Question 1

How are fixed manufacturing costs treated?

Accepted Answer

A) Period costs for managerial accounting and product costs for financial accounting purposes. 
B) Product costs for managerial accounting and financial accounting purposes. 
C) Period cost for managerial accounting and financial accounting purposes. 
D) Product costs for managerial accounting and period costs for financial accounting purposes. 
A) Period costs for managerial accounting and product costs for financial accounting purposes. 
B) Product costs for managerial accounting and financial accounting purposes. 
C) Period cost for managerial accounting and financial accounting purposes. 
D) Product costs for managerial accounting and period costs for financial accounting purposes.

Question 2

For external reporting purposes,how are fixed manufacturing costs treated?

Accepted Answer

A) As period costs. 
B) Expensed as incurred. 
C) Period costs included in the value of inventory. 
D) Product costs included in the value of inventory. 
A) As period costs. 
B) Expensed as incurred. 
C) Period costs included in the value of inventory. 
D) Product costs included in the value of inventory.

Question 3

How do you calculate the mix variance portion of the efficiency variance?

Accepted Answer

When multiple inputs are used to produce

Question 4

Java Gourmet Coffee
Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds of roasted gourmet coffee beans were actually produced (note: standard costs do not allow for any wastage),
Actual:
 
Standard:
 
Refer to Java Gourmet Coffee.Calculate the direct labor price variance.

Accepted Answer

A) $11,000 F 
B) $9,000 U 
C) $20,000 U 
D) $9,500 U 
A) $11,000 F 
B) $9,000 U 
C) $20,000 U 
D) $9,500 U

Question 5

How does technology impact variance analyses?

Accepted Answer

Most changes toward high technology invo

Question 6

Which of the following might cause a materials variance?

Accepted Answer

A) Failing to take purchase discounts. 
B) Using a better grade of raw material. 
C) Changes in the market supply for the raw materials. 
D) All of the above. 
A) Failing to take purchase discounts. 
B) Using a better grade of raw material. 
C) Changes in the market supply for the raw materials. 
D) All of the above.

Question 7

The production price (spending)variance is the difference between which of the following two costs?

Accepted Answer

A) Budgeted and applied costs. 
B) Actual and budgeted costs. 
C) Applied and actual costs. 
D) Variable and budgeted costs. 
A) Budgeted and applied costs. 
B) Actual and budgeted costs. 
C) Applied and actual costs. 
D) Variable and budgeted costs.

Question 8

Doug's Delivery Company
Doug's Delivery Company reports the following information for 2010:
Actual:
 
Standard:
 
Refer to Doug's Delivery Company.What is the variable overhead variance for fuel costs?

Accepted Answer

A) $20.00 U 
B) $20.00 F 
C) $2.00 U 
D) $2.00 F 
A) $20.00 U 
B) $20.00 F 
C) $2.00 U 
D) $2.00 F

Question 9

Java Gourmet Coffee
Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds of roasted gourmet coffee beans were actually produced (note: standard costs do not allow for any wastage),
Actual:
 
Standard:
 
Refer to Java Gourmet Coffee.Calculate the variable manufacturing overhead variance.

Accepted Answer

A) $1,000 U 
B) $2,000 U 
C) $1,000 F 
D) $2,000 F 
A) $1,000 U 
B) $2,000 U 
C) $1,000 F 
D) $2,000 F

Question 10

Which of the following is not a major group responsible for variances in organizations?

Accepted Answer

A) Marketing 
B) Consulting 
C) Administration 
D) Production 
A) Marketing 
B) Consulting 
C) Administration 
D) Production

Question 11

Lydia's Delivery Company
Lydia's Delivery Company reports the following information for 2010:
Actual:
 
Standard:
 
Refer to Lydia's Delivery Company.What is the variable overhead efficiency variance for fuel costs?

Accepted Answer

A) $10.00 U 
B) $16.00 F 
C) $26.00 F 
D) $ 6.00F 
A) $10.00 U 
B) $16.00 F 
C) $26.00 F 
D) $ 6.00F

Question 12

How are fixed production cost variances calculated and why do they occur?

Accepted Answer

The only fixed cost variance computed fo

Question 13

For financial reporting purposes,how are fixed manufacturing costs treated?

Accepted Answer

A) As period costs. 
B) As product costs. 
C) As direct materials costs. 
D) None of the above. 
A) As period costs. 
B) As product costs. 
C) As direct materials costs. 
D) None of the above.

Question 14

Nonmanufacturing variances.Ralph's Sales uses standard costs and variances for controlling costs.As a result of studying past cost data,it has established standards as follows: variable costs,$6 per sales call;nine sales calls per unit sold.Actual data for May,June,and July follow:
   
Required:
Compute the variable cost price and efficiency variances for each month.

Accepted Answer

(Ralph's Sales;nonmanufacturing variance

Question 15

What is the relationship between actual,budgeted,and applied fixed manufacturing costs?

