Question 1

The following materials standards have been established for a particular product:

Accepted Answer

@#IMG-DLM& 
The following data pertain to operatio

Question 2

The variable overhead efficiency variance reflects how efficiently variable overhead resources were used.

Accepted Answer

A) True 
 B)False

Question 3

The Lahn Company produces and sells a single product.Standards have been established for the product as follows:
Direct materials: 5 grams.@ $3.50/gram.= $17.50/unit
Direct labour: 3 hrs.@ $5.50/hr.= $16.50/unit
Actual cost and usage figures for the past month follow:

Accepted Answer

@#IMG-DLM& 
Required:
Prepare journal en

Question 4

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

Accepted Answer

A)  Variable overhead spending variance. 
B)  Variable overhead efficiency variance. 
C)  Fixed overhead budget variance. 
D)  Fixed overhead volume variance. 
A)  Variable overhead spending variance. 
B)  Variable overhead efficiency variance. 
C)  Fixed overhead budget variance. 
D)  Fixed overhead volume variance.

Question 5

An unfavourable labour efficiency variance indicates that:

Accepted Answer

A)  the actual labour rate was higher than the standard labour rate. 
B)  the labour rate variance must also be unfavourable. 
C)  actual labour hours worked exceeded standard labour hours for the production level achieved. 
D)  overtime labour was used during the period. 
A)  the actual labour rate was higher than the standard labour rate. 
B)  the labour rate variance must also be unfavourable. 
C)  actual labour hours worked exceeded standard labour hours for the production level achieved. 
D)  overtime labour was used during the period.

Question 6

Henley Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of direct labour-hours.For the month of January,the fixed manufacturing overhead volume variance was $2,220 favourable.The company uses a fixed manufacturing overhead rate of $1.85 per direct labour-hour.During January,the standard direct labour-hours allowed for the month's output:

Accepted Answer

A)  exceeded denominator hours by 1,000. 
B)  fell short of denominator hours by 1,000. 
C)  exceeded denominator hours by 1,200. 
D)  fell short of denominator hours by 1,200. 
A)  exceeded denominator hours by 1,000. 
B)  fell short of denominator hours by 1,000. 
C)  exceeded denominator hours by 1,200. 
D)  fell short of denominator hours by 1,200.

Question 7

The material quantity variance is computed based on the quantity of all materials purchased during the period.

Accepted Answer

A) True 
 B)False

Question 8

A flexible budget enables managers to compute a richer set of variances than a static budget does.

Accepted Answer

A) True 
 B)False

Question 9

In a standard cost system,if the denominator activity (in hours)used to compute the predetermined overhead rate is equal to the actual activity (in hours)for the period,then there is no volume variance.

Accepted Answer

A) True 
 B)False

Question 10

Dahl Company,a clothing manufacturer,uses a standard costing system.Each unit of a finished product contains 2 metres of cloth.However,there is unavoidable waste of 20%,calculated on input quantities,when the cloth is cut for assembly.The cost of the cloth is $3 per metre.The standard direct material cost for cloth per unit of finished product is:

Accepted Answer

A)  $4.80. 
B)  $6.00. 
C)  $7.20. 
D)  $7.50. 
A)  $4.80. 
B)  $6.00. 
C)  $7.20. 
D)  $7.50.

Question 11

Which of the following could result in a situation where the use of a standard cost system to control labour costs might not be the most useful?

Accepted Answer

A)  There is a desire to simplify the accounting for costs of items manufactured. 
B)  The integration of costing with responsibility accounting. 
C)  Manufacturing is highly automated. 
D)  Standards are viewed by employees as reasonable. 
A)  There is a desire to simplify the accounting for costs of items manufactured. 
B)  The integration of costing with responsibility accounting. 
C)  Manufacturing is highly automated. 
D)  Standards are viewed by employees as reasonable.

Question 12

The following materials standards have been established for a particular product:     The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?

Accepted Answer

A)  $6,664 F. 
B)  $6,732 F. 
C)  $13,720U. 
D)  $13,860 U. 
A)  $6,664 F. 
B)  $6,732 F. 
C)  $13,720U. 
D)  $13,860 U.

Question 13

In a certain standard costing system the following results occurred last period: labour rate variance,$1,000 U;labour efficiency variance,$2,800 F;and the actual labour rate was $0.20 more per hour than the standard labour rate.The number of actual direct labour hours used last period was:

Accepted Answer

A)  4,800. 
B)  5,000. 
C)  5,400. 
D)  9,000. 
A)  4,800. 
B)  5,000. 
C)  5,400. 
D)  9,000.

Question 14

Wattis Manufacturing has established the following master flexible budget:

Accepted Answer

@#IMG-DLM& 
Manufacturing overhead is applied on t

Question 15

If the actual labour hours worked exceed the standard labour hours allowed,what type of variance will occur?

Accepted Answer

A)  Favourable labour efficiency variance. 
B)  Favourable labour rate variance. 
C)  Unfavourable labour efficiency variance. 
D)  Unfavourable labour rate variance. 
A)  Favourable labour efficiency variance. 
B)  Favourable labour rate variance. 
C)  Unfavourable labour efficiency variance. 
D)  Unfavourable labour rate variance.

Question 16

The materials quantity variance is:

Accepted Answer

A)  $760U. 
B)  $760F. 
C)  $800U. 
D)  $4,000F. 
A)  $760U. 
B)  $760F. 
C)  $800U. 
D)  $4,000F.

Question 17

The unitization of fixed overhead costs is useful from a control perspective.

Accepted Answer

A) True 
 B)False

Question 18

Quantity standards indicate how much of an input should be used for manufacturing one unit of product or in providing one unit of service.

Accepted Answer

A) True 
 B)False

Question 19

To record the purchase of direct materials,the general ledger would include what entry to the materials price variance account?

Accepted Answer

A)  $1,500 credit. 
B)  $1,500 debit. 
C)  $6,000 credit. 
D)  $6,000 debit. 
A)  $1,500 credit. 
B)  $1,500 debit. 
C)  $6,000 credit. 
D)  $6,000 debit.

Question 20

The variable overhead spending variance is:

Accepted Answer

A)  $220 F. 
B)  $220 U. 
C)  $240 F. 
D)  $240 U. 
A)  $220 F. 
B)  $220 U. 
C)  $240 F. 
D)  $240 U.

The following materials standards have been established for a particular product:

The variable overhead efficiency variance reflects how efficiently variable overhead resources were used.

The Lahn Company produces and sells a single product.Standards have been established for the product as follows: Direct materials: 5 grams.@ $3.50/gram.= $17.50/unit Direct labour: 3 hrs.@ $5.50/hr.= $16.50/unit Actual cost and usage figures for the past month follow:

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

An unfavourable labour efficiency variance indicates that:

The material quantity variance is computed based on the quantity of all materials purchased during the period.

A flexible budget enables managers to compute a richer set of variances than a static budget does.

In a standard cost system,if the denominator activity (in hours)used to compute the predetermined overhead rate is equal to the actual activity (in hours)for the period,then there is no volume variance.

Which of the following could result in a situation where the use of a standard cost system to control labour costs might not be the most useful?

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?

In a certain standard costing system the following results occurred last period: labour rate variance,$1,000 U;labour efficiency variance,$2,800 F;and the actual labour rate was $0.20 more per hour than the standard labour rate.The number of actual direct labour hours used last period was:

Wattis Manufacturing has established the following master flexible budget:

If the actual labour hours worked exceed the standard labour hours allowed,what type of variance will occur?

The materials quantity variance is:

The unitization of fixed overhead costs is useful from a control perspective.

Quantity standards indicate how much of an input should be used for manufacturing one unit of product or in providing one unit of service.

To record the purchase of direct materials,the general ledger would include what entry to the materials price variance account?

The variable overhead spending variance is:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

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Exam 11: Relevant Costs for Decision Making

The following materials standards have been established for a particular product:

The variable overhead efficiency variance reflects how efficiently variable overhead resources were used.

The Lahn Company produces and sells a single product.Standards have been established for the product as follows: Direct materials: 5 grams.@ $3.50/gram.= $17.50/unit Direct labour: 3 hrs.@ $5.50/hr.= $16.50/unit Actual cost and usage figures for the past month follow:

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

An unfavourable labour efficiency variance indicates that:

The material quantity variance is computed based on the quantity of all materials purchased during the period.

A flexible budget enables managers to compute a richer set of variances than a static budget does.

In a standard cost system,if the denominator activity (in hours)used to compute the predetermined overhead rate is equal to the actual activity (in hours)for the period,then there is no volume variance.

Which of the following could result in a situation where the use of a standard cost system to control labour costs might not be the most useful?

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?

In a certain standard costing system the following results occurred last period: labour rate variance,$1,000 U;labour efficiency variance,$2,800 F;and the actual labour rate was $0.20 more per hour than the standard labour rate.The number of actual direct labour hours used last period was:

Wattis Manufacturing has established the following master flexible budget:

If the actual labour hours worked exceed the standard labour hours allowed,what type of variance will occur?

The materials quantity variance is:

The unitization of fixed overhead costs is useful from a control perspective.

Quantity standards indicate how much of an input should be used for manufacturing one unit of product or in providing one unit of service.

To record the purchase of direct materials,the general ledger would include what entry to the materials price variance account?

The variable overhead spending variance is:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters