Question 1

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

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds
actual cost.

Accepted Answer

A) True 
 B)False

Question 3

The following data relate to direct materials costs for November:
  
-What is the direct materials quantity variance?

Accepted Answer

A) $550 unfavorable 
B) $550 favorable 
C) $600 favorable 
D) $600 unfavorable 
A) $550 unfavorable 
B) $550 favorable 
C) $600 favorable 
D) $600 unfavorable

Question 4

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the rate variance was $1,200 favorable.

Accepted Answer

A) True 
 B)False

Question 5

Compute the standard cost for one hat,based on the following standards for each hat:

Accepted Answer

The answer of Compute the standard cost for one hat,based...

Question 6

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows:
   
Determine the (a)time variance, (b)rate variance,and (c)total direct labor cost variance.

Accepted Answer

The answer of Standard and actual costs for direct labor...

Question 7

The difference between the standard cost of a product and its actual cost is called a variance.

Accepted Answer

A) True 
 B)False

Question 8

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity,the variance is termed

Accepted Answer

A) controllable variance. 
B) price variance. 
C) quantity variance. 
D) rate variance. 
A) controllable variance. 
B) price variance. 
C) quantity variance. 
D) rate variance.

Question 9

Using a standard costing system for nonmanufacturing expenses is easily administered because the expenses generally relate to a repetitive,measurable output.

Accepted Answer

A) True 
 B)False

Question 10

The following data is given for the Walker Company:
 
Overhead is applied on standard labor hours.
The factory overhead controllable variance is

Accepted Answer

A) $65 unfavorable. 
B) $65 favorable. 
C) $250 unfavorable. 
D) $250 favorable. 
A) $65 unfavorable. 
B) $65 favorable. 
C) $250 unfavorable. 
D) $250 favorable.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The cash budget summarizes future plans for acquisition of fixed assets.

Accepted Answer

A) True 
 B)False

Question 13

The standard price and quantity of direct materials are separated because

Accepted Answer

A) GAAP reporting requires this separation. 
B) direct materials prices are controlled by the purchasing department,and quantity used is controlled by the production department. 
C) standard quantities are more difficult to estimate than standard prices. 
D) standard prices change more frequently than standard quantities. 
A) GAAP reporting requires this separation. 
B) direct materials prices are controlled by the purchasing department,and quantity used is controlled by the production department. 
C) standard quantities are more difficult to estimate than standard prices. 
D) standard prices change more frequently than standard quantities.

Question 14

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead)based on 100% capacity of 80,000 machine hours.The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
 
What is the amount of the fixed factory overhead volume variance?

Accepted Answer

A) $26,000 unfavorable 
B) $12,000 favorable 
C) $26,000 favorable 
D) $12,000 unfavorable 
A) $26,000 unfavorable 
B) $12,000 favorable 
C) $26,000 favorable 
D) $12,000 unfavorable

Question 15

Production and sales estimates for June are as follows:
 
The number of units expected to be manufactured in June is

Accepted Answer

A) 10,000. 
B) 12,000. 
C) 13,000. 
D) 12,500. 
A) 10,000. 
B) 12,000. 
C) 13,000. 
D) 12,500.

Question 16

Standards that represent levels of operation that can be attained with reasonable effort are called

Accepted Answer

A) theoretical standards. 
B) ideal standards. 
C) reasonable standards. 
D) normal standards. 
A) theoretical standards. 
B) ideal standards. 
C) reasonable standards. 
D) normal standards.

Question 17

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called continuous budgeting.

Accepted Answer

A) True 
 B)False

Question 18

The budget process involves doing all the following EXCEPT

Accepted Answer

A) establishing specific goals. 
B) executing plans to achieve the goals. 
C) periodically comparing actual results with the goals. 
D) dismissing all managers who fail to achieve operational goals specified in the budget. 
A) establishing specific goals. 
B) executing plans to achieve the goals. 
C) periodically comparing actual results with the goals. 
D) dismissing all managers who fail to achieve operational goals specified in the budget.

Question 19

The capital expenditures budget summarizes future plans for acquisition of fixed assets.

Accepted Answer

A) True 
 B)False

Question 20

The budgeted volume of production is based on the sum of (1)the expected sales volume and (2)the desired ending inventory,less (3)the estimated beginning inventory.

Accepted Answer

A) True 
 B)False

The cash collections from accounts receivable in November are

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds actual cost.

The following data relate to direct materials costs for November: -What is the direct materials quantity variance?

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the rate variance was $1,200 favorable.

Compute the standard cost for one hat,based on the following standards for each hat:

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: Determine the (a)time variance, (b)rate variance,and (c)total direct labor cost variance.

The difference between the standard cost of a product and its actual cost is called a variance.

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity,the variance is termed

Using a standard costing system for nonmanufacturing expenses is easily administered because the expenses generally relate to a repetitive,measurable output.

The following data is given for the Walker Company: Overhead is applied on standard labor hours. The factory overhead controllable variance is

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

The cash budget summarizes future plans for acquisition of fixed assets.

The standard price and quantity of direct materials are separated because

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is

Standards that represent levels of operation that can be attained with reasonable effort are called

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called continuous budgeting.

The budget process involves doing all the following EXCEPT

The capital expenditures budget summarizes future plans for acquisition of fixed assets.

The budgeted volume of production is based on the sum of (1)the expected sales volume and (2)the desired ending inventory,less (3)the estimated beginning inventory.

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

The cash collections from accounts receivable in November are

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds actual cost.

The following data relate to direct materials costs for November: -What is the direct materials quantity variance?

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the rate variance was $1,200 favorable.

Compute the standard cost for one hat,based on the following standards for each hat:

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: Determine the (a)time variance, (b)rate variance,and (c)total direct labor cost variance.

The difference between the standard cost of a product and its actual cost is called a variance.

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity,the variance is termed

Using a standard costing system for nonmanufacturing expenses is easily administered because the expenses generally relate to a repetitive,measurable output.

The following data is given for the Walker Company: Overhead is applied on standard labor hours. The factory overhead controllable variance is

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

The cash budget summarizes future plans for acquisition of fixed assets.

The standard price and quantity of direct materials are separated because

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is

Standards that represent levels of operation that can be attained with reasonable effort are called

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called continuous budgeting.

The budget process involves doing all the following EXCEPT

The capital expenditures budget summarizes future plans for acquisition of fixed assets.

The budgeted volume of production is based on the sum of (1)the expected sales volume and (2)the desired ending inventory,less (3)the estimated beginning inventory.

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