Marciano Manufacturing uses a standard cost system.Standards for direct materials are as follows: \[\begin{array} { | l | l | } \hline \text { Direct materials (pounds per unit of output) } & 3 \\ \hline \text { Cost per pound of direct materials } & \$ 3 \\ \hline \end{array}\] The company plans to produce 3500 units and has purchased on account 15,000 pounds of direct materials at a net cost of $43,200.What is the journal entry to record this transaction?

A) \[\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } & 45,000 & \\ \hline \text { Direct Materials Cost Variance } & & 1800 \\ \hline \text { Accounts Payable } & & 43,200 \\ \hline \end{array}\] B) \[\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 41,400 & \\ \hline \text { Direct Materials Cost Variance } & 1800 & \\ \hline \text { Accounts Payable } & & 43,200 \\ \hline \end{array}\] C) \[\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 43,200 & \\ \hline \text { Direct Materials Cost Variance } & 1800 & \\ \hline \text { Accounts Payable } & & 45,000 \\ \hline \end{array}\] D) \[\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } & 43,200 & \\ \hline \text { Direct Materials Cost Variance } & & 1800 \\ \hline \text { Accounts Payable } & & 41,400 \\ \hline \end{array}\] A) \[\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } & 45,000 & \\ \hline \text { Direct Materials Cost Variance } & & 1800 \\ \hline \text { Accounts Payable } & & 43,200 \\ \hline \end{array}\] B) \[\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 41,400 & \\ \hline \text { Direct Materials Cost Variance } & 1800 & \\ \hline \text { Accounts Payable } & & 43,200 \\ \hline \end{array}\] C) \[\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 43,200 & \\ \hline \text { Direct Materials Cost Variance } & 1800 & \\ \hline \text { Accounts Payable } & & 45,000 \\ \hline \end{array}\] D) \[\begin{array} { | l | r | r | } \hline \text { Raw Materials Inventory } & 43,200 & \\ \hline \text { Direct Materials Cost Variance } & & 1800 \\ \hline \text { Accounts Payable } & & 41,400 \\ \hline \end{array}\]

For each of the following variances,state which manager is most likely to be responsible for the variance. \[\begin{array} { | l | l | } \hline \text { Variance } & \text { Responsible Manager } \\ \hline \text { Direct Materials Efficiency } & \\ \hline \text { Direct Labor Cost } & \\ \hline \text { Variable Overhead } & \\ \text { Efficiency } & \\ \hline \end{array}\]

\[\begin{array} { | l | l | } \hline \t

For each of the following efficiency standards,indicate which parties are responsible for the standard and list one factor that should be used in setting the standard. \[\begin{array} { | l | l | l | } \hline \text { Efficiency standard } & \text { Responsible party } & \text { Factor used in setting the standard } \\ \hline \text { Direct materials } & & \\ \hline \text { Direct labor } & & \\ \hline \end{array}\]

\[\begin{array} { | l | l | l | } \hlin

For each of the following cost standards,indicate which manager is responsible for the standard,and list one factor that should be used in setting the standard. \[\begin{array} { | l | l | l | } \hline \text { Cost standard } & \text { Responsible manager } & \text { Factor used in setting the standard } \\ \hline \text { Direct materials } & & \\ \hline \text { Direct labor } & & \\ \hline \end{array}\]

\[\begin{array} { | l | l | l | } \hlin

Exam 23: Flexible Budgets and Standard Cost Systems

Marciano Manufacturing uses a standard cost system.Standards for direct materials are as follows: Direct materials (pounds per unit of output) 3 Cost per pound of direct materials \ 3 The company plans to produce 3500 units and has purchased on account 15,000 pounds of direct materials at a net cost of $43,200.What is the journal entry to record this transaction?

(Multiple Choice)

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Question 101

Which department is usually responsible for a direct materials cost variance due to favorable price negotiations?

(Multiple Choice)

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Question 102

In a standard cost system,the manufacturing overhead allocated to production equals the standard overhead allocation rate multiplied by the standard quantity of the allocation base allowed for expected output.

(True/False)

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Question 103

In a standard costing system,each input of direct materials,direct labor,and manufacturing overhead has a cost standard and an efficiency standard.

(True/False)

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Question 104

The difference between a standard and a budget is that ________.

(Multiple Choice)

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Question 105

For each of the following variances,state which manager is most likely to be responsible for the variance. Variance Responsible Manager Direct Materials Efficiency Direct Labor Cost Variable Overhead Efficiency

(Essay)

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Question 106

When a manufacturing company uses a standard cost system,an unfavorable variance is a contra expense.

(True/False)

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Question 107

For each of the following efficiency standards,indicate which parties are responsible for the standard and list one factor that should be used in setting the standard. Efficiency standard Responsible party Factor used in setting the standard Direct materials Direct labor

(Essay)

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Question 108

When investigating variable overhead variances,management needs to determine whether cost increases were controllable or if the cost standard needs to be updated.

(True/False)

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Question 109

In a standard cost system,the standard overhead allocation rate replaces the predetermined overhead allocation rate but the concept is the same.

