Question 1

What amount of fixed overhead would Dori apply to finished production?

Accepted Answer

A)  The actual direct labour hours multiplied by the standard fixed overhead rate per direct labour hour. 
B)  The standard hours allowed for the actual units of finished output multiplied by the standard fixed overhead rate per direct labour hour. 
C)  The standard units of output for the actual direct labour hours worked multiplied by the standard fixed overhead rate per unit of output. 
D)  The actual fixed overhead cost per direct labour hour multiplied by the standard hours allowed for standard output. 
A)  The actual direct labour hours multiplied by the standard fixed overhead rate per direct labour hour. 
B)  The standard hours allowed for the actual units of finished output multiplied by the standard fixed overhead rate per direct labour hour. 
C)  The standard units of output for the actual direct labour hours worked multiplied by the standard fixed overhead rate per unit of output. 
D)  The actual fixed overhead cost per direct labour hour multiplied by the standard hours allowed for standard output.

Question 2

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Accepted Answer

A)  $1,468 favourable. 
B)  $1,559 favourable. 
C)  $2,801 unfavourable. 
D)  $4,360 favourable. 
A)  $1,468 favourable. 
B)  $1,559 favourable. 
C)  $2,801 unfavourable. 
D)  $4,360 favourable.

Question 3

During March,Younger Company's direct material costs for product T were as follows:  
What was Younger's material quantity variance for March?

Accepted Answer

A)  $1,250 unfavourable. 
B)  $1,250 favourable. 
C)  $1,300 unfavourable. 
D)  $1,300 favourable. 
A)  $1,250 unfavourable. 
B)  $1,250 favourable. 
C)  $1,300 unfavourable. 
D)  $1,300 favourable.

Question 4

Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items?

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D

Question 5

The following labour standards have been established for a particular product:  
The following data pertain to operations concerning the product for the last month:  
What was the labour rate variance for the month?

Accepted Answer

A)  $1,295 favourable. 
B)  $1,295 unfavourable. 
C)  $2,950 favourable. 
D)  $2950 unfavourable. 
A)  $1,295 favourable. 
B)  $1,295 unfavourable. 
C)  $2,950 favourable. 
D)  $2950 unfavourable.

Question 6

At Jacobson Company,indirect labour is a variable cost that varies with direct labour hours.Last month's performance report showed that total actual indirect labour cost was $5,780 for the month and that the associated spending variance was $245 favourable.If 24,100 direct labour hours were actually worked last month,what must be the flexible budget cost formula for indirect labour (per direct labour hour)?

Accepted Answer

A)  $0.20. 
B)  $0.25. 
C)  $0.30. 
D)  $0.35. 
A)  $0.20. 
B)  $0.25. 
C)  $0.30. 
D)  $0.35.

Question 7

Which of the following statements concerning practical standards is NOT correct?

Accepted Answer

A)  Practical standards can be used for product costing and cash budgeting. 
B)  Practical standards can be attained by the average worker. 
C)  When practical standards are used;there is no reason to adjust standards if an old machine is replaced by a newer,faster machine. 
D)  Under practical standards,large variances are less likely than under ideal standards. 
A)  Practical standards can be used for product costing and cash budgeting. 
B)  Practical standards can be attained by the average worker. 
C)  When practical standards are used;there is no reason to adjust standards if an old machine is replaced by a newer,faster machine. 
D)  Under practical standards,large variances are less likely than under ideal standards.

Question 8

What was the fixed overhead budget variance for the period,rounded to the nearest dollar?

Accepted Answer

A)  $1,450 favourable. 
B)  $2,503 favourable. 
C)  $3,009 unfavourable. 
D)  $5,810 unfavourable. 
A)  $1,450 favourable. 
B)  $2,503 favourable. 
C)  $3,009 unfavourable. 
D)  $5,810 unfavourable.

Question 9

The overhead spending variance contains price but not quantity elements.

Accepted Answer

A) True 
 B)False

Question 10

What was the denominator level of activity in direct labour hours (DLHs)used by Claus in setting the predetermined overhead rate for January?

Accepted Answer

A)  8,750 DLHs. 
B)  9,250 DLHs. 
C)  9,500 DLHs. 
D)  10,500 DLHs. 
A)  8,750 DLHs. 
B)  9,250 DLHs. 
C)  9,500 DLHs. 
D)  10,500 DLHs.

Question 11

(Appendix 10C)If two products are close substitutes,the sales volume variance for each product can be split into a sales quantity variance and a sales mix variance.

Accepted Answer

A) True 
 B)False

Question 12

Web Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of machine hours.During February,the company used a denominator activity of 80,000 machine hours in computing its predetermined overhead rate.However,only 75,000 standard machine hours were allowed for the month's actual production.If the fixed overhead volume variance for February was $6,400 unfavourable,what was the total budgeted fixed overhead cost for the month?

Accepted Answer

A)  $96,000. 
B)  $98,600. 
C)  $100,000. 
D)  $102,400. 
A)  $96,000. 
B)  $98,600. 
C)  $100,000. 
D)  $102,400.

