Question 1

Dickey Company had total underapplied overhead of $15,000.Additional information is as follows:   What is the actual total overhead for the period?

Accepted Answer

A) $50,000. 
B) $45,000. 
C) $80,000. 
D) $87,000. 
A) $50,000. 
B) $45,000. 
C) $80,000. 
D) $87,000.

Question 2

Information for Nighttime Company's direct labor cost for February is as follows:   What were the standard direct labor hours for February?

Accepted Answer

A) 70,000. 
B) 69,000. 
C) 72,000. 
D) 71,400. 
A) 70,000. 
B) 69,000. 
C) 72,000. 
D) 71,400.

Question 3

The sales price variance is the difference between the actual sales revenues and the:

Accepted Answer

A) budgeted selling price multiplied by the budgeted number of units sold. 
B) budgeted selling price multiplied by the actual number of units sold. 
C) actual selling price multiplied by the budgeted number of units sold. 
D) actual selling price multiplied by the actual number of units solD.The sales price variance is derived from the difference between the actual revenue and budgeted selling price multiplied by the actual number of units solD. 
A) budgeted selling price multiplied by the budgeted number of units sold. 
B) budgeted selling price multiplied by the actual number of units sold. 
C) actual selling price multiplied by the budgeted number of units sold. 
D) actual selling price multiplied by the actual number of units solD.The sales price variance is derived from the difference between the actual revenue and budgeted selling price multiplied by the actual number of units solD.

Question 4

A variance can best be described as:

Accepted Answer

A) benchmarks common to other firms in the same industry. 
B) differences between planned results and actual results. 
C) useful for performance evaluations but not making decisions. 
D) generally accepted accounting principles when standards are useD.Variances are internal to a company and are useful for decision making as well as performance evaluation.The statement is a basic explanation of a variance. 
A) benchmarks common to other firms in the same industry. 
B) differences between planned results and actual results. 
C) useful for performance evaluations but not making decisions. 
D) generally accepted accounting principles when standards are useD.Variances are internal to a company and are useful for decision making as well as performance evaluation.The statement is a basic explanation of a variance.

Question 5

What is the master budget contribution margin?

Accepted Answer

A) $52,000. 
B) $47,500. 
C) $45,000. 
D) $39,000. 
A) $52,000. 
B) $47,500. 
C) $45,000. 
D) $39,000.

Question 6

The following information summarizes the standard cost for producing one metal tennis racket frame.In addition,the variances for one month's production are given.Assume that all inventory accounts have zero balances at the beginning of the month.   What was the actual price paid for the direct material during the month,assuming all materials purchased were put into production?

Accepted Answer

A) $4.34. 
B) $4.22. 
C) $4.11. 
D) $4.00. 
A) $4.34. 
B) $4.22. 
C) $4.11. 
D) $4.00.

Question 7

Which variance will be unfavorable due to employees working more hours than allowed for the actual number of units produced?

Accepted Answer

A) Price (rate). 
B) Efficiency. 
C) Sales activity. 
D) Production volume. 
A) Price (rate). 
B) Efficiency. 
C) Sales activity. 
D) Production volume.

Question 8

A flexible budget adjusts the static budget to reflect the actual activity level achieved during the period.This is a basic principle of a flexible budget.

Accepted Answer

A) True 
 B)False

Question 9

If the total materials variance for a given operation is favorable,why must this variance be further evaluated as to price and usage?

Accepted Answer

A) There is no need to further evaluate the total materials variance if it is favorable. 
B) Generally accepted accounting principles require that all variances be analyzed in three stages. 
C) All variances must appear in the annual report to equity owners for proper disclosure. 
D) A further evaluation lets management evaluate the activities of the purchasing and production functions. 
A) There is no need to further evaluate the total materials variance if it is favorable. 
B) Generally accepted accounting principles require that all variances be analyzed in three stages. 
C) All variances must appear in the annual report to equity owners for proper disclosure. 
D) A further evaluation lets management evaluate the activities of the purchasing and production functions.

Question 10

The production volume variance must be computed when a company uses:

Accepted Answer

A) activity-based costing. 
B) process costing. 
C) job-order costing. 
D) full-absorption costing. 
A) activity-based costing. 
B) process costing. 
C) job-order costing. 
D) full-absorption costing.

Dickey Company had total underapplied overhead of $15,000.Additional information is as follows: What is the actual total overhead for the period?

Information for Nighttime Company's direct labor cost for February is as follows: What were the standard direct labor hours for February?

The sales price variance is the difference between the actual sales revenues and the:

A variance can best be described as:

What is the master budget contribution margin?

Which variance will be unfavorable due to employees working more hours than allowed for the actual number of units produced?

A flexible budget adjusts the static budget to reflect the actual activity level achieved during the period.This is a basic principle of a flexible budget.

If the total materials variance for a given operation is favorable,why must this variance be further evaluated as to price and usage?

The production volume variance must be computed when a company uses:

Cost Accounting: Information for Decision Making

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

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Exam 16: Fundamentals of Variance Analysis

Dickey Company had total underapplied overhead of $15,000.Additional information is as follows: What is the actual total overhead for the period?

Information for Nighttime Company's direct labor cost for February is as follows: What were the standard direct labor hours for February?

The sales price variance is the difference between the actual sales revenues and the:

A variance can best be described as:

What is the master budget contribution margin?

Which variance will be unfavorable due to employees working more hours than allowed for the actual number of units produced?

A flexible budget adjusts the static budget to reflect the actual activity level achieved during the period.This is a basic principle of a flexible budget.

If the total materials variance for a given operation is favorable,why must this variance be further evaluated as to price and usage?

The production volume variance must be computed when a company uses:

Cost Accounting: Information for Decision Making

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters