Deck 16: Operational Performance Measurement: Further Analysis of Productivity and Sales

Question 1

Efforts to improve productivity should be focused only on:

A)Quality.
B)Non-value-added activities.
C)Value-added activities.
D)Inputs.
E)Outputs.

Answer 1

C

Question 2

The sales mix variance for a firm is ultimately expressed in terms of:

A)Units.
B)Ratios.
C)Percentages.
D)Mixes.
E)Dollars.

Answer 2

E

Question 3

Productivity can be thought of as:

A)The relationship between what is produced and the capacity to produce.
B)Doing more with less.
C)The ratio of output to input.
D)Throughput margin divided by output.

Answer 3

C

Question 4

An unfavorable sales mix variance arises for a product when the:

A)Actual units sold are greater than the budgeted units to be sold.
B)Actual units sold are less than the budgeted units to be sold.
C)Actual sales mix percentage is less than the budgeted sales mix percentage.
D)Budgeted sales mix percentage is less than the actual sales mix percentage.
E)Total actual sales dollar from the product is less than the budgeted sales dollar for the product.

Question 5

A selling price variance is:

A)Further divided into separate sales quantity and sales mix variances.
B)Further divided into separate revenue and quantity variances.
C)Not further divided.
D)Further divided into separate flexible budget and sales volume variances.
E)Further divided into separate variable and fixed variances.

Question 6

Which one of the following does not use the dollar amount of the input in assessing productivity?

A)Financial productivity.
B)Total productivity.
C)Operational productivity.
D)Productivity.
E)Partial financial productivity.

Question 7

A primary objective in measuring productivity is to improve operations either by using fewer inputs to produce the same output,or to produce:

A)More quickly.
B)More effectively.
C)With fewer constraints.
D)More outputs with the same inputs.
E)More outputs with more inputs.

Question 8

A partial operational productivity measure:

A)Uses physical units in both the numerator and denominator.
B)Is harder to understand than a financial partial productivity measure.
C)Is affected by price changes and other factors.
D)Is a comprehensive productivity measure.
E)Has the advantage of considering the effects of both speed and quantity of a resources input on productivity.

Question 9

Which one of the following uses the number of units of an input factor in its assessment of productivity?

A)Partial financial productivity.
B)Total productivity.
C)Operational productivity.
D)Partial productivity.

Question 10

Which one of the following is a productivity measure that focuses only on the relationship between one of the inputs and the output attained?

A)Financial productivity.
B)Total productivity.
C)Total financial productivity.
D)Productivity.
E)Partial productivity.

Question 11

Decreasing selling prices in order to secure higher sales volumes or market shares:

A)Will always generate higher sales volumes and market shares.
B)Can have a negative impact on a firm's profitability.
C)Should not usually affect profitability.
D)Should not usually affect contribution margins.
E)Should not usually affect sales mix.

Question 12

The sales volume variance is:

A)Further divided into separate sales quantity and sales mix variances.
B)Further divided into separate revenue and quantity variances.
C)Not further divided.
D)Further divided into separate flexible budget and sales volume variances.
E)Further divided into separate variable and fixed variances.

Question 13

The two major contributing factors to a sales volume variance are deviations in:

A)Market size and market share.
B)Market size and sales quantity.
C)Sales mix and selling price.
D)Sales mix and sales quantity.
E)Sales price and sales quantity.

Question 14

One major problem in measuring the productivity of a not-for-profit organization is the absence of:

A)Overhead costs.
B)A common measure for its outputs.
C)Mandatory financial reporting.
D)Materials costs.

Question 15

A measure of productivity can be either:

A)Operational or financial.
B)Total or segmented.
C)Short-term or long-term.
D)Activity-based or TOC based.

Question 16

Which one of the following measures the relationship between the output attained and the total input costs of all the required input resources?

A)Financial partial productivity.
B)Total productivity.
C)Operational partial productivity.
D)Total financial productivity.
E)Partial productivity.

Question 17

When the actual sales-mix shifts toward a mix of products with lower contribution margins,there will be negative effects on a firm's:

A)Sales mix and sales quantity variances.
B)Sales quantity and sales volume variances.
C)Sales volume and market mix variances.
D)Market mix and sales mix variance.
E)Sales mix and sales volume variances.

Question 18

The experience of many firms is that improvements in quality:

A)Decrease productivity.
B)Have no significant effect on productivity.
C)First increase,and then decrease productivity.
D)Increase productivity.
E)Restrict productivity improvements.

Question 19

The market size variance arises because of changes:

A)In the total market size of the firm's product.
B)In the firm's proportion in the total market.
C)In the number of firms in the market.
D)In the firm's total sales volume.

