Question 1

Explain the three potential sources of quantitative standards.

Accepted Answer

Historical experience can provide an ini

Question 2

Perfect Builders makes all sorts of moldings. Its standard quantity of material allowed is 1 foot of wood per 1 foot of molding at a standard price of $2.00 per foot. During August, it purchased 500,000 feet of wood at a cost of $1.90 per foot, which produced only 499,000 feet of molding. Calculate the materials price variance and the materials usage variance, respectively.

Accepted Answer

A)  $50,000 F and $2,000 U 
B)  $49,900 U and $2,000 F 
C)  $50,000 F and $1,900 U 
D)  $49,900 F and $1,900 U 
A)  $50,000 F and $2,000 U 
B)  $49,900 U and $2,000 F 
C)  $50,000 F and $1,900 U 
D)  $49,900 F and $1,900 U

Question 3

Refer to Figure 10-8. What is the journal entry to record both labor variances?

Accepted Answer

The answer of Refer to Figure 10-8. What is the...

Question 4

Kaizen costing involves

Accepted Answer

A)  changing the standards frequently. 
B)  changing management. 
C)  outsourcing processes. 
D)  major ad campaigns. 
A)  changing the standards frequently. 
B)  changing management. 
C)  outsourcing processes. 
D)  major ad campaigns.

Question 5

The _____________________ measures the difference between the direct materials actually used and the direct materials that should have been used for the actual output.

Accepted Answer

materials

Question 6

Dog's Best Friend manufactures dog food. During the month, it manufactured 3,000 bags of kibble, using 0.25 hour of direct labor per bag at a rate of $9.00 per hour. The materials and labor standards for manufacturing the bags of kibble are:
   The company actually used 3,300 pounds of beef at a price of $1.10 per pound. It also purchased 3,000 bags at a price of $0.15 per bag.

Accepted Answer

The answer of Dog's Best Friend manufactures dog food. During...

Question 7

Figure 10-3Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:
   During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.
-Refer to Figure 10-3. Calculate the labor rate variance and the labor efficiency variance, respectively.

Accepted Answer

A)  $4,500 U and $3,000 U 
B)  $4,500 F and $3,000 F 
C)  $4,500 U and $3,000 F 
D)  $4,500 F and $3,000 U 
A)  $4,500 U and $3,000 U 
B)  $4,500 F and $3,000 F 
C)  $4,500 U and $3,000 F 
D)  $4,500 F and $3,000 U

Question 8

Starling Manufacturing has developed the following standards for one of its products.
   The company records materials price variances at the time of purchase.
The following activity occurred during December:
   Required:

Accepted Answer

The answer of Starling Manufacturing has developed the following standards...

Question 9

_________________ occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.

Accepted Answer

Unfavorabl

Question 10

Match each item with the correct statement below.
-Standards of perfection that require absolute efficiency.

Accepted Answer

A) Quantity Standards 
B) Ideal Standards 
C) Price Standards 
D) Standard Cost Sheet 
E) Upper Control Limit
F)Currently Attainable Standards
G)Kaizen Standards 
A) Quantity Standards 
B) Ideal Standards 
C) Price Standards 
D) Standard Cost Sheet 
E) Upper Control Limit
F)Currently Attainable Standards
G)Kaizen Standards

Question 11

Figure 10-3Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:
   During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.
-Refer to Figure 10-3. Compute the total budget variances for materials and labor, respectively.

Accepted Answer

A)  $2,800 F and $7,500 F 
B)  $2,800 F and $7,500 U 
C)  $2,800 U and $7,500 U 
D)  $2,800 U and $7,500 F 
A)  $2,800 F and $7,500 F 
B)  $2,800 F and $7,500 U 
C)  $2,800 U and $7,500 U 
D)  $2,800 U and $7,500 F

Question 12

___________________ is calculated by multiplying the unit labor standard by the actual output.

Accepted Answer

Standard h

Question 13

Currently attainable standards can be achieved under efficient operating conditions.

Accepted Answer

A) True 
 B)False

Question 14

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:   What is the labor efficiency variance for Bender Corporation?

Accepted Answer

A)  $480 U 
B)  $552 F 
C)  $552 U 
D)  $480 F 
A)  $480 U 
B)  $552 F 
C)  $552 U 
D)  $480 F

Question 15

Match each item with the correct statement below.
-A tool used to provide the production data needed to calculate the standard unit cost.

Accepted Answer

A) Quantity Standards 
B) Ideal Standards 
C) Price Standards 
D) Standard Cost Sheet 
E) Upper Control Limit
F)Currently Attainable Standards
G)Kaizen Standards 
A) Quantity Standards 
B) Ideal Standards 
C) Price Standards 
D) Standard Cost Sheet 
E) Upper Control Limit
F)Currently Attainable Standards
G)Kaizen Standards

Question 16

It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
-Refer to Figure 10-9. What is James' materials usage variance?

Accepted Answer

A)  $250,000 F 
B)  $300,000 F 
C)  $300,000 U 
D)  $250,000 U 
A)  $250,000 F 
B)  $300,000 F 
C)  $300,000 U 
D)  $250,000 U

Question 17

Which of the following is not true concerning control limits?

Accepted Answer

A)  Control limits are the top and bottom measures of the allowable range. 
B)  The upper control limit is the standard plus the allowable deviation. 
C)  The lower control limit is the standard minus the allowable deviation. 
D)  In current practice, control limits are set objectively using standard formulas. 
E)  Variances that fall outside the control limits are investigated. 
A)  Control limits are the top and bottom measures of the allowable range. 
B)  The upper control limit is the standard plus the allowable deviation. 
C)  The lower control limit is the standard minus the allowable deviation. 
D)  In current practice, control limits are set objectively using standard formulas. 
E)  Variances that fall outside the control limits are investigated.

Question 18

Refer to Figure 10-7. What is the journal entry to record the purchase of materials?

Accepted Answer

The journal entry to record the purchase

Question 19

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

Accepted Answer

The answer of ______________ focuses on the continuous reduction of...

Question 20

Mersey Company produced 1,000 trash cans during March using 450 direct labor hours and purchased and used 3,100 pounds of rubber. Its materials and labor standards are:
   Its materials price variance was a favorable $620 and its labor rate variance was an unfavorable $900.

Accepted Answer

The answer of Mersey Company produced 1,000 trash cans during...

Explain the three potential sources of quantitative standards.

Refer to Figure 10-8. What is the journal entry to record both labor variances?

Kaizen costing involves

The _____________________ measures the difference between the direct materials actually used and the direct materials that should have been used for the actual output.

Starling Manufacturing has developed the following standards for one of its products. The company records materials price variances at the time of purchase. The following activity occurred during December: Required:

_________________ occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.

Match each item with the correct statement below. -Standards of perfection that require absolute efficiency.

___________________ is calculated by multiplying the unit labor standard by the actual output.

Currently attainable standards can be achieved under efficient operating conditions.

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: What is the labor efficiency variance for Bender Corporation?

Match each item with the correct statement below. -A tool used to provide the production data needed to calculate the standard unit cost.

It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts. -Refer to Figure 10-9. What is James' materials usage variance?

Which of the following is not true concerning control limits?

Refer to Figure 10-7. What is the journal entry to record the purchase of materials?

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

Mersey Company produced 1,000 trash cans during March using 450 direct labor hours and purchased and used 3,100 pounds of rubber. Its materials and labor standards are: Its materials price variance was a favorable $620 and its labor rate variance was an unfavorable $900.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 10: Standard Costing: a Managerial Control Tool

Explain the three potential sources of quantitative standards.

Refer to Figure 10-8. What is the journal entry to record both labor variances?

Kaizen costing involves

The _____________________ measures the difference between the direct materials actually used and the direct materials that should have been used for the actual output.

Starling Manufacturing has developed the following standards for one of its products. The company records materials price variances at the time of purchase. The following activity occurred during December: Required:

_________________ occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.

Match each item with the correct statement below. -Standards of perfection that require absolute efficiency.

___________________ is calculated by multiplying the unit labor standard by the actual output.

Currently attainable standards can be achieved under efficient operating conditions.

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: What is the labor efficiency variance for Bender Corporation?

Match each item with the correct statement below. -A tool used to provide the production data needed to calculate the standard unit cost.

It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts. -Refer to Figure 10-9. What is James' materials usage variance?

Which of the following is not true concerning control limits?

Refer to Figure 10-7. What is the journal entry to record the purchase of materials?

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

Mersey Company produced 1,000 trash cans during March using 450 direct labor hours and purchased and used 3,100 pounds of rubber. Its materials and labor standards are: Its materials price variance was a favorable $620 and its labor rate variance was an unfavorable $900.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters