Question 1

The amount that should be paid for the quantity of the input to be used is known as the ______________.
or

Accepted Answer

pricing de

Question 2

PURE Inc.produces flavored waters,sold in gallons.Recently the company adopted the following materials standard for one gallon of its raspberry flavored water:

Accepted Answer

The answer of PURE Inc.produces flavored waters,sold in gallons.Recently the...

Question 3

Figure 10-5.   Refer to Figure 10-5.What is Seaside's total labor variance?

Accepted Answer

A) $20,000 F 
B) $20,000 U 
C) $112,500 F 
D) $120,000 U 
A) $20,000 F 
B) $20,000 U 
C) $112,500 F 
D) $120,000 U

Question 4

Figure 10-4. High Fliers Company produces model airplanes.During the month of November,it produced 2,000 planes.The actual labor hours were 7 hours per plane.Its standard labor hours are 10 hours per plane.The standard labor rate is $11 per hour.At the end of November,High Fliers found that it had a favorable labor rate variance of $10,500.
Refer to Figure 10-4.What was High Fliers' actual cost per labor hour?

Accepted Answer

A) $12.75 
B) $11.50 
C) $10.50 
D) $10.25 
A) $12.75 
B) $11.50 
C) $10.50 
D) $10.25

Question 5

_______________ often means the difference between success and failure or between above-average profits and lesser profits.

Accepted Answer

The answer of _______________ often means the difference between success...

Question 6

Perfect Builders makes all sorts of moldings.Its standard quantity of material allowed is 1 foot of wood per 1 foot of molding at a standard price of $2.00 per foot.During August,it purchased 500,000 feet of wood at a cost of $1.90 per foot,which produced only 499,000 feet of molding.Calculate the materials price variance and the materials usage variance,respectively.

Accepted Answer

A) $50,000 F and $2,000 U 
B) $49,900 U and $2,000 F 
C) $50,000 F and $1,900 U 
D) $49,900 F and $1,900 U 
A) $50,000 F and $2,000 U 
B) $49,900 U and $2,000 F 
C) $50,000 F and $1,900 U 
D) $49,900 F and $1,900 U

Question 7

Figure 10-3. Bortello Corporation produces high-quality leather boots.The company has a standard cost system and has set the following standards for materials and labor:
  During the year Bortello produced 125 boots.Actual leather purchased was 1,700 strips,at $16 per strip.There were no beginning or ending inventories of leather.Actual direct labor was 1,500 hours at $15 per hour.
Refer to Figure 10-3.Calculate the labor rate variance and the labor efficiency variance,respectively.

Accepted Answer

A) $4,500 U and $3,000 U 
B) $4,500 F and $3,000 F 
C) $4,500 U and $3,000 F 
D) $4,500 F and $3,000 U 
A) $4,500 U and $3,000 U 
B) $4,500 F and $3,000 F 
C) $4,500 U and $3,000 F 
D) $4,500 F and $3,000 U

Question 8

Ideal standards can be achieved only if everything operates perfectly,meaning that they do not allow for any machine breakdowns,slack,etc.

Accepted Answer

A) True 
 B)False

Question 9

Figure 10-4. High Fliers Company produces model airplanes.During the month of November,it produced 2,000 planes.The actual labor hours were 7 hours per plane.Its standard labor hours are 10 hours per plane.The standard labor rate is $11 per hour.At the end of November,High Fliers found that it had a favorable labor rate variance of $10,500.
Refer to Figure 10-4.What was High Fliers' total labor variance?

Accepted Answer

A) $61,500 F 
B) $76,500 F 
C) $76,500 U 
D) $61,500 U 
A) $61,500 F 
B) $76,500 F 
C) $76,500 U 
D) $61,500 U

Question 10

Figure 10-9. James Company manufactures t-shirts.During the year,it manufactured 250,000 t-shirts,using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are:
  It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
Refer to Figure 10-9.What is the entry to record the issuance and usage of materials?

Accepted Answer

A) Work in Process 4,500,000 Materials Usage Variance 300,000
Materials 4,800,000 
B) Work in Process 4,200,000 Materials Usage Variance 300,000
Materials 4,500,000 
C) Work in Process 4,200,000 Materials Usage Variance 300,000
Materials 3,900,000 
D) Work in Process 4,500,000 Materials Usage Variance 300,000
Materials 4,200,000 
A) Work in Process 4,500,000 Materials Usage Variance 300,000
Materials 4,800,000 
B) Work in Process 4,200,000 Materials Usage Variance 300,000
Materials 4,500,000 
C) Work in Process 4,200,000 Materials Usage Variance 300,000
Materials 3,900,000 
D) Work in Process 4,500,000 Materials Usage Variance 300,000
Materials 4,200,000

Question 11

During August,10,000 units were produced.The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound.If there was an unfavorable usage variance of $18,750 for August,the actual quantity of materials used must be

Accepted Answer

A) 106,250 pounds. 
B) 93,750 pounds. 
C) 31,875 pounds. 
D) 23,438 pounds. 
A) 106,250 pounds. 
B) 93,750 pounds. 
C) 31,875 pounds. 
D) 23,438 pounds.

Question 12

The ___________________ measures the difference between the labor hours that were actually used and the labor hours that should have been used.

