EXAM 9 - EXAM 9 1 The materials price variance should be...

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Unformatted text preview: EXAM 9 1. The materials price variance should be computed: A) when materials are purchased. B) when materials are used in production. C) based upon the amount of materials used in production when only a portion of materials purchased is actually used. D) based upon the difference between the actual quantity of inputs and the standard quantity allowed for output times the standard price. Points Earned: 0.0/1.0 Correct Answer(s): A 2. Bullins Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month? A) $4,000 unfavorable B) $1,440 favorable C) $1,440 unfavorable D) $4,000 favorable Feedback: Points Earned: 0.0/1.0 Correct Answer(s): D 3. The Koski Company has established standards as follows: Actual production figures for the past year were as follows: The variable overhead efficiency variance is: A) $500 F B) $500 U C) $245 F D) $250 F Feedback: SH = 500 x 2 = 1,000 Variable overhead efficiency variance = SR (AH - SH) = $5 (950 - 1,000) = $250 F Points Earned: 0.0/1.0 Correct Answer(s): D 4. A manufacturing company uses a standard costing system in which standard machine- hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: What is the predetermined overhead rate to the nearest cent? A) $25.25 B) $24.97 C) $25.34 D) $25.06 Feedback: Predetermined overhead rate = ($86,775 + $137,950) 8,900 machine-hours = $25.25 per machine-hour Points Earned: 0.0/1.0 Correct Answer(s): A 5. A manufacturing company that has only one product has established the following standards for its variable overhead. The company uses direct labor-hours (DLHs) as its measure of activity. The following data pertain to operations for the last month: What is the variable overhead rate variance for the month? A) $480 U B) $480 F C) $1,624 F D) $1,624 U Feedback: AR = $22,400 1,600 = $14.00 Variable overhead rate variance = AH (AR - SR) = 1,600 ($14.00 - $14.30) = $480 F Points Earned: 0.0/1.0 Correct Answer(s): B 6. Massie Corporation, which produces commercial safes, has provided the following data: The variable overhead rate variance for supplies is closest to: A) $22,997 U B) $22,997 F C) $18,947 F D) $18,947 U Feedback: AR = $635,203 87,760 = $7.24 (rounded) Variable overhead rate variance = AH (AR - SR) = 87,760 ($7.24 - $7.50) = $22,997 F (rounded) Points Earned: 0.0/1.0 Correct Answer(s): B 7. Cole laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: The company had no beginning inventories of any kind on Jan. 1. Variable overhead is applied to production on the basis of standard direct labor-hours. During January, the following activity was recorded by the company:...
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EXAM 9 - EXAM 9 1 The materials price variance should be...

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