Question 1

Which variance(s)are generally calculated to analyze fixed manufacturing overhead costs?

Accepted Answer

A) Production volume variances only. 
B) Price variances only. 
C) Production volume and price variances only. 
D) Production volume,price,and efficiency variances. 
A) Production volume variances only. 
B) Price variances only. 
C) Production volume and price variances only. 
D) Production volume,price,and efficiency variances.

Question 2

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 price 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 3

Why might a material variance arise?

Accepted Answer

A) More efficient use of materials than the standard. 
B) The purchase of inferior raw materials. 
C) Both "a" and "b" above. 
D) None of the above. 
A) More efficient use of materials than the standard. 
B) The purchase of inferior raw materials. 
C) Both "a" and "b" above. 
D) None of the above.

Question 4

When substituting computerized equipment for direct labor,a firm should treat labor as which of the following?

Accepted Answer

A) Fixed (or capacity)costs. 
B) Mixed costs. 
C) Opportunity costs. 
D) Variable costs. 
A) Fixed (or capacity)costs. 
B) Mixed costs. 
C) Opportunity costs. 
D) Variable costs.

Question 5

Which variance measures the efficiency with which the firm uses inputs to produce outputs?

Accepted Answer

A) Throughput. 
B) Efficiency. 
C) Economy. 
D) Effectiveness. 
A) Throughput. 
B) Efficiency. 
C) Economy. 
D) Effectiveness.

Question 6

Explain how variable production cost variances are calculated and why they occur.

Accepted Answer

Material variances may be the result of

Question 7

Which of the following does the cost variance model use to analyze differences between actual and budgeted profits?

Accepted Answer

A) Flexible production budget. 
B) Fixed production budget. 
C) Prior period's production budget. 
D) Generally accepted accounting principles. 
A) Flexible production budget. 
B) Fixed production budget. 
C) Prior period's production budget. 
D) Generally accepted accounting principles.

Question 8

Ben's Delivery Company reports the following information for 2010:
Actual:
   
Standard:
   
REQUIRED:
What was the actual fuel cost,flexible budget for fuel cost,and the fuel cost variance?

Accepted Answer

SUPPORTING CALCULATIONS:
Actual: $2.25 p

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 direct materials price variance.

Accepted Answer

A) $15,500 U 
B) $10,500 U 
C) $15,500 F 
D) $10,500 F 
A) $15,500 U 
B) $10,500 U 
C) $15,500 F 
D) $10,500 F

Question 10

JM Company uses standard costing.The company reported the following information for the current period:
   
REQUIRED:
Calculate the following variances:

Accepted Answer

SUPPORTING CALCULATI

Question 11

Solving for labor hours.Lance's Engineering Consulting reports the following direct labor information for clerical staff:
   
Required:
What are the actual hours worked,rounded to the nearest hour?
(Lance's Engineering Consulting;solving for labor hours. )

Accepted Answer

@#IMG-DLM&_TB2144_00 $25 X AQ

Question 12

When multiple inputs are used to produce the output,the efficiency variance can be broken down into which of the following?

Accepted Answer

A) mix and match variances. 
B) mix and yield variances. 
C) profit and yield variances. 
D) benefit and match variances. 
A) mix and match variances. 
B) mix and yield variances. 
C) profit and yield variances. 
D) benefit and match variances.

Question 13

Nonmanufacturing variances.Appliance 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,$7 per sales call;six 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

(Appliance Sales;nonmanufacturing varian

Question 14

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 direct materials efficiency variance.

Accepted Answer

A) $7,150 U 
B) $7,500 U 
C) $7,150 F 
D) $7,500 F 
A) $7,150 U 
B) $7,500 U 
C) $7,150 F 
D) $7,500 F

Question 15

Houser Parcel Moving Express reports the following information for 2010:
Actual:
   
Standard:
   
REQUIRED:
Calculate the following:

Accepted Answer

SUPPORTING CALCULATI

Question 16

Hightown Company uses a predetermined overhead rate for applying overhead cost to products.Rates for the current year follow:
Variable Overhead Rate: $2.50 per unit
Fixed Overhead Rate: $5.00 per unit
Actual overhead costs:
   
The company expected to produce 125,000 units during the year,but only produced 120,000.
REQUIRED:

Accepted Answer

SUPPORTING

Question 17

What is the term that describes the rate companies frequently use to apply fixed overhead costs to units produced?

Accepted Answer

A) Actual overhead rate. 
B) Predetermined overhead rate. 
C) Post-determined overhead rate. 
D) Variable overhead rate. 
A) Actual overhead rate. 
B) Predetermined overhead rate. 
C) Post-determined overhead rate. 
D) Variable overhead rate.

Question 18

Why do direct labor variances occur?

Accepted Answer

A) Managers do not correctly anticipate changes in wage rates. 
B) Poor materials are used in production. 
C) Supervisors encounter scheduling problems. 
D) All of the above. 
A) Managers do not correctly anticipate changes in wage rates. 
B) Poor materials are used in production. 
C) Supervisors encounter scheduling problems. 
D) All of the above.

Question 19

The yield variance is the portion of the efficiency variance that is not a

Accepted Answer

A) match variance. 
B) mix variance. 
C) quantity variance. 
D) price variance. 
A) match variance. 
B) mix variance. 
C) quantity variance. 
D) price variance.

Question 20

Activity-based costing is commonly used with standard costing.Using more activity drivers increases the potential for managers to

Accepted Answer

A) get much more information from activity-based costing than from the traditional approach. 
B) get much more information from the traditional approach than from activity-based costing. 
C) get the same information from activity-based costing as from the traditional approach. 
D) None of the above. 
A) get much more information from activity-based costing than from the traditional approach. 
B) get much more information from the traditional approach than from activity-based costing. 
C) get the same information from activity-based costing as from the traditional approach. 
D) None of the above.

Which variance(s)are generally calculated to analyze fixed manufacturing overhead 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 price variance for fuel costs?

Why might a material variance arise?

When substituting computerized equipment for direct labor,a firm should treat labor as which of the following?

Which variance measures the efficiency with which the firm uses inputs to produce outputs?

Explain how variable production cost variances are calculated and why they occur.

Which of the following does the cost variance model use to analyze differences between actual and budgeted profits?

Ben's Delivery Company reports the following information for 2010: Actual: Standard: REQUIRED: What was the actual fuel cost,flexible budget for fuel cost,and the fuel cost variance?

JM Company uses standard costing.The company reported the following information for the current period: REQUIRED: Calculate the following variances:

Solving for labor hours.Lance's Engineering Consulting reports the following direct labor information for clerical staff: Required: What are the actual hours worked,rounded to the nearest hour? (Lance's Engineering Consulting;solving for labor hours. )

When multiple inputs are used to produce the output,the efficiency variance can be broken down into which of the following?

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 direct materials efficiency variance.

Houser Parcel Moving Express reports the following information for 2010: Actual: Standard: REQUIRED: Calculate the following:

What is the term that describes the rate companies frequently use to apply fixed overhead costs to units produced?

Why do direct labor variances occur?

The yield variance is the portion of the efficiency variance that is not a

Activity-based costing is commonly used with standard costing.Using more activity drivers increases the potential for managers to

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

Which variance(s)are generally calculated to analyze fixed manufacturing overhead 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 price variance for fuel costs?

Why might a material variance arise?

When substituting computerized equipment for direct labor,a firm should treat labor as which of the following?

Which variance measures the efficiency with which the firm uses inputs to produce outputs?

Explain how variable production cost variances are calculated and why they occur.

Which of the following does the cost variance model use to analyze differences between actual and budgeted profits?

Ben's Delivery Company reports the following information for 2010: Actual: Standard: REQUIRED: What was the actual fuel cost,flexible budget for fuel cost,and the fuel cost variance?

JM Company uses standard costing.The company reported the following information for the current period: REQUIRED: Calculate the following variances:

Solving for labor hours.Lance's Engineering Consulting reports the following direct labor information for clerical staff: Required: What are the actual hours worked,rounded to the nearest hour? (Lance's Engineering Consulting;solving for labor hours. )

When multiple inputs are used to produce the output,the efficiency variance can be broken down into which of the following?

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 direct materials efficiency variance.

Houser Parcel Moving Express reports the following information for 2010: Actual: Standard: REQUIRED: Calculate the following:

What is the term that describes the rate companies frequently use to apply fixed overhead costs to units produced?

Why do direct labor variances occur?

The yield variance is the portion of the efficiency variance that is not a

Activity-based costing is commonly used with standard costing.Using more activity drivers increases the potential for managers to

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