Accounting questions all answered
QUESTION 1
XYZ Co. has a material standard of 2 pounds per unit of
output. Each pound has a standard price of $12 per pound. During February, XYZ
Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400 units. What
is the direct materials price variance?
$1,420 favorable
$860 favorable
$1,420 unfavorable
$860 unfavorable
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QUESTION 2
XYZ Corp prepared a master budget that included $17,800 for
direct materials, $28,000 for direct labor, $15,000 for variable overhead, and
$38,700 for fixed overhead. Wadjase Corp planned to sell 4,000 units during the
period, but actually sold 4,300 units.
How much would direct labor cost be on a flexible budget for
the period based on actual sales?
A.
$28,000
B.
$30,100
C.
$12,040
D.
$26,047
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Answer
QUESTION 3
A spending variance is made up of
price variance and rate variance.
volume variance and quantity variance.
price variance and quantity variance.
price variance and volume variance.
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QUESTION 4
W Co. has a material standard of 2 pounds per unit of
output. Each pound has a standard price of $12 per pound. During February, W
Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400 units. What
is the direct materials quantity variance?
$9,120 favorable
$1,420 unfavorable
$9,980 favorable
$480 favorable
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Answer
QUESTION 5
A master budget is an example of a
A. volume
B.
C. standard
D. flexible
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QUESTION 6
Albertville has a
direct labor standard of 2 hours per unit of output. Each employee has a
standard wage rate of $22.50 per hour. During July, Albertville paid $189,500
to employees for 8,890 hours worked. 4,700 units were produced during July.
What is the direct labor rate variance?
$11,475 favorable
$10,525 favorable
$22,000 favorable
$10,525 unfavorable
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Answer
QUESTION 7
Standard cost systems depend on which two types of
standards?
A. nd
B. nd
C. nd
D. Rate
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QUESTION 8
The difference between the actual fixed manufacturing
overhead cost and the budgeted fixed manufacturing overhead cost is the
fixed overhead spending variance.
fixed overhead volume variance.
fixed overhead rate variance.
fixed overhead efficiency variance.
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QUESTION 9
Evaluate the following question and give a hypothetical
example that will back up your answer.
When evaluating variances, is it best for managers and
others to consider only one variance at a time?
State whether this is a good idea or a bad idea and state
your reasoning
Path: pWords:0
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QUESTION 10
Pulam, Inc. prepared
the following master budget items for July.
Budgeted Production and Sales 30,000 units
Variable Manufacturing Costs:
Direct Materials $45,000
Direct Labor $60,000
Variable Overhead $75,000
Fixed Overhead $100,000
Total Manufacturing Costs $280,000
During July, Pulam actually sold 24,000 units. Prepare a
flexible budget for Pulam based on actual sales.
Be sure to show total flexible budgeted costs for direct
materials, direct labor, variable overhead, fixed costs and total costs just
like the original budget.
