1.Which of the following is true about "management by exception"? It requires managers to investigate all...
1.Which of the following is true about "management by exception"?
It requires managers to investigate all favorable and unfavorable variances.
It requires the use of variance analysis.
It rarely requires the use of variance analysis.
It requires managers to calculate standard costs, but ignore actual costs.
None of the answer choices is correct.
2.Which of the following is most likely to cause an unfavorable direct materials quantity variance?
Low quality materials increased waste of materials.
High quality materials reduced waste of materials.
New production techniques reduced waste of materials.
Improved maintenance of production equipment reduced waste of materials.
None of the answer choices is correct.
3.If Ever Green Corporation has an unfavorable fixed overhead spending variance, which of the following would most likely be the reason for this variance?
Actual fixed overhead was less than predicted.
More units were actually produced than predicted.
Actual fixed overhead was more than predicted.
Fewer units were actually produced than predicted.
None of the answer choices is correct.
4.Colfax Company incurred production labor costs of $5,400 in February (payable in March) for work requiring 1,100 standard hours at a standard rate of $15 per hour; 1,200 actual direct labor hours were worked. Based on this information, which one of the following would be included in the journal entry to record the labor costs?
$16,500 credit to Work-in-process Inventory.
$1,500 credit to Labor Efficiency Variance.
$16,200 credit to Wages Payable.
$1,500 credit to Labor Rate Variance.
None of the answer choices is correct
5.If a company has a favorable materials quantity variance of $3,300, the journal entry to record the use of direct materials in production along with this related quantity variance would include:
a credit to Materials Quantity Variance.
a credit to Materials Price Variance.
a debit to Materials Quantity Variance.
a debit to Materials Price Variance.
None of the answer choices is correct.
Homework Answers
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1.Which of the following is true about "management by
exception"?
It requires managers to investigate all...
A. The standard costs and actual costs for direct materials for the manufacture of 2,240 actual...
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A favorable cost variance occurs when Oa. actual costs are the same as standard costs Ob. actual costs are more than standard costs Oc. standard costs are more than actual costs Od. standard costs are less than actual costs The Flapjack Corporation had 8,042 actual direct labor hours at an actual rate of $12.00 per hour. Original production had been budgeted for 1,100 units, but only 999 units were actually produced. Labor standards were 7.9...
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Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,200 units of product were as follows: Standard Costs Actual Costs Direct materials 6,800 lb. at $4.60 6,700 lb. at $4.40 Direct labor 1,300 hrs. at $18.10 1,330 hrs. at $18.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
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Exercise 21-1 Management by exception LO C1 Resset Co. provides the following results of April's operations: F indicates favorable and U indicates unfavorable. In applying management by exception, the company investigates all variances of $400 or more. Direct materials price variance Direct materials quantity variance $ 300 F Direct labor efficiency variance Controllable overhead variance Fixed overhead volume variance $2,200 F 400 U s00 F 3,000 U Direct labor rate variance 100 U Which variances will the company investigate? (You...
A. The standard costs and actual costs for direct materials for the manufacture of 2,240 actual units of product are as follows: Standard Costs Direct materials 2,240 kilograms @$8.60 Actual Costs Direct materials 2,300 kilograms The direct materials quantity variance is? Choose the correct answer below $413 favorable $516 unfavorable $516 favorable $413 unfavorable B. The following data relate to direct labor costs for the current period: Standard costs 7,200 hours at $11.30 Actual costs 6,400 hours at $10.80 What...
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2)
3)
4)
5)
A favorable cost variance occurs when Oa. actual costs are the same as standard costs Ob. actual costs are more than standard costs Oc. standard costs are more than actual costs Od. standard costs are less than actual costs The Flapjack Corporation had 8,042 actual direct labor hours at an actual rate of $12.00 per hour. Original production had been budgeted for 1,100 units, but only 999 units were actually produced. Labor standards were 7.9...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead $170,200 Fixed factory overhead 57,500 Standard: 6,000 hrs. at $35 210,000 If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $233,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate...
Static Plexible Volume Purchasing manager Favorable Unfavorable Debit Credit Fixed overhead budget Fixed overhead volune Spending Production manager Variable overhead rate Variable overhead effieiency Fixed overhead spending Ixed overhead spending 1. A budget is based on a fixed estimate of sales volume. A volume 2. variance represents the difference between actual and expected levels of activity 3. The is typically responsible for the direct materials quantity variance The variable overhead rate variance is 4 when the actual variable overhead rate...
Exercise 21-1 Management by exception LO C1 Resset Co. provides the following results of April's operations: F indicates favorable and U indicates unfavorable. In applying management by exception, the company investigates all variances of $400 or more. Direct materials price variance Direct materials quantity variance $ 300 F Direct labor efficiency variance Controllable overhead variance Fixed overhead volume variance $2,200 F 400 U s00 F 3,000 U Direct labor rate variance 100 U Which variances will the company investigate? (You...
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