Question 20

When the mix of products sold shifts toward the high contribution margin product,the total:

A)Sales mix variance is favorable.
B)Sales volume variance is favorable.
C)Market mix variance is favorable.
D)Sales mix variance is unfavorable.
E)Sales price variance is favorable.

Question 21

Which one of the following is a result of the difference between the actual sales mix and the budgeted sales mix?

A)Sales efficiency variance.
B)Sales quantity variance.
C)Sales price variance.
D)Sales mix variance.
E)Sales volume variance.

Question 22

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits.
The partial financial productivity ratio of DTV-12 in 2011 is:

A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Question 23

(Units sold - budgeted sales units)x (Budgeted contribution margin per unit)equals:

A)Sales-mix variance.
B)Market size variance.
C)Sales quantity variance.
D)Sales volume variance.
E)Flexible budget variance.

Question 24

(Budgeted contribution margin per unit)x (units sold - units budgeted to be sold)x(budgeted sales mix of the product)equals:

A)Sales efficiency variance.
B)Sales quantity variance.
C)Sales price variance.
D)Sales mix variance.
E)Sales volume variance.

Question 25

Erwin Co.provided the following information for a selected production factor:
The actual operational partial productivity ratio of the production factor is (round to two significant digits):

A)0.92 units per gallon.
B)1.00 units per gallon.
C)1.01 units per gallon.
D)1.02 units per gallon.
E)1.11 units per gallon.

Question 26

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits.
The operational partial productivity ratio of DTV-12 in 2010 is:

A)0.63 per unit.
B)0.73 per unit.
C)1.92 per unit.
D)3.00 per unit.
E)3.33 per unit.

Question 27

Weighted-average budgeted contribution margin per unit is:

A)Actual total contribution margin/actual total units.
B)Actual total contribution margin/budgeted total units.
C)Budgeted total contribution margin/actual total units.
D)Budgeted total contribution margin/budgeted total units.
E)Sum of budgeted contribution margin per unit of all products/number of products.

Question 28

(Budgeted sales mix - actual sales mix)x (total quantity sold)x (budgeted contribution margin per unit of the product)equals:

A)Sales efficiency variance.
B)Sales quantity variance.
C)Sales price variance.
D)Sales mix variance.
E)Sales volume variance.

Question 29

The market share variance is:

A)(Budgeted contribution margin per unit - actual contribution margin per unit)x (units sold).
B)(Actual market size in units - budgeted market size in units)x (weighted-average budgeted contribution margin per unit).
C)(Actual market size in units - budgeted market size in units)x (weighted-average budgeted contribution margin per unit)x (the budgeted market share).
D)(Actual market share - budgeted market share)x (budgeted total market size)x (weighted average budgeted contribution margin per unit).
E)(Actual market share - budgeted market share)x (actual total market size)x (weighted average budgeted contribution margin per unit).

Question 30

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits.
The partial operational productivity ratio of DTV-12 in 2011 is:

A)0.63 per unit.
B)0.73 per unit.
C)1.92 per unit.
D)3.00 per unit.
E)3.33 per unit.

Question 31

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits.
The partial direct labor operational productivity ratio for 2011 is:

A)262 per unit.
B)169 per unit.
C)428 per unit.
D)300 per unit.
E)333 per unit.

Question 32

Darwin,Inc.provided the following information (round calculations to two significant digits):
What is the actual partial productivity ratio?

A)0.97 unit per gallon.
B)1.00 units per gallon.
C)1.02 units per gallon.
D)1.06 units per gallon.
E)1.12 units per gallon.

Question 33

Which one of the following is the result of the [(units sold)x (actual selling price per unit)] - [(units sold)x (budgeted selling price per unit)]:

A)Sales efficiency variance.
B)Sales quantity variance.
C)Selling price variance.
D)Sales mix variance.
E)Sales volume variance.

Question 34

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits.
The partial financial productivity ratio of DTV-12 in 2010 is:

A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Question 35

Sales volume variances can have significant implications for strategic management.An unfavorable sales volume variance may indicate that:

A)The industry is in decline and the products are obsolete.
B)The company needs a new competitive strategy.
C)Product mix changes are favorable but quantity variances are unfavorable.
D)Labor productivity needs to be addressed.

Question 36

The sales quantity variance of a firm arises when the:

A)Mixes of individual products sold differ from the budgeted mixes to be sold.
B)Total units of all products sold differ from the budgeted total units to be sold.
C)Total units of a product sold differ from the budgeted units of the product to be sold.
D)Number of products sold differs from the budgeted number of products to be sold.
E)Actual market size differs from the budgeted market size.

Question 37

The effect of changes in a product's proportion of the total market is measured by:

A)Market mix variance.
B)Market share variance.
C)Market price variance.
D)Market quantity variance.
E)Market size variance.

