Answer the following questions using the information

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Chapter 11 / Exercise 11-34
Managerial Accounting: The Cornerstone of Business Decision-Making
Hansen/Mowen Expert Verified
Answer the following questions using the information below: These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity. 23) Which variance is calculated using the formula (AQ - BQ) BP is the ________. A) efficiency variance B) price variance C) total flexible-budget variance D) spending variance Answer: A Diff: 2
Objective: 5 AACSB: Analytical thinking 24) Which variance is calculated by using the formula: (AP - BP) AQ is the ________. B Diff: 2
Objective: 5 AACSB: Analytical thinking
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Chapter 11 / Exercise 11-34
Managerial Accounting: The Cornerstone of Business Decision-Making
Hansen/Mowen Expert Verified
25) The flexible-budget variance for materials is \$2,000 (U). The sales-volume variance is \$18,000 (U). The price variance for material is \$38,000 (F). The efficiency variance for direct manufacturing labor is \$12,000 (F). Calculate the efficiency variance for materials. D Diff: 3
Objective: 5 AACSB: Application of knowledge 26) Which of the following is the correct formula for the materials price variance? C Diff: 2
Objective: 4 AACSB: Analytical thinking 27) A company purchases \$650,000 of materials on credit. The standard cost for the materials is \$675,000. Which of the following would be the correct journal entries to record the purchase under a standard costing system? A) Direct Materials Control \$675,000 Direct Materials Price Variance \$25,000 Accounts Payable Control \$650,000 B) WIP Control \$675,000 Direct Materials Price Variance \$25,000 Accounts Payable Control \$650,000 C) Accounts Payable Control \$650,000 Direct Materials Price Variance \$25,000 Direct Materials Control \$675,000 D) Accounts Payable Control \$650,000 Direct Materials Price Variance \$25,000 WIP Control \$675,000 Answer: A Diff: 1
Objective: 5 AACSB: Analytical thinking
28) These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity. The best label for the formula [(AP)(AQ) - (BP)(BQ)] is the ________. C Diff: 2
Objective: 5 AACSB: Analytical thinking
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