Question 1

The budgeted volume of production is based on the sum of (1)the expected sales volume and (2)the desired ending inventory,less (3)the estimated beginning inventory.

Accepted Answer

A) True 
 B)False

Question 2

Compute the standard cost for one hat,based on the following standards for each hat:

Accepted Answer

The answer of Compute the standard cost for one hat,based...

Question 3

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the rate variance was $1,200 favorable.

Accepted Answer

A) True 
 B)False

Question 4

Production and sales estimates for June are as follows:

The number of units expected to be manufactured in June is

Accepted Answer

A)  10,000.
B)  12,000.
C)  13,000.
D)  12,500.E) B) and C)
F) B) and D)

Question 5

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost budget.

Accepted Answer

A) True 
 B)False

Question 6

The following data relate to direct materials costs for November:
 
-What is the direct materials quantity variance?

Accepted Answer

A)  $550 unfavorable
B)  $550 favorable
C)  $600 favorable
D)  $600 unfavorableE) None of the above
F) C) and D)

Question 7

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds
actual cost.

Accepted Answer

A) True 
 B)False

Question 8

The difference between the standard cost of a product and its actual cost is called a variance.

Accepted Answer

A) True 
 B)False

Question 9

The cash budget summarizes future plans for acquisition of fixed assets.

Accepted Answer

A) True 
 B)False

Question 10

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows:
  
Determine the (a)time variance, (b)rate variance,and (c)total direct labor cost variance.

Accepted Answer

The answer of Standard and actual costs for direct labor...

Question 11

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% capacity of 80,000 machine hours.The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:

What is the amount of the fixed factory overhead volume variance?

Accepted Answer

A)  $26,000 unfavorable
B)  $12,000 favorable
C)  $26,000 favorable
D)  $12,000 unfavorableE) B) and C)
F) B) and D)

Question 12

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called continuous budgeting.

Accepted Answer

A) True 
 B)False

Question 13

The capital expenditures budget summarizes future plans for acquisition of fixed assets.

Accepted Answer

A) True 
 B)False

Question 14

Using a standard costing system for nonmanufacturing expenses is easily administered because the expenses generally relate to a repetitive,measurable output.

Accepted Answer

A) True 
 B)False

Question 15

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity,the variance is termed

Accepted Answer

A)  controllable variance.
B)  price variance.
C)  quantity variance.
D)  rate variance.E) C) and D)
F) B) and C)

Question 16

Standards that represent levels of operation that can be attained with reasonable effort are called

Accepted Answer

A)  theoretical standards.
B)  ideal standards.
C)  reasonable standards.
D)  normal standards.E) A) and B)
F) B) and C)

Question 17

The following data is given for the Walker Company:

Overhead is applied on standard labor hours.
The factory overhead controllable variance is

Accepted Answer

A)  $65 unfavorable.
B)  $65 favorable.
C)  $250 unfavorable.
D)  $250 favorable.E) None of the above
F) A) and B)

Question 18

The cash collections from accounts receivable in November are

Accepted Answer

A)  $305,200.
B)  $294,000.
C)  $235,200.
D)  $381,500.E) All of the above
F) None of the above

Question 19

The standard price and quantity of direct materials are separated because

Accepted Answer

A)  GAAP reporting requires this separation.
B)  direct materials prices are controlled by the purchasing department,and quantity used is controlled by the production department.
C)  standard quantities are more difficult to estimate than standard prices.
D)  standard prices change more frequently than standard quantities.E) A) and B)
F) A) and C)

Question 20

The budget process involves doing all the following EXCEPT

Accepted Answer

A)  establishing specific goals.
B)  executing plans to achieve the goals.
C)  periodically comparing actual results with the goals.
D)  dismissing all managers who fail to achieve operational goals specified in the budget.E) A) and B)
F) C) and D)

Exam 13: Budgeting and Standard Cost Systems

Compute the standard cost for one hat,based on the following standards for each hat:

Correct Answer
verified

Correct Answer
verified

Using a standard costing system for nonmanufacturing expenses is easily administered because the expenses generally relate to a repetitive,measurable output.

Correct Answer
verified

The difference between the standard cost of a product and its actual cost is called a variance.

Correct Answer
verified

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: Determine the (a)time variance, (b)rate variance,and (c)total direct labor cost variance.

Correct Answer
verified

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the rate variance was $1,200 favorable.

Correct Answer
verified

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost budget.

Correct Answer
verified

The budget process involves doing all the following EXCEPT

Correct Answer
verified

The standard price and quantity of direct materials are separated because

Correct Answer
verified

The cash budget summarizes future plans for acquisition of fixed assets.

Correct Answer
verified

Standards that represent levels of operation that can be attained with reasonable effort are called

Correct Answer
verified

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called continuous budgeting.

Correct Answer
verified

The following data is given for the Walker Company: Overhead is applied on standard labor hours. The factory overhead controllable variance is

Correct Answer
verified

The cash collections from accounts receivable in November are

Correct Answer
verified

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity,the variance is termed

Correct Answer
verified

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is

Correct Answer
verified

The budgeted volume of production is based on the sum of (1)the expected sales volume and (2)the desired ending inventory,less (3)the estimated beginning inventory.

Correct Answer
verified

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds actual cost.

Correct Answer
verified

The capital expenditures budget summarizes future plans for acquisition of fixed assets.

Correct Answer
verified

The following data relate to direct materials costs for November: -What is the direct materials quantity variance?

Correct Answer
verified

Exam 13: Budgeting and Standard Cost Systems

Compute the standard cost for one hat,based on the following standards for each hat:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Using a standard costing system for nonmanufacturing expenses is easily administered because the expenses generally relate to a repetitive,measurable output.

Correct AnswerverifiedShow Answer

The difference between the standard cost of a product and its actual cost is called a variance.

Correct AnswerverifiedShow Answer

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: Determine the (a)time variance, (b)rate variance,and (c)total direct labor cost variance.

Correct AnswerverifiedShow Answer

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the rate variance was $1,200 favorable.

Correct AnswerverifiedShow Answer

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost budget.

Correct AnswerverifiedShow Answer

The budget process involves doing all the following EXCEPT

Correct AnswerverifiedShow Answer

The standard price and quantity of direct materials are separated because

Correct AnswerverifiedShow Answer

The cash budget summarizes future plans for acquisition of fixed assets.

Correct AnswerverifiedShow Answer

Standards that represent levels of operation that can be attained with reasonable effort are called

Correct AnswerverifiedShow Answer

A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future is called continuous budgeting.

Correct AnswerverifiedShow Answer

The following data is given for the Walker Company: Overhead is applied on standard labor hours. The factory overhead controllable variance is

Correct AnswerverifiedShow Answer

The cash collections from accounts receivable in November are

Correct AnswerverifiedShow Answer

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity,the variance is termed

Correct AnswerverifiedShow Answer

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is

Correct AnswerverifiedShow Answer

The budgeted volume of production is based on the sum of (1)the expected sales volume and (2)the desired ending inventory,less (3)the estimated beginning inventory.

Correct AnswerverifiedShow Answer

An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds actual cost.

Correct AnswerverifiedShow Answer

The capital expenditures budget summarizes future plans for acquisition of fixed assets.

Correct AnswerverifiedShow Answer

The following data relate to direct materials costs for November: -What is the direct materials quantity variance?

Correct AnswerverifiedShow Answer

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