Question 1

Direct factory labor is usually considered to be

Accepted Answer

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

Question 2

Match between columns
                        Premises:  A comparison of actual costs and budgeted costs
 A budget representing only one level of activity
 An operating plan expressed in monetary units
 A budget that shows the budgeted costs at various levels of activity
 A budget made for each manufacturing cost
 Costs that vary with, but not in direct proportion to, the volume of activity
 Costs that do not change in total as the level of activity changes
 Used to determine the fixed and variable components of a semi variable cost
 The different levels of activity at which a factory is expected to operate
 Costs that vary in total in direct proportion to changes in the level of activity

Accepted Answer

The Answer of Budget and Budget performance report and Fixed is...

Question 3

In a factory, the fixed costs are $7,200 when 600 units are produced. If 900 units are produced, the fixed costs per unit would be

Accepted Answer

A) $12.00. 
B) $8.00. 
C) $7.50. 
D) $6.67. 
A) $12.00. 
B) $8.00. 
C) $7.50. 
D) $6.67.

Question 4

Deducting the total variable cost from the total cost results in the

Accepted Answer

A) overhead. 
B) manufacturing cost. 
C) fixed cost. 
D) semivariable cost. 
A) overhead. 
B) manufacturing cost. 
C) fixed cost. 
D) semivariable cost.

Question 5

Semi-variable costs are sometimes called mixed costs.

Accepted Answer

A) True 
 B)False

Question 6

A budget performance report compares actual costs for a period with the budgeted costs for that period.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

In a factory, the total variable costs are $1,100 if 500 units are produced. If 400 units are produced, the total variable costs would be

Accepted Answer

A) $1,100. 
B) $900. 
C) $880. 
D) $760. 
A) $1,100. 
B) $900. 
C) $880. 
D) $760.

Question 10

Petersen Company produces a single product with the following production and average cost data:
 
-
The best estimate of the variable cost per unit is:

Accepted Answer

A) $62.50 per unit 
B) $69.00 per unit 
C) $70.15 per unit 
D) $69.53 per unit 
A) $62.50 per unit 
B) $69.00 per unit 
C) $70.15 per unit 
D) $69.53 per unit

Question 11

The manufacturing cost budget will include both variable and fixed manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 12

A material usage variance is calculated as:

Accepted Answer

A) (actual price - standard price)x actual quantity of inputs. 
B) (actual price - standard price)x standard quantity of inputs. 
C) (actual quantity - standard quantity)x actual price 
D) (actual quantity - standard quantity)x standard price. 
A) (actual price - standard price)x actual quantity of inputs. 
B) (actual price - standard price)x standard quantity of inputs. 
C) (actual quantity - standard quantity)x actual price 
D) (actual quantity - standard quantity)x standard price.

Question 13

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

Accepted Answer

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

Question 14

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. 
STANDARD COST CARD
 
The company reported the following results concerning January:
 
-
The material price variance for Flannel used in January is:

Accepted Answer

A) $10,200 unfavorable. 
B) $10,200 favorable. 
C) $2,700 favorable. 
D) $2,700 unfavorable. 
A) $10,200 unfavorable. 
B) $10,200 favorable. 
C) $2,700 favorable. 
D) $2,700 unfavorable.

Question 15

The Costmore Company uses standard costing and has established the following standards for direc materials and direct labor for each unit it makes:
$\begin{array}{ll}
\text { Direct Materials } & 3 \text { gallons at } \$ 5 \text { per gallon } \
\text { Direct Labor } & 1 \text { hour at } \$ 12 \text { per hour }
\end{array}$
During July, the company made 4,000 units of product and used 13,000 gallons. The actual price paid for materials was $5.20 per gallon.
Direct Labor used was 3,600 hours and workers were paid $11.75 per hour.
An analysis would indicate

Accepted Answer

A) a $2,600 favorable materials quantity variance. 
B) a $7,600 favorable materials quantity variance. 
C) a $5,000 unfavorable materials quantity variance. 
D) a $7,600 unfavorable materials quantity variance. 
A) a $2,600 favorable materials quantity variance. 
B) a $7,600 favorable materials quantity variance. 
C) a $5,000 unfavorable materials quantity variance. 
D) a $7,600 unfavorable materials quantity variance.

Question 16

The setting of standard wage rates is usually a function of the Human Resources department.

Accepted Answer

A) True 
 B)False

Question 17

The standard quantity of materials for a product was 62 pounds per unit at the standard price of $3)10 per pound. The actual price per pound of materials was $3.25, and the actual quantity used was 67 pounds. An analysis would indicate

Accepted Answer

A) a $10.05 favorable price variance. 
B) a $15.50 unfavorable quantity variance. 
C) a $9.30 unfavorable price variance. 
D) a $16.25 unfavorable quantity variance. 
A) a $10.05 favorable price variance. 
B) a $15.50 unfavorable quantity variance. 
C) a $9.30 unfavorable price variance. 
D) a $16.25 unfavorable quantity variance.

Question 18

The flexible budget usually shows

Accepted Answer

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

Question 19

Costs that do not vary in total during a period even though the volume of manufacturing activity changes are called----------- costs.

Accepted Answer

The answer of Costs that do not vary in total...

Question 20

The following production information is available for January:
 
The direct materials price variance is:

Accepted Answer

A) $5,000 favorable. 
B) $5,200 unfavorable. 
C) $300 favorable. 
D) $5,000 unfavorable. 
A) $5,000 favorable. 
B) $5,200 unfavorable. 
C) $300 favorable. 
D) $5,000 unfavorable.

Exam 29: Controlling Manufacturing Costs: Standard Costs

Direct factory labor is usually considered to be

In a factory, the fixed costs are $7,200 when 600 units are produced. If 900 units are produced, the fixed costs per unit would be

Deducting the total variable cost from the total cost results in the

Semi-variable costs are sometimes called mixed costs.

A budget performance report compares actual costs for a period with the budgeted costs for that period.

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

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

In a factory, the total variable costs are $1,100 if 500 units are produced. If 400 units are produced, the total variable costs would be

Petersen Company produces a single product with the following production and average cost data: - The best estimate of the variable cost per unit is:

The manufacturing cost budget will include both variable and fixed manufacturing costs.

A material usage variance is calculated as:

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

The setting of standard wage rates is usually a function of the Human Resources department.

The standard quantity of materials for a product was 62 pounds per unit at the standard price of $3)10 per pound. The actual price per pound of materials was $3.25, and the actual quantity used was 67 pounds. An analysis would indicate

The flexible budget usually shows

Costs that do not vary in total during a period even though the volume of manufacturing activity changes are called----------- costs.

The following production information is available for January: The direct materials price variance is:

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 Teh 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 Analysis

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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