Question 1

A budget that shows expected costs at more than one level of activity is called a(n)____________________ budget.

Accepted Answer

flexible

Question 2

Costs that tend to change in total directly with the volume of manufacturing activity are called ____________________ costs.

Accepted Answer

variable

Question 3

Two variances associated with analyzing manufacturing overhead costs are the production volume variance and the flexible budget variance.

Accepted Answer

A) True 
 B)False  True

Question 4

If the actual cost of an item is lower than the standard cost,a(n)____________________ price variance will be recognized.

Accepted Answer

The answer of If the actual cost of an item...

Question 5

A decrease in activity level will result in:

Accepted Answer

A)  a decrease in fixed unit cost. 
B)  total fixed cost remaining constant. 
C)  a decrease in total fixed cost. 
D)  a decrease in unit variable cost. 
A)  a decrease in fixed unit cost. 
B)  total fixed cost remaining constant. 
C)  a decrease in total fixed cost. 
D)  a decrease in unit variable cost.

Question 6

SweetBerry Ice-creams uses a standard cost system.The following data is available for June:   The actual material cost for June was:

Accepted Answer

A)  $48,000. 
B)  $50,400. 
C)  $49,770. 
D)  $51,030. 
A)  $48,000. 
B)  $50,400. 
C)  $49,770. 
D)  $51,030.

Question 7

Direct factory labor is usually considered to be

Accepted Answer

A)  a variable cost. 
B)  a fixed cost. 
C)  a semi-variable cost. 
D)  a mixed cost. 
A)  a variable cost. 
B)  a fixed cost. 
C)  a semi-variable cost. 
D)  a mixed cost.

Question 8

Canine Cottage Industries makes several specially designed doghouses.The Standard Cost Card for The Gables model is shown.A customer ordered three of this model for their Labrador retrievers.The Job Cost Sheet is shown.     From the information given for Canine Cottage Industries,compute the labor total,time and rate variances.

Accepted Answer

The answer of Canine Cottage Industries makes several specially designed...

Question 9

The Hoatzin Birdhouse Factory produced the following standard cost card.In July,the company had an order for 500 birdhouses (Model: Wren)for Job No.CB32.Manufacturing overhead is based on direct labor hours.The manufacturing overhead cost estimates for the year total $32,400 and total direct labor hours are estimated at 9,000 for the year.Complete the Standard Cost Card and Job Order Cost Sheet.Calculate the total cost variance.

Accepted Answer

Manufacturing overhead is $3.60 per hour

Question 10

The difference between the total standard cost and the total actual cost is the ___________________.

Accepted Answer

The answer of The difference between the total standard cost...

Question 11

Examples of fixed manufacturing costs include all of the following except:

Accepted Answer

A)  depreciation. 
B)  utilities. 
C)  insurance. 
D)  taxes. 
A)  depreciation. 
B)  utilities. 
C)  insurance. 
D)  taxes.

Question 12

As the level of activity increases,the total variable costs for the period

Accepted Answer

A)  increase. 
B)  decrease. 
C)  do not change. 
D)  may increase or decrease. 
A)  increase. 
B)  decrease. 
C)  do not change. 
D)  may increase or decrease.

Question 13

The high-low point method results can be misleading if the activity is not reflective of the normal activity.

Accepted Answer

A) True 
 B)False

Question 14

Semi-variable costs vary in direct proportion to the volume of activity.

Accepted Answer

A) True 
 B)False

Question 15

Better Blankets,Inc.makes a SnuggieBlank using flannel material and trim binding.They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need.The Standard Cost Card for The SnuggieBlank model is shown.   The company reported the following results concerning January results:   The material price variance for Trim used in January is:

Accepted Answer

A)  $5,640 favorable. 
B)  $5,640 unfavorable. 
C)  $1,440 favorable. 
D)  $1,440 unfavorable. 
A)  $5,640 favorable. 
B)  $5,640 unfavorable. 
C)  $1,440 favorable. 
D)  $1,440 unfavorable.

Question 16

The general model for computing a price variance is:

Accepted Answer

A)  difference in unit price × actual quantity of inputs. 
B)  difference in unit price × standard quantity of inputs. 
C)  standard price × (actual quantity of inputs - standard quantity allowed for units of output). 
D)  actual price × difference in quantity of inputs. 
A)  difference in unit price × actual quantity of inputs. 
B)  difference in unit price × standard quantity of inputs. 
C)  standard price × (actual quantity of inputs - standard quantity allowed for units of output). 
D)  actual price × difference in quantity of inputs.

Question 17

In a factory,the total variable costs are $600 if 500 units are produced.If 800 units are produced,the variable cost per unit would be

Accepted Answer

A)  $1.20 
B)  $1.11 
C)  $1.00 
D)  $0.75 
A)  $1.20 
B)  $1.11 
C)  $1.00 
D)  $0.75

Question 18

If a price variance for materials is unfavorable,the quantity variance for materials also must be unfavorable.

Accepted Answer

A) True 
 B)False

Question 19

The flexible budget usually shows

Accepted Answer

A)  only fixed costs. 
B)  only variable costs. 
C)  fixed and variable costs together. 
D)  fixed and variable costs separately. 
A)  only fixed costs. 
B)  only variable costs. 
C)  fixed and variable costs together. 
D)  fixed and variable costs separately.

Question 20

Costs that vary in some degree with the volume of activity,but not in direct proportion to it are called ____________________ costs.

Accepted Answer

semi-varia

Exam 29: Controlling Manufacturing Costs: Standard Costs

A budget that shows expected costs at more than one level of activity is called a(n)____________________ budget.

Costs that tend to change in total directly with the volume of manufacturing activity are called ____________________ costs.

Two variances associated with analyzing manufacturing overhead costs are the production volume variance and the flexible budget variance.

If the actual cost of an item is lower than the standard cost,a(n)____________________ price variance will be recognized.

A decrease in activity level will result in:

SweetBerry Ice-creams uses a standard cost system.The following data is available for June: The actual material cost for June was:

Direct factory labor is usually considered to be

The difference between the total standard cost and the total actual cost is the ___________________.

Examples of fixed manufacturing costs include all of the following except:

As the level of activity increases,the total variable costs for the period

The high-low point method results can be misleading if the activity is not reflective of the normal activity.

Semi-variable costs vary in direct proportion to the volume of activity.

The general model for computing a price variance is:

In a factory,the total variable costs are $600 if 500 units are produced.If 800 units are produced,the variable cost per unit would be

If a price variance for materials is unfavorable,the quantity variance for materials also must be unfavorable.

The flexible budget usually shows

Costs that vary in some degree with the volume of activity,but not in direct proportion to it are called ____________________ costs.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Cost-Revenue Analysis for Decision Making

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