acc- 10 questions

QUESTION 1

1. XYZ Co. has a material standard of 2 pounds per unit of output. Each pound has a standard price of $12 per pound. During February, XYZ Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400 units. What is the direct materials price variance?

   		$1,420 favorable
   		$860 favorable
   		$1,420 unfavorable
   		$860 unfavorable

10 points

QUESTION 2

1. XYZ Corp prepared a master budget that included $17,800 for direct materials, $28,000 for direct labor, $15,000 for variable overhead, and $38,700 for fixed overhead. Wadjase Corp planned to sell 4,000 units during the period, but actually sold 4,300 units.

   How much would direct labor cost be on a flexible budget for the period based on actual sales?
   
   

   	A.	$28,000
   	B.	$30,100
   	C.	$12,040
   	D.	$26,047

10 points

QUESTION 3

1. A spending variance is made up of
   
   

   		price variance and rate variance.
   		volume variance and quantity variance.
   		price variance and quantity variance.
   		price variance and volume variance.

10 points

QUESTION 4

1. W Co. has a material standard of 2 pounds per unit of output. Each pound has a standard price of $12 per pound. During February, W Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400 units. What is the direct materials quantity variance?

   		$9,120 favorable
   		$1,420 unfavorable
   		$9,980 favorable
   		$480 favorable

10 points

QUESTION 5

1. A master budget is an example of a

   	A.	volume
   	B.
   	C.	standard
   	D.	flexible

10 points

QUESTION 6

1. Albertville has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage rate of $22.50 per hour. During July, Albertville paid $189,500 to employees for 8,890 hours worked. 4,700 units were produced during July. What is the direct labor rate variance?
   
   

   		$11,475 favorable
   		$10,525 favorable
   		$22,000 favorable
   		$10,525 unfavorable

10 points

QUESTION 7

1. Standard cost systems depend on which two types of standards?

   	A.	nd
   	B.	nd
   	C.	nd
   	D.	Rate

10 points

QUESTION 8

1. The difference between the actual fixed manufacturing overhead cost and the budgeted fixed manufacturing overhead cost is the

   		fixed overhead spending variance.
   		fixed overhead volume variance.
   		fixed overhead rate variance.
   		fixed overhead efficiency variance.

10 points

QUESTION 9

1. Evaluate the following question and give a hypothetical example that will back up your answer.

   When evaluating variances, is it best for managers and others to consider only one variance at a time?

   State whether this is a good idea or a bad idea and state your reasoning

10 points

QUESTION 10

1. Pulam, Inc. prepared the following master budget items for July.

   Budgeted Production and Sales 30,000 units

   Variable Manufacturing Costs:

   Direct Materials $45,000

   Direct Labor $60,000

   Variable Overhead $75,000

   Fixed Overhead $100,000
   

   Total Manufacturing Costs $280,000

   
   
   

   During July, Pulam actually sold 24,000 units. Prepare a flexible budget for Pulam based on actual sales.

   Be sure to show total flexible budgeted costs for direct materials, direct labor, variable overhead, fixed costs and total costs just like the original budget.