(True/False)

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Question 110

Benefit Pillow Company projected sales of 79,000 units for the year at a unit sales price of $12.00.Actual sales for the year were 73,000 units at $14.00 per unit.Variable costs were budgeted at $4.00 per unit,and the actual variable cost was $5.00 per unit.Budgeted fixed costs totaled $375,000 while actual fixed costs amounted to $415,000.What is the flexible budget variance for operating income?

(Multiple Choice)

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Question 111

The Body Balance Fitness Company completed the flexible budget analysis for the second quarter,which is given below. Which of the following statements would be a correct factor to explain the flexible budget variance for variable costs?

(Multiple Choice)

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Question 112

When a manufacturing company uses a standard cost system,the direct materials cost variance is recorded at the time direct materials are issued in production.

(True/False)

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Question 113

Marathon Sports Equipment Company projected sales of 81,000 units at a unit sales price of $14 for the year.Actual sales for the year were 75,000 units at $13.00 per unit.Variable costs were budgeted at $2 per unit,and the actual amount was $4 per unit.Budgeted fixed costs totaled $375,000,while actual fixed costs amounted to $425,000.What is the sales volume variance for total revenue?

(Multiple Choice)

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Question 114

For each of the following cost standards,indicate which manager is responsible for the standard,and list one factor that should be used in setting the standard. Cost standard Responsible manager Factor used in setting the standard Direct materials Direct labor

(Essay)

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Question 115

SeaKist Marine Stores Company manufactures decorative fittings for luxury yachts,which require highly skilled labor,and special metallic materials.SeaKist uses standard costs to prepare its flexible budget.For the first quarter of 2016,direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 1.5 pounds per unit; $4 per pound Labor: 2 hours per unit; $18 per hour During the first quarter,SeaKist produced 5,000 units of this product.At the end of the quarter,an examination of the direct materials records revealed that the company used 7,000 pounds of direct materials.The direct materials efficiency variance was $2,000 F.Which of the following is a logical explanation for this variance?

(Multiple Choice)

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Question 116

The static budget,at the beginning of the month,for New England Furniture Company follows: Static budget: Sales volume: 1000 units; Sales price: $71.00 per unit Variable costs: $33.00 per unit; Fixed costs: $36,200 per month Operating income: $1800 Actual results,at the end of the month,follows: Actual results: Sales volume: 960 units; Sales price: $74.00 per unit Variable costs: $35.00 per unit; Fixed costs: $35,000 per month Operating income: $2440 Calculate the sales volume variance for fixed costs.

(Multiple Choice)

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Question 117

The static budget,at the beginning of the month,for Divine Décor Company,follows: Static budget: Sales volume: 1500 units; Sales price: $70.00 per unit Variable costs: $32.00 per unit; Fixed costs: $38,000 per month Operating income: $19,000 Actual results,at the end of the month,follows: Actual results: Sales volume: 990 units; Sales price: $75.00 per unit Variable costs: $35.00 per unit; Fixed costs: $33,000 per month Operating income: $6600 Calculate the flexible budget variance for sales revenue.

(Multiple Choice)

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Question 118

Unfavorable variances are subtracted from each other to arrive at a favorable variance.

(True/False)

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Question 119

The Chesapeake Oyster Company completed the flexible budget analysis for the second quarter,which is given below. Which of the following statements would be a correct factor to explain the flexible budget variance for sales revenue?

(Multiple Choice)

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Question 120

Showing 101 - 120 of 223

Which department is usually responsible for a direct materials cost variance due to favorable price negotiations?

In a standard cost system,the manufacturing overhead allocated to production equals the standard overhead allocation rate multiplied by the standard quantity of the allocation base allowed for expected output.

In a standard costing system,each input of direct materials,direct labor,and manufacturing overhead has a cost standard and an efficiency standard.

The difference between a standard and a budget is that ________.

For each of the following variances,state which manager is most likely to be responsible for the variance. Variance Responsible Manager Direct Materials Efficiency Direct Labor Cost Variable Overhead Efficiency

When a manufacturing company uses a standard cost system,an unfavorable variance is a contra expense.

For each of the following efficiency standards,indicate which parties are responsible for the standard and list one factor that should be used in setting the standard. Efficiency standard Responsible party Factor used in setting the standard Direct materials Direct labor

When investigating variable overhead variances,management needs to determine whether cost increases were controllable or if the cost standard needs to be updated.

In a standard cost system,the standard overhead allocation rate replaces the predetermined overhead allocation rate but the concept is the same.

The Body Balance Fitness Company completed the flexible budget analysis for the second quarter,which is given below. Which of the following statements would be a correct factor to explain the flexible budget variance for variable costs?

When a manufacturing company uses a standard cost system,the direct materials cost variance is recorded at the time direct materials are issued in production.

For each of the following cost standards,indicate which manager is responsible for the standard,and list one factor that should be used in setting the standard. Cost standard Responsible manager Factor used in setting the standard Direct materials Direct labor

Unfavorable variances are subtracted from each other to arrive at a favorable variance.

The Chesapeake Oyster Company completed the flexible budget analysis for the second quarter,which is given below. Which of the following statements would be a correct factor to explain the flexible budget variance for sales revenue?

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