Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2015, GII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. $\begin{array}{lll}&\text { Budgeted quantity }&\text { Budgeted price }\\ \text { Direct materials } & 0.30 \text { pounds } & \$ 20 \text { per pound } \\ \text { Direct labor } & 0.20 \text { hours } & \$ 12 \text { per hour } \end{array}$ During July, GII produced and sold 3,000 containers using 1,000 pounds of direct materials at an average cost per pound of $19 and 625 direct manufacturing labor hours at an average wage of $11.75 per hour. -The direct material efficiency variance during July is ________.

A) $1,000 unfavorable B) $1,100 favorable C) $2,000 unfavorable D) $1,000 favorable A) $1,000 unfavorable B) $1,100 favorable C) $2,000 unfavorable D) $1,000 favorable

Answer the following questions using the information below: Berman's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. $\begin{array}{lrrr} &\text { Flexible }&\text { Variances }\\ & \text { Budget } & \text { Price } & \text { Efficiency } \\ \text { Material A } & \$ 40,000 & \$ 1,000 \mathrm{~F} & \$ 3,000 \mathrm{U} \\ \text { Material B } & 60,000 & 500 \mathrm{U} & 1,500 \mathrm{~F} \\ \text { Direct manufacturing labor } & 80,000 & 500 \mathrm{U} & 2,500 \mathrm{~F} \end{array}$ -The actual amount spent for Material B was ________.

A) $58,000 B) $59,000 C) $60,000 D) $61,000 A) $58,000 B) $59,000 C) $60,000 D) $61,000

Exam 7: Flexible Budgets, direct-Cost Variances, and Management Control

Answer the following questions using the information below: Domose Inc. planned to use $150 of material per unit but actually used $147 of material per unit, and planned to make 1,100 units but actually made 900 units. -The sales-volume variance for materials is ________.

(Multiple Choice)

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Question 21

Answer the following questions using the information below: Domose Inc. planned to use $150 of material per unit but actually used $147 of material per unit, and planned to make 1,100 units but actually made 900 units. -The flexible-budget amount for materials is ________.

(Multiple Choice)

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Question 22

Management by exception is a practice whereby managers focus more closely on ________.

(Multiple Choice)

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Question 23

Benchmarking is the continuous process of measuring products,services,and activities against the best possible levels of performance,either inside or outside the organization.

(True/False)

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Question 24

The flexible-budget variance is the total of price variance and efficiency variance.

(True/False)

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Question 25

Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2015, GII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. Budgeted quantity Budgeted price Direct materials 0.30 pounds \ 20 per pound Direct labor 0.20 hours \ 12 per hour During July, GII produced and sold 3,000 containers using 1,000 pounds of direct materials at an average cost per pound of $19 and 625 direct manufacturing labor hours at an average wage of $11.75 per hour. -The direct material efficiency variance during July is ________.

(Multiple Choice)

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Question 26

The goal of variance analysis is for managers to understand why variances arise,to learn,and to improve future performance.

(True/False)

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Question 27

A flexible budget is calculated at the end of the budget period.

(True/False)

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Question 28

Effectiveness is ________.

(Multiple Choice)

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Question 29

It is difficult for firms to find appropriate benchmarks because differences can exist across companies in their strategies,inventory costing methods,depreciation methods,and so on.

(True/False)

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(83)

Question 30

Answer the following questions using the information below: Dynondo Incorporated planned to use materials of $12 per unit but actually used materials of $13 per unit, and planned to make 1,500 units but actually made 1,800 units. -The flexible-budget variance for materials is ________.

(Multiple Choice)

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(90)

Question 31

An unfavorable flexible-budget variance for variable costs may be the result of ________.

(Multiple Choice)

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Question 32

When benchmarking,management accountants are most valuable when they ________.

(Multiple Choice)

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Question 33

A favorable variance results when actual costs exceed budgeted costs.

