Question 1

Differences between actual costs and standard costs are known as _______________.These differences may be subdivided into ______________ and _________________.
The first answer needs to be entered first;the last two answers need to appear in the second and third blanks and can appear in any order.

Accepted Answer

The answer of Differences between actual costs and standard costs...

Question 2

Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period.

Accepted Answer

A) $12,250 unfavorable. 
B) $14,700 unfavorable. 
C) $14,700 favorable. 
D) $12,250 favorable. 
E) $26,950 favorablE.

Question 3

A company's flexible budget for 60,000 units of production showed sales of $96,000,variable costs of $36,000,and fixed costs of $26,000.What operating income would be expected if the company produces and sells 70,000 units?

Accepted Answer

The answer of A company's flexible budget for 60,000 units...

Question 4

Regent,Inc.uses the following standard to produce a single unit of its product: overhead $6 (2 hrs.@ $3/hr. ).The flexible budget for overhead is $100,000 plus $1 per direct labor hour.Actual data for the month show overhead costs of $150,000,and 24,000 units produced.The overhead volume variance is:

Accepted Answer

A) $10,000 favorable. 
B) $12,000 favorable. 
C) $4,000 unfavorable. 
D) $16,000 unfavorable. 
E) $36,000 unfavorablE.

Question 5

The difference between the actual cost incurred and the standard cost is called the:

Accepted Answer

A) Flexible variance. 
B) Price variance. 
C) Cost variance. 
D) Controllable variance. 
E) Volume variance.

Question 6

A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs,$20,000.The operating income expected if the company produces and sells 18,000 units is:

Accepted Answer

A) $34,000. 
B) $10,000. 
C) $18,667. 
D) $16,000. 
E) $24,000.

Question 7

The following information comes from the flexible budget performance report of Jackal Corp.for the current period.Prepare the journal entries to charge direct materials and direct labor costs to work in process and the materials and labor variances to their proper accounts.

Accepted Answer

The answer of The following information comes from the flexible...

Question 8

At the end of the accounting period,immaterial variances are closed to _____________.

Accepted Answer

The answer of At the end of the accounting period,immaterial...

Question 9

Tiger,Inc.budgeted the following overhead costs for the current year assuming operations at 80% of capacity,or 40,000 units:  The standard cost per unit when operating at this same 80% capacity level is:  The actual production achieved in the current year was 60% of capacity,or 30,000 units.The actual costs were:  Calculate the following variances and indicate whether each is favorable or unfavorable.

Accepted Answer

The answer of Tiger,Inc.budgeted the following overhead costs for the...

Question 10

In the analysis of variances,management commonly focuses on four categories of production costs: __________________ cost,___________________ cost;_____________ cost;and _________________ cost.
Answers can appear in any order.

Accepted Answer

The answer of In the analysis of variances,management commonly focuses...

Question 11

__________ are preset costs for delivering a product or service under normal conditions.

Accepted Answer

The answer of __________ are preset costs for delivering a...

Question 12

A flexible budget expresses variable costs on a per unit basis and fixed costs on a total basis.

Accepted Answer

A) True 
 B)False

Question 13

Claremont Company specializes in selling refurbished copiers.During the month,the company sold 180 copiers for total sales of $540,000.The budget for the month was to sell 175 copiers at an average price of $3,200.The sales price variance for the month was.

Accepted Answer

A) $20,000 unfavorable. 
B) $20,000 favorable. 
C) $36,000 unfavorable. 
D) $32,000 unfavorable. 
E) $36,000 favorablE.AS * AP Given = $540,000

Question 14

When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period,the cost variances should be:

Accepted Answer

A) Carried forward to the next accounting period. 
B) Allocated between cost of goods sold,finished goods,and work in process. 
C) Closed to cost of goods sold. 
D) Written off as a selling expense. 
E) Ignored.

Question 15

A company's flexible budget for 36,000 units of production showed variable overhead costs of $54,000 and fixed overhead costs of $50,000.The company actually incurred total overhead costs of $95,300 while operating at a volume of 32,000 units.What is the controllable variance?

Accepted Answer

The answer of A company's flexible budget for 36,000 units...

Question 16

Product A has a sales price of $10 per unit.Based on a 10,000-unit production level,the variable costs are $6 per unit and the fixed costs are $3 per unit.Using a flexible budget for 12,500 units,what is the budgeted operating income from Product A?

Accepted Answer

A) $12,500. 
B) $25,000. 
C) $20,000. 
D) $30,000. 
E) $35,000.

Question 17

When recording variances in a standard cost system:

Accepted Answer

A) Only unfavorable material variances are debited. 
B) Only unfavorable material variances are credited. 
C) Both unfavorable material and labor variances are credited. 
D) All unfavorable variances are debited. 
E) All unfavorable variances are credited.

Question 18

Variable budget is another name for a flexible budget.

Accepted Answer

A) True 
 B)False

Question 19

Standard costs can be used by management to assess the reasonableness of actual costs incurred.

Accepted Answer

A) True 
 B)False

Question 20

When computing a price variance,the price is held constant.

Accepted Answer

A) True 
 B)False

Exam 23: Flexible Budgets and Standard Costs

Differences between actual costs and standard costs are known as _.These differences may be subdivided into and _____. The first answer needs to be entered first;the last two answers need to appear in the second and third blanks and can appear in any order.

Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period.

A company's flexible budget for 60,000 units of production showed sales of $96,000,variable costs of $36,000,and fixed costs of $26,000.What operating income would be expected if the company produces and sells 70,000 units?

The difference between the actual cost incurred and the standard cost is called the:

A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs,$20,000.The operating income expected if the company produces and sells 18,000 units is:

The following information comes from the flexible budget performance report of Jackal Corp.for the current period.Prepare the journal entries to charge direct materials and direct labor costs to work in process and the materials and labor variances to their proper accounts.

At the end of the accounting period,immaterial variances are closed to _____________.

In the analysis of variances,management commonly focuses on four categories of production costs: ______ cost,_ cost;_ cost;and ___________ cost. Answers can appear in any order.

__________ are preset costs for delivering a product or service under normal conditions.

A flexible budget expresses variable costs on a per unit basis and fixed costs on a total basis.

Claremont Company specializes in selling refurbished copiers.During the month,the company sold 180 copiers for total sales of $540,000.The budget for the month was to sell 175 copiers at an average price of $3,200.The sales price variance for the month was.

When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period,the cost variances should be:

A company's flexible budget for 36,000 units of production showed variable overhead costs of $54,000 and fixed overhead costs of $50,000.The company actually incurred total overhead costs of $95,300 while operating at a volume of 32,000 units.What is the controllable variance?

Product A has a sales price of $10 per unit.Based on a 10,000-unit production level,the variable costs are $6 per unit and the fixed costs are $3 per unit.Using a flexible budget for 12,500 units,what is the budgeted operating income from Product A?

When recording variances in a standard cost system:

Variable budget is another name for a flexible budget.

Standard costs can be used by management to assess the reasonableness of actual costs incurred.

When computing a price variance,the price is held constant.

Exam 23: Flexible Budgets and Standard Costs

Differences between actual costs and standard costs are known as _______________.These differences may be subdivided into ______________ and _________________. The first answer needs to be entered first;the last two answers need to appear in the second and third blanks and can appear in any order.

Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period.

A company's flexible budget for 60,000 units of production showed sales of $96,000,variable costs of $36,000,and fixed costs of $26,000.What operating income would be expected if the company produces and sells 70,000 units?

The difference between the actual cost incurred and the standard cost is called the:

A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs,$20,000.The operating income expected if the company produces and sells 18,000 units is:

The following information comes from the flexible budget performance report of Jackal Corp.for the current period.Prepare the journal entries to charge direct materials and direct labor costs to work in process and the materials and labor variances to their proper accounts.

At the end of the accounting period,immaterial variances are closed to _____________.

In the analysis of variances,management commonly focuses on four categories of production costs: __________________ cost,___________________ cost;_____________ cost;and _________________ cost. Answers can appear in any order.

__________ are preset costs for delivering a product or service under normal conditions.

A flexible budget expresses variable costs on a per unit basis and fixed costs on a total basis.

Claremont Company specializes in selling refurbished copiers.During the month,the company sold 180 copiers for total sales of $540,000.The budget for the month was to sell 175 copiers at an average price of $3,200.The sales price variance for the month was.

When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period,the cost variances should be:

A company's flexible budget for 36,000 units of production showed variable overhead costs of $54,000 and fixed overhead costs of $50,000.The company actually incurred total overhead costs of $95,300 while operating at a volume of 32,000 units.What is the controllable variance?

Product A has a sales price of $10 per unit.Based on a 10,000-unit production level,the variable costs are $6 per unit and the fixed costs are $3 per unit.Using a flexible budget for 12,500 units,what is the budgeted operating income from Product A?

When recording variances in a standard cost system:

Variable budget is another name for a flexible budget.

Standard costs can be used by management to assess the reasonableness of actual costs incurred.

When computing a price variance,the price is held constant.

Differences between actual costs and standard costs are known as _.These differences may be subdivided into and _____. The first answer needs to be entered first;the last two answers need to appear in the second and third blanks and can appear in any order.

In the analysis of variances,management commonly focuses on four categories of production costs: ______ cost,_ cost;_ cost;and ___________ cost. Answers can appear in any order.