Fundementals Of Cost Accounting Seventh Edition-McGraw Hill- ACCT521 CH 17 QUESTIONS Week 8

.docx

School

Grantham University *

*We aren’t endorsed by this school

Course

521

Subject

Business

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by DeaconIceBaboon3308

Differences in sales and production units do NOT impact the Blank______ variances. Multiple select question. sales activity correct variable production sales price correct marketing & administrative correct Correct Answer  sales activity  sales price  marketing & administrative When a company uses full absorption costing and production and sales volume are not the same, fixed production costs are allocated to ending Blank 1 Blank 1 ending , Correct Unavailable inventory Blank 2 Blank 2 inventory , Correct Unavailable and finished goods. (Enter only one word per blank.) Correct Answer  Blank 1: ending  Blank 2: inventory If a company purchases more material than is used in production in a period, the difference will affect the Blank______ variance. Multiple choice question. purchase price correct efficiency accounts payable Correct Answer

purchase price If a company purchases 100,000 pounds of material with an actual price of $0.20 per pound and a standard price of $0.10 per pound, the entry will include a Blank______ to material price variance for $10,000. Multiple choice question. credit Reason: Accounts Payable is higher than the recorded inventory. debit correct Correct Answer debit When recording the entry for the use of raw materials, the Blank______ inventory account is debited. Multiple choice question. finished goods work-in-process correct materials Correct Answer work-in-process When production is greater than sales, Blank______. Multiple choice question. only the fixed production cost variance is affected both the fixed production cost and variable production cost variances are affected only the variable production cost variance is affected correct neither the fixed production cost or variable production cost variances are affected Correct Answer only the variable production cost variance is affected

The sales activity variances that can be computed are the Blank______ variances. Multiple select question. industry volume correct selling price market share correct purchase cost Correct Answer  industry volume  market share When a company uses variable costing, the entire fixed Blank 1 Blank 1 fixed , Correct Unavailable production cost is expensed. (Enter only one word per blank.) Correct Answer  Blank 1: fixed When a company sells multiple products that are imperfect substitutes for each other, the result can be a(n) sales Blank 1 Blank 1 sales , Correct Unavailable mix Blank 2 Blank 2 mix , Correct Unavailable variance. (Enter only one word per blank.) Correct Answer  Blank 1: sales  Blank 2: mix

When materials purchased is different than materials used, the purchase Blank 1 Blank 1 purchase , Correct Unavailable price Blank 2 Blank 2 price , Correct Unavailable variance is impacted. (Enter only one word per blank.) Correct Answer  Blank 1: purchase  Blank 2: price The components of the sales activity variance are the sales quantity Blank 1 Blank 1 quantity , Correct Unavailable variance and the sales mix Blank 2 Blank 2 mix , Correct Unavailable variance. (Enter only one word per blank.) Correct Answer  Blank 1: quantity  Blank 2: mix When recording the purchase of raw materials at standard cost, the entry includes a Blank______. Multiple select question. credit to Accounts Payable correct debit to Materials Inventory correct debit to Cost of Goods Sold Correct Answer  credit to Accounts Payable  debit to Materials Inventory

The variance that arises from a charge in the relative proportion of inputs (materials or labor mix) is called a(n) production mix Blank 1 Blank 1 mix , Correct Unavailable variance. (Enter only one word per blank.) Correct Answer  Blank 1: mix When recording the entry for the use of raw materials, the difference between work-in-process inventory and raw materials inventory is recorded as the materials Blank______ variance. Multiple choice question. efficiency correct price quantity Correct Answer efficiency Addams, Inc. produces water sealant that is made from two chemicals: A20 standard cost per unit of finished product 0.7 gallon @ $4.00 = $2.80 B15 standard cost per unit of finished product 0.3 gallon @ $9.00 = $2.70 Last month Addams produced 55,000 gallons of the water sealant using the following: A20 material purchased and used 40,000 gallons @ $4.25 B15 material purchased and used 20,000 gallons @ $10.00

Calculate A20s yield variance. Multiple choice question. $8,000 favorable Reason: ($4.00 × .7 x 60,000) – ($4.00 × .7 × 55,000) = $14,000 unfavorable $14,000 unfavorable Reason: ($4.00 × .7 x 60,000) – ($4.00 × .7 × 55,000) = $14,000 unfavorable $14,000 favorable Reason: ($4.00 × .7 x 60,000) – ($4.00 × .7 × 55,000) = $14,000 unfavorable $8,000 unfavorable incorrect Reason: ($4.00 × .7 x 60,000) – ($4.00 × .7 × 55,000) = $14,000 unfavorable Correct Answer $14,000 unfavorable The two reasons for a sales activity variance are changes related to industry Blank 1 Blank 1 industry , Correct Unavailable volume or differences in market share. (Enter only one word per blank.) Correct Answer  Blank 1: industry Typical types of outputs used by service organizations for profit variance analysis include Blank______. Multiple select question. patient days correct sales units staff hours correct

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version