Question 1

The difference between actual price per unit of input and the standard price per unit of input results in a:

Accepted Answer

A) Standard variance. 
B) Quantity variance. 
C) Volume variance. 
D) Controllable variance. 
E) Price variance. 
A) Standard variance. 
B) Quantity variance. 
C) Volume variance. 
D) Controllable variance. 
E) Price variance.

Question 2

The following information comes from the records of Magno Co.for the current period.
a.Compute the overhead controllable and volume variances.In each case,state whether the variance is favorable or unfavorable.
b.Prepare the journal entries to charge overhead costs to work in process and the overhead variances to their proper accounts.   Factory overhead (based on budgeted production of 24,500 units)
Variable overhead $2.25/direct labor hour
Fixed overhead $1.95/direct labor hour

Accepted Answer

The answer of The following information comes from the records...

Question 3

Based on predicted production of 12,000 units,a company anticipates $150,000 of fixed costs and $123,000 of variable costs.The flexible budget amounts of fixed and variable costs for 10,000 units are:

Accepted Answer

A) $125,000 fixed and $102,500 variable. 
B) $125,000 fixed and $123,000 variable. 
C) $102,500 fixed and $150,000 variable. 
D) $150,000 fixed and $123,000 variable. 
E) $150,000 fixed and $102,500 variablE.Fixed costs remain at $150,000 
A) $125,000 fixed and $102,500 variable. 
B) $125,000 fixed and $123,000 variable. 
C) $102,500 fixed and $150,000 variable. 
D) $150,000 fixed and $123,000 variable. 
E) $150,000 fixed and $102,500 variablE.Fixed costs remain at $150,000

Question 4

LJ Co.produces picture frames.It takes 3 hours of direct labor to produce a frame.LJ's standard labor cost is $11.00 per hour.During March,LJ produced 4,000 frames and used 12,400 hours at a total cost of $133,920.What is LJ's labor rate variance for March?

Accepted Answer

@#IMG-DLM& *$133,920

Question 5

The sum of the variable overhead spending variance,the variable overhead efficiency variance,the fixed overhead spending variance is the ____________________________.

Accepted Answer

controllab

Question 6

A budget based on several different levels of activity,often including both a best-case and worst-case scenario,is called a:

Accepted Answer

A) Rolling budget. 
B) Production budget. 
C) Flexible budget. 
D) Merchandise purchases budget. 
E) Fixed budget. 
A) Rolling budget. 
B) Production budget. 
C) Flexible budget. 
D) Merchandise purchases budget. 
E) Fixed budget.

Question 7

When there is a difference between the actual volume of production and the standard volume of production,which of the following,based solely on fixed overhead,occurs:

Accepted Answer

A) Production variance. 
B) Volume variance. 
C) Overhead cost variance. 
D) Quantity variance. 
E) Controllable variance. 
A) Production variance. 
B) Volume variance. 
C) Overhead cost variance. 
D) Quantity variance. 
E) Controllable variance.

Question 8

When the actual cost of direct materials used exceeds the standard cost,the company must have experienced an unfavorable direct materials price variance.

Accepted Answer

A) True 
 B)False

Question 9

Georgia,Inc.has collected the following data on one of its products.The direct materials quantity variance is:

Accepted Answer

A) $30,000 favorable. 
B) $13,750 unfavorable. 
C) $16,250 favorable. 
D) $30,000 unfavorable. 
E) $13,750 favorablE. 
A) $30,000 favorable. 
B) $13,750 unfavorable. 
C) $16,250 favorable. 
D) $30,000 unfavorable. 
E) $13,750 favorablE.

Question 10

Which department is often responsible for the direct materials price variance?

Accepted Answer

A) The accounting department. 
B) The production department. 
C) The purchasing department. 
D) The finance department. 
E) The budgeting department. 
A) The accounting department. 
B) The production department. 
C) The purchasing department. 
D) The finance department. 
E) The budgeting department.

Question 11

Direct materials variances are called price and quantity variances.However,when referring to direct labor,these variances are usually called _________________ and _____________ variances.
Answers can appear in any order.