Question 38

The effect of changes in the total industry sales of the firm's product is measured by:

A)Market mix variance.
B)Market share variance.
C)Market price variance.
D)Market quantity variance.
E)Market size variance.

Question 39

A firm with a declining market share percentage may still earn a higher operating income if the:

A)Market as a whole is also declining.
B)Market as a whole is stable.
C)Market as a whole is shifting.
D)Market as a whole is growing.
E)Firm reduces operating costs.

Question 40

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits.
The partial direct labor operational productivity ratio for 2010 is:

A)262 per unit.
B)169 per unit.
C)428 per unit.
D)300 per unit.
E)333 per unit.

Question 41

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2011,the partial direct labor operational productivity is: (round all calculations to two significant digits)

A)0.20.
B)0.25.
C)0.40.
D)4.00.
E)5.00.

Question 42

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
The partial direct labor operational productivity in 2010 is: (round all calculations to two significant digits)

A)0.22.
B)0.25.
C)4.00.
D)4.50.
E)5.00.

Question 43

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
The total productivity ratio in 2011 is: (round all calculations to two significant digits)

A)0.20.
B)0.70.
C)1.00.
D)1.43.
E)5.00.

Question 44

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits.
The partial direct labor financial productivity ratio for 2011 is:

A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Question 45

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2011,the partial operational productivity of Material H is: (round all calculations to two significant digits)

A)0.20.
B)0.55.
C)1.82.
D)3.33.
E)5.00.

Question 46

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
The total productivity ratio in 2010 is:

A)0.15.
B)0.21.
C)0.70.
D)1.43.
E)4.83.

Question 47

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
The partial operational productivity of Material H in 2010 is: (round all calculations to two significant digits)

A)0.20.
B)0.50.
C)2.00.
D)5.00.
E)6.00.

Question 48

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
The partial operational productivity of Material A in 2010 is: (round all calculations to two significant digits)

A)0.28.
B)0.33.
C)3.00.
D)3.33.
E)3.60.

Question 49

What is the sales quantity variance for Spiders?

A)$0
B)$1,500 favorable.
C)$9,843 favorable.
D)$11,250 favorable.
E)$15,468 favorable.

Question 50

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed:
The following operating results were reported after the year was over:
The contribution margin sales volume variance for Product X is:

A)$20,000 unfavorable.
B)$26,000 favorable.
C)$30,000 unfavorable.
D)$40,000 unfavorable.
E)$65,000 favorable.

Question 51

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2010,the partial financial productivity of direct labor is:

A)0.22.
B)0.25.
C)4.00.
D)4.50.
E)5.00.

Question 52

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2011,the partial financial productivity of Material H is: (round all calculations to two significant digits)

A)0.20.
B)0.55.
C)1.82.
D)3.33.
E)5.00.

Question 53

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2010,the partial financial productivity of Material A is: (round all calculations to two significant digits)

A)0.28.
B)0.33.
C)3.00.
D)3.33.
E)3.60.

Question 54

What is the sales volume variance for Spiders?

A)$0.
B)$1,125 favorable.
C)$1,500 favorable.
D)$1,650 unfavorable.
E)$12,375 unfavorable.

Question 55

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2010,the partial financial productivity of Material H is: (round all calculations to two significant digits)

A)0.20.
B)0.50.
C)2.00.
D)5.00.
E)6.00.

Question 56

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2010,the partial operational productivity of Material A is: (round all calculations to two significant digits)

A)0.30.
B)0.45.
C)2.22.
D)3.33.
E)5.00.

Question 57

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits.
The partial direct labor financial productivity ratio for 2010 is:

A)0.34.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Question 58

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2011,the partial financial productivity of Material A is: (round all calculations to two significant digits)

A)0.30.
B)0.45.
C)2.22.
D)3.33.
E)5.00.

Question 59

Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
In 2011,the partial financial productivity of direct labor is: (round all calculations to two significant digits)

A)0.20.
B)0.25.
C)0.40.
D)4.00.
E)5.00.

Question 60

Creepers,Inc.manufactures stuffed spiders and mummies.During September the following information was gathered:
What is the sales mix variance for Spiders?

A)$1,125 favorable.
B)$1,500 favorable.
C)$1,650 unfavorable.
D)$4,800 favorable.
E)$4,800 unfavorable.

Question 61

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The contribution margin sales volume variance for Product Y is:

A)$90,000 favorable
B)$16,000 unfavorable.
C)$30,000 favorable.
D)$72,800 favorable.
E)$84,000 favorable.

Question 62

Folsom Fashions sells a line of women's dresses.The company uses flexible budgets to analyze its performances.The firm's performance report for November is presented below:
The effect of the sales volume variance on November's contribution margin is:

A)$15,000 unfavorable.
B)$18,000 unfavorable.
C)$20,000 unfavorable.
D)$30,000 unfavorable.
E)$65,000 unfavorable.

Question 63

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The sales mix variance for Product Y is:

A)$14,400 favorable.
B)$16,250 favorable.
C)$18.750 unfavorable.
D)$18,750 favorable.
E)$33,250 unfavorable.

Question 64

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The selling price variance for Product Y is:

A)$60,000 unfavorable
B)$43,200 unfavorable.
C)$14,000 favorable.
D)$40,000 favorable.
E)$50,000 unfavorable.

Question 65

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The firm's market share variance for the period is:

A)$5,670 unfavorable.
B)$80,000 favorable.
C)$100,000 favorable.
D)$104,000 favorable.
E)$124,000 favorable.

Question 66

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed:
The following operating results were reported after the year was over:
The sales quantity variance for Product Y is:

A)$4,000 favorable.
B)$11,250 favorable.
C)$6,500 favorable.
D)$11,250 unfavorable.
E)$16,250 favorable.

Question 67

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The weighted-average budgeted contribution margin per unit is:

A)$19.95.
B)$35.50.
C)$36.60.
D)$40.00.
E)$77.50.

Question 68

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed:
The following operating results were reported after the year was over:
The selling price variance for Product Y is:

A)$0.
B)$25,000 unfavorable.
$24,000 favorable.
D)$30,000 favorable.
E)$30,000 unfavorable.
Actual price: $384,000/2,500 = $64
($64-$60)x 6000 = $24,000 favorable

Question 69

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The firm's total sales quantity variance for the period is:

A)$116,000 favorable.
B)$134,800 favorable.
C)$124,660 favorable.
D)$138,700 favorable.
E)$166,375 favorable.

Question 70

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The sales quantity variance for Product X is:

A)$45,777 favorable.
B)$50,750 favorable.
C)$6,500 favorable.
D)$47,550 favorable.
E)$36,250 favorable.

Question 71

Folsom Fashions sells a line of women's dresses.The company uses flexible budgets to analyze its performances.The firm's performance report for November is presented below:
The selling price variance for November is:

A)$15,000 unfavorable.
B)$18,000 unfavorable.
C)$20,000 unfavorable.
D)$30,000 unfavorable.
E)$65,000 unfavorable.

Question 72

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The sales mix variance for Product X is:

A)$22,500 favorable.
B)$43,750 unfavorable.
C)$33,600 unfavorable.
D)$68,350 unfavorable.
E)$23,233 unfavorable.

Question 73

Folsom Fashions sells a line of women's dresses.The company uses flexible budgets to analyze its performances.The firm's performance report for November is presented below:
What additional information would be needed for Folsom to calculate the dollar impact of changes in market share on November's operating income?

A)Folsom's budgeted market share and the budgeted total market size.
B)Folsom's budgeted market share,the budgeted total market size,and average market selling price.
C)Folsom's budgeted market share and the actual total market size.
D)Folsom's actual market share and the actual total market size.
E)There is no information that would make such a calculation possible.

Question 74

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed:
The following operating results were reported after the year was over:
The contribution margin sales volume variance for Product Y is:

A)$0
B)$16,000 favorable.
C)$30,000 unfavorable.
D)$10,000 unfavorable.
E)$5,000 favorable.

Question 75

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The selling price variance for Product X is:

A)$0.
B)$25,000 unfavorable.
C)$45,000 unfavorable.
D)$46,000 favorable.
E)$75,000 unfavorable.

Question 76

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The sales quantity variance for Product Y is:

A)$76,465 favorable.
B)$56,550 favorable.
C)$65,250 favorable.
D)$36,235 favorable.
E)$78,745 favorable.

Question 77

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed:
The following operating results were reported after the year was over:
The selling price variance for Product X is:

A)$0.
B)$20,000 unfavorable.
C)$25,000 unfavorable.
D)$30,000 favorable.
E)$40,000 unfavorable.

Question 78

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The firm's market size variance for the period is:

A)$16,000 favorable.
B)$216,000 favorable.
C)$43,000 favorable.
D)$20,000 favorable.
E)$110,000 favorable.

Question 79

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed:
The following operating results were reported after the year was over:
The sales quantity variance for Product X is:

A)$4,000 favorable.
B)$5,500 favorable.
C)$6,500 favorable.
D)$7,500 favorable.
E)$16,250 favorable.

Question 80

Winston Co.had two products code named X and Y.The firm had the following budget for August:
On September 1,the following operating results for August were reported:
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The contribution margin sales volume variance for Product X is:

A)$2,000 unfavorable.
B)$6,000 favorable.
C)$7,000 favorable.
D)$7,000 unfavorable.
E)$6,000 unfavorable.