Question 1

The total materials variance is equal to the

Accepted Answer

A)   materials price variance.
B)   difference between the materials price variance and materials quantity variance.
C)   product of the materials price variance and the materials quantity variance.
D)   sum of the materials price variance and the materials quantity variance.E) A) and D)
F) None of the above

Question 2

The formula for the materials quantity variance is

Accepted Answer

A)   (SQ × AP)  - (SQ × SP) .
B)   (AQ × AP)  - (AQ × SP) .
C)   (AQ × SP)  - (SQ × SP) .
D)   (AQ × AP)  - (SQ × SP) .E) B) and D)
F) A) and B)

Question 3

In developing a standard cost for direct materials, a price factor and a quantity factor must be considered.

Accepted Answer

A) True 
 B)False

Question 4

Standard cost cards are the subsidiary ledger for the Work in Process account in a standard cost system.

Accepted Answer

A) True 
 B)False

Question 5

The most rigorous of all standards is the

Accepted Answer

A)   normal standard.
B)   realistic standard.
C)   ideal standard.
D)   conceivable standard.E) A) and B)
F) B) and D)

Question 6

What are the four perspectives used in the balanced scorecard? Discuss the nature of each, and how the perspectives are linked.

Accepted Answer

The four perspectives of the balanced sc...

Question 7

The purchasing agent of the Poplin, Inc. ordered materials of lower quality in an effort to economize on price. What variance will most likely result?

Accepted Answer

A)   Favorable materials quantity variance
B)   Favorable total materials variance
C)   Unfavorable materials price variance
D)   Unfavorable labor quantity varianceE) B) and C)
F) A) and D)

Question 8

In using variance reports, management looks for

Accepted Answer

A)   total assets invested.
B)   significant variances.
C)   competitors' costs in comparison to the company's costs.
D)   more efficient ways of valuing inventories.E) None of the above
F) B) and C)

Question 9

In Zero Company's income statement, they report actual gross profit of $52,500 and the following variances:  Zero would report gross profit at standard of

Accepted Answer

A)   $46,660.
B)   $47,500.
C)   $50,000.
D)   $53,340.E) B) and D)
F) A) and C)

Question 10

Monte Industries has a standard costing system. The following data are available for July:
a. Actual manufacturing overhead cost incurred: $22,000
b. Actual machine hours worked: 1,600
c. Overhead volume variance: $3,600 Unfavorable
d. Total overhead variance: $2,000 Unfavorable
e. Overhead is assigned to production on the basis of machine hours
Instructions
Determine the amount of (1) the controllable overhead variance and (2) the overhead applied.

Accepted Answer

(1) Volume variance plus contr...

Question 11

Standards based on the optimum level of performance under perfect operating conditions are

Accepted Answer

A)   attainable standards.
B)   ideal standards.
C)   normal standards.
D)   practical standards.E) A) and D)
F) All of the above

Question 12

Which of the following is not considered an advantage of using standard costs?

Accepted Answer

A)   Standard costs can reduce clerical costs.
B)   Standard costs can be useful in setting prices for finished goods.
C)   Standard costs can be used as a means of finding fault with performance.
D)   Standard costs can make employees "cost-conscious."E) A) and B)
F) C) and D)

Question 13

Variance analysis facilitates the principle of "management by exception."

Accepted Answer

A) True 
 B)False

Question 14

The standard rate of pay is $12 per direct labor hour. If the actual direct labor payroll was $47,040 for 4,000 direct labor hours worked, the direct labor price (rate)  variance is

Accepted Answer

A)   $960 unfavorable.
B)   $960 favorable.
C)   $1,200 unfavorable.
D)   $1,200 favorable.E) A) and D)
F) None of the above

Question 15

The starting point for determining the causes of an unfavorable materials price variance is the purchasing department.

Accepted Answer

A) True 
 B)False

Question 16

The customer perspective of the balanced scorecard approach

Accepted Answer

A)   is the most traditional view of the company.
B)   evaluates the internal operating processes critical to the success of the organization.
C)   evaluates how well the company develops and retains its employees.
D)   evaluates the company from the viewpoint of those people who buy its products or services.E) All of the above
F) B) and D)

Question 17

Actual costs that vary from standard costs always indicate inefficiencies.

Accepted Answer

A) True 
 B)False

Question 18

The direct labor quantity standard is sometimes called the direct labor

Accepted Answer

A)   volume standard.
B)   effectiveness standard.
C)   efficiency standard.
D)   quality standard.E) A) and D)
F) None of the above

Question 19

In concept, standards and budgets are essentially the same.

Accepted Answer

A) True 
 B)False

Question 20

During March, Patt, Inc. purchases and uses 8,800 pounds of materials costing $35,640 to make 4,000 tiles. Patt's standard material cost per tile is $8 (2 pounds of material × $4.00).
Instructions
Compute the total, price, and quantity material variances for Patt, Inc. for March.

Accepted Answer

Total materials variance = $3,640 U, (8,...

