Question 1

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

Accepted Answer

A) $1,310 favorable. 
B) $820 favorable. 
C) $2,780 favorable. 
D) $2,290 unfavorable. 
A) $1,310 favorable. 
B) $820 favorable. 
C) $2,780 favorable. 
D) $2,290 unfavorable.

Question 2

A negative fixed overhead volume variance can be caused due to the following EXCEPT

Accepted Answer

A) sales orders at a low level. 
B) machine breakdowns. 
C) employee inexperience. 
D) increase in utility costs. 
A) sales orders at a low level. 
B) machine breakdowns. 
C) employee inexperience. 
D) increase in utility costs.

Question 3

Since the controllable variance measures the efficiency of using variable overhead resources,if budgeted variable overhead exceeds actual results,the variance is favorable.

Accepted Answer

A) True 
 B)False

Question 4

Browning Inc.production budget for Product X for the year ended December 31 is as follows:
   
In Brown's production operations,Materials A,B,and C are required to make Product X.The quantities of direct materials expected to be used for each unit of product are as follows:
Product X
Material A .50 pound per unit
Material B 1.00 pound per unit
Material C 1.20 pound per unit
The prices of direct materials are as follows:
Material A $0.60 per pound
Material B $1.70 per pound
Material C $1.50 per pound
Prepare a direct materials purchases budget for Product X.

Accepted Answer

@#IMG-DLM& 
Note A:
Material A 635,000 @#LAT-DLM&

Question 5

A formal written statement of management's plans for the future,expressed in financial terms,is called a budget.

Accepted Answer

A) True 
 B)False

Question 6

Favorable volume variances are never harmful since achieving them encourages managers to run the factory above normal capacity.

Accepted Answer

A) True 
 B)False

Question 7

Supervisor salaries,maintenance,and indirect factory wages would normally appear in the selling and administrative expenses budget.

Accepted Answer

A) True 
 B)False

Question 8

The formula to compute direct materials price variance is to calculate the difference between

Accepted Answer

A) actual costs - (actual quantity * standard price). 
B) actual cost + standard costs. 
C) actual cost - standard costs. 
D) (actual quantity * standard price)- standard costs. 
A) actual costs - (actual quantity * standard price). 
B) actual cost + standard costs. 
C) actual cost - standard costs. 
D) (actual quantity * standard price)- standard costs.

Question 9

Prepare a monthly flexible selling expense budget for Long Company for sales volumes of $300,000,$400,000,and $500,000,based on the following data:

Accepted Answer

The answer of Prepare a monthly flexible selling expense budget...

Question 10

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 aluminum cans during the month is

Accepted Answer

A) 476,000 units. 
B) 484,000 units. 
C) 480,000 units. 
D) 504,000 units. 
A) 476,000 units. 
B) 484,000 units. 
C) 480,000 units. 
D) 504,000 units.

Question 11

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:
 
The amount of the direct labor time variance is

Accepted Answer

A) $1,200 favorable. 
B) $1,140 unfavorable. 
C) $1,200 unfavorable. 
D) $1,140 favorable. 
A) $1,200 favorable. 
B) $1,140 unfavorable. 
C) $1,200 unfavorable. 
D) $1,140 favorable.

Question 12

As of January 1 of the current year,the Butner Company had accounts receivables of $50,000.Sales for January,February,and March were as follows: $120,000,$140,000,and $150,000.20% of each month's sales are for cash.Of the remaining 80% (the credit sales),60% are collected in the month of sale,with the remaining 40% collected in the following month.What is the total cash collected (both from accounts receivable and for cash sales)in the month of February?

Accepted Answer

A) $132,000 
B) $105,600 
C) $133,600 
D) $95,200 
A) $132,000 
B) $105,600 
C) $133,600 
D) $95,200

Question 13

The master budget of a small manufacturer would normally include all component budgets that impact the financial statements.

Accepted Answer

A) True 
 B)False

Question 14

Budgetary slack can be avoided if lower and mid-level managers are requested to support all of their spending requirements with specific operational plans.