Question 13

(Appendix 10B)Vernon Mills,Inc.is a large producer of men's and women's clothing.The company uses standard costs for all of its products.The standard costs and actual costs per unit of product for a recent period are given below for one of the company's product lines:   
During this period,the company produced 4,800 units of this product.A comparison of standard and actual costs for the period on a total cost basis is given below:   
There was no inventory of materials on hand at the beginning of the period.During the period,21,120 metres of materials were purchased,all of which were used in production.
Required:
a)(Appendix 10B)For direct materials,compute the price and quantity variances for the period and prepare journal entries to record all activity relating to direct materials for the period.
b)(Appendix 10B)For direct labour,compute the rate and efficiency variances and prepare a journal entry to record the incurrence of direct labour cost for the period.
c)For variable overhead,compute the spending and efficiency variances.

Accepted Answer

a)Materials Price Variance: @#IMG-DLM&

Question 14

What was the amount of fixed overhead cost contained in the company's flexible budget for manufacturing overhead for September?

Accepted Answer

A)  $57,000. 
B)  $58,550. 
C)  $60,000. 
D)  $61,400. 
A)  $57,000. 
B)  $58,550. 
C)  $60,000. 
D)  $61,400.

Question 15

What was the materials price variance?

Accepted Answer

A)  $400 favourable. 
B)  $400 unfavourable. 
C)  $600 favourable. 
D)  $600 unfavourable. 
A)  $400 favourable. 
B)  $400 unfavourable. 
C)  $600 favourable. 
D)  $600 unfavourable.

Question 16

What was the variable overhead spending variance?

Accepted Answer

A)  $220 favourable. 
B)  $220 unfavourable. 
C)  $240 favourable. 
D)  $240 unfavourable. 
A)  $220 favourable. 
B)  $220 unfavourable. 
C)  $240 favourable. 
D)  $240 unfavourable.

Question 17

(Appendix 10C)If two products are poor substitutes,the calculation of a separate market volume variance and a separate market share variance for each product is NOT useful.

Accepted Answer

A) True 
 B)False

Question 18

The following materials standards have been established for a particular product:   
The following data pertain to operations concerning the product for the last month:   
Required:
a)What is the materials price variance for the month?
b)What is the materials quantity variance for the month?

Accepted Answer

Materials price variance = (AQ x AP)- (A

Question 19

At Overland Company,maintenance cost is exclusively a variable cost that varies directly with machine hours.The performance report for July showed that total actual maintenance costs were $9,800 and that the associated spending variance was $200 unfavourable.If 8,000 machine hours were actually worked during July,what was the budgeted maintenance cost per machine hour?

Accepted Answer

A)  $1.200. 
B)  $1.225. 
C)  $1.250. 
D)  $1.275. 
A)  $1.200. 
B)  $1.225. 
C)  $1.250. 
D)  $1.275.

Question 20

What was the fixed overhead budget variance for the period,rounded to the nearest dollar?

Accepted Answer

A)  $950 unfavourable. 
B)  $1,381 unfavourable. 
C)  $2,790 favourable. 
D)  $4,470 unfavourable. 
A)  $950 unfavourable. 
B)  $1,381 unfavourable. 
C)  $2,790 favourable. 
D)  $4,470 unfavourable.

What amount of fixed overhead would Dori apply to finished production?

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

During March,Younger Company's direct material costs for product T were as follows: What was Younger's material quantity variance for March?

Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items?

The following labour standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What was the labour rate variance for the month?

Which of the following statements concerning practical standards is NOT correct?

What was the fixed overhead budget variance for the period,rounded to the nearest dollar?

The overhead spending variance contains price but not quantity elements.

What was the denominator level of activity in direct labour hours (DLHs)used by Claus in setting the predetermined overhead rate for January?

(Appendix 10C)If two products are close substitutes,the sales volume variance for each product can be split into a sales quantity variance and a sales mix variance.

What was the amount of fixed overhead cost contained in the company's flexible budget for manufacturing overhead for September?

What was the materials price variance?

What was the variable overhead spending variance?

(Appendix 10C)If two products are poor substitutes,the calculation of a separate market volume variance and a separate market share variance for each product is NOT useful.

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: Required: a)What is the materials price variance for the month? b)What is the materials quantity variance for the month?

What was the fixed overhead budget variance for the period,rounded to the nearest dollar?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

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Exam 10: Standard Costs and Overhead Analysis

What amount of fixed overhead would Dori apply to finished production?

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

During March,Younger Company's direct material costs for product T were as follows: What was Younger's material quantity variance for March?

Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items?

The following labour standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What was the labour rate variance for the month?

Which of the following statements concerning practical standards is NOT correct?

What was the fixed overhead budget variance for the period,rounded to the nearest dollar?

The overhead spending variance contains price but not quantity elements.

What was the denominator level of activity in direct labour hours (DLHs)used by Claus in setting the predetermined overhead rate for January?

(Appendix 10C)If two products are close substitutes,the sales volume variance for each product can be split into a sales quantity variance and a sales mix variance.

What was the amount of fixed overhead cost contained in the company's flexible budget for manufacturing overhead for September?

What was the materials price variance?

What was the variable overhead spending variance?

(Appendix 10C)If two products are poor substitutes,the calculation of a separate market volume variance and a separate market share variance for each product is NOT useful.

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: Required: a)What is the materials price variance for the month? b)What is the materials quantity variance for the month?

What was the fixed overhead budget variance for the period,rounded to the nearest dollar?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters