Question 1

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called continuous budgeting.

Accepted Answer

A) True 
 B)False  True

Question 2

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a:

Accepted Answer

A) unfavorable quantity variance. 
B) unfavorable controllable variance. 
C) favorable volume variance. 
D) favorable labor rate variance. 
A) unfavorable quantity variance. 
B) unfavorable controllable variance. 
C) favorable volume variance. 
D) favorable labor rate variance. B

Question 3

A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed:

Accepted Answer

A) flexible budgeting. 
B) master budgeting. 
C) zero-based budgeting. 
D) continuous budgeting. 
A) flexible budgeting. 
B) master budgeting. 
C) zero-based budgeting. 
D) continuous budgeting. D

Question 4

The cost of available but unused productive capacity is indicated by the:

Accepted Answer

A) fixed factory overhead volume variance. 
B) direct labor cost time variance. 
C) direct labor cost rate variance. 
D) variable factory overhead controllable variance. 
A) fixed factory overhead volume variance. 
B) direct labor cost time variance. 
C) direct labor cost rate variance. 
D) variable factory overhead controllable variance.

Question 5

Normally standard costs should be revised when labor rates change to incorporate new union contracts.

Accepted Answer

A) True 
 B)False

Question 6

Refer to the information provided for Benjamin Corporation.The cash collections from accounts receivable in October are:

Accepted Answer

A) $270,000. 
B) $272,500. 
C) $210,000. 
D) $218,000. 
A) $270,000. 
B) $272,500. 
C) $210,000. 
D) $218,000.

Question 7

The following data relate to direct labor costs for the current period:

Accepted Answer

A) $1,875.00 unfavorable 
B) $2,212.50 unfavorable 
C) $1,875.00 favorable 
D) $2,212.50 favorable 
A) $1,875.00 unfavorable 
B) $2,212.50 unfavorable 
C) $1,875.00 favorable 
D) $2,212.50 favorable

Question 8

If the actual direct labor hours spent producing a commodity differ from the standard hours,the variance is termed:

Accepted Answer

A) time variance. 
B) price variance. 
C) quantity variance. 
D) rate variance. 
A) time variance. 
B) price variance. 
C) quantity variance. 
D) rate variance.

Question 9

The first budget to be prepared is usually the production budget.

Accepted Answer

A) True 
 B)False

Question 10

The formula to compute direct labor time variance is:

Accepted Answer

A) actual costs - standard costs. 
B) actual costs + standard costs. 
C) (actual hours × standard rate)- standard costs. 
D) actual costs - (actual hours × standard rate). 
A) actual costs - standard costs. 
B) actual costs + standard costs. 
C) (actual hours × standard rate)- standard costs. 
D) actual costs - (actual hours × standard rate).

Question 11

The difference between the standard cost of a product and its actual cost is called a variance.

Accepted Answer

A) True 
 B)False

Question 12

Changes in technology,machinery,or production methods may make past cost data irrelevant for future operations.

Accepted Answer

A) True 
 B)False

Question 13

Production estimates for August are as follows:

Accepted Answer

A) 195,000 lbs.of A; 39,000 lbs.of B. 
B) 200,000 lbs.of A; 40,000 lbs.of B. 
C) 205,000 lbs.of A; 41,000 lbs.of B. 
D) 210,000 lbs.of A; 42,000 lbs.of B. 
A) 195,000 lbs.of A; 39,000 lbs.of B. 
B) 200,000 lbs.of A; 40,000 lbs.of B. 
C) 205,000 lbs.of A; 41,000 lbs.of B. 
D) 210,000 lbs.of A; 42,000 lbs.of B.

Question 14

Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows:

Accepted Answer

The answer of Standard and actual costs for direct materials...

Question 15

Currently attainable standards allow for unreasonable production difficulties.

Accepted Answer

A) True 
 B)False

Question 16

A formal written statement of management's plans for the future,expressed in financial terms,is called a budget.

Accepted Answer

A) True 
 B)False

Question 17

Refer to the information provided for Efficient Corporation.The direct labor rate variance is:

Accepted Answer

A) $135,000 unfavorable. 
B) $89,100 favorable. 
C) $89,100 unfavorable. 
D) $121,500 unfavorable. 
A) $135,000 unfavorable. 
B) $89,100 favorable. 
C) $89,100 unfavorable. 
D) $121,500 unfavorable.

Question 18

Refer to the information provided for Cape Corporation.The amount of direct material A purchased during the year is:

Accepted Answer

A) $216,000. 
B) $186,600. 
C) $192,000. 
D) $245,400. 
A) $216,000. 
B) $186,600. 
C) $192,000. 
D) $245,400.

Question 19

Refer to the information provided for Kohlman Company.The cash payments for manufacturing in the month of May are:

Accepted Answer

A) $185,600. 
B) $156,800. 
C) $124,800. 
D) $146,400. 
A) $185,600. 
B) $156,800. 
C) $124,800. 
D) $146,400.

Question 20

Refer to the information provided for Quaker Inc.What is the amount of the variable factory overhead controllable variance?

Accepted Answer

A) $10,000 favorable 
B) $2,500 unfavorable 
C) $10,000 unfavorable 
D) $2,500 favorable 
A) $10,000 favorable 
B) $2,500 unfavorable 
C) $10,000 unfavorable 
D) $2,500 favorable

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called continuous budgeting.

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a:

A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed:

The cost of available but unused productive capacity is indicated by the:

Normally standard costs should be revised when labor rates change to incorporate new union contracts.

Refer to the information provided for Benjamin Corporation.The cash collections from accounts receivable in October are:

The following data relate to direct labor costs for the current period:

If the actual direct labor hours spent producing a commodity differ from the standard hours,the variance is termed:

The first budget to be prepared is usually the production budget.

The formula to compute direct labor time variance is:

The difference between the standard cost of a product and its actual cost is called a variance.

Changes in technology,machinery,or production methods may make past cost data irrelevant for future operations.

Production estimates for August are as follows:

Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows:

Currently attainable standards allow for unreasonable production difficulties.

A formal written statement of management's plans for the future,expressed in financial terms,is called a budget.

Refer to the information provided for Efficient Corporation.The direct labor rate variance is:

Refer to the information provided for Cape Corporation.The amount of direct material A purchased during the year is:

Refer to the information provided for Kohlman Company.The cash payments for manufacturing in the month of May are:

Refer to the information provided for Quaker Inc.What is the amount of the variable factory overhead controllable variance?

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 13: Budgeting and Standard Cost Systems

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called continuous budgeting.

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a:

A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed:

The cost of available but unused productive capacity is indicated by the:

Normally standard costs should be revised when labor rates change to incorporate new union contracts.

Refer to the information provided for Benjamin Corporation.The cash collections from accounts receivable in October are:

The following data relate to direct labor costs for the current period:

If the actual direct labor hours spent producing a commodity differ from the standard hours,the variance is termed:

The first budget to be prepared is usually the production budget.

The formula to compute direct labor time variance is:

The difference between the standard cost of a product and its actual cost is called a variance.

Changes in technology,machinery,or production methods may make past cost data irrelevant for future operations.

Production estimates for August are as follows:

Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows:

Currently attainable standards allow for unreasonable production difficulties.

A formal written statement of management's plans for the future,expressed in financial terms,is called a budget.

Refer to the information provided for Efficient Corporation.The direct labor rate variance is:

Refer to the information provided for Cape Corporation.The amount of direct material A purchased during the year is:

Refer to the information provided for Kohlman Company.The cash payments for manufacturing in the month of May are:

Refer to the information provided for Quaker Inc.What is the amount of the variable factory overhead controllable variance?

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters