Exam 13: Budgeting and Standard Cost Systems

If the wage rate paid per hour differs from the standard wage rate per hour for direct labor,the variance is termed

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

The sales budget is the starting point for preparation of the direct labor cost budget.

Standard costs should be revised when they differ from actual costs.

A series of budgets for varying rates of activity is termed a(n)

A variable cost system is an accounting system where standards are set for each manufacturing cost element.

Cape Corporation sells a single product.Budgeted sales for the year are anticipated to be 640,000 units,estimated beginning inventory is 98,000 units,and desired ending inventory is 80,000 units.The quantities of direct materials expected to be used for each unit of finished product are given below. -The amount of direct material A purchased during the year is

Management accountants usually provide for a minimum cash balance in their cash budgets for which of the following reasons?

The budgeted volume of production is normally computed as the sum of (1)the expected sales volume and (2)the desired ending inventory.

Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?

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 fixed factory overhead volume variance is

Christiansen and Sons' static budget for 10,000 units of production includes $50,000 for direct materials,$44,000 for direct labor,utilities of $5,000,and supervisor salaries of $15,000.A flexible budget for 12,000 units of production would show

Trapp Co.was organized on August 1 of the current year.Projected sales for the next three months are as follows: The company expects to sell 40% of its merchandise for cash.Of the sales on account,one third are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating cash collections of accounts receivable for August,September,and October.

A disadvantage of static budgets is that they

Efficient Corporation uses a standard cost system.The following information was provided for the period that just ended: -The direct materials cost variance is

Standard Corporation uses a standard cost system.The following information was provided for the period that just ended: The fixed factory overhead volume variance is

If the expected sales volume for the current period is 22,000 units,the desired ending inventory is 800 units,and the beginning inventory is 500 units,the number of units set forth in the production budget,representing total production for the current period,is

The cash payments for manufacturing in the month of June are

The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: The amount of direct materials price variance is

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead)based on 100% capacity of 30,000 direct labor hours.The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: -What is the amount of the variable factory overhead controllable variance?