Question 1

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

Accepted Answer

A) $305,200. 
B) $294,000. 
C) $235,200. 
D) $381,500. 
A) $305,200. 
B) $294,000. 
C) $235,200. 
D) $381,500.

Question 2

Refer to the information provided for Executive Inc.What is the direct labor time variance?

Accepted Answer

A) $17,400 favorable 
B) $17,400 unfavorable 
C) $18,000 favorable 
D) $18,000 unfavorable 
A) $17,400 favorable 
B) $17,400 unfavorable 
C) $18,000 favorable 
D) $18,000 unfavorable

Question 3

In most businesses,cost standards are established principally by accountants.

Accepted Answer

A) True 
 B)False

Question 4

Refer to the information provided for Answer Corporation.The amount of the direct labor time variance is:

Accepted Answer

A) $1,200 favorable. 
B) $1,140 unfavorable. 
C) $1,200 unfavorable. 
D) $1,140 favorable. 
A) $1,200 favorable. 
B) $1,140 unfavorable. 
C) $1,200 unfavorable. 
D) $1,140 favorable.

Question 5

The formula to compute direct material quantity variance is:

Accepted Answer

A) actual costs - standard costs. 
B) standard costs - actual costs. 
C) (actual quantity × standard price)- standard costs. 
D) actual costs - (standard price × standard costs). 
A) actual costs - standard costs. 
B) standard costs - actual costs. 
C) (actual quantity × standard price)- standard costs. 
D) actual costs - (standard price × standard costs).

Question 6

Flexible budgeting builds the effect of changes in level of activity into the budget system.

Accepted Answer

A) True 
 B)False

Question 7

Favorable volume variances are never harmful since achieving them encourages managers to run the factory above normal capacity.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) $294,000. 
B) $235,200. 
C) $183,200. 
D) $381,500. 
A) $294,000. 
B) $235,200. 
C) $183,200. 
D) $381,500.

Question 9

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

Accepted Answer

A) $31,725 favorable. 
B) $32,400 favorable. 
C) $89,100 unfavorable. 
D) $121,500 unfavorable. 
A) $31,725 favorable. 
B) $32,400 favorable. 
C) $89,100 unfavorable. 
D) $121,500 unfavorable.

Question 10

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:

Accepted Answer

A) $4,440 unfavorable. 
B) $4,500 favorable. 
C) $4,440 favorable. 
D) $4,500 unfavorable. 
A) $4,440 unfavorable. 
B) $4,500 favorable. 
C) $4,440 favorable. 
D) $4,500 unfavorable.

Question 11

Which of the following budgets is prepared using the production budget?

Accepted Answer

A) Selling and administrative expenses 
B) Direct materials purchases 
C) Sales 
D) Capital expenditures 
A) Selling and administrative expenses 
B) Direct materials purchases 
C) Sales 
D) Capital expenditures

Question 12

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

Accepted Answer

A) $1,224,000. 
B) $1,390,600. 
C) $1,088,000. 
D) $1,057,400. 
A) $1,224,000. 
B) $1,390,600. 
C) $1,088,000. 
D) $1,057,400.

Question 13

The variable factory overhead controllable variance measures:

Accepted Answer

A) operating results at less than normal capacity. 
B) the efficiency of using variable overhead resources. 
C) operating results at more than normal capacity. 
D) control over fixed overhead costs. 
A) operating results at less than normal capacity. 
B) the efficiency of using variable overhead resources. 
C) operating results at more than normal capacity. 
D) control over fixed overhead costs.

Question 14

Assuming that the standard fixed overhead rate is based on full capacity,the cost of available but unused productive capacity is indicated by the:

Accepted Answer

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

Question 15

Nonmanufacturing activities are usually controlled using a static budget rather than a standard costing system.

Accepted Answer

A) True 
 B)False

Question 16

Standard costs should be revised when they differ from actual costs.

Accepted Answer

A) True 
 B)False

Question 17

If the standard to produce certain quantity of product is 16,000 hours at a factory overhead rate of $5 ($3 fixed,$2 variable),actual variable factory overhead is $26,400,actual fixed factory overhead is $45,000,and 100% of productive capacity is 15,000 hours,the volume variance is $3,000 favorable.

Accepted Answer

A) True 
 B)False

Question 18

Standard and actual costs for direct materials for the manufacture of 2,000 units of product were as follows:

Accepted Answer

(a) Actual quantity 2,750 lbs. Standard

Question 19

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

Accepted Answer

A) True 
 B)False

Question 20

Production and sales estimates for May for the Hudson Co.are as follows:

Accepted Answer

A) 22,000. 
B) 18,400. 
C) 23,800. 
D) 20,200. 
A) 22,000. 
B) 18,400. 
C) 23,800. 
D) 20,200.

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

Refer to the information provided for Executive Inc.What is the direct labor time variance?

In most businesses,cost standards are established principally by accountants.

Refer to the information provided for Answer Corporation.The amount of the direct labor time variance is:

The formula to compute direct material quantity variance is:

Flexible budgeting builds the effect of changes in level of activity into the budget system.

Favorable volume variances are never harmful since achieving them encourages managers to run the factory above normal capacity.

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

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

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:

Which of the following budgets is prepared using the production budget?

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

The variable factory overhead controllable variance measures:

Assuming that the standard fixed overhead rate is based on full capacity,the cost of available but unused productive capacity is indicated by the:

Nonmanufacturing activities are usually controlled using a static budget rather than a standard costing system.

Standard costs should be revised when they differ from actual costs.

If the standard to produce certain quantity of product is 16,000 hours at a factory overhead rate of $5 ($3 fixed,$2 variable),actual variable factory overhead is $26,400,actual fixed factory overhead is $45,000,and 100% of productive capacity is 15,000 hours,the volume variance is $3,000 favorable.

Standard and actual costs for direct materials for the manufacture of 2,000 units of product were as follows:

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

Production and sales estimates for May for the Hudson Co.are as follows:

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

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

Refer to the information provided for Executive Inc.What is the direct labor time variance?

In most businesses,cost standards are established principally by accountants.

Refer to the information provided for Answer Corporation.The amount of the direct labor time variance is:

The formula to compute direct material quantity variance is:

Flexible budgeting builds the effect of changes in level of activity into the budget system.

Favorable volume variances are never harmful since achieving them encourages managers to run the factory above normal capacity.

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

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

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:

Which of the following budgets is prepared using the production budget?

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

The variable factory overhead controllable variance measures:

Assuming that the standard fixed overhead rate is based on full capacity,the cost of available but unused productive capacity is indicated by the:

Nonmanufacturing activities are usually controlled using a static budget rather than a standard costing system.

Standard costs should be revised when they differ from actual costs.

Standard and actual costs for direct materials for the manufacture of 2,000 units of product were as follows:

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

Production and sales estimates for May for the Hudson Co.are as follows:

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