Info
Warning
Danger

Study Resources (Accounting)

Use the information below to answer the following question(s..   All Good Things Ltd. planned on producing 600 units for the year. However, actual production was 400 units. Information concerning the direct labour cost for All Good Things Ltd. is as follows: actual results 1,000 hours at $25 per hour; static budget amounts.
5 Views
View Answer
Use the information below to answer the following question(s). Moeller Electric manufactures light fixtures. The following information pertains to the company's manufacturing overhead data. Budgeted output units30,000 fixtures Budgeted machine-hours10,000 hours Budgeted variable manufacturing overhead costs for 30,000 fixtures$80,625 Actual output units produced44,000 fixtures Actual machine-hours used10,000 hours Actual variable manufacturing overhead costs$121,000 15) What is Moeller Electric's variable.
15 Views
View Answer
  7.1   Distinguish between a static budget and a flexible budget. 1. A variance is the difference between the actual result and a budgeted amount. 2. Variances and flexible budgets help managers gain insights into why actual results differ from planned performance. 3. A static budget is a budget that can be changed or.
13 Views
View Answer
40) Zebra Jewellers planned to produce 1,800 necklaces during March with a total overhead budget of $49,600. However, while manufacturing the 2,000th necklace the microcomputer that contained the month's cost information broke down. With the computer out of commission, the accountant has been unable to complete the variance analysis report..
5 Views
View Answer
55. The following data for the Alma Company pertain to the production of 1,000 urns during August. Direct Materials (all materials purchased were used.: Standard cost: $6.00 per kilogram. Total actual cost: $5,600. Standard cost allowed for units produced was $6,000. Materials efficiency variance was $120 unfavourable. Direct Manufacturing Labour: Standard cost is 2 urns per hour.
4 Views
View Answer
11. What is the direct manufacturing labour rate variance? A. $186 favourable B. $486 unfavourable C. $486 favourable D. $672 unfavourable E. $672 favourable 12. What is the direct materials rate variance for the clay pots? A. $560 unfavourable B. $560 favourable C. $800 unfavourable D. $800 favourable E. $1,040 favourable Use the information below to answer the following question(s.. Tractor Corporation produces.
5 Views
View Answer
14. Compute the total standard cost per book for Publisher's Company using the following information: 1.Direct Materials: 1 ream of paper allowed per output unit manufactured, at $5.00 per ream. 2.Direct Mfg. Labour: 0.35 labour-hours of input allowed per output unit finished, at $17.50 standard cost per hour. 3.Variable Manufacturing Overhead:.
4 Views
View Answer
  Use the information below to answer the following question(s.. Bates Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit. Actual Budgeted Units sold 495,000 units 500,000 units Variable costs $1,250,000 $1,500,000 Fixed costs $925,000 $900,000 21. What is the static-budget variance of revenues? A..
7 Views
View Answer
11. For the dry ingredients what are the material mix and yield variances respectively? A. $270 favourable/$270 unfavourable B. $360 unfavourable/$360 unfavourable C. $360 favourable/$360 unfavourable D. $360 favourable/$360 favourable E. $270 unfavourable/$270 unfavourable 12. Jam Life Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending strawberries, peaches, and apricots. Budgeted.
6 Views
View Answer
6. Samson Equipment Ltd. is a company that manufactures an abdominal exerciser called The Ab Rippler. The following information is for three of the company's activities in 2015: Rate per Output unit/Batch Static  Actual ActivityActivity LevelCost DriverBudgetCost ManufacturingOutput unit Machine hours$0.90$1.05 InspectingBatchInspection hours$15.0012.50 PackagingBatchPackaging hours$5.50$5.25 The output measure is the number of units produced. Static  Actual BudgetAmount Number.
5 Views
View Answer
45. Wilson's Winter Woolens manufactures jackets and other wool clothing. A certain designed ski parka requires the following: Direct materials standard2 square metres at $13.50 per metre Direct manufacturing labour standard1.5 hours at $20.00 per hour During the third quarter, the company made 1,500 parkas and used 3,150 square metres of fabric.
