Question 1

Cabot Company collected the following data regarding production of one of its products.Compute the direct labor cost variance.

Accepted Answer

A) $53,500 unfavorable. 
B) $40,500 favorable. 
C) $53,500 favorable. 
D) $13,000 unfavorable. 
E) $40,500 unfavorable. 
A) $53,500 unfavorable. 
B) $40,500 favorable. 
C) $53,500 favorable. 
D) $13,000 unfavorable. 
E) $40,500 unfavorable.

Question 2

Standard costs are:

Accepted Answer

A) Actual costs incurred to produce a specific product or perform a service. 
B) Preset costs for delivering a product or service under normal conditions. 
C) Established by the IMA. 
D) Rarely achieved. 
E) Uniform among companies within an industry. 
A) Actual costs incurred to produce a specific product or perform a service. 
B) Preset costs for delivering a product or service under normal conditions. 
C) Established by the IMA. 
D) Rarely achieved. 
E) Uniform among companies within an industry.

Question 3

The sum of the variable overhead spending variance,the variable overhead efficiency variance,and the fixed overhead spending variance is the:

Accepted Answer

A) Production variance. 
B) Quantity variance. 
C) Volume variance. 
D) Price variance. 
E) Controllable variance. 
A) Production variance. 
B) Quantity variance. 
C) Volume variance. 
D) Price variance. 
E) Controllable variance.

Question 4

The following information comes from the records of Dina Co.for the current period.
a.Compute the direct materials price and quantity variances,direct labor rate and efficiency variances and state whether the variance is favorable or unfavorable.
b.Prepare the journal entries to charge direct materials and direct labor costs to goods in process and the materials and labor variances to their proper accounts.
   Factory overhead (based on budgeted production of 24,500 units)
Variable overhead $2.25/direct labor hour
Fixed overhead $1.95/direct labor hour

Accepted Answer

The answer of The following information comes from the records...

Question 5

The sum of the variable overhead spending variance,the variable overhead efficiency variance,the fixed overhead spending variance is the ____________________________.

Accepted Answer

controllab

Question 6

Differences between actual costs and standard costs are known as _______________.These differences may be subdivided into ______________ and _________________.

Accepted Answer

the first answer needs to be

Question 7

Variable budget is another name for:

Accepted Answer

A) Cash budget. 
B) Flexible budget. 
C) Fixed budget. 
D) Manufacturing budget. 
E) Rolling budget. 
A) Cash budget. 
B) Flexible budget. 
C) Fixed budget. 
D) Manufacturing budget. 
E) Rolling budget.

Question 8

Gates Company reports the following information regarding the production on one of its products for the month.Compute the direct labor cost variance,the direct labor rate variance,the direct labor efficiency variance and identify each as either favorable or unfavorable.

Accepted Answer

Direct labor cost variance:
Actual units

Question 9

The standard materials cost to produce 1 unit of Product M is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the total direct materials cost variance?

Accepted Answer

A) $48,000 unfavorable. 
B) $51,000 favorable. 
C) $51,000 unfavorable. 
D) $ 3,000 favorable. 
E) $ 3,000 unfavorable. 
A) $48,000 unfavorable. 
B) $51,000 favorable. 
C) $51,000 unfavorable. 
D) $ 3,000 favorable. 
E) $ 3,000 unfavorable.

Question 10

The amounts in a flexible budget are based on one expected level of sales or production.

Accepted Answer

A) True 
 B)False

Question 11

Standard costs are used in the calculation of:

Accepted Answer

A) Price and quantity variances. 
B) Price variances only. 
C) Quantity variances only. 
D) Price, quantity, and sales variances. 
E) Quantity and sales variances. 
A) Price and quantity variances. 
B) Price variances only. 
C) Quantity variances only. 
D) Price, quantity, and sales variances. 
E) Quantity and sales variances.

Question 12

A company's flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed costs of $75,000.Calculate the expected level of operating income if the company produces and sells 13,000 units.

Accepted Answer

A) $110,500. 
B) $85,000. 
C) $133,000. 
D) $100,000. 
E) $50,500. 
A) $110,500. 
B) $85,000. 
C) $133,000. 
D) $100,000. 
E) $50,500.

