Question 1

A simple method used to analyze the fixed and variable components in semivariable costs is called the ____________________ point method.

Accepted Answer

The answer of A simple method used to analyze the...

Question 2

As the volume of output increases, the ____________________ cost per unit of output decreases.

Accepted Answer

The answer of As the volume of output increases, the...

Question 3

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

Accepted Answer

A)  similar to actual. 
B)  less than actual. 
C)  more than actual. 
D)  a reasonable/logical activity measure. 
A)  similar to actual. 
B)  less than actual. 
C)  more than actual. 
D)  a reasonable/logical activity measure.

Question 4

In order to analyze the differences between actual costs and standard costs, it is necessary to identify the fixed and variable components of semi-variable costs.

Accepted Answer

A) True 
 B)False

Question 5

As the level of activity increases, the total fixed costs for the period

Accepted Answer

A)  increase. 
B)  decrease. 
C)  may increase or decrease. 
D)  do not change. 
A)  increase. 
B)  decrease. 
C)  may increase or decrease. 
D)  do not change.

Question 6

An analysis would indicate

Accepted Answer

A)  a $5,000 unfavorable materials quantity variance 
B)  a $7,600 favorable materials quantity variance. 
C)  a $2,600 favorable materials quantity variance. 
D)  a $7,600 unfavorable materials quantity variance. (actual quantity - standard quantity) x standard price = (13,000 - (4,000 x 3)) x 5 = 5,000 unfavorable. 
A)  a $5,000 unfavorable materials quantity variance 
B)  a $7,600 favorable materials quantity variance. 
C)  a $2,600 favorable materials quantity variance. 
D)  a $7,600 unfavorable materials quantity variance. (actual quantity - standard quantity) x standard price = (13,000 - (4,000 x 3)) x 5 = 5,000 unfavorable.

Question 7

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are called ____________________ costs.

Accepted Answer

The answer of Costs that reflect what costs should be...

Question 8

A budget prepared using several differing levels of activity is a

Accepted Answer

A)  fixed budget. 
B)  flexible budget. 
C)  manufacturing cost budget. 
D)  budget performance report. 
A)  fixed budget. 
B)  flexible budget. 
C)  manufacturing cost budget. 
D)  budget performance report.

Question 9

A budget that shows expected costs at only one level of production activity is called a(n) ____________________ budget.

Accepted Answer

The answer of A budget that shows expected costs at...

Question 10

An unfavorable price variance for materials means that

Accepted Answer

A)  the actual cost of the materials was more than the budgeted amount. 
B)  more materials were used in production than anticipated. 
C)  more labor hours were required to work with the materials than expected. 
D)  the actual cost of the materials was more than the standard cost. 
A)  the actual cost of the materials was more than the budgeted amount. 
B)  more materials were used in production than anticipated. 
C)  more labor hours were required to work with the materials than expected. 
D)  the actual cost of the materials was more than the standard cost.

Question 11

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are known as

Accepted Answer

A)  variable costs. 
B)  fixed costs. 
C)  standard costs. 
D)  semi-variable costs. 
A)  variable costs. 
B)  fixed costs. 
C)  standard costs. 
D)  semi-variable costs.

Question 12

Match the following descriptions with the appropriate term.

Accepted Answer

The answer of Match the following descriptions with the appropriate...

Question 13

Direct factory labor is usually considered to be

Accepted Answer

A)  a variable cost. 
B)  a fixed cost. 
C)  a semi-variable cost. 
D)  a mixed cost. 
A)  a variable cost. 
B)  a fixed cost. 
C)  a semi-variable cost. 
D)  a mixed cost.

Question 14

A key purpose of a manufacturing cost budget is to provide a basis for measuring performance.

Accepted Answer

A) True 
 B)False

Question 15

Determine the cost behavior for each of the following items as Fixed (F), Variable (V), or Semi-variable (S). $\begin{array}{c}
\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Production Level }\
\begin{array}{lll}
\
\underline{\quad\quad}1. &\text {Production Supervisor's Salary}\
\underline{\quad\quad}2.&\text { Direct Materials}\
\underline{\quad\quad}3.&\text { Factory Wages}\
\underline{\quad\quad}4.&\text { Utilities for machines}\
\underline{\quad\quad}5.&\text { Lights, Heating \& Cooling}\
\underline{\quad\quad}6.&\text { Repair and Maintenance}\
\underline{\quad\quad}7.&\text { Janitorial Expense}\
\underline{\quad\quad}8. &\text {Property Taxes}\
\underline{\quad\quad}9. &\text {Transportation Expense}\
\underline{\quad\quad}10. &\text {Reengineering Expense}
\end{array}
\begin{array}{rr}
10,000 & 12,500 \
30,000 & 30,000 \
140,000 & 175,000 \
76,000 & 95,000 \
13,500 & 16,875 \
20,000 & 20,000 \
34,000 & 48,000 \
12,500 & 12,500 \
4,256 & 4,256 \
6,000 & 7,000 \
5,000 & 9,000
\end{array}
\end{array}$

Accepted Answer

(1) F, (2) V, (3) V,

Question 16

As the volume of output decreases, the fixed cost per unit of output increases.

Accepted Answer

A) True 
 B)False

Question 17

Develop the standard costs from the information given. Morlee Corporation makes three models of storage sheds. Model JB102 a 10' by 12' model that looks Victorian with windows, shutters and gingerbread along the roof line, is Morlee's most popular model. Direct materials for the JB102 consists of $66.00 for 7 sheets of pressed board, $59.00 for 2 x 4's for framing, $22.00 for roofing shingles, and $17.00 for aluminum siding. The nails, glue and other indirect materials for the company total $38,880 per year and are applied based on direct labor hours. The total direct labor hours for Morlee for one year are estimated to be 8,000 per year. Direct labor for each JB 102 is estimated to be 7 hours. The average hourly rate at Morelee is $14.50. Prepare a standard cost card for Model JB102. Units and per unit amount for material can be omitted.

Accepted Answer

The answer of Develop the standard costs from the information...

Question 18

Which of the following costs are generally semi-variable?

Accepted Answer

A)  clerical salaries 
B)  depreciation 
C)  repairs and maintenance 
D)  property taxes 
A)  clerical salaries 
B)  depreciation 
C)  repairs and maintenance 
D)  property taxes

Question 19

The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

Accepted Answer

A)  the standard cost of the item. 
B)  the actual cost of the item. 
C)  the price variance. 
D)  the budgeted amount for the item. 
A)  the standard cost of the item. 
B)  the actual cost of the item. 
C)  the price variance. 
D)  the budgeted amount for the item.

Question 20

The setting of standard wage rates is usually a function of the personnel department.

Accepted Answer

A) True 
 B)False

A simple method used to analyze the fixed and variable components in semivariable costs is called the ____________________ point method.

As the volume of output increases, the ____________________ cost per unit of output decreases.

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

In order to analyze the differences between actual costs and standard costs, it is necessary to identify the fixed and variable components of semi-variable costs.

As the level of activity increases, the total fixed costs for the period

An analysis would indicate

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are called ____________________ costs.

A budget prepared using several differing levels of activity is a

A budget that shows expected costs at only one level of production activity is called a(n) ____________________ budget.

An unfavorable price variance for materials means that

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are known as

Match the following descriptions with the appropriate term.

Direct factory labor is usually considered to be

A key purpose of a manufacturing cost budget is to provide a basis for measuring performance.

As the volume of output decreases, the fixed cost per unit of output increases.

Which of the following costs are generally semi-variable?

The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

The setting of standard wage rates is usually a function of the personnel department.

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Cost-Revenue Analysis for Decision Making

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Exam 29: Controlling Manufacturing Costs: Standard Costs

A simple method used to analyze the fixed and variable components in semivariable costs is called the ____________________ point method.

As the volume of output increases, the ____________________ cost per unit of output decreases.

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

In order to analyze the differences between actual costs and standard costs, it is necessary to identify the fixed and variable components of semi-variable costs.

As the level of activity increases, the total fixed costs for the period

An analysis would indicate

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are called ____________________ costs.

A budget prepared using several differing levels of activity is a

A budget that shows expected costs at only one level of production activity is called a(n) ____________________ budget.

An unfavorable price variance for materials means that

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are known as

Match the following descriptions with the appropriate term.

Direct factory labor is usually considered to be

A key purpose of a manufacturing cost budget is to provide a basis for measuring performance.

As the volume of output decreases, the fixed cost per unit of output increases.

Which of the following costs are generally semi-variable?

The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by

The setting of standard wage rates is usually a function of the personnel department.

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Cost-Revenue Analysis for Decision Making

Filters