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Study Resources (Accounting)

83) Cassandra Designs makes chair cushions. The standard direct materials quantity is 1 pound per cushion at a cost of $2.50 per pound. The actual results for the production of 20,000 cushions was 1.25 pounds per cushion, at a cost of $2.40 per pound. Calculate the direct materials price variance.
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21) Brahma manufactures western hats. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The following standard unit cost of a hat is based on the static budget volume of 14,000 hats per month: Direct materials (3.0 m2 × $6.00 per m2)$18.00 Direct labour (2 hours.
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20) The Violet Company established a master budget volume of 30,000 units for September. Actual overhead costs incurred amounted to $84,500. Actual production for the month was 32,000 units. The standard variable overhead rate was $2 per direct labor hour. The standard fixed overhead rate was $1 per direct labor.
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89) The following direct materials variance computations are incomplete. Fill in the missing values, and identify the direct materials flexible budget variance as favorable or unfavorable. Direct materials price variance = ($? - $5) x 4,000 pounds = $4,000 U Direct materials efficiency variance = (? - 3,800 pounds) x $5 =.
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11) Royal Industries has the following information about its standards and production activity for January: Actual manufacturing overhead cost incurred, $86,500 Variable manufacturing overhead cost @ $2.50 per unit produced Fixed manufacturing overhead cost @ $2 per unit produced     ($24,000/12,000 budgeted units) Actual units produced, 4,500 Assume the allocation base for fixed overhead costs is.
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32) Following is a random-order listing of balanced scorecard strategic objectives. For each strategic objective indicate which perspective it best relates to. Choose from Financial Perspective, Customer Perspective, Internal Business Perspective , and Learning and Growth Perspective. a. Increase shareholder value______________________________ b. Retain customers______________________________ c. Enhance employee skills______________________________ d. Decrease per unit variable cost______________________________ 33).
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21) The Frito-Lay division of PepsiCo is most likely treated as a(n): A) cost center. B) investment center. C) profit center. D) revenue center. 22) The production line at Dell Computers is most likely treated as a(n): A) cost center. B) investment center. C) profit center. D) revenue center. 23) The central reservation office at American Airlines is most likely.
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22) Brahma manufactures western hats. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The following standard unit cost of a hat is based on the static budget volume of 20,000 hats per month: Direct materials (2.5 m2 × $5.00 per m2).$12.00 Direct labour (2 hours.
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61) Hewlitt Company has gathered the following information about its purchase and use of raw materials for September: Standard price per pound of raw material $10.00 Actual purchase price per pound of raw material $9.60 Standard quantity allowed for actual production (pounds) 900 Actual quantity of raw materials purchased (pounds) 1,000 Hewlitt Company uses a.
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21) What does an unfavorable direct labor price variance indicate? A) Both actual quantity and actual cost of direct labor hours exceeded standard quantity and standard cost of hours for actual output. B) The actual quantity of direct labor hours worked exceeded the standard quantity of hours for actual output. C) The actual.
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1) Small companies tend to use centralized decision making. 2) Companies that decentralize split their operations into different divisions or operating units. 3) Decentralization allows top management to concentrate on long-term strategic planning. 4) Decentralization allows top management to hire workers with expert knowledge for each business unit. 5) Decentralization helps keep a company's.
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81) On the line in front of each variance, enter the letters of the items needed to compute that variance. You will enter more than one item on each line. A. Actual price B. Actual quantity C. Standard price D. Standard quantity ________Direct materials price variance ________Direct materials efficiency variance 82) On the line in front of.
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11) A company uses milk in producing its product.  If the price of milk doubles, which variance is directly impacted? A) Materials price variance B) Materials efficiency variance C) Labor price variance D) Labor efficiency variance 12) The unemployment rate is high in the city in which a company has a factory.  The company finds.
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87) Kentucky Industries' actual direct labor cost was $52,000 during the current period.  Kentucky reported an unfavorable direct labor price variance of $1,200 and a favorable direct labor efficiency variance of $3,600.  What was the standard direct labor cost for actual output during the period? .
