Exam 13: Budgeting and Standard Cost Systems

Below is budgeted production and sales information for Cooper Cans,Inc.for the month of March: The unit selling price for aluminum cans is $0.10 and for tin cans is $0.15. -Budgeted sales for the month are

Variances from standard costs are usually reported to

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12,the direct materials price variance was $1,000 favorable.

Production estimates for August are as follows: For each unit produced,the direct materials requirements are as follows: The total direct materials purchases of materials A and B required for August production is

The production budgets are used to prepare which of the following budgets?

If the standard to produce a given amount of product is 900 units of direct materials at $11 and the actual was 800 units at $12,the direct materials quantity variance was $1,100 unfavorable.

If Division Inc.expects to sell 200,000 units in 2010,desires ending inventory of 24,000 units,and has 22,000 units on hand as of the beginning of the year,the budgeted volume of production for 2010 is 198,000 units.

The budgeted direct materials purchases are based on the sum of (1)the materials needed for production and (2)the desired ending materials inventory,less (3)the estimated beginning materials inventory.

Merle Company manufactures two models of microcassette recorders,VCI20 and VCI27.Based on the following production data for April of the current year,prepare a production budget for April.

The standard costs and actual costs for direct materials,direct labor,and factory overhead for the manufacture of 2,500 units of product are as follows: Variable cost @ $2 per hour Total variable cost,$18,000 Fixed cost @ $0.80 per hour Total fixed cost,$8,000 -The amount of the direct labor time variance is

When department managers plan lower goals than possible in order to build in a cushion for unexpected events,the result is

The standard fixed factory overhead rate is based on 100% capacity of 120,000 machine hours for Thompson Inc.The standard costs and the actual costs of factory overhead for the production of 25,000 units during March were as follows: If there was a $60,000 unfavorable volume variance for March,what is the standard fixed factory overhead cost rate?

The direct labor time variance measures the efficiency of the direct labor force.

The cost of available but unused productive capacity is indicated by the

Below is budgeted production and sales information for Cooper Cans,Inc.for the month of March: The unit selling price for aluminum cans is $0.10 and for tin cans is $0.15. -Budgeted production for tin cans during the month is

The process of developing budget estimates by requiring all levels of management to estimate sales,production,and other operating data as though operations were being initiated for the first time is referred to as

A favorable cost variance occurs when actual cost is less than budgeted cost at actual volumes.

The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours.The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows: If there was a $9,000 unfavorable volume variance for December,what is the standard fixed factory overhead cost rate?

Standards are designed to evaluate price and quantity variances separately.

Planning for capital expenditures is necessary for all of the following reasons EXCEPT