Question 1

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 2

In setting price standards, the purchasing manager must consider

Accepted Answer

A)  freight. 
B)  quality. 
C)  discounts. 
D)  all of these. 
A)  freight. 
B)  quality. 
C)  discounts. 
D)  all of these.

Question 3

Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000.The standard allows 1 direct labor hour per unit.During 2006, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
- What is the standard activity level on which Crawford based its fixed overhead rate?

Accepted Answer

A)  110,000 direct labor hours 
B)  105,000 direct labor hours 
C)  100,000 direct labor hours 
D)  50,000 direct labor hours 
A)  110,000 direct labor hours 
B)  105,000 direct labor hours 
C)  100,000 direct labor hours 
D)  50,000 direct labor hours

Question 4

Which of the following factors would cause an unfavorable material quantity variance?

Accepted Answer

A)  using poorly maintained machinery 
B)  using higher quality materials 
C)  using more highly skilled workers 
D)  receiving discounts for purchasing larger than normal quantities 
A)  using poorly maintained machinery 
B)  using higher quality materials 
C)  using more highly skilled workers 
D)  receiving discounts for purchasing larger than normal quantities

Question 5

Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July:   Roberts Company reports its material price variances at the time of purchase.
-
What is the journal entry to record material purchases?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 6

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 7

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 8

Frekko Company collected the following information:  
- Using the two variance method, what is the budget variance?

Accepted Answer

A)  $70,000 (U) 
B)  $30,000 (U) 
C)  $30,000 (F) 
D)  $70,000 (F) 
A)  $70,000 (U) 
B)  $30,000 (U) 
C)  $30,000 (F) 
D)  $70,000 (F)

Question 9

Compare and contrast mix and yield variances.

Accepted Answer

Substituting direct materials or direct

Question 10

The standard cost sheet includes all of the following EXCEPT

Accepted Answer

A)  the standard cost per unit. 
B)  the standard quantity allowed for actual production. 
C)  the standard price. 
D)  the standard quantity per unit. 
A)  the standard cost per unit. 
B)  the standard quantity allowed for actual production. 
C)  the standard price. 
D)  the standard quantity per unit.

Question 11

A variable overhead efficiency variance could be caused by

Accepted Answer

A)  using a poor quality material that needs more labor time to meet production standards. 
B)  not taking a quantity discount. 
C)  paying more than the standard rate for labor. 
D)  price increases on the materials. 
A)  using a poor quality material that needs more labor time to meet production standards. 
B)  not taking a quantity discount. 
C)  paying more than the standard rate for labor. 
D)  price increases on the materials.

Question 12

Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000.The standard allows one direct labor hour per unit.During 2006, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is Crawford's fixed overhead spending variance for 2011?

Accepted Answer

A)  $60,000 (F) 
B)  $24,000 (F) 
C)  $36,000 (U) 
D)  $30,000 (U) 
A)  $60,000 (F) 
B)  $24,000 (F) 
C)  $36,000 (U) 
D)  $30,000 (U)

Question 13

Gina Production Company uses a standard costing system.The following information pertains to 2011.   The factory overhead rate is based on an activity level of 10,000 units.Standard cost data for 5,000 units is as follows:
  What is the variable overhead efficiency variance for Gina Production Company?

Accepted Answer

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

Question 14

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 15

Figure 9-4 Regis 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 mix variance?

Accepted Answer

A)  $5,000 (F) 
B)  $10,000 (U) 
C)  $10,000 (F) 
D)  $15,000 (F) 
A)  $5,000 (F) 
B)  $10,000 (U) 
C)  $10,000 (F) 
D)  $15,000 (F)

Question 16

Figure 9-3 Reynolds Manufacturing Company has the following information pertaining to a normal monthly 10,000 units of:
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 Reynolds?

Accepted Answer

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

Question 17

Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000.The standard allows 1 direct labor hour per unit.During 2011, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
- What is Crawford's fixed overhead volume variance for 2006?

Accepted Answer

A)  $60,000 (F) 
B)  $24,000 (F) 
C)  $36,000 (U) 
D)  $60,000 (U) 
A)  $60,000 (F) 
B)  $24,000 (F) 
C)  $36,000 (U) 
D)  $60,000 (U)

Question 18

The usage variances focus on the difference between

Accepted Answer

A)  actual quantity used and standard quantity allowed for actual production. 
B)  actual costs of inputs and standard costs of inputs. 
C)  actual quantity used and standard quantity allowed for budgeted production. 
D)  both a and b. 
A)  actual quantity used and standard quantity allowed for actual production. 
B)  actual costs of inputs and standard costs of inputs. 
C)  actual quantity used and standard quantity allowed for budgeted production. 
D)  both a and b.

Question 19

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

Question 20

Which is NOT an acceptable method of disposing of variances?

Accepted Answer

A)  closing them to cost of goods sold 
B)  closing them to raw materials, work-in-process, and finished goods 
C)  closing them to work-in-process, finished goods, and cost of goods sold 
D)  all are acceptable methods 
A)  closing them to cost of goods sold 
B)  closing them to raw materials, work-in-process, and finished goods 
C)  closing them to work-in-process, finished goods, and cost of goods sold 
D)  all are acceptable methods

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

In setting price standards, the purchasing manager must consider

Which of the following factors would cause an unfavorable material quantity variance?

Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July: Roberts Company reports its material price variances at the time of purchase. - What is the journal entry to record material purchases?

Price standards are the responsibility of

Quantity price standards

Frekko Company collected the following information: - Using the two variance method, what is the budget variance?

Compare and contrast mix and yield variances.

The standard cost sheet includes all of the following EXCEPT

A variable overhead efficiency variance could be caused by

Gina Production Company uses a standard costing system.The following information pertains to 2011. The factory overhead rate is based on an activity level of 10,000 units.Standard cost data for 5,000 units is as follows: What is the variable overhead efficiency variance for Gina Production Company?

Which of the following equations measures the total budget variance?

Figure 9-4 Regis 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 mix variance?

The usage variances focus on the difference between

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

Which is NOT an acceptable method of disposing of variances?

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

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 people is most likely responsible for an unfavorable variable overhead efficiency variance?

In setting price standards, the purchasing manager must consider

Which of the following factors would cause an unfavorable material quantity variance?

Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July: Roberts Company reports its material price variances at the time of purchase. - What is the journal entry to record material purchases?

Price standards are the responsibility of

Quantity price standards

Frekko Company collected the following information: - Using the two variance method, what is the budget variance?

Compare and contrast mix and yield variances.

The standard cost sheet includes all of the following EXCEPT

A variable overhead efficiency variance could be caused by

Gina Production Company uses a standard costing system.The following information pertains to 2011. The factory overhead rate is based on an activity level of 10,000 units.Standard cost data for 5,000 units is as follows: What is the variable overhead efficiency variance for Gina Production Company?

Which of the following equations measures the total budget variance?

Figure 9-4 Regis 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 mix variance?

The usage variances focus on the difference between

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

Which is NOT an acceptable method of disposing of variances?

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

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