Question 1

Which of the following are service organisations not required to do?

Accepted Answer

A)  Plan overhead costs 
B)  Control overhead costs 
C)  Determine product costing 
D)  Plan and control overhead costs 
A)  Plan overhead costs 
B)  Control overhead costs 
C)  Determine product costing 
D)  Plan and control overhead costs

Question 2

Carvelle Cabinets set the following standard cost per unit for 2008.  
The standards were set based on a capacity of 20 000 machine hours.
During the year, 5100 units were produced.  
How many units had Carvelle budgeted to produce?

Accepted Answer

A)  5100 
B)  5000 
C)  20 000 
D)  Insufficient information to determine 
A)  5100 
B)  5000 
C)  20 000 
D)  Insufficient information to determine

Question 3

A particular company incurs actual overhead of $10 per unit produced. The company's budgeted (standard) overhead cost per unit produced is $9 per unit. Overhead is applied based on machine hours. If the company's actual machine hours worked was 1000, and standard hours allowed for units produced in the period was 1100 hours, what amount would be debited to work in process for overhead if the company used actual costing, normal costing and standard costing respectively?

Accepted Answer

A)  $11 000; $9 900; $9 000 
B)  $11 000; $9 000; $9 900 
C)  $10 000; $9 900; $9 000 
D)  $10 000; $9 000; $9 900 
A)  $11 000; $9 900; $9 000 
B)  $11 000; $9 000; $9 900 
C)  $10 000; $9 900; $9 000 
D)  $10 000; $9 000; $9 900

Question 4

Which of the following is not a limitation of standard costing system?

Accepted Answer

A)  Standard costing system takes a process perspective rather than a departmental perspective. 
B)  Standard costing system becomes outdated easily. 
C)  Standard costing systems do not encourage continuous improvement 
D)  Standard costing system focuses on the consequences rather than the causes of variances. 
A)  Standard costing system takes a process perspective rather than a departmental perspective. 
B)  Standard costing system becomes outdated easily. 
C)  Standard costing systems do not encourage continuous improvement 
D)  Standard costing system focuses on the consequences rather than the causes of variances.

Question 5

An overhead cost performance report is composed of the

Accepted Answer

A)  actual and budgeted costs for each overhead item. 
B)  variable overhead spending and efficiency variances. 
C)  fixed overhead budget variance along with actual and budgeted costs for each overhead item. 
D)  variable overhead spending and efficiency variances, fixed overhead budget variance, and actual and budgeted costs for each overhead item. 
A)  actual and budgeted costs for each overhead item. 
B)  variable overhead spending and efficiency variances. 
C)  fixed overhead budget variance along with actual and budgeted costs for each overhead item. 
D)  variable overhead spending and efficiency variances, fixed overhead budget variance, and actual and budgeted costs for each overhead item.

Question 6

The fixed overhead budget variance compares

Accepted Answer

A)  actual variable overhead with actual fixed overhead. 
B)  budgeted variable overhead with budgeted fixed overhead. 
C)  actual fixed overhead with budgeted fixed overhead. 
D)  actual total cost of units produced with the budgeted production. 
A)  actual variable overhead with actual fixed overhead. 
B)  budgeted variable overhead with budgeted fixed overhead. 
C)  actual fixed overhead with budgeted fixed overhead. 
D)  actual total cost of units produced with the budgeted production.

Question 7

Carvelle Cabinets set the following standard cost per unit for 2008.  
The standards were set based on a capacity of 20 000 machine hours.
During the year, 5100 units were produced.  
What was Carvelle's variable overhead efficiency variance?

Accepted Answer

A)  $4800 favourable 
B)  $2550 unfavourable 
C)  $7350 unfavourable 
D)  $4800 unfavourable 
A)  $4800 favourable 
B)  $2550 unfavourable 
C)  $7350 unfavourable 
D)  $4800 unfavourable

Question 8

Which of the following budgets allow managers to select the most appropriate benchmark for cost control?

Accepted Answer

A)  Manufacturing budget 
B)  Static budget 
C)  Flexible budget 
D)  Overhead budget 
A)  Manufacturing budget 
B)  Static budget 
C)  Flexible budget 
D)  Overhead budget

Question 9

Carvelle Cabinets set the following standard cost per unit for 2008.  
The standards were set based on a capacity of 20 000 machine hours.
During the year, 5100 units were produced.  
What was Carvelle's variable overhead spending variance?

Accepted Answer

A)  $7350 unfavourable 
B)  $2550 unfavourable 
C)  $4800 favourable 
D)  $7350 favourable 
A)  $7350 unfavourable 
B)  $2550 unfavourable 
C)  $4800 favourable 
D)  $7350 favourable

Which of the following are service organisations not required to do?

Carvelle Cabinets set the following standard cost per unit for 2008. The standards were set based on a capacity of 20 000 machine hours. During the year, 5100 units were produced. How many units had Carvelle budgeted to produce?

Which of the following is not a limitation of standard costing system?

An overhead cost performance report is composed of the

The fixed overhead budget variance compares

Carvelle Cabinets set the following standard cost per unit for 2008. The standards were set based on a capacity of 20 000 machine hours. During the year, 5100 units were produced. What was Carvelle's variable overhead efficiency variance?

Which of the following budgets allow managers to select the most appropriate benchmark for cost control?

Carvelle Cabinets set the following standard cost per unit for 2008. The standards were set based on a capacity of 20 000 machine hours. During the year, 5100 units were produced. What was Carvelle's variable overhead spending variance?

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters

Exam 11: Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Which of the following are service organisations not required to do?

Carvelle Cabinets set the following standard cost per unit for 2008. The standards were set based on a capacity of 20 000 machine hours. During the year, 5100 units were produced. How many units had Carvelle budgeted to produce?

Which of the following is not a limitation of standard costing system?

An overhead cost performance report is composed of the

The fixed overhead budget variance compares

Carvelle Cabinets set the following standard cost per unit for 2008. The standards were set based on a capacity of 20 000 machine hours. During the year, 5100 units were produced. What was Carvelle's variable overhead efficiency variance?

Which of the following budgets allow managers to select the most appropriate benchmark for cost control?

Carvelle Cabinets set the following standard cost per unit for 2008. The standards were set based on a capacity of 20 000 machine hours. During the year, 5100 units were produced. What was Carvelle's variable overhead spending variance?

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters