Question 1

What was the variable overhead spending variance?

Accepted Answer

A)   $740 favourable.
B)   $740 unfavourable.
C)   $820 favourable.
D)   $820 unfavourable.E) C) and D)
F) A) and B)

Question 2

If a company follows a practice of isolating variances at the earliest point in time,what would be the appropriate time to isolate and recognize a direct material price variance?

Accepted Answer

A)   When material is issued.
B)   When material is purchased.
C)   When material is used in production.
D)   When production is completeD.E) All of the above
F) B) and D)

Question 3

(Appendix 10C) The sales quantity variance is calculated by holding constant which of the following?

Accepted Answer

A)   The budgeted sales mix percentages.
B)   The actual sales mix percentages.
C)   The budgeted contribution margin per unit.
D)   Both the budgeted sales mix percentages and the budgeted contribution margin per unit.E) All of the above
F) C) and D)

Question 4

(Appendix 10C) What was the market volume variance for last year?

Accepted Answer

A)   $18,375.00 favourable.
B)   $19,687.50 favourable.
C)   $21,875.00 favourable.
D)   $21,875.00 unfavourable.E) C) and D)
F) None of the above

Question 5

What was the direct labour efficiency variance for March?

Accepted Answer

A)   $5,500 favourable.
B)   $5,500 unfavourable.
C)   $5,625 favourable.
D)   $5,625 unfavourable.E) A) and B)
F) All of the above

Question 6

What was the predetermined fixed overhead rate,rounded to the nearest cent?

Accepted Answer

A)   $11.94.
B)   $12.24.
C)   $13.55.
D)   $13.87.E) A) and B)
F) A) and C)

Question 7

The following materials standards have been established for a particular product: 
The following data pertain to operations concerning the product for the last month: 
What was the materials quantity variance for the month?

Accepted Answer

A)   $6,664 favourable.
B)   $6,732 favourable.
C)   $13,720 unfavourable.
D)   $13,860 unfavourable.E) B) and D)
F) All of the above

Question 8

The Fletcher Company uses standard costing.The following data are available for October: 
What was the standard quantity of material allowed for October production?

Accepted Answer

A)   23,000 kilograms.
B)   24,000 kilograms.
C)   24,500 kilograms.
D)   25,000 kilograms.E) B) and C)
F) A) and D)

Question 9

The material quantity variance is computed based on the quantity of all materials purchased during the period.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

Accepted Answer

A)   Variable overhead spending variance.
B)   Variable overhead efficiency variance.
C)   Fixed overhead budget variance.
D)   Fixed overhead volume variance.E) All of the above
F) C) and D)

Question 11

Standards can be either theoretical ("impossible dream")or practical (attainable all the time or only part of the time).Theoretically either can be used as the framework for the budgeting process.
Required:
a)What is the major distinction,if any,between a standard amount and a budgeted amount?
b)Which standard,theoretical or practical,provides the better benchmark for evaluating subsequent performance in a budgeting system? Explain.

Accepted Answer

a)One major distinction between a standa...

Question 12

A decrease in denominator level of activity will lead to which of the following?

Accepted Answer

A)   A decrease in the fixed portion of the predetermined overhead rate.
B)   An increase in the fixed portion of the predetermined overhead rate.
C)   A decrease in the variable portion of the predetermined overhead rate.
D)   An increase in the variable portion of the predetermined overhead rate.E) None of the above
F) A) and B)

Question 13

What was the total predetermined overhead rate,rounded to the nearest cent?

Accepted Answer

A)   $19.30.
B)   $19.65.
C)   $19.80.
D)   $20.15.E) None of the above
F) All of the above

Question 14

(Appendix 10B)A favourable labour efficiency variance would result in a credit balance in the labour efficiency variance account.

Accepted Answer

A) True 
 B)False

Question 15

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Accepted Answer

A)   $1,352 unfavourable.
B)   $1,359 unfavourable.
C)   $2,550 favourable.
D)   $3,902 unfavourable.E) A) and D)
F) None of the above

Question 16

(Appendix 10B) Which of the following entries would correctly record the charging of direct labour costs to Work in Process given an unfavourable labour efficiency variance and a favourable labour rate variance?

Accepted Answer

A)   A debit to Work in Process,and credits to Labour Efficiency Variance,Labour Rate Variance,and Wages Payable.
B)   A debit to Work in Process and an equal credit to Wages Payable.
C)   Debits to Work in Process and Labour Efficiency Variance,and credits to Labour Rate Variance and Wages Payable.
D)   Debits to Work in Process and Labour Rate Variance,and credits to Labour Efficiency Variance and Wages Payable.E) All of the above
F) B) and C)

Question 17

What was the labour efficiency variance for the month?

Accepted Answer

A)   $7,230 favourable.
B)   $7,230 unfavourable.
C)   $9,030 unfavourable.
D)   $9,150 unfavourable.E) B) and C)
F) A) and B)

Question 18

What was the total standard cost for variable overhead for May?

Accepted Answer

A)   $40,000.
B)   $50,000.
C)   $56,000.
D)   $60,000.E) B) and D)
F) B) and C)

Question 19

What was the variable overhead spending variance for the year?

Accepted Answer

A)   $2,000 favourable.
B)   $10,000 unfavourable.
C)   $82,000 unfavourable.
D)   $110,000 unfavourable.E) All of the above
F) B) and C)

Question 20

What was the materials price variance for the month?

Accepted Answer

A)   $3,640 favourable.
B)   $3,640 unfavourable.
C)   $4,060 favourable.
D)   $4,060 unfavourable.E) B) and C)
F) C) and D)

Exam 10: Standard Costs and Overhead Analysis

What was the materials price variance for the month?

Correct Answer
verified

What was the variable overhead spending variance?

Correct Answer
verified

(Appendix 10C) The sales quantity variance is calculated by holding constant which of the following?

Correct Answer
verified

The material quantity variance is computed based on the quantity of all materials purchased during the period.

Correct Answer
verified

What was the predetermined fixed overhead rate,rounded to the nearest cent?

Correct Answer
verified

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What was the materials quantity variance for the month?

Correct Answer
verified

What was the variable overhead spending variance for the year?

Correct Answer
verified

A decrease in denominator level of activity will lead to which of the following?

Correct Answer
verified

(Appendix 10B)A favourable labour efficiency variance would result in a credit balance in the labour efficiency variance account.

Correct Answer
verified

(Appendix 10B) Which of the following entries would correctly record the charging of direct labour costs to Work in Process given an unfavourable labour efficiency variance and a favourable labour rate variance?

Correct Answer
verified

If a company follows a practice of isolating variances at the earliest point in time,what would be the appropriate time to isolate and recognize a direct material price variance?

Correct Answer
verified

What was the total standard cost for variable overhead for May?

Correct Answer
verified

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Correct Answer
verified

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

Correct Answer
verified

The Fletcher Company uses standard costing.The following data are available for October: What was the standard quantity of material allowed for October production?

Correct Answer
verified

What was the direct labour efficiency variance for March?

Correct Answer
verified

(Appendix 10C) What was the market volume variance for last year?

Correct Answer
verified

What was the labour efficiency variance for the month?

Correct Answer
verified

What was the total predetermined overhead rate,rounded to the nearest cent?

Correct Answer
verified

Correct Answer
verified
a)One major distinction between a standa...
View Answer

Exam 10: Standard Costs and Overhead Analysis

What was the materials price variance for the month?

Correct AnswerverifiedShow Answer

What was the variable overhead spending variance?

Correct AnswerverifiedShow Answer

(Appendix 10C) The sales quantity variance is calculated by holding constant which of the following?

Correct AnswerverifiedShow Answer

The material quantity variance is computed based on the quantity of all materials purchased during the period.

Correct AnswerverifiedShow Answer

What was the predetermined fixed overhead rate,rounded to the nearest cent?

Correct AnswerverifiedShow Answer

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What was the materials quantity variance for the month?

Correct AnswerverifiedShow Answer

What was the variable overhead spending variance for the year?

Correct AnswerverifiedShow Answer

A decrease in denominator level of activity will lead to which of the following?

Correct AnswerverifiedShow Answer

(Appendix 10B)A favourable labour efficiency variance would result in a credit balance in the labour efficiency variance account.

Correct AnswerverifiedShow Answer

(Appendix 10B) Which of the following entries would correctly record the charging of direct labour costs to Work in Process given an unfavourable labour efficiency variance and a favourable labour rate variance?

Correct AnswerverifiedShow Answer

If a company follows a practice of isolating variances at the earliest point in time,what would be the appropriate time to isolate and recognize a direct material price variance?

Correct AnswerverifiedShow Answer

What was the total standard cost for variable overhead for May?

Correct AnswerverifiedShow Answer

What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Correct AnswerverifiedShow Answer

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

Correct AnswerverifiedShow Answer

The Fletcher Company uses standard costing.The following data are available for October: What was the standard quantity of material allowed for October production?

Correct AnswerverifiedShow Answer

What was the direct labour efficiency variance for March?

Correct AnswerverifiedShow Answer

(Appendix 10C) What was the market volume variance for last year?

Correct AnswerverifiedShow Answer

What was the labour efficiency variance for the month?

Correct AnswerverifiedShow Answer

What was the total predetermined overhead rate,rounded to the nearest cent?

Correct AnswerverifiedShow Answer

Correct Answerverifieda)One major distinction between a standa...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a)One major distinction between a standa...
View Answer