Question 13

The difference between the actual sales and the flexible budget sales is called the ______________________ variance.

Accepted Answer

The answer of The difference between the actual sales and...

Question 14

Direct materials variances are called price and quantity variances.However,when referring to direct labor,these variances are usually called _________________ and _____________ variances.

Accepted Answer

answers c

Question 15

A company's flexible budget for 60,000 units of production showed sales of $96,000,variable costs of $36,000,and fixed costs of $26,000.What operating income would be expected if the company produces and sells 70,000 units?

Accepted Answer

The answer of A company's flexible budget for 60,000 units...

Question 16

A process of examining the differences between actual and budgeted costs and describing them in terms of the amounts that resulted from price and quantity differences is called:

Accepted Answer

A) Cost analysis. 
B) Flexible budgeting. 
C) Variable analysis. 
D) Cost variable analysis. 
E) Variance analysis. 
A) Cost analysis. 
B) Flexible budgeting. 
C) Variable analysis. 
D) Cost variable analysis. 
E) Variance analysis.

Question 17

Chips Co.assigned direct labor cost to its products in May for 1,300 standard hours of direct labor at the standard $8 per hour rate.The direct labor rate variance for the month was $200 favorable and the direct labor efficiency variance was $150 favorable.Prepare the journal entry to charge Goods in Process Inventory for the standard labor cost of the goods manufactured in May and to record the direct labor variances.Assuming that the direct labor variances are immaterial,prepare the journal entry that Chips would make to close the variance accounts.

Accepted Answer

The answer of Chips Co.assigned direct labor cost to its...

Question 18

A flexible budget is also called a _______________ budget.

Accepted Answer

The answer of A flexible budget is also called a...

Question 19

Companies promoting continuous improvement strive to achieve _____________ standards by eliminating inefficiencies and waste.

Accepted Answer

The answer of Companies promoting continuous improvement strive to achieve...

Question 20

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour.The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.What is the total labor cost variance?

Accepted Answer

A) $2,000 unfavorable. 
B) $3,000 unfavorable. 
C) $6,000 unfavorable. 
D) $8,000 unfavorable. 
E) $9,000 unfavorable. 
A) $2,000 unfavorable. 
B) $3,000 unfavorable. 
C) $6,000 unfavorable. 
D) $8,000 unfavorable. 
E) $9,000 unfavorable.

Exam 23: Flexible Budgets and Standard Costs

Cabot Company collected the following data regarding production of one of its products.Compute the direct labor cost variance.

Standard costs are:

The sum of the variable overhead spending variance,the variable overhead efficiency variance,and the fixed overhead spending variance is the:

The sum of the variable overhead spending variance,the variable overhead efficiency variance,the fixed overhead spending variance is the ____________________________.

Differences between actual costs and standard costs are known as _______________.These differences may be subdivided into ______________ and _________________.

Variable budget is another name for:

Gates Company reports the following information regarding the production on one of its products for the month.Compute the direct labor cost variance,the direct labor rate variance,the direct labor efficiency variance and identify each as either favorable or unfavorable.

The standard materials cost to produce 1 unit of Product M is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the total direct materials cost variance?

The amounts in a flexible budget are based on one expected level of sales or production.

Standard costs are used in the calculation of:

A company's flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed costs of $75,000.Calculate the expected level of operating income if the company produces and sells 13,000 units.

The difference between the actual sales and the flexible budget sales is called the ______________________ variance.

Direct materials variances are called price and quantity variances.However,when referring to direct labor,these variances are usually called _________________ and _____________ variances.

A company's flexible budget for 60,000 units of production showed sales of $96,000,variable costs of $36,000,and fixed costs of $26,000.What operating income would be expected if the company produces and sells 70,000 units?

A process of examining the differences between actual and budgeted costs and describing them in terms of the amounts that resulted from price and quantity differences is called:

A flexible budget is also called a _______________ budget.

Companies promoting continuous improvement strive to achieve _____________ standards by eliminating inefficiencies and waste.

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour.The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.What is the total labor cost variance?

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters

Differences between actual costs and standard costs are known as _.These differences may be subdivided into and _____.

Direct materials variances are called price and quantity variances.However,when referring to direct labor,these variances are usually called _____ and _ variances.