Accepted Answer

The answer of Direct materials variances are called price and...

Question 12

Clevenger Co.planned to produce and sell 30,000 units with a selling price of $10 per unit.Variable costs are expected to be $4 per unit and fixed costs are expected to be $80,000.Clevenger actually produced and sold 37,000 units.
Using a contribution margin format:
Prepare a flexible budget income statement for the actual level of sales and production.

Accepted Answer

The answer of Clevenger Co.planned to produce and sell 30,000...

Question 13

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period.

Accepted Answer

A) $6,125 unfavorable. 
B) $7,000 unfavorable. 
C) $7,000 favorable. 
D) $12,250 favorable. 
E) $6,125 favorablE. 
A) $6,125 unfavorable. 
B) $7,000 unfavorable. 
C) $7,000 favorable. 
D) $12,250 favorable. 
E) $6,125 favorablE.

Question 14

Hatter,Inc.allocates fixed overhead at a rate of $17 per direct labor hour.This amount is based on 90% of capacity or 3,600 direct labor hours for 6,000 units.During July,Hatter produced 5,500 units.Budgeted fixed overhead is $66,000,and overhead incurred was $67,000.
Required:
Determine the volume variance for July.

Accepted Answer

@#IMG-DLM& ^*(3,600 DLH/6,000 un

Question 15

When standard costs are used,factory overhead is assigned to products with a predetermined standard overhead rate.

Accepted Answer

A) True 
 B)False

Question 16

A company's flexible budget for 30,000 units of production showed sales of $90,000,variable costs of $36,000,and fixed costs of $23,000.Prepare a flexible budget for 25,000 units assuming it is within the same relevant range of production.

Accepted Answer

The answer of A company's flexible budget for 30,000 units...

Question 17

When recording the journal entry for labor,the Work in Process Inventory account is

Accepted Answer

A) Debited for standard labor cost. 
B) Debited for actual labor cost. 
C) Credited for standard labor cost. 
D) Credited for actual labor cost. 
E) Not used. 
A) Debited for standard labor cost. 
B) Debited for actual labor cost. 
C) Credited for standard labor cost. 
D) Credited for actual labor cost. 
E) Not used.

Exam 23: Flexible Budgets and Standard Costs

The difference between actual price per unit of input and the standard price per unit of input results in a:

Based on predicted production of 12,000 units,a company anticipates $150,000 of fixed costs and $123,000 of variable costs.The flexible budget amounts of fixed and variable costs for 10,000 units are:

LJ Co.produces picture frames.It takes 3 hours of direct labor to produce a frame.LJ's standard labor cost is $11.00 per hour.During March,LJ produced 4,000 frames and used 12,400 hours at a total cost of $133,920.What is LJ's labor rate variance for March?

The sum of the variable overhead spending variance,the variable overhead efficiency variance,the fixed overhead spending variance is the ____________________________.

A budget based on several different levels of activity,often including both a best-case and worst-case scenario,is called a:

When there is a difference between the actual volume of production and the standard volume of production,which of the following,based solely on fixed overhead,occurs:

When the actual cost of direct materials used exceeds the standard cost,the company must have experienced an unfavorable direct materials price variance.

Georgia,Inc.has collected the following data on one of its products.The direct materials quantity variance is:

Which department is often responsible for the direct materials price variance?

Direct materials variances are called price and quantity variances.However,when referring to direct labor,these variances are usually called _________________ and _____________ variances. Answers can appear in any order.

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period.

When standard costs are used,factory overhead is assigned to products with a predetermined standard overhead rate.

A company's flexible budget for 30,000 units of production showed sales of $90,000,variable costs of $36,000,and fixed costs of $23,000.Prepare a flexible budget for 25,000 units assuming it is within the same relevant range of production.

When recording the journal entry for labor,the Work in Process Inventory account is

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

Filters

Direct materials variances are called price and quantity variances.However,when referring to direct labor,these variances are usually called _____ and _ variances. Answers can appear in any order.