Chapter 11 MC

Chapter 11 MC - Chapter 11 Variance Analysis A Tool for...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11 Variance Analysis – A Tool for Cost Control and Performance Evaluation Multiple Choice 1. (LO 1 – Standard cost) Answer: B 2. (LO 2 – Flexible vs. static budgets) Answer: C 3. (LO 2 – Flexible budget: calculation of net income) Answer: D Flexible budget Actual Variance Sales (6,000 x $30) $180,000 $180,000 --- Direct material 12,600 12,900 300 U [(6,000 x 1.4 lbs) x $1.5] (given) Direct labor 189,000 178,350 10,650 F [(6,000 x 3) x $10.5] (given) Net loss $(21,600) $(11,250) $10,350F 4. (LO 3 – Flexible budget variance) Answer: C (see #3) 5. (LO 3 – Sales volume variance) Answer: C SVV = Sales volume variance SVV = (Actual – Budgeted sales volume) x (Budgeted contribution margin/ unit) SVV = (10,500 – 11,000) x ($14.75 - $3 - $9) SVV = $1,375
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6. (LO 4 – Sales price variance) Answer: C SPV = Sales price variance SPV = (Actual – Expected sales price) x Actual volume SPV = ($14.75 - $14.75) x 10,500 SPV = $0 7. (LO 5 – Direct materials price variance) Answer:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Chapter 11 MC - Chapter 11 Variance Analysis A Tool for...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online