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71) Johnson Faucet Company manufactures faucets.  The following data relate to the standards for direct labor: Standard direct labor hours per faucet 2.0 Standard direct labor rate per hour $18.50 Johnson Faucet Company had the following actual results for August: Actual direct labor hours 3,800 Actual total direct labor cost $52,750 Actual number of.
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85) Copper Company reports the following standards for direct materials for the year: Standard cost per pound$2.50 Standard amount per finished good6 pounds During the year, 420,000 finished goods were produced. The direct materials price variance was $13,600 unfavorable. The direct materials flexible budget variance was $1,200 favorable. Calculate the following items regarding direct.
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88) Montrose Processing Corporation has the following information regarding direct materials: Actual pounds of direct materials purchased and used 42,000 Standard quantity of direct materials2 pounds per finished good Actual production21,000 finished goods Direct materials efficiency variance $12,000 F Direct materials price variance $8,000 U Compute Jeremy's standard price per pound and actual price per pound.
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22) Standard Products Company recognizes variances from standards at the earliest opportunity, and the quantity of direct materials purchased is equal to the quantity used. The following information is available for the most recent month. Assume the allocation base for fixed overhead costs is the number of units. Journalize the direct.
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90) Switzer Chocolate Company produces fudge in large batches.  One batch of fudge has the following standard costs and amounts: Standard quantity of sugar (pounds) 100 Standard cost per pound of sugar $1.90 Standard direct labor hours per batch of fudge 2.0 Standard direct labor cost per hour $18.00 Switzer Chocolate Company produced.
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11) Which of the following goals of a performance evaluation system is accomplished when subunit managers are provided with performance targets? A) Benchmarking B) Communicating company's expectations C) Promoting goal congruence D) Providing feedback 12) Which of the following goals of a performance evaluation system is accomplished when the company's actual results are compared to.
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20) D. Tarr Manufacturing gathered the following information for the year ended December 31: Actual Standard Sales$312,000$312,000 Cost of Goods Sold180,000 Direct materials variances: Price variance3,900 F Efficiency variance800 F Direct labor variances: Price variance2,200 U Efficiency variance800 F Overhead variances: Flexible budget variance1,850 F Production volume variance2,500 U Selling and administrative expenses 74,000 Prepare a standard cost income statement for Freeport Enterprises for.
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28) Classify each of the following key performance indicators according to the balanced scorecard perspective it addresses. Choose from financial perspective (F), customer perspective (C), internal business perspective (IB), or learning and growth (LG) perspective. a. _____  Average machine setup time b. _____  Number of new customers c. _____  Customer satisfaction ratings d. _____ .
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23) Describe the limitations of financial performance measurement. 1) The balanced scorecard considers both financial and operational performance measures. 2) Customer satisfaction, operational efficiency, and employee excellence are often measured as part of the balanced scorecard approach. 3) The ultimate purpose of the balanced scorecard is to give management a balanced view of.
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23) Brahma manufactures western hats. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The following standard unit cost of a hat is based on the static budget volume of 20,000 hats per month: Direct materials (2.5 m2 × $5.00 per m2)$12.00 Direct labour (2 hours.
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31) Thomas Corporation produces stopwatches.  According to company standards, it should take 1 hour of direct labor to produce a stopwatch. Thomas' standard labor cost is $18 per hour.  During June, Thomas produced 5,000 stopwatches and used 5,150 hours of direct labor at a total cost of $102,500.  What is.
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24) During the week, Hoster's potato chip  manufacturing facility purchased 20,000 kilograms of potatoes (transferred from its potato farming operations) at a price of $1.40 per kilogram.  The standard price per kilogram is $1.25. During the week, 19,500 kg of potatoes were used. The standard quantity of potatoes that should.
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11) Which of the following is a disadvantage of decentralization? A) Management does not have time to concentrate on long-term strategic planning. B) Unit managers may not understand the big picture of the company. C) Unit managers have decreased motivation and retention. D) Managers receive training and experience to allow advancement in the organization. 12).
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19) Good Roast roasts, grinds and bags of organic coffee beans sold at specialty grocery stores. Good roast allocates manufacturing overhead based on direct labour hours. Good Roast has projected total overhead for the year to be $640,000. Of this amount, $480,000 relates to fixed overhead expenses. Good Roast expects.
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1) Performance evaluation systems provide top management with a framework for maintaining control over the organization. 2) Comparing company results against industry benchmarks is often less useful than comparing actual results against budget amount. 3) Comparing a company's achievements against best practices in the industry is called benchmarking. 4) Financial measures are lead.
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84) Red River Corporation reports the following standards for direct labor for the year: Standard cost per hour$18.50 Standard quantity per finished good2.5 hours During the year, 180,000 finished goods were produced. The direct labor efficiency variance was $38,850 favorable. The direct labor flexible budget variance was $700 favorable. Calculate the following items regarding.
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1) Responsibility accounting performance reports capture the financial performance of cost, revenue and profit centers. 2) The difference between actual results and budgeted amounts is called a variance. 3) Cost center performance reports typically focus on the static budget variance. 4) Management by perception is used to determine which variances to investigate. 5) Revenue.
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91) Anderson Company manufactures a single product.  The direct materials standard calls for 3 pounds of direct material per unit.  The standard for direct material cost per pound is $15.50.  A computer error has wiped out the records for the direct labor standards but the following information is found for.
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17) McClean supplies restaurants with many sanitation supplies (such as paper towels and soaps). Assume that the manufacturing plant processing the fries anticipated incurring a total of $800,000 of manufacturing overhead during the year. Of this amount, $500,000 is fixed. Manufacturing overhead is allocated based on machine hours. The plant.
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16) Which of the following perspectives from the balanced scorecard focuses on continuing to improve and create value? A) Learning and growth perspective B) Internal business perspective C) Customer perspective D) Financial perspective 17) Which of the following perspectives from the balanced scorecard focuses on determining if customers are happy after the sale takes place? A).
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51) Dazzle Toy Company gathered the following actual results for the current month: Actual amounts: Units produced 4,000 Direct materials purchased and used (5,000 lbs.) $22,500 Direct labor cost (4,500 hours) $51,750 Manufacturing overhead costs incurred $24,000 Budgeted production and standard costs were: Budgeted production 3,500 units Direct materials 2 lbs./unit at $4.25/lb. Direct labor 1.5 hrs./unit at.
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30) Classify each of the following key performance indicators according to the balanced scorecard perspective it addresses. Choose from financial perspective (F), customer perspective (C), internal business perspective (IB), or learning and growth (LG) perspective. a. _____  Average job-related training hours per employee b. _____  Return on equity c. _____  Customer profitability d. _____ .
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26) Classify each of the following key performance indicators according to the balanced scorecard perspective it addresses. Choose from financial perspective (F), customer perspective (C), internal business perspective (IB), or learning and growth (LG) perspective. a. _____  Average length of the production process b. _____  Employee promotion rate c. _____  Cash flow.
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6) All four perspectives must be included on each individual company's balanced scorecard. 7) The number of on-time deliveries would be an example of measuring which perspective? A) Financial B) Customer C) Internal business D) Learning and growth 8) Employee satisfaction would be an example of measuring which perspective? A) Financial B) Customer C) Internal business D) Learning and growth 9).
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32) Identify each of the following scenarios as being more typical of a decentralized (D) organization or a centralized (C) organization: a._____  Having formal training programs for lower level managers the company has a policy that they promote from within the company whenever possible b._____  The company is divided into several.
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1) Manufacturing overhead cost allocated to production equals the standard predetermined manufacturing overhead cost rate times the actual quantity of the allocation base allowed for the standard number of outputs. 2) The production volume variance is favorable whenever actual output is greater than expected output. 3) The overhead flexible budget variance is.
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26) During the week, Hoster's potato chip  manufacturing facility purchased 30,000 kilograms of potatoes (transferred from its potato farming operations) at a price of $1.25 per kilogram.  The standard price per kilogram is $1.40. During the week, 26,000 kg of potatoes were used. The standard quantity of potatoes that should.
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