A salesperson called on 160 customers and sold

1.) A salesperson called on 160 customers and sold each an average of $300 worth of merchandise. The standard number of calls is 150, and the standard sales is $280. What is the variance in sales?

A. $2,800

B. $200

C. $3,000

D. $2,000

4.) Jenkins Manufacturing

The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:

Standard:

Material 2 pounds per unit @ $5.80 per pound

Labor 3 direct labor hours per unit @ $10.00 per hour

Actual:

Material 4,250 pounds purchased and used @ $5.65 per pound

Labor 6,300 direct labor hours at $9.75 per hour

Refer to Jenkins Manufacturing Company. What is the labor quantity (efficiency) variance?

A. $0

B. $731 F

C. $750 F

D. $731 U

5.) A stock technical analyst uses smoothing methods to predict stock prices. The following table contains the monthly price information for General Mills.

Date Price

1/30/2015 55.33

2/27/2015 52.48

3/31/2015 53.79

4/30/2015 56.60

5/29/2015 55.34

6/30/2015 56.15

7/31/2015 55.72

8/31/2015 58.21

9/30/2015 56.76

10/30/2015 56.13

11/30/2015 58.11

12/31/2015 57.66

What is the predicted share price for June 30, 2015 if this technical analyst uses a 5-month moving average method?

A. $54.87

B. $54.71

C. $55.95

D. $54.95

6.) A stock technical analyst uses smoothing methods to predict stock prices. The following table contains the monthly price information for General Mills.

Date Price

1/30/2015 55.33

2/27/2015 52.48

3/31/2015 53.79

4/30/2015 56.60

5/29/2015 55.34

6/30/2015 56.15

7/31/2015 55.72

8/31/2015 58.21

9/30/2015 56.76

10/30/2015 56.13

11/30/2015 58.11

12/31/2015 57.66

What is the predicted share price for September 30, 2015 if this technical analyst uses an exponential smoothing method with a smoothing constant of .7 and a 5-month moving average as the initial forecast share price for June 30, 2015?

A. $57.46

B. $56.39

C. $57.30

D. $56.97

7.)Which of the followings is not a shortcoming of the moving average method?

A. It does not allow for placing a higher weight on the most recent data point in the forecast.

B. None of the multiple choices is correct.

C. It requires a longer time series dataset to arrive the forecast value.

D. It is simple and easy to use.

8.) Jenkins Manufacturing

The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:

Standard:

Material 2 pounds per unit @ $5.80 per pound

Labor 3 direct labor hours per unit @ $10.00 per hour

Actual:

Material 4,250 pounds purchased and used @ $5.65 per pound

Labor 6,300 direct labor hours at $9.75 per hour

Refer to Jenkins Manufacturing Company. What is the labor price variance?

A. $0

B. $1,594 U

C. $1,575 U

D. $1,575 F

9.) A company using very tight (high) standards in a standard cost system should expect that

A. costs will be controlled better than if lower standards were used.

B. most variances will be unfavorable.

C. incentive bonus will be paid.

D. employees will be strongly motivated to attain the standards.

11. Shim and Siegel Inc. budgeted for sales of 3,000 units of Product C with the unit selling price of $3 for the upcoming month. Shim and Siegel Inc. actually sold 3,600 units of Product C with the unit selling price of $5 in that month. What is the sales volume variance for Product C in that month?

A. $1,800 U

B. $3,000 F

C. $3,000 U

D. $1,800 F

12. Which department is customarily held responsible for an unfavorable materials quantity (usage) variance?

A. Customer Service

B. Production

C. Purchasing

D. Marketing

14.) Jenkins Manufacturing

The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:

Standard:

Material 2 pounds per unit @ $5.80 per pound

Labor 3 direct labor hours per unit @ $10.00 per hour

Actual:

Material 4,250 pounds purchased and used @ $5.65 per pound

Labor 6,300 direct labor hours at $9.75 per hour

Refer to Jenkins Manufacturing Company. What is the material quantity variance?

A. $290 U

B. $290 F

C. $275 U

D. $275 F

15.) enkins Manufacturing

The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:

Standard:

Material 2 pounds per unit @ $5.80 per pound

Labor 3 direct labor hours per unit @ $10.00 per hour

Actual:

Material 4,250 pounds purchased and used @ $5.65 per pound

Labor 6,300 direct labor hours at $9.75 per hour

Refer to Jenkins Manufacturing Company. What is the material price variance? Please choose the closest answer.

A. $630 U

B. $638 F

C. $638 U

D. $630 F

16 Which one of the following is a reason for unfavorable labor quantity (efficiency) variance?

A. Use of workers commanding higher hourly rates than expected

B. Poor scheduling of production, resulting in overtime work

C. Increase in wages

D. Use of poor-quality machinery

17. Which of the followings is a major disadvantage of naive and moving average models

These models are inexpensive to develop and operate.

B.

Possible causal relationships that underlie the forecasted variable are not considered.

C.

New information does not have to be updated on a rolling basis in these models.

D.

The performance of these models is better than that of sophisticated models, such as regression methods.