Question 1

WinterRec uses a standard cost system.The following data is available for November:   The actual direct labor rate for November is:

Accepted Answer

A)  $8 per hour. 
B)  $7.60 per hour. 
C)  $8.40 per hour. 
D)  $8.20 per hour. 
A)  $8 per hour. 
B)  $7.60 per hour. 
C)  $8.40 per hour. 
D)  $8.20 per hour.

Question 2

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are called ____________________ costs.

Accepted Answer

The answer of Costs that reflect what costs should be...

Question 3

Use the high-low point method to determine variable cost per unit:

Accepted Answer

A)  $0.60 per unit. 
B)  $0.80 per unit. 
C)  $1.00 per unit. 
D)  $1.20 per unit. 
A)  $0.60 per unit. 
B)  $0.80 per unit. 
C)  $1.00 per unit. 
D)  $1.20 per unit.

Question 4

In order to analyze the differences between actual costs and standard costs,it is necessary to identify the fixed and variable components of semi-variable costs.

Accepted Answer

A) True 
 B)False

Question 5

The production manager is accountable for all material quantity variances as defective product and scrap is a result of inexperienced workers.

Accepted Answer

A) True 
 B)False

Question 6

In a factory,the total variable costs are $600 if 500 units are produced.If 400 units are produced,the total variable costs would be

Accepted Answer

A)  $480. 
B)  $600. 
C)  $120. 
D)  $333. 
A)  $480. 
B)  $600. 
C)  $120. 
D)  $333.

Question 7

The labor time (efficiency)variance and the labor ____________________ variance together make up the total labor variance.

Accepted Answer

The answer of The labor time (efficiency)variance and the labor...

Question 8

As the volume of output increases,the ____________________ cost per unit of output decreases.

Accepted Answer

The answer of As the volume of output increases,the ____________________...

Question 9

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 labor rate variance in January is:

Accepted Answer

A)  $1,600 favorable. 
B)  $1,600 unfavorable. 
C)  $3,050 favorable. 
D)  $3,050 unfavorable. 
A)  $1,600 favorable. 
B)  $1,600 unfavorable. 
C)  $3,050 favorable. 
D)  $3,050 unfavorable.

Question 10

Standard quantity is usually determined by the

Accepted Answer

A)  purchasing department. 
B)  engineers. 
C)  company accountant. 
D)  shop foreman. 
A)  purchasing department. 
B)  engineers. 
C)  company accountant. 
D)  shop foreman.

Question 11

Costs are expected to behave in a similar manner within a relevant range of activity.

Accepted Answer

A) True 
 B)False

Question 12

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 variable overhead efficiency variance in January is:

Accepted Answer

A)  $3,000 favorable. 
B)  $3,000 unfavorable. 
C)  $2,000 favorable. 
D)  $2,000 unfavorable. 
A)  $3,000 favorable. 
B)  $3,000 unfavorable. 
C)  $2,000 favorable. 
D)  $2,000 unfavorable.

Question 13

If the predetermined overhead application rate is a percentage of labor cost,then a favorable labor time variance will be accompanied by a favorable manufacturing overhead variance.

Accepted Answer

A) True 
 B)False

Question 14

In a factory,the fixed costs per unit are $45 when 400 units are produced.If 450 units are produced,the fixed costs per unit would be

Accepted Answer

A)  $45.00. 
B)  $40.00. 
C)  $10.00. 
D)  $50.63. 
A)  $45.00. 
B)  $40.00. 
C)  $10.00. 
D)  $50.63.

Question 15

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

Accepted Answer

The answer of A budget that shows expected costs at...

Question 16

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

Accepted Answer

A)  similar to actual. 
B)  less than actual. 
C)  more than actual. 
D)  a reasonable/logical activity measure. 
A)  similar to actual. 
B)  less than actual. 
C)  more than actual. 
D)  a reasonable/logical activity measure.

Question 17

Prepare a budget for manufacturing costs for Anasta Manufacturing for the month of April 2016 from the following information.Direct materials are estimated to be $600,000 for the year and direct labor is estimated to be $108,000.The direct labor per hour average is $16 and the budgeted level of direct labor activity for the month is 1,100 hours.

Accepted Answer

The answer of Prepare a budget for manufacturing costs for...

Question 18

Costs in excess of established standards are ___________________.

Accepted Answer

The answer of Costs in excess of established standards are...

Question 19

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 variable overhead spending variance in January is:

Accepted Answer

A)  $1,000 favorable. 
B)  $1,000 unfavorable. 
C)  $3,000 favorable. 
D)  $3,000 unfavorable. 
A)  $1,000 favorable. 
B)  $1,000 unfavorable. 
C)  $3,000 favorable. 
D)  $3,000 unfavorable.

Question 20

Complete the flexible budget of manufacturing costs for Lansome Industries for September 2016.Overhead is based on direct labor hours.

Accepted Answer

The answer of Complete the flexible budget of manufacturing costs...

Exam 29: Controlling Manufacturing Costs: Standard Costs

WinterRec uses a standard cost system.The following data is available for November: The actual direct labor rate for November is:

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are called ____________________ costs.

Use the high-low point method to determine variable cost per unit:

In order to analyze the differences between actual costs and standard costs,it is necessary to identify the fixed and variable components of semi-variable costs.

The production manager is accountable for all material quantity variances as defective product and scrap is a result of inexperienced workers.

In a factory,the total variable costs are $600 if 500 units are produced.If 400 units are produced,the total variable costs would be

The labor time (efficiency)variance and the labor ____________________ variance together make up the total labor variance.

As the volume of output increases,the ____________________ cost per unit of output decreases.

Standard quantity is usually determined by the

Costs are expected to behave in a similar manner within a relevant range of activity.

If the predetermined overhead application rate is a percentage of labor cost,then a favorable labor time variance will be accompanied by a favorable manufacturing overhead variance.

In a factory,the fixed costs per unit are $45 when 400 units are produced.If 450 units are produced,the fixed costs per unit would be

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

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

Costs in excess of established standards are ___________________.

Complete the flexible budget of manufacturing costs for Lansome Industries for September 2016.Overhead is based on direct labor hours.

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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