4 Views
View Answer
Answer the following question(s) using the information below. Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March: ActualStatic Budget Production25,000 units24,000 units Machine-hours6,100 hours6,000 hours Fixed overhead costs for March$123,000$120,000 41) What is the flexible-budget amount for fixed-overhead?.
3 Views
View Answer
4. A standard is usually expressed on a per-unit basis and communicates an average amount indicating what should be achieved by any similar process each time period that performance measures are taken. 5. Standards differ from budget amounts because standards change from onetime period to the next. 6. When benchmarking A. the best.
3 Views
View Answer
7.7   Appendix 7B: Distinguish between Levels 3 and 4 variance analysis for substitute inputs, and calculate Level 4 direct material mix and yield variances. 1. The direct materials yield variance is the difference between: 1. the budgeted cost for the actual mix of the total quantity of direct materials used, and.
6 Views
View Answer
8) All-Green Company has traditionally used only financial accounting for its decision making purposes. The president recently attended a seminar for small-business executives where the importance of managerial accounting was stressed as a way to improve operating decisions. The president was very interested in the use of managerial accounting as.
6 Views
View Answer
7.2   Develop Level 2 flexible budgets, and calculate flexible-budget and sales-volume variances. 1. Variances can be expected to vary within some normal limits, so not all variances require further investigation. 2. The static-budget variance can be subdivided into the flexible-budget variance and the sales-volume variance. 3. A flexible budget enables managers to compute.
5 Views
View Answer
11) Jermaine Company is developing its budgets for 2016 and for the first time will use the Kaizen approach. The initial 2016 income statement, based on static data from 2015, is as follows: Sales (200,000 units)$300,000 Less: cost of goods sold200,000 Gross margin$100,000 Operating expenses (includes $20,000 of amortization)80,000 Net income$20,000 Selling prices for 2016 are.
6 Views
View Answer
20. Signet Engineering uses a standard cost system for all manufacturing transactions. For the month of April the following activities have taken place: Direct manufacturing materials purchased $270,000 Direct manufacturing materials used $360,000 Direct materials rate variance $3,000unfavourable Direct materials efficiency variance $4,000favourable Direct manufacturing labour rate variance $5,000favourable Direct manufacturing labour efficiency variance $7,000favourable Direct manufacturing.
4 Views
View Answer
8.4   Integrate the fixed and variable overhead cost variance analyses to reconcile the actual overhead incurred with overhead allocated. 1) Identifying the reasons for variances is important because it helps managers plan for corrective action. 2) A fixed manufacturing overhead cost pool can never incur an efficiency variance. Use the information below to.
24 Views
View Answer
48. Jan's Boxes manufactures corrugated boxes. The standard materials allowed for each box is 0.3 kilograms of paper, which has a standard cost of $4.50 per kilogram. During April 6,300 kilograms were used to manufacture 18,000 boxes. The actual materials cost was $4.55 per kilogram. Required: a.Determine the materials rate variance. b.Determine the.
6 Views
View Answer
15) Casey Corporation produces a special line of basketball hoops in batches. To manufacture a batch of the basketball hoops Casey Corporation must setup the machines and moulds. Setup costs are batch-level costs because they are associated with batches rather than individual units of products. A separate Setup Department is.
6 Views
View Answer
11) Calculate the production-volume variance for fixed setup overhead costs. A) $1,800 favourable B) $1,800 unfavourable C) $250 unfavourable D) $250 favourable E) $114 unfavourable 12) Fixed and variable cost variances can ________ be applied to activity-based costing systems. A) occasionally B) always C) seldom D) most times E) never 13) Brown Dental Equipment uses a flexible.
5 Views
View Answer
45) The Saskatchewan division of a Canadian farm machinery company uses a standard cost system for its machine-based production of grain drying equipment. Data regarding production for April are as follows: Variable manufacturing overhead costs incurred$ 549,600 Variable manufacturing overhead costs allocation rate$750 per machine hour Fixed manufacturing overhead costs incurred$86,500 Fixed manufacturing overhead.
3 Views
View Answer
10) Different management levels in Bates Inc. require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows: Budgeted output units 3,200 units Budgeted fixed manufacturing.
13 Views
View Answer
27. Caan Corporation used the following data to evaluate their current operating system. The company sells items for $20 each and used a budgeted selling price of $20 per unit.   ActualBudgeted Units sold200,000 units203,000 units Variable costs$1,250,000$1,500,000 Fixed costs$ 925,000$ 900,000 Required: Prepare a Level 1 static-budget variance analysis using a income statement in contribution margin.
5 Views
View Answer
43) Sam's Furniture uses variance analysis to evaluate manufacturing overhead in its' factory. The information for the June overhead expenditures is as follows: Budgeted output units22,000 chairs Budgeted fixed manufacturing overhead$26,400 Budgeted variable manufacturing overhead$2.50 per direct labour hour Budgeted direct manufacturing labour hours0.3 hour per chair Fixed manufacturing costs incurred $25,300 Direct manufacturing labour.
5 Views
View Answer
11. Some financial variances show increases in operating income relative to a budgeted or allocated amount, and others show decreases in operating income. Respectively, these variances are A. budgeted, standard. B. favourable, unfavourable. C. standard, budgeted. D. unfavourable, favourable. E. fixed, variable. 12. Management by exception is the practice of concentrating on A. the master budget variances. B..
7 Views
View Answer
19. During February the Lungren Manufacturing Company's costing system reported several variances that the production manager was surprised to see. The following information is for the manufacture of garden gates, its only product: 1.Direct materials rate variance, $800 unfavourable. 2.Direct materials efficiency variance, $1,800 favourable. 3.Direct manufacturing labour rate variance, $4,000 favourable. 4.Direct manufacturing.
5 Views
View Answer
7.4   Undertake variance analysis in activity-based costing systems. 1. Flexible budget quantity computations should be focused at the appropriate level of the cost hierarchy. 2. Rate variances can be calculated for batch-level costs as well as for output unit-level costs. 3. Performance variance analysis can be used in activity-based costing systems. 4..
5 Views
View Answer
51. Vienna Chocolate Company produces fudge in large batches. One batch of fudge has the following standard costs and amounts: Standard kilograms of sugar 100 Standard cost per kilogram of sugar $1.90 Standard direct labour hours 2.0 Standard direct labour cost per hour $18.00 Vienna Chocolate Company produced 400 batches of fudge in the most recent month. Actual input.
4 Views
View Answer
6) The variable overhead efficiency variance is computed in a different way than the efficiency variance for direct-cost items. 7) The variable overhead flexible-budget variance measures the difference between standard variable overhead costs and flexible-budget variable overhead costs. 8) The variable overhead efficiency variance measures the efficiency with which the.
8 Views
View Answer
21) Decisions about capacity are considered to be A) operating decisions. B) best done by plant supervisors. C) best done during production. D) more relevant for variable costs. E) strategic decisions. 22) In flexible budgets, costs that remain the same regardless of the output levels within the relevant range are A) allocated costs. B) budgeted costs. C) fixed costs. D).
6 Views
View Answer
16. Use the following data to prepare a flexible budget for possible sales/production levels of 10,000; 11,000; and, 12,000 units. Show the contribution margin at each activity level. Sales price$24.00 per unit Variable costs: Manufacturing$12.00 per unit Administrative$3.00 per unit Selling$1.00 per unit Fixed costs: Manufacturing$60,000 Administrative$20,000 17. Nicholas Company manufacturers TVs. Some of the company's data was misplaced..
3 Views
View Answer
8.5   Analyze non-manufacturing variances. 1) Variance analysis of variable nonmanufacturing as well as variable manufacturing costs is used for pricing decisions and for decisions about which products to emphasize. 2) For planning and control purposes, actual energy usage per machine hour compared with budgeted energy usage per machine hour, is a valid.
6 Views
View Answer
55) The Saskatchewan division of a Canadian farm machinery company uses a standard cost system for its machine-based production of grain drying equipment. Data regarding production for April are as follows: Variable manufacturing overhead costs incurred$ 549,600 Variable manufacturing overhead costs allocation rate$750 per machine hour Fixed manufacturing overhead costs incurred$86,500 Fixed manufacturing overhead.
4 Views
View Answer
11) The fixed manufacturing overhead efficiency variance is used to analyze overhead costs. 12) An unfavourable fixed setup overhead rate variance could be due to higher lease costs of new setup equipment or higher salaries paid to engineers and supervisors. 13) A favourable production-volume variance arises when manufacturing capacity planned for is.
7 Views
View Answer
50) All Clean of Alberta manufactures individual shampoos for hotel/motel clientele. The fixed manufacturing overhead costs for 2016 will total $576,000. The company uses good units finished for fixed overhead allocation and anticipates 300,000 units of production. Good units finished average 92 percent of total units produced. During January, 20,000.
6 Views
View Answer
43. Littrell Company produces chairs and has determined the following direct cost categories and budgeted amounts: Standard InputsStandard Cost Categoryfor 1 outputper input Direct Materials1.00$7.50 Direct Labour0.30 9.00 Direct Marketing0.503.00 Actual performance for the company is shown below: Actual output: (in units.4,000 Direct Materials:       Materials costs $30,225       Input purchased and used 3,900       Actual price per input $7.75 Direct Manufacturing.
6 Views
View Answer
8.3   Calculate ABC overhead variances. 1) Batch-level costs are resources sacrificed on activities that are related to individual units of product(s) or service(s). Answer the following question(s) using the information below. Munoz Inc. produces a special line of plastic toy racing cars in batches. To manufacture a batch of the cars Munoz.
6 Views
View Answer
7.5   Describe how managers use variance analysis. 1. The most important task in variance analysis is to understand why variances occur, and then to use that knowledge to promote learning and continual improvement. 2. A cost of a given activity decreases over continuous time periods. This is considered to be a continuous.
3 Views
View Answer
8.1   Assign MOH fixed costs, then calculate and analyze flexible-budget variances. 1) Capacity refers to the quantity of outputs that can be produced from long-term resources available to the company. 2) Capacity cost is a variable overhead cost. 3) Capacity decisions are considered operating decisions because they involve the long-term acquisition of assets.
13 Views
View Answer
31) When machine-hours are used as a cost allocation base, the item MOST likely to contribute to an unfavourable production-volume variance is A) a new competitor gaining market share. B) a new manufacturing machine costing considerably more than expected. C) an increase in the cost of energy. D) strengthened demand for.
7 Views
View Answer
Match the department that is most likely responsible for the listed variance. A. Production department B. Personnel department C. Purchasing department D. Marketing department 23. Direct material rate variance Diff: 1    Type: MA Skill:  Understand Objective:  LO 7-5 24. Direct labour rate variance Diff: 1    Type: MA Skill:  Understand Objective:  LO 7-5 25. Direct labour efficiency variance Diff: 1    Type: MA Skill:  Understand Objective:  LO.
4 Views
View Answer
36) Cirilla's Weathervane Company manufactures weathervanes. The current year operating budget is based on the production of 10,000 weathervanes with 1.25 machine-hour allowed per weathervane. Variable manufacturing overhead is anticipated to be $300,000. Actual production was 11,000 weathervanes using 12,100 machine-hours. Actual variable costs were $23.75 per machine-hour. Required: Calculate.
9 Views
View Answer
7.3   Develop Level 3 rate and efficiency variances for direct manufacturing costs. 1. An input-price variance is the difference between actual quantity of input used and the budgeted quantity of input that should have been used, multiplied by the budgeted price. 2. Rate variances are considered to be the difference between the.
4 Views
View Answer
Use the information below to answer the following question(s.. Sawyer Industries Inc. (SII., developed standard costs for direct material and direct labour. In 2016, SII estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container. Budgeted quantity Budgeted price Direct materials 0.20 kilograms $25 per kilogram Direct labour 0.10 hours $15 per hour During.
11 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
2,048,528 Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (17173 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!