The following data relate to direct labor costs for the current period of Executive Inc.: \[\begin{array} { l l } \text { Standard costs } & 6,000 \text { hours at } \$ 12.00 \\ \text { Actual costs } & 7,500 \text { hours at } \$ 11.60 \end{array}\] ? What is the direct labor time variance?

A) $17,400 favorable B) $17,400 unfavorable C) $18,000 favorable D) $18,000 unfavorable A) $17,400 favorable B) $17,400 unfavorable C) $18,000 favorable D) $18,000 unfavorable

The standard fixed factory overhead rate is based on 100% capacity of 135,000 machine hours for Interile Inc.The standard costs and the actual costs of factory overhead for the production of 32,000 units during March were as follows: \[\begin{array} { l r } \text { Actual: Factory overhead } & \$ 860,000 \\ \text { Standard: } 100,000 \text { hours at } \$ 8.00 & 800,000 \end{array}\] ? If there was a $70,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate?

A) $2.00 B) $2.50 C) $3.00 D) $3.50 A) $2.00 B) $2.50 C) $3.00 D) $3.50

The following data relate to direct labor costs for the current period: \[\begin{array} { l l } \text { Standard costs } & 36,000 \text { hours at } \$ 23.50 \\ \text { Actual costs } & 35,000 \text { hours at } \$ 23.00 \end{array}\] What is the direct labor time variance?

A) $23,000 unfavorable B) $23,500 unfavorable C) $23,500 favorable D) $23,000 favorable A) $23,000 unfavorable B) $23,500 unfavorable C) $23,500 favorable D) $23,000 favorable

Based on the following information, calculate the direct materials quantity variance. \[\begin{array} { l l } \text { Actual quantity } & 2,500 \text { pounds at } \$ 6.00 \\ \text { Standard quantity } & 2,900 \text { pounds at } \$ 5.50 \end{array}\] ?

A) $2,250 unfavorable B) $2,200 favorable C) $2,500 favorable D) $2,700 unfavorable A) $2,250 unfavorable B) $2,200 favorable C) $2,500 favorable D) $2,700 unfavorable

Exam 13: Budgeting and Standard Costs

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12, the direct materials quantity variance was $2,200 favorable.

(True/False)

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Question 21

Budgetary slack can be avoided if lower and mid-level managers are requested to support all of their spending requirements with specific operational plans.

(True/False)

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Question 22

The following data relate to direct labor costs for the current period of Executive Inc.: Standard costs 6,000 hours at \ 12.00 Actual costs 7,500 hours at \ 11.60 ? What is the direct labor time variance?

(Multiple Choice)

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Question 23

The standard factory overhead rate of Quaker Inc.is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours.The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: Standard: 25,000 hours at \ 10 \ 250,000 Actual: Variable factory overhead 202,500 Fixed factory overhead 60,000 ? What is the amount of the fixed factory overhead volume variance?

(Multiple Choice)

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Question 24

The formula to compute direct materials price variance is:

(Multiple Choice)

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Question 25

The budget procedure that requires all levels of management to start from zero in estimating sales, production, and other operating data is called zero-based budgeting.

(True/False)

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Question 26

The standard fixed factory overhead rate is based on 100% capacity of 135,000 machine hours for Interile Inc.The standard costs and the actual costs of factory overhead for the production of 32,000 units during March were as follows: Actual: Factory overhead \ 860,000 Standard: 100,000 hours at \ 8.00 800,000 ? If there was a $70,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate?

(Multiple Choice)

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Question 27

Since the controllable variance measures the efficiency of using variable overhead resources, if budgeted variable overhead exceeds actual results, the variance is favorable.

(True/False)

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Question 28

Standard and actual costs for direct materials for the manufacture of 2,000 units of product were as follows: Actual costs 2,750.@\ 8.10 Standard costs 2,800.@\ 8.00 ? Determine the (a) quantity variance, (b) price variance, and (c) total direct materials cost variance.

(Essay)

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Question 29

Which of the following is true of a capital expenditures budget?

(Multiple Choice)

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Question 30

The cash budget summarizes future plans for acquisition of fixed assets.

(True/False)

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Question 31

Standards are designed to evaluate price and quantity variances separately.

(True/False)

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Question 32

The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed cost for the actual units produced is termed volume variance.

(True/False)

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Question 33

The capital expenditure budget summarizes future plans for acquisition of fixed assets.

(True/False)

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Question 34

If Division Inc.expects to sell 200,000 units in 2016, desires ending inventory of 24,000 units, and has 22,000 units on hand as of the beginning of the year, the budgeted volume of production for 2016 is 198,000 units.

(True/False)

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Question 35

Favorable volume variances may be harmful when:

(Multiple Choice)

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Question 36

When budget goals are set too tight, the budget becomes less effective for planning and controlling operations.

(True/False)

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Question 37

The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at \ 23.50 Actual costs 35,000 hours at \ 23.00 What is the direct labor time variance?

(Multiple Choice)

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Question 38

Based on the following information, calculate the direct materials quantity variance. Actual quantity 2,500 pounds at \ 6.00 Standard quantity 2,900 pounds at \ 5.50 ?

(Multiple Choice)

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Question 39

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

(True/False)

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Question 40

Showing 21 - 40 of 178

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12, the direct materials quantity variance was $2,200 favorable.

Budgetary slack can be avoided if lower and mid-level managers are requested to support all of their spending requirements with specific operational plans.

The following data relate to direct labor costs for the current period of Executive Inc.: Standard costs 6,000 hours at \ 12.00 Actual costs 7,500 hours at \ 11.60 ? What is the direct labor time variance?

The formula to compute direct materials price variance is:

The budget procedure that requires all levels of management to start from zero in estimating sales, production, and other operating data is called zero-based budgeting.

Since the controllable variance measures the efficiency of using variable overhead resources, if budgeted variable overhead exceeds actual results, the variance is favorable.

Standard and actual costs for direct materials for the manufacture of 2,000 units of product were as follows: Actual costs 2,750.@\ 8.10 Standard costs 2,800.@\ 8.00 ? Determine the (a) quantity variance, (b) price variance, and (c) total direct materials cost variance.

Which of the following is true of a capital expenditures budget?

The cash budget summarizes future plans for acquisition of fixed assets.

Standards are designed to evaluate price and quantity variances separately.

The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed cost for the actual units produced is termed volume variance.

The capital expenditure budget summarizes future plans for acquisition of fixed assets.

If Division Inc.expects to sell 200,000 units in 2016, desires ending inventory of 24,000 units, and has 22,000 units on hand as of the beginning of the year, the budgeted volume of production for 2016 is 198,000 units.

Favorable volume variances may be harmful when:

When budget goals are set too tight, the budget becomes less effective for planning and controlling operations.

The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at \ 23.50 Actual costs 35,000 hours at \ 23.00 What is the direct labor time variance?

Based on the following information, calculate the direct materials quantity variance. Actual quantity 2,500 pounds at \ 6.00 Standard quantity 2,900 pounds at \ 5.50 ?

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

The Role of Accounting in Business

Basic Accounting Systems: Cash Basis

Basic Accounting Systems: Accrual Basis

Accounting for Merchandising Businesses

Internal Control and Cash

Receivables and Inventories

Fixed Assets, Natural Resources, and Intangible Assets

Liabilities and Stockholders Equity

Metric Analysis of Financial Statements

Accounting for Manufacturing Operations

Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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