Test 3 spring 2011 sample questions

Test 3 spring 2011 sample questions - ACG 2071 - Review...

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ACG 2071 - Review Questions – Test 3 Spring 2011 1. Greg’s Baseball Caps, Inc. has the following budget for the production and sale of 1,000 baseball caps  during 2004:       Sales Revenue $8,500 Cost of Goods Sold (variable)      5,000 Other Expenses (fixed)      2,500 Assume only 900 caps are sold and Greg uses a flexible budget.  Budgeted net income would be:      a. $  650      b. $  900      c. $1,000      d. not enough information to determine 2.  Refer to the previous question.  What is the sales volume variance for cost of goods sold?      a. $     500 favorable      b. $     500 unfavorable      c. $  1,000 favorable      d. $  1,000 unfavorable 3.  Refer to the previous two questions.  Actual results were as follows (for 900 caps): Sales Revenue $9,000 Cost of Goods Sold (variable)      6,000 Other Expenses (fixed)      3,200      The Flexible Budget Variance for net income would be:      a. $1,200 unfavorable      b. $   850 unfavorable      c. $   800 unfavorable      d. $   200 unfavorable 4.  Cincinnati Company employs a standard cost system in which direct materials inventory is carried at  standard cost. The company has established the following standard for the material costs of one unit of  product:   Standard Quantity Standard Price Standard Cost Direct materials  6.0 pounds  $7.00/pound  $42.00  During June, the company purchased 165,000 pounds of direct material at a total cost of $1,171,500. The  company manufactured 25,000 units of product during June using 151,000 pounds of direct materials. (Note 
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that this is the same data that was provided for the previous question.) The direct material efficiency  variance for June is: a. 7,000 favorable b. 7,000 unfavorable c. 7,100 favorable d. 7,100 unfavorable 5.  Refer to the previous question.  The direct materials price variance is:
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This note was uploaded on 08/11/2011 for the course ACG 2071 taught by Professor Smith during the Spring '07 term at University of Central Florida.

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Test 3 spring 2011 sample questions - ACG 2071 - Review...

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