Accepted Answer

A) True 
 B)False

Question 15

If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual was 500 hours at $15,the time variance was $1,700 favorable.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) $2,250 unfavorable 
B) $2,250 favorable 
C) $2,300 unfavorable 
D) $1,700 unfavorable 
A) $2,250 unfavorable 
B) $2,250 favorable 
C) $2,300 unfavorable 
D) $1,700 unfavorable

Question 17

The formula to compute direct labor rate variance is to calculate the difference between

Accepted Answer

A) actual costs + (actual hours * standard rate). 
B) actual costs - standard cost. 
C) (actual hours * standard rate)- standard costs. 
D) actual costs - (actual hours * standard rate). 
A) actual costs + (actual hours * standard rate). 
B) actual costs - standard cost. 
C) (actual hours * standard rate)- standard costs. 
D) actual costs - (actual hours * standard rate).

Question 18

The budget that summarizes future plans for the acquisition of fixed assets is the

Accepted Answer

A) direct materials purchases budget. 
B) production budget. 
C) sales budget. 
D) capital expenditures budget. 
A) direct materials purchases budget. 
B) production budget. 
C) sales budget. 
D) capital expenditures budget.

Question 19

The fact that workers are unable to meet a properly determined direct labor standard is sufficient cause to change the standard.

Accepted Answer

A) True 
 B)False

Question 20

When budget goals are set too tight,the budget becomes less effective as a tool for planning and controlling operations.

Accepted Answer

A) True 
 B)False

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

A negative fixed overhead volume variance can be caused due to the following EXCEPT

Since the controllable variance measures the efficiency of using variable overhead resources,if budgeted variable overhead exceeds actual results,the variance is favorable.

A formal written statement of management's plans for the future,expressed in financial terms,is called a budget.

Favorable volume variances are never harmful since achieving them encourages managers to run the factory above normal capacity.

Supervisor salaries,maintenance,and indirect factory wages would normally appear in the selling and administrative expenses budget.

The formula to compute direct materials price variance is to calculate the difference between

Prepare a monthly flexible selling expense budget for Long Company for sales volumes of $300,000,$400,000,and $500,000,based on the following data:

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 aluminum cans during the month is

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: The amount of the direct labor time variance is

The master budget of a small manufacturer would normally include all component budgets that impact the financial statements.

Budgetary slack can be avoided if lower and mid-level managers are requested to support all of their spending requirements with specific operational plans.

If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual was 500 hours at $15,the time variance was $1,700 favorable.

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

The formula to compute direct labor rate variance is to calculate the difference between

The budget that summarizes future plans for the acquisition of fixed assets is the

The fact that workers are unable to meet a properly determined direct labor standard is sufficient cause to change the standard.

When budget goals are set too tight,the budget becomes less effective as a tool for planning and controlling operations.

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

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

A negative fixed overhead volume variance can be caused due to the following EXCEPT

Since the controllable variance measures the efficiency of using variable overhead resources,if budgeted variable overhead exceeds actual results,the variance is favorable.

A formal written statement of management's plans for the future,expressed in financial terms,is called a budget.

Favorable volume variances are never harmful since achieving them encourages managers to run the factory above normal capacity.

Supervisor salaries,maintenance,and indirect factory wages would normally appear in the selling and administrative expenses budget.

The formula to compute direct materials price variance is to calculate the difference between

Prepare a monthly flexible selling expense budget for Long Company for sales volumes of $300,000,$400,000,and $500,000,based on the following data:

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 aluminum cans during the month is

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: The amount of the direct labor time variance is

The master budget of a small manufacturer would normally include all component budgets that impact the financial statements.

Budgetary slack can be avoided if lower and mid-level managers are requested to support all of their spending requirements with specific operational plans.

If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual was 500 hours at $15,the time variance was $1,700 favorable.

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

The formula to compute direct labor rate variance is to calculate the difference between

The budget that summarizes future plans for the acquisition of fixed assets is the

The fact that workers are unable to meet a properly determined direct labor standard is sufficient cause to change the standard.

When budget goals are set too tight,the budget becomes less effective as a tool for planning and controlling operations.

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