(True/False)

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Question 34

Nicholas Company manufacturers TVs.Some of the company's data was misplaced.Use the following information to replace the lost data: Analysis Actual Flexible Flexible Sales-Volume Static Results Variances Budget Variances Budget Units Sold 112,500 112,500 103,125 Revenues \ 42,080 \ 1,000 () \ 1,400 () Variable Costs () \ 200 \ 15,860 \ 2,340 \ 18,200 Fixed Costs \ 8,280 \ 860 \ 9,140 \ 9,140 Operating Income \ 17,740 () \ 16,080 (E) \ 15,140 Required: a.What are the respective flexible-budget revenues (A)? b.What are the static-budget revenues (B)? c.What are the actual variable costs (C)? d.What is the total flexible-budget variance (D)? e.What is the total sales-volume variance (E)? f.What is the total static-budget variance?

(Essay)

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Question 35

Answer the following questions using the information below: Aurous Incorporated planned to use $35 of material per unit but actually used $34 of material per unit, and planned to make 1,500 units but actually made 1,300 units. -The flexible-budget variance for materials is ________.

(Multiple Choice)

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Question 36

Answer the following questions using the information below: Dynondo Incorporated planned to use materials of $12 per unit but actually used materials of $13 per unit, and planned to make 1,500 units but actually made 1,800 units. -The sales-volume variance for materials is ________.

(Multiple Choice)

4.9/5

(81)

Question 37

Regier Company had planned for operating income of $10 million in the master budget but actually achieved operating income of only $7 million.

(Multiple Choice)

4.7/5

(82)

Question 38

Answer the following questions using the information below: Berman's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Variances Budget Price Efficiency Material A \ 40,000 \ 1,000 \ 3,000 Material B 60,000 500 1,500 Direct manufacturing labor 80,000 500 2,500 -The actual amount spent for Material B was ________.

(Multiple Choice)

4.7/5

(77)

Question 39

For any actual level of output,the efficiency variance is the difference between actual quantity of input used and the budgeted quantity of input allowed to produce actual output,multiplied by the budgeted price.

(True/False)

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(62)

Question 40

Showing 21 - 40 of 180

Answer the following questions using the information below: Domose Inc. planned to use $150 of material per unit but actually used $147 of material per unit, and planned to make 1,100 units but actually made 900 units. -The sales-volume variance for materials is ________.

Answer the following questions using the information below: Domose Inc. planned to use $150 of material per unit but actually used $147 of material per unit, and planned to make 1,100 units but actually made 900 units. -The flexible-budget amount for materials is ________.

Management by exception is a practice whereby managers focus more closely on ________.

Benchmarking is the continuous process of measuring products,services,and activities against the best possible levels of performance,either inside or outside the organization.

The flexible-budget variance is the total of price variance and efficiency variance.

The goal of variance analysis is for managers to understand why variances arise,to learn,and to improve future performance.

A flexible budget is calculated at the end of the budget period.

Effectiveness is ________.

It is difficult for firms to find appropriate benchmarks because differences can exist across companies in their strategies,inventory costing methods,depreciation methods,and so on.

Answer the following questions using the information below: Dynondo Incorporated planned to use materials of $12 per unit but actually used materials of $13 per unit, and planned to make 1,500 units but actually made 1,800 units. -The flexible-budget variance for materials is ________.

An unfavorable flexible-budget variance for variable costs may be the result of ________.

When benchmarking,management accountants are most valuable when they ________.

A favorable variance results when actual costs exceed budgeted costs.

Answer the following questions using the information below: Aurous Incorporated planned to use $35 of material per unit but actually used $34 of material per unit, and planned to make 1,500 units but actually made 1,300 units. -The flexible-budget variance for materials is ________.

Answer the following questions using the information below: Dynondo Incorporated planned to use materials of $12 per unit but actually used materials of $13 per unit, and planned to make 1,500 units but actually made 1,800 units. -The sales-volume variance for materials is ________.

Regier Company had planned for operating income of $10 million in the master budget but actually achieved operating income of only $7 million.

For any actual level of output,the efficiency variance is the difference between actual quantity of input used and the budgeted quantity of input allowed to produce actual output,multiplied by the budgeted price.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

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