Question 1

Better Blankets, Inc. makes a SnuggieBlank using flannel material and trim binding. They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need. The Standard Cost Card for The SnuggieBlank model is shown. 
STANDARD COST CARD

The company reported the following results concerning January:

-
The variable overhead spending variance in January is:

Accepted Answer

A)  $3,000 favorable.
B)  $1,000 unfavorable.
C)  $1,000 favorable.
D)  $3,000 unfavorable.E) A) and B)
F) None of the above

Question 2

The difference between the actual cost of an item and the standard cost of an items is called the-----------.

Accepted Answer

The answer of The difference between the actual cost of...

Question 3

Which variance is controllable by the production manager?

Accepted Answer

A)  standard overhead variance.
B)  labor usage variance.
C)  labor rate variance.
D)  material price variance.E) All of the above
F) B) and D)

Question 4

Petersen Company produces a single product with the following production and average cost data:

-
The best estimate of the monthly fixed cost is:

Accepted Answer

A)  $37,000
B)  $43,000
C)  $52,000
D)  $70,000E) B) and D)
F) None of the above

Question 5

Better Blankets, Inc. makes a SnuggieBlank using flannel material and trim binding. They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need. The Standard Cost Card for The SnuggieBlank model is shown. 
STANDARD COST CARD

The company reported the following results concerning January:

-The material quantity variance for Trim used in January is:

Accepted Answer

A)  $5,640 favorable.
B)  $1,440 favorable.
C)  $5,640 unfavorable.
D)  $1,440 unfavorable.E) All of the above
F) A) and D)

Question 6

Reelmates manufactures fishing poles. In a recent month, the company budgeted production of 2,000 poles. Actual production was 2,200. According to the standard cost card, each pole requires 3 feet of fiberglass rod at a cost of $9 per foot. Reelmates used 6,500 feet of rod at a net cost of $65,000 for the period.
-
The material usage variance was:

Accepted Answer

A)  $6,500 favorable.
B)  $900 unfavorable.
C)  $900 favorable.
D)  $5,600 unfavorable.E) A) and D)
F) All of the above

Question 7

Budgeting for manufacturing overhead is the easiest of total product costs to calculate as its cost behavior is fixed.

Accepted Answer

A) True 
 B)False

Question 8

Match between columns
                        Premises: A budget representing only one level of activity
A comparison of actual costs and budgeted costs
A budget that shows the budgeted costs at various levels of activity
Costs that vary in total in direct proportion to changes in the level of activity
A budget made for each manufacturing cost
Costs that do not change in total as the level of activity changes
An operating plan expressed in monetary units
The different levels of activity at which a factory is expected to operate
Used to determine the fixed and variable components of a semivariable cost
Costs that vary with, but not in direct proportion to, the volume of activity

Accepted Answer

The Answer of Relevant range of activity and Budget performance is...

Question 9

A fixed budget is one that shows only one level of activity.

Accepted Answer

A) True 
 B)False

Question 10

Costs in excess of established standards are----------- .

Accepted Answer

The answer of Costs in excess of established standards are-----------...

Question 11

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

Accepted Answer

A)  more than actual.
B)  less than actual.
C)  similar to actual.
D)  a reasonable/logical activity measure.E) C) and D)
F) All of the above

Question 12

Management expresses its operating plan in monetary units by completing a(n)---------- .

Accepted Answer

The answer of Management expresses its operating plan in monetary...

Question 13

A key purpose of a manufacturing cost budget is to provide a basis for measuring performance.

Accepted Answer

A) True 
 B)False

Question 14

Better Blankets, Inc. makes a SnuggieBlank using flannel material and trim binding. They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need. The Standard Cost Card for The SnuggieBlank model is shown.
STANDARD COST CARD

The company reported the following results concerning January:

-
The material quantity variance for Flannel used in January is:

Accepted Answer

A)  $2,700 unfavorable.
B)  $2,700 favorable.
C)  $7,500 favorable.
D)  $7,500 unfavorable.E) B) and D)
F) None of the above

Question 15

As the level of activity increases, the fixed cost per unit of activity

Accepted Answer

A)  increases.
B)  does not change.
C)  decreases.
D)  may increase or decrease.E) A) and D)
F) A) and C)

Question 16

Regression analysis is a more sophisticated technique than the high-low method and as such, often leads to higher confidence in the projected costs.

Accepted Answer

A) True 
 B)False

Question 17

A flexible budget that is prepared based on the actual activity level achieved in a period provides a more precise measure of efficiency and control when evaluating actual costs.

Accepted Answer

A) True 
 B)False

Question 18

The standard quantity of materials for a product was 62 pounds per unit at the standard price of $3) 10 per pound. The actual price per pound of materials was $3.25, and the actual quantity used was 67 pounds. An analysis would indicate

Accepted Answer

A)  a $15.5 favorable quantity variance.
B)  a $16.25 unfavorable quantity variance.
C)  a $9.30 favorable price variance.
D)  a $10.05 unfavorable price variance.E) A) and B)
F) C) and D)

Question 19

The cost per unit of direct materials changes as output changes.

Accepted Answer

A) True 
 B)False

Question 20

The salary of the factory supervisor is a good example of

Accepted Answer

A)  a variable cost.
B)  a standard cost.
C)  a semi-variable cost.
D)  a fixed cost.E) B) and D)
F) A) and B)

Exam 29: Controlling Manufacturing Costs: Standard Costs

The difference between the actual cost of an item and the standard cost of an items is called the-----------.

Correct Answer
verified

Match the following descriptions with the appropriate term.

Regression analysis is a more sophisticated technique than the high-low method and as such, often leads to higher confidence in the projected costs.

Correct Answer
verified

Correct Answer
verified

A key purpose of a manufacturing cost budget is to provide a basis for measuring performance.

Correct Answer
verified

Budgeting for manufacturing overhead is the easiest of total product costs to calculate as its cost behavior is fixed.

Correct Answer
verified

Correct Answer
verified

A flexible budget that is prepared based on the actual activity level achieved in a period provides a more precise measure of efficiency and control when evaluating actual costs.

Correct Answer
verified

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

Correct Answer
verified

The cost per unit of direct materials changes as output changes.

Correct Answer
verified

The standard quantity of materials for a product was 62 pounds per unit at the standard price of $3) 10 per pound. The actual price per pound of materials was $3.25, and the actual quantity used was 67 pounds. An analysis would indicate

Correct Answer
verified

Which variance is controllable by the production manager?

Correct Answer
verified

A fixed budget is one that shows only one level of activity.

Correct Answer
verified

Correct Answer
verified

Petersen Company produces a single product with the following production and average cost data: - The best estimate of the monthly fixed cost is:

Correct Answer
verified

Correct Answer
verified

Costs in excess of established standards are----------- .

Correct Answer
verified

As the level of activity increases, the fixed cost per unit of activity

Correct Answer
verified

The salary of the factory supervisor is a good example of

Correct Answer
verified

Management expresses its operating plan in monetary units by completing a(n)---------- .

Correct Answer
verified

Exam 29: Controlling Manufacturing Costs: Standard Costs

The difference between the actual cost of an item and the standard cost of an items is called the-----------.

Correct AnswerverifiedShow Answer

Match the following descriptions with the appropriate term.

Regression analysis is a more sophisticated technique than the high-low method and as such, often leads to higher confidence in the projected costs.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A key purpose of a manufacturing cost budget is to provide a basis for measuring performance.

Correct AnswerverifiedShow Answer

Budgeting for manufacturing overhead is the easiest of total product costs to calculate as its cost behavior is fixed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A flexible budget that is prepared based on the actual activity level achieved in a period provides a more precise measure of efficiency and control when evaluating actual costs.

Correct AnswerverifiedShow Answer

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

Correct AnswerverifiedShow Answer

The cost per unit of direct materials changes as output changes.

Correct AnswerverifiedShow Answer

The standard quantity of materials for a product was 62 pounds per unit at the standard price of $3) 10 per pound. The actual price per pound of materials was $3.25, and the actual quantity used was 67 pounds. An analysis would indicate

Correct AnswerverifiedShow Answer

Which variance is controllable by the production manager?

Correct AnswerverifiedShow Answer

A fixed budget is one that shows only one level of activity.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Petersen Company produces a single product with the following production and average cost data: - The best estimate of the monthly fixed cost is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Costs in excess of established standards are----------- .

Correct AnswerverifiedShow Answer

As the level of activity increases, the fixed cost per unit of activity

Correct AnswerverifiedShow Answer

The salary of the factory supervisor is a good example of

Correct AnswerverifiedShow Answer

Management expresses its operating plan in monetary units by completing a(n)---------- .

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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