Accepted Answer

Companies frequently use a predetermined

Question 16

ABC Company
ABC Company reports the following information for the most recent period when 2,750 units were produced.
 
Refer to ABC Company.Calculate the total direct materials variance.

Accepted Answer

A) $7,500 U 
B) $7,850 U 
C) $7,150 U 
D) $7,000 U 
A) $7,500 U 
B) $7,850 U 
C) $7,150 U 
D) $7,000 U

Question 17

Materials and labor variances.The Sweet Tooth Chocolate Company presents the following
data for October:
   
During the month,the firm purchased 49,000 pounds of materials for $127,500.Wages earned were $214,000.
Required:
1.Compute the labor and material variances.
2.Based on the information for the company,write a short report explaining the cause of the variances that you computed.

Accepted Answer

(The Sweet Tooth Chocolate Com

Question 18

What is the result of substituting computerized equipment for direct labor?

Accepted Answer

A) Less direct material and more manufacturing overhead. 
B) Less direct labor and more manufacturing overhead. 
C) Less manufacturing overhead and more direct materials. 
D) Less direct labor and more direct material. 
A) Less direct material and more manufacturing overhead. 
B) Less direct labor and more manufacturing overhead. 
C) Less manufacturing overhead and more direct materials. 
D) Less direct labor and more direct material.

Question 19

Fred's Fine Roasted Coffee
Fred's Fine Roasted Coffee reports the following data for April 2010 where 500,000 pounds of roasted gourmet coffee beans were actually produced (note: standard costs do not allow for any wastage),
 
Refer to Fred's Fine Roasted Coffee.Calculate the direct materials price variance.

Accepted Answer

A) $51,000 U 
B) $56,000 U 
C) $5,000 U 
D) $40,500 U 
A) $51,000 U 
B) $56,000 U 
C) $5,000 U 
D) $40,500 U

Question 20

For managerial accounting purposes,how are fixed manufacturing costs treated?

Accepted Answer

A) As product costs. 
B) As period costs. 
C) As opportunity costs. 
D) As variable costs. 
A) As product costs. 
B) As period costs. 
C) As opportunity costs. 
D) As variable costs.

How are fixed manufacturing costs treated?

For external reporting purposes,how are fixed manufacturing costs treated?

How do you calculate the mix variance portion of the efficiency variance?

Java Gourmet Coffee Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds of roasted gourmet coffee beans were actually produced (note: standard costs do not allow for any wastage), Actual: Standard: Refer to Java Gourmet Coffee.Calculate the direct labor price variance.

How does technology impact variance analyses?

Which of the following might cause a materials variance?

The production price (spending)variance is the difference between which of the following two costs?

Doug's Delivery Company Doug's Delivery Company reports the following information for 2010: Actual: Standard: Refer to Doug's Delivery Company.What is the variable overhead variance for fuel costs?

Which of the following is not a major group responsible for variances in organizations?

Lydia's Delivery Company Lydia's Delivery Company reports the following information for 2010: Actual: Standard: Refer to Lydia's Delivery Company.What is the variable overhead efficiency variance for fuel costs?

How are fixed production cost variances calculated and why do they occur?

For financial reporting purposes,how are fixed manufacturing costs treated?

What is the relationship between actual,budgeted,and applied fixed manufacturing costs?

ABC Company ABC Company reports the following information for the most recent period when 2,750 units were produced. Refer to ABC Company.Calculate the total direct materials variance.

What is the result of substituting computerized equipment for direct labor?

For managerial accounting purposes,how are fixed manufacturing costs treated?

Fundamental Concepts

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters

Exam 10: Profit and Cost Center Performance Evaluation

How are fixed manufacturing costs treated?

For external reporting purposes,how are fixed manufacturing costs treated?

How do you calculate the mix variance portion of the efficiency variance?

How does technology impact variance analyses?

Which of the following might cause a materials variance?

The production price (spending)variance is the difference between which of the following two costs?

Doug's Delivery Company Doug's Delivery Company reports the following information for 2010: Actual: Standard: Refer to Doug's Delivery Company.What is the variable overhead variance for fuel costs?

Which of the following is not a major group responsible for variances in organizations?

Lydia's Delivery Company Lydia's Delivery Company reports the following information for 2010: Actual: Standard: Refer to Lydia's Delivery Company.What is the variable overhead efficiency variance for fuel costs?

How are fixed production cost variances calculated and why do they occur?

For financial reporting purposes,how are fixed manufacturing costs treated?

What is the relationship between actual,budgeted,and applied fixed manufacturing costs?

ABC Company ABC Company reports the following information for the most recent period when 2,750 units were produced. Refer to ABC Company.Calculate the total direct materials variance.

What is the result of substituting computerized equipment for direct labor?

For managerial accounting purposes,how are fixed manufacturing costs treated?

Fundamental Concepts

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters