The following standard costs were developed for one of the products of Razzmatazz Corporation:
   The following information is available regarding the company's operations for the period:
   Budgeted fixed manufacturing overhead for the period is $960,000, and the standard fixed overhead rate is based on expected capacity of 80,000 direct labor hours.
Required:

Accepted Answer

The answer of The following standard costs were developed for...

Question 14

The standard overhead cost assigned to each unit of product manufactured is called the

Accepted Answer

A)  total manufacturing cost. 
B)  predetermined overhead cost. 
C)  applied overhead cost. 
D)  estimated overhead cost. 
A)  total manufacturing cost. 
B)  predetermined overhead cost. 
C)  applied overhead cost. 
D)  estimated overhead cost.

Question 15

Unfavorable variances occur whenever actual prices or usage are less than standard prices or usage, and the opposite for a favorable variance.

Accepted Answer

A) True 
 B)False

Question 16

Organics Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards:
   During July, the following actual production information was provided:
   Required:
Calculate the labor mix and yield variances.

Accepted Answer

Labor mix variance:
SM(Cutting) = (400/5

Question 17

Formidable Company collected the following information:   Using the two variance method, what is the volume variance?

Accepted Answer

A)  $6,000 (F) 
B)  $40,000 (F) 
C)  $40,000 (U) 
D)  $6,000 (U) 
A)  $6,000 (F) 
B)  $40,000 (F) 
C)  $40,000 (U) 
D)  $6,000 (U)

Question 18

Colina Production Company uses a standard costing system. The following information pertains to 2014. Direct labor hours is the driver used to assign overhead costs to products.   The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows:
  What is the variable overhead efficiency variance for Colina Production Company?

Accepted Answer

A)  $562.50 (F) 
B)  $3,000.00 (U) 
C)  $1,687.50 (F) 
D)  $562.50 (U) 
A)  $562.50 (F) 
B)  $3,000.00 (U) 
C)  $1,687.50 (F) 
D)  $562.50 (U)

Question 19

The formula for the fixed overhead spending variance is:

Accepted Answer

A)  Standard fixed overhead rate ´ Standard Hours 
B)  AFOH - BFOH 
C)  Applied fixed overhead - budgeted fixed overhead 
D)  (AH - SH) ´ SVOR 
A)  Standard fixed overhead rate ´ Standard Hours 
B)  AFOH - BFOH 
C)  Applied fixed overhead - budgeted fixed overhead 
D)  (AH - SH) ´ SVOR

Question 20

All of the following are true of currently attainable standards EXCEPT

Accepted Answer

A)  Currently attainable standards are based on an efficiently operating work force. 
B)  Currently attainable standards are based on ideal conditions. 
C)  Currently attainable standards allow for downtime and rest periods. 
D)  Currently attainable standards are based on present production processes and technology. 
A)  Currently attainable standards are based on an efficiently operating work force. 
B)  Currently attainable standards are based on ideal conditions. 
C)  Currently attainable standards allow for downtime and rest periods. 
D)  Currently attainable standards are based on present production processes and technology.

Variances indicate

All variances accounts are closed out at the end of the year.

The costing that establishes price and quantity standards for inputs is called __________ costing.

Quantity price standards

Which of the following equations measures the total budget variance?

The most detailed method to compute overhead variances is the four-variance method.

Figure 9-4 San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: During April, the following actual production information was provided: Refer to Figure 9-4. What is the materials usage variance?

During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 pounds at a standard cost of $2.50 per pound. If there was a favorable usage variance of $25,000 for September, the actual quantity of materials used must have been

LaPointe Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: During January, the following actual production information was provided: Required: Calculate the labor efficiency and mix and yield variances.

Compare and contrast mix and yield variances.

An unfavorable variable overhead spending variance may be caused by

The standard overhead cost assigned to each unit of product manufactured is called the

Unfavorable variances occur whenever actual prices or usage are less than standard prices or usage, and the opposite for a favorable variance.

Organics Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: During July, the following actual production information was provided: Required: Calculate the labor mix and yield variances.

Formidable Company collected the following information: Using the two variance method, what is the volume variance?

The formula for the fixed overhead spending variance is:

All of the following are true of currently attainable standards EXCEPT

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

Variances indicate

All variances accounts are closed out at the end of the year.

The costing that establishes price and quantity standards for inputs is called __________ costing.

Quantity price standards

Which of the following equations measures the total budget variance?

The most detailed method to compute overhead variances is the four-variance method.

Figure 9-4 San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: During April, the following actual production information was provided: Refer to Figure 9-4. What is the materials usage variance?

During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 pounds at a standard cost of $2.50 per pound. If there was a favorable usage variance of $25,000 for September, the actual quantity of materials used must have been

LaPointe Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: During January, the following actual production information was provided: Required: Calculate the labor efficiency and mix and yield variances.

Compare and contrast mix and yield variances.

An unfavorable variable overhead spending variance may be caused by

The standard overhead cost assigned to each unit of product manufactured is called the

Unfavorable variances occur whenever actual prices or usage are less than standard prices or usage, and the opposite for a favorable variance.

Organics Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: During July, the following actual production information was provided: Required: Calculate the labor mix and yield variances.

Formidable Company collected the following information: Using the two variance method, what is the volume variance?

The formula for the fixed overhead spending variance is:

All of the following are true of currently attainable standards EXCEPT

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