Bi-land Company's standard cost is $150,000. The allowable deviation is ±10%. The actual costs for six months are as follows: \[\begin{array} { l r } \text { January } & \$ 135,000 \\ \text { February } & 120,000 \\ \text { March } & 145,000 \\ \text { April } & 165,000 \\ \text { May } & 170,000 \\ \text { June } & 180,000 \end{array}\] -Refer to the Figure.What are the upper and lower control limits,respectively?

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

High Fly Company manufactures model airplanes. During the month, it manufactured 10,000 airplanes. Each airplane used an average of 6.5 direct labour hours and an average of 1.5 sheets of aluminum. High Fly normally manufactures 7,500 airplanes each month. Materials and labour standards for making the airplanes are as follows: $\begin{array}{lr} \text { Direct materials ( } 1 \text { sheet of aluminum } @ \$ 10.00 \text { per sheet) } & \$ 10.00 \\ \text { Direct materials (other accessories }(\$ 8.75) & 8.75 \\ \text { Direct labour (6 hours }(07.00 \text { per hour) } & 42.00 \end{array}$ -Refer to the Figure.What is the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes?

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

Bi-land Company's standard cost is $150,000. The allowable deviation is ±10%. The actual costs for six months are as follows: \[\begin{array} { l r } \text { January } & \$ 135,000 \\ \text { February } & 120,000 \\ \text { March } & 145,000 \\ \text { April } & 165,000 \\ \text { May } & 170,000 \\ \text { June } & 180,000 \end{array}\] -Refer to the Figure.What is the variance that is higher than the upper control limit?

A) $135,000 B) $145,000 C) $150,000 D) $170,000 A) $135,000 B) $145,000 C) $150,000 D) $170,000

Acting Company has the following information: $\begin{array}{lrlr}\text { Direct Materials: }&&\text { Direct Labour: }\\ \text { Standard Quantity } & 11,000 & \text { Standard Hours } & 3,000 \\ \text { Actual Quantity } & 13,000 & \text { Actual Hours } & 2,875 \\ \text { Standard Price } & \$ 15 & \text { Standard Rate } & \$ 1 2\\ \text { Actual Price } & \$ 13 & \text { Actual Rate } & \$ 13 \end{array}$ A. Determine the materials price variance and whether it is favourable or unfavourable. B. Determine the materials usage variance and whether it is favourable or unfavourable. C. Determine the labour rate variance and whether it is favourable or unfavourable. D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

The answer of Acting Company has the following information: \(\begin{array}{lrlr}\text...

Exam 10: Standard Costing: a Managerial Control Tool

Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows: Allan required 600,000 m at $1.95 per metre to make the 125,000 overalls. $\begin{array}{lll}\text {Direct materials ( 5 \mathrm{~m} of denim $ (012 $ per metre) }&\$10\\\text { Direct labour (3 hours $ @ \$ 6 $ per hour)}&18\\\end{array}$ -Refer to the Figure.What is Allan's labour efficiency variance?

(Multiple Choice)

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Question 21

A company using kaizen costing emphasizes which of the following?

(Multiple Choice)

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Question 22

What formula is used to determine the usage variance?

(Multiple Choice)

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Question 23

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

(True/False)

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Question 24

During November,10,000 units were produced.The standard quantity of material allowed per unit was 10 kg at a standard cost of $3 per kilogram.Suppose the company had an unfavourable usage variance of $18,750 for November.What would have been the actual quantity of materials used?

(Multiple Choice)

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Question 25

Serenity Equestrian Corporation produces high-quality leather saddles. The company has a standard cost system and has set the following standards for materials and labour: During the year, Serenity Equestrian Corporation produced 150 saddles. Actual leather purchased was 3,100 strips at $12 per strip. There were no beginning or ending inventories of leather. Actual direct labour was 2,500 hours at $16 per hour. Leather (20 strips@ \ 15 per strip) \3 00 Direct labour ( 15 hours @\ 15 per hour) 225 Total prime cost \2 52 -Refer to the Figure.What are the materials price variance and the materials usage variance,respectively?

(Multiple Choice)

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Question 26

Which formula is used to calculate the materials usage variance?

(Multiple Choice)

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Question 27

Which of the following is NOT characteristic of the use of materials variance information?

(Multiple Choice)

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Question 28

Bi-land Company's standard cost is $150,000. The allowable deviation is ±10%. The actual costs for six months are as follows: 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?

(Multiple Choice)

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Question 29

High Fly Company manufactures model airplanes. During the month, it manufactured 10,000 airplanes. Each airplane used an average of 6.5 direct labour hours and an average of 1.5 sheets of aluminum. High Fly normally manufactures 7,500 airplanes each month. Materials and labour standards for making the airplanes are as follows: 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?

(Multiple Choice)

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Question 30

Which of the following statements is characteristic of control limits?

(Multiple Choice)

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Question 31

Which of the following is NOT characteristic of engineering studies?

(Multiple Choice)

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Question 32

Ideal standards allow for machine breakdowns,slack,or momentary lack of skill.

(True/False)

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Question 33

Match each item with the correct statement below. -Standards that are rigorous but achievable and reflect reasonable efficiency.

(Multiple Choice)

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Question 34

Why are standard cost systems adopted?

(Multiple Choice)

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Question 35

Match the variance with its correct calculation. -Materials price variance

(Multiple Choice)

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Question 36

Which of the following is NOT characteristic of direct materials variances?

(Multiple Choice)

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Question 37

Bi-land Company's standard cost is $150,000. The allowable deviation is ±10%. The actual costs for six months are as follows: January \ 135,000 February 120,000 March 145,000 April 165,000 May 170,000 June 180,000 -Refer to the Figure.What is the variance that is higher than the upper control limit?

(Multiple Choice)

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Question 38

Acting Company has the following information: Direct Materials: Direct Labour: Standard Quantity 11,000 Standard Hours 3,000 Actual Quantity 13,000 Actual Hours 2,875 Standard Price \ 15 Standard Rate \ 12 Actual Price \ 13 Actual Rate \ 13 A. Determine the materials price variance and whether it is favourable or unfavourable. B. Determine the materials usage variance and whether it is favourable or unfavourable. C. Determine the labour rate variance and whether it is favourable or unfavourable. D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

(Essay)

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Question 39

A favourable usage variance would occur when the actual usage of inputs is greater than the standard usage.

(True/False)

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Question 40

Showing 21 - 40 of 173

A company using kaizen costing emphasizes which of the following?

What formula is used to determine the usage variance?

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

During November,10,000 units were produced.The standard quantity of material allowed per unit was 10 kg at a standard cost of $3 per kilogram.Suppose the company had an unfavourable usage variance of $18,750 for November.What would have been the actual quantity of materials used?

Which formula is used to calculate the materials usage variance?

Which of the following is NOT characteristic of the use of materials variance information?

Bi-land Company's standard cost is $150,000. The allowable deviation is ±10%. The actual costs for six months are as follows: 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?

Which of the following statements is characteristic of control limits?

Which of the following is NOT characteristic of engineering studies?

Ideal standards allow for machine breakdowns,slack,or momentary lack of skill.

Match each item with the correct statement below. -Standards that are rigorous but achievable and reflect reasonable efficiency.

Why are standard cost systems adopted?

Match the variance with its correct calculation. -Materials price variance

Which of the following is NOT characteristic of direct materials variances?

A favourable usage variance would occur when the actual usage of inputs is greater than the standard usage.

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

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