Exam 24: Standard Costs and Balanced Scorecard

Standard cost cards are the subsidiary ledger for the Work in Process account in a standard cost system.

Correct Answer
verified

The most rigorous of all standards is the

Correct Answer
verified

The formula for the materials quantity variance is

Correct Answer
verified

The direct labor quantity standard is sometimes called the direct labor

Correct Answer
verified

In developing a standard cost for direct materials, a price factor and a quantity factor must be considered.

Correct Answer
verified

Which of the following is not considered an advantage of using standard costs?

Correct Answer
verified

The purchasing agent of the Poplin, Inc. ordered materials of lower quality in an effort to economize on price. What variance will most likely result?

Correct Answer
verified

In using variance reports, management looks for

Correct Answer
verified

Variance analysis facilitates the principle of "management by exception."

Correct Answer
verified

In concept, standards and budgets are essentially the same.

Correct Answer
verified

During March, Patt, Inc. purchases and uses 8,800 pounds of materials costing $35,640 to make 4,000 tiles. Patt's standard material cost per tile is $8 (2 pounds of material × $4.00). Instructions Compute the total, price, and quantity material variances for Patt, Inc. for March.

Correct Answer
verified
Total materials variance = $3,640 U, (8,...
View Answer

Actual costs that vary from standard costs always indicate inefficiencies.

Correct Answer
verified

Standards based on the optimum level of performance under perfect operating conditions are

Correct Answer
verified

The customer perspective of the balanced scorecard approach

Correct Answer
verified

The total materials variance is equal to the

Correct Answer
verified

The starting point for determining the causes of an unfavorable materials price variance is the purchasing department.

Correct Answer
verified

Correct Answer
verified
(1) Volume variance plus contr...
View Answer

What are the four perspectives used in the balanced scorecard? Discuss the nature of each, and how the perspectives are linked.

Correct Answer
verified
The four perspectives of the balanced sc...
View Answer

In Zero Company's income statement, they report actual gross profit of $52,500 and the following variances: Zero would report gross profit at standard of

Correct Answer
verified

The standard rate of pay is $12 per direct labor hour. If the actual direct labor payroll was $47,040 for 4,000 direct labor hours worked, the direct labor price (rate) variance is

Correct Answer
verified

Exam 24: Standard Costs and Balanced Scorecard

Standard cost cards are the subsidiary ledger for the Work in Process account in a standard cost system.

Correct AnswerverifiedShow Answer

The most rigorous of all standards is the

Correct AnswerverifiedShow Answer

The formula for the materials quantity variance is

Correct AnswerverifiedShow Answer

The direct labor quantity standard is sometimes called the direct labor

Correct AnswerverifiedShow Answer

In developing a standard cost for direct materials, a price factor and a quantity factor must be considered.

Correct AnswerverifiedShow Answer

Which of the following is not considered an advantage of using standard costs?

Correct AnswerverifiedShow Answer

The purchasing agent of the Poplin, Inc. ordered materials of lower quality in an effort to economize on price. What variance will most likely result?

Correct AnswerverifiedShow Answer

In using variance reports, management looks for

Correct AnswerverifiedShow Answer

Variance analysis facilitates the principle of "management by exception."

Correct AnswerverifiedShow Answer

In concept, standards and budgets are essentially the same.

Correct AnswerverifiedShow Answer

During March, Patt, Inc. purchases and uses 8,800 pounds of materials costing $35,640 to make 4,000 tiles. Patt's standard material cost per tile is $8 (2 pounds of material × $4.00). Instructions Compute the total, price, and quantity material variances for Patt, Inc. for March.

Correct AnswerverifiedTotal materials variance = $3,640 U, (8,...View AnswerShow Answer

Actual costs that vary from standard costs always indicate inefficiencies.

Correct AnswerverifiedShow Answer

Standards based on the optimum level of performance under perfect operating conditions are

Correct AnswerverifiedShow Answer

The customer perspective of the balanced scorecard approach

Correct AnswerverifiedShow Answer

The total materials variance is equal to the

Correct AnswerverifiedShow Answer

The starting point for determining the causes of an unfavorable materials price variance is the purchasing department.

Correct AnswerverifiedShow Answer

Correct Answerverified(1) Volume variance plus contr...View AnswerShow Answer

What are the four perspectives used in the balanced scorecard? Discuss the nature of each, and how the perspectives are linked.

Correct AnswerverifiedThe four perspectives of the balanced sc...View AnswerShow Answer

In Zero Company's income statement, they report actual gross profit of $52,500 and the following variances: Zero would report gross profit at standard of

Correct AnswerverifiedShow Answer

The standard rate of pay is $12 per direct labor hour. If the actual direct labor payroll was $47,040 for 4,000 direct labor hours worked, the direct labor price (rate) variance is

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Total materials variance = $3,640 U, (8,...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(1) Volume variance plus contr...
View Answer

Correct Answer
verified
The four perspectives of the balanced sc...
View Answer

Correct Answer
verified

Correct Answer
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