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When recording variances in a standard cost 1. Price Company's flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.00 per direct labor hour based on a budgeted operating level of 6,120 direct labor hours (90% of capacity). If overhead actually incurred was $11,183 during May, the controllable varia ...

Other / Other 12 Apr 2016

An internal report that helps management analyze 1. An internal report that helps management analyze the difference between actual performance and budgeted performance based on the actual sales volume (or other level of activity), and which presents the differences between actual and budgeted amounts as variances, is called a(n): A. Sales budget performance report. B. Flexible budget performance report. C. Master budget performance r ...

Other / Other 12 Apr 2016

A cost variance equals the sum of the quantity variance 1. While companies strive to achieve ideal standards, reality implies that some loss of materials usually occurs with any process. True False 2. A cost variance is the difference between actual cost and standard cost. True False 3. A budget performance report that includes variances can have variances caused by both price differences and quantity differences. True False 4. A co ...

Other / Other 12 Apr 2016

The amounts in a flexible budget 1. Another name for a static budget is a variable budget. True False 2. Fixed budgets are also known as flexible budgets. True False 3. The amounts in a flexible budget are based on one expected level of sales or production. True False 4. A variable or flexible budget is so named because it only focuses on variable costs. True False 5. A fixed budget performance report never provides useful informa ...

Other / Other 12 Apr 2016

A process of examining the differences 1. Standard costs are: A. Actual costs incurred to produce a specific product or perform a service. B. Preset costs for delivering a product or service under normal conditions. C. Established by the IMA. D. Rarely achieved. E. Uniform among companies within an industry. 2. The costs that should be incurred under normal conditions to produce a specific product or component or to perform a speci ...

Other / Other 12 Apr 2016

Cabot Company collected the following data regarding production 1. Bok Company's output for the current period was assigned a $400,000 standard direct labor cost. The direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period? A. $414,000. B. $386,000. C. $394,000. D. $406,000. E. $410,000 ...

Other / Other 12 Apr 2016

A job was budgeted to require 3 hours of labor 1. Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials quantity variance? A. $400 unfavorable. B. $450 unfavorable. C. $2,500 unfavorable. D. $2,550 unfavorable. E. $2,950 unfavorable. 2. Bradford Company budgeted 4,000 ...

Other / Other 12 Apr 2016

Adams Co. uses the following standard to produce a single unit 1. A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total controllable cost variance is: A. $1,200 favorable. B. $1,200 unfavorable. C. $13,200 favorable. D. $13,200 unfavorable. E. $15, ...

Other / Other 12 Apr 2016

Companies promoting continuous improvement strive 1. Standard costs can serve as a basis for evaluating actual performance. True False 2. Standard material, labor, and overhead costs can be obtained from standard cost tables published by the Institute of Management Accountants. True False 3. Standard costs provide a basis for assessing the reasonableness of actual costs incurred for producing a product or service. True False 4. ...

Other / Other 12 Apr 2016

Which department is often responsible for the direct materials 1. A company's flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed costs of $75,000. Calculate the expected level of operating income if the company produces and sells 13,000 units. A. $110,500. B. $85,000. C. $133,000. D. $100,000. E. $50,500. 2. Based on a predicted level of production and sales of 12,000 un ...

Other / Other 12 Apr 2016