Accepted Answer

labor effi

Question 13

The amount of input that should be used per unit of output is known as the _______________.
or

Accepted Answer

quantity d

Question 14

The production data needed to calculate the standard unit cost as well as the underlying details for the standard cost per unit are provided in

Accepted Answer

A) the standard cost sheet. 
B) the standard production budget. 
C) the balance sheet. 
D) the standard work-in-process account. 
E) none of these. 
A) the standard cost sheet. 
B) the standard production budget. 
C) the balance sheet. 
D) the standard work-in-process account. 
E) none of these.

Question 15

Allison Company adopted a standard cost system several years ago.The standard costs for the prime costs of its single product follow:
   The following operating data were taken from the records for November:
   Compute the following:

Accepted Answer

The answer of Allison Company adopted a standard cost system...

Question 16

Figure 10-7. During April,a small roofing company purchased 700 bundles of a certain type of shingle at a price of $35 per bundle,$8 more than the standard price.Its standard quantity of this type of shingle is 725 bundles.
Refer to Figure 10-7.What is the journal entry to record the issuance and usage of materials assuming that the roofing company purchased and used 700 bundles?

Accepted Answer

A) Work in Process 18,900 Materials Usage Variance 675
Materials 19,575 
B) Work in Process 19,575 Materials Usage Variance 675
Materials 18,900 
C) Work in Process 24,500 Materials Usage Variance 875
Materials 25,375 
D) Work in Process 25,375 Materials Usage Variance 875
Materials 24,500 
A) Work in Process 18,900 Materials Usage Variance 675
Materials 19,575 
B) Work in Process 19,575 Materials Usage Variance 675
Materials 18,900 
C) Work in Process 24,500 Materials Usage Variance 875
Materials 25,375 
D) Work in Process 25,375 Materials Usage Variance 875
Materials 24,500

Question 17

_________________ occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.

Accepted Answer

Unfavorabl

Question 18

If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed,the labor rate variance and labor efficiency variance will be Labor Rate Labor Efficiency
Variance Variance

Accepted Answer

A) Favorable Favorable 
B) Favorable Unfavorable 
C) Unfavorable Favorable 
D) Unfavorable Unfavorable 
A) Favorable Favorable 
B) Favorable Unfavorable 
C) Unfavorable Favorable 
D) Unfavorable Unfavorable

Question 19

The benefits of operational control under a standard cost system can extend to all manufacturing environments.

Accepted Answer

A) True 
 B)False

Question 20

Figure 10-3. Bortello Corporation produces high-quality leather boots.The company has a standard cost system and has set the following standards for materials and labor:
  During the year Bortello produced 125 boots.Actual leather purchased was 1,700 strips,at $16 per strip.There were no beginning or ending inventories of leather.Actual direct labor was 1,500 hours at $15 per hour.
Refer to Figure 10-3.Compute the materials price variance and the materials usage variance,respectively.

Accepted Answer

A) $9,000 F and $1,200 U 
B) $9,300 U and $1,500 F 
C) $6,800 F and $4,000 U 
D) $6,800 U and $4,000 F 
A) $9,000 F and $1,200 U 
B) $9,300 U and $1,500 F 
C) $6,800 F and $4,000 U 
D) $6,800 U and $4,000 F

The amount that should be paid for the quantity of the input to be used is known as the ______________. or

PURE Inc.produces flavored waters,sold in gallons.Recently the company adopted the following materials standard for one gallon of its raspberry flavored water:

Figure 10-5. Refer to Figure 10-5.What is Seaside's total labor variance?

_______________ often means the difference between success and failure or between above-average profits and lesser profits.

Ideal standards can be achieved only if everything operates perfectly,meaning that they do not allow for any machine breakdowns,slack,etc.

During August,10,000 units were produced.The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound.If there was an unfavorable usage variance of $18,750 for August,the actual quantity of materials used must be

The ___________________ measures the difference between the labor hours that were actually used and the labor hours that should have been used.

The amount of input that should be used per unit of output is known as the _______________. or

The production data needed to calculate the standard unit cost as well as the underlying details for the standard cost per unit are provided in

Allison Company adopted a standard cost system several years ago.The standard costs for the prime costs of its single product follow: The following operating data were taken from the records for November: Compute the following:

_________________ occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.

If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed,the labor rate variance and labor efficiency variance will be Labor Rate Labor Efficiency Variance Variance

The benefits of operational control under a standard cost system can extend to all manufacturing environments.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 10: Standard Costing: a Managerial Control Tool

The amount that should be paid for the quantity of the input to be used is known as the ______________. or

PURE Inc.produces flavored waters,sold in gallons.Recently the company adopted the following materials standard for one gallon of its raspberry flavored water:

Figure 10-5. Refer to Figure 10-5.What is Seaside's total labor variance?

_______________ often means the difference between success and failure or between above-average profits and lesser profits.

Ideal standards can be achieved only if everything operates perfectly,meaning that they do not allow for any machine breakdowns,slack,etc.

During August,10,000 units were produced.The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound.If there was an unfavorable usage variance of $18,750 for August,the actual quantity of materials used must be

The ___________________ measures the difference between the labor hours that were actually used and the labor hours that should have been used.

The amount of input that should be used per unit of output is known as the _______________. or

The production data needed to calculate the standard unit cost as well as the underlying details for the standard cost per unit are provided in

Allison Company adopted a standard cost system several years ago.The standard costs for the prime costs of its single product follow: The following operating data were taken from the records for November: Compute the following:

_________________ occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.

If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed,the labor rate variance and labor efficiency variance will be Labor Rate Labor Efficiency Variance Variance

The benefits of operational control under a standard cost system can extend to all manufacturing environments.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters