Question 1

Assigning the variances to the inventories and cost of goods sold related to the production during the period the variances arose.

Accepted Answer

Prorating

Question 2

The following data apply to Walker Corporation for the year 20X4.
  
-For Product Y, the total actual cost for producing the 300 units was

Accepted Answer

A)  $9,000. 
B)  $9,900. 
C)  $12,000. 
D)  $13,200. 
A)  $9,000. 
B)  $9,900. 
C)  $12,000. 
D)  $13,200.

Question 3

The cost most likely to be attained.

Accepted Answer

The answer of The cost most likely to be attained....

Question 4

It is universally believed that the standards used in flexible budgets should be "perfection standards" so that individuals will constantly be challenged to perform better.

Accepted Answer

A) True 
 B)False

Question 5

The degree to which inputs are used in relation to a given level of outputs.

Accepted Answer

The answer of The degree to which inputs are used...

Question 6

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-Which of the following is NOT an example of "efficient" performance?

Accepted Answer

A)  More goods were produced and sold than anticipated. 
B)  Direct labour hours per unit were less than expected. 
C)  Direct material used per unit was less than expected. 
D)  More outputs were achieved with less inputs than predicted. 
A)  More goods were produced and sold than anticipated. 
B)  Direct labour hours per unit were less than expected. 
C)  Direct material used per unit was less than expected. 
D)  More outputs were achieved with less inputs than predicted.

Question 7

Use the following information to answer the next question(s):
The standard cost sheet for one of the Vitton Company's products is presented below.
   *Rate based on expected activity of 12,000 hours
The following results for last year were recorded.
  
-The labour rate variance is

Accepted Answer

A)  $5,250 favourable. 
B)  $5,250 unfavourable. 
C)  $5,000 favourable. 
D)  $5,000 unfavourable. 
A)  $5,250 favourable. 
B)  $5,250 unfavourable. 
C)  $5,000 favourable. 
D)  $5,000 unfavourable.

Question 8

The following data apply to Walker Corporation for the year 20X4.
  
-For Product X, the flexible-budget variance was

Accepted Answer

A)  $800 unfavourable. 
B)  $800 favourable. 
C)  $1,200 favourable. 
D)  $400 favourable. 
A)  $800 unfavourable. 
B)  $800 favourable. 
C)  $1,200 favourable. 
D)  $400 favourable.

Question 9

The following information pertains to Finger Company:
   S1U1P1*S1S1P0Direct labour is measured in hours
-The total flexible-budget variance for direct labour is

Accepted Answer

A)  $ 9,000 unfavourable. 
B)  $ 9,000 favourable. 
C)  $30,000 unfavourable. 
D)  $30,000 favourable. 
A)  $ 9,000 unfavourable. 
B)  $ 9,000 favourable. 
C)  $30,000 unfavourable. 
D)  $30,000 favourable.

Question 10

The following information was compiled by Bovinnette Company:   Required:
Compute the following variances:
a. Direct-labour flexible-budget variance
b. Variable factory overhead flexible-budget variance
c. Fixed factory overhead flexible-budget variance
d. Fixed factory overhead production-volume variance

Accepted Answer

a. (46,500 × $8.25) - (95,000 × .5 × $8.

Question 11

Woodlund Company had the following information:
  
-What are the total manufacturing costs for 15,000 units?

Accepted Answer

A)  $120,000 
B)  $980,000 
C)  $900,000 
D)  $1,080,000 
A)  $120,000 
B)  $980,000 
C)  $900,000 
D)  $1,080,000

Question 12

Woodlund Company had the following information:
  
-What is the net income for 10,000 units?

Accepted Answer

A)  $360,000 
B)  $480,000 
C)  $1,200,000 
D)  $1,080,000 
A)  $360,000 
B)  $480,000 
C)  $1,200,000 
D)  $1,080,000

Question 13

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-Who is best able to explain the reasons for flexible-budget variances?

Accepted Answer

A)  The company president 
B)  A salesperson 
C)  A manufacturing department foreperson 
D)  A machine operator 
A)  The company president 
B)  A salesperson 
C)  A manufacturing department foreperson 
D)  A machine operator

Question 14

Use the following information to answer the next question(s):
The standard cost sheet for one of the Vitton Company's products is presented below.
   *Rate based on expected activity of 12,000 hours
The following results for last year were recorded.
  
-The variable overhead efficiency variance is

Accepted Answer

A)  $2,500 favourable. 
B)  $2,500 unfavourable. 
C)  $2,250 favourable. 
D)  $2,250 unfavourable. 
A)  $2,500 favourable. 
B)  $2,500 unfavourable. 
C)  $2,250 favourable. 
D)  $2,250 unfavourable.

Question 15

The following data are for Parker Corporation for 20X4.
  
-The total of the master-budget variances is

Accepted Answer

A)  $8,000 favourable. 
B)  $8,000 unfavourable. 
C)  $1,000 unfavourable. 
D)  $1,000 favourable. 
A)  $8,000 favourable. 
B)  $8,000 unfavourable. 
C)  $1,000 unfavourable. 
D)  $1,000 favourable.

Question 16

Harrison Company had the following information:
  
-What is the net income for 10,000 units?

Accepted Answer

A)  $90,000 
B)  $120,000 
C)  $300,000 
D)  $270,000 
A)  $90,000 
B)  $120,000 
C)  $300,000 
D)  $270,000

Question 17

A cost system that applies actual direct materials and actual direct-labour costs to products or services but uses standards for applying overhead.

Accepted Answer

The answer of A cost system that applies actual direct...

Question 18

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-Which statement would NOT be a possible reason for a variance between a flexible budget and actual results?

Accepted Answer

A)  Material prices were different than expected. 
B)  Labour prices were different than expected. 
C)  The actual volume of activity was different than expected. 
D)  The amount of labour used per unit of output was different than expected. 
A)  Material prices were different than expected. 
B)  Labour prices were different than expected. 
C)  The actual volume of activity was different than expected. 
D)  The amount of labour used per unit of output was different than expected.

Question 19

A company had the following information pertaining to two different cases:
  
-Prorating the variances refers to assigning the variances to

Accepted Answer

A)  cost of goods sold only. 
B)  inventories and cost of goods sold. 
C)  inventories only. 
D)  inventories, cost of goods sold, and sales. 
A)  cost of goods sold only. 
B)  inventories and cost of goods sold. 
C)  inventories only. 
D)  inventories, cost of goods sold, and sales.

Question 20

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-What would be the total flexible budget if the number of lines increased to 2,600,000?

Accepted Answer

A)  $176,800 
B)  $245,000 
C)  $251,800 
D)  Cannot be determined 
A)  $176,800 
B)  $245,000 
C)  $251,800 
D)  Cannot be determined

Assigning the variances to the inventories and cost of goods sold related to the production during the period the variances arose.

The following data apply to Walker Corporation for the year 20X4. -For Product Y, the total actual cost for producing the 300 units was

The cost most likely to be attained.

It is universally believed that the standards used in flexible budgets should be "perfection standards" so that individuals will constantly be challenged to perform better.

The degree to which inputs are used in relation to a given level of outputs.

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The labour rate variance is

The following data apply to Walker Corporation for the year 20X4. -For Product X, the flexible-budget variance was

The following information pertains to Finger Company: ^*Direct labour is measured in hours -The total flexible-budget variance for direct labour is

Woodlund Company had the following information: -What are the total manufacturing costs for 15,000 units?

Woodlund Company had the following information: -What is the net income for 10,000 units?

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The variable overhead efficiency variance is

The following data are for Parker Corporation for 20X4. -The total of the master-budget variances is

Harrison Company had the following information: -What is the net income for 10,000 units?

A cost system that applies actual direct materials and actual direct-labour costs to products or services but uses standards for applying overhead.

A company had the following information pertaining to two different cases: -Prorating the variances refers to assigning the variances to

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters

Exam 12: Flexible Budgets and Variance Analysis

Assigning the variances to the inventories and cost of goods sold related to the production during the period the variances arose.

The following data apply to Walker Corporation for the year 20X4. -For Product Y, the total actual cost for producing the 300 units was

The cost most likely to be attained.

It is universally believed that the standards used in flexible budgets should be "perfection standards" so that individuals will constantly be challenged to perform better.

The degree to which inputs are used in relation to a given level of outputs.

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The labour rate variance is

The following data apply to Walker Corporation for the year 20X4. -For Product X, the flexible-budget variance was

The following information pertains to Finger Company: *Direct labour is measured in hours -The total flexible-budget variance for direct labour is

Woodlund Company had the following information: -What are the total manufacturing costs for 15,000 units?

Woodlund Company had the following information: -What is the net income for 10,000 units?

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The variable overhead efficiency variance is

The following data are for Parker Corporation for 20X4. -The total of the master-budget variances is

Harrison Company had the following information: -What is the net income for 10,000 units?

A cost system that applies actual direct materials and actual direct-labour costs to products or services but uses standards for applying overhead.

A company had the following information pertaining to two different cases: -Prorating the variances refers to assigning the variances to

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters

The following information pertains to Finger Company: ^*Direct labour is measured in hours -The total flexible-budget variance for direct labour is