Accounting Quiz Week 7

965 Words Mar 31st, 2015 4 Pages
Acct Quiz week 7

1. Which of the following might cause a materials variance?
Failing to take purchase discounts. Using a better grade of raw material. Changes in the market supply for the raw materials. All of the above.

2. What is the term that describes the rate companies frequently use to apply fixed overhead costs to units produced?
Predetermined overhead rate.

3. Activity-based costing is commonly used with standard costing. Using more activity drivers increases the potential for managers to get much more information from activity-based costing than from the traditional approach.

4. What is the result of substituting computerized equipment for direct labor?
Less direct labor and more manufacturing
…show more content…
Refer to Java Gourmet Coffee. Calculate the direct materials efficiency variance.

 5000

AP ́ AQ $0.55 ́ 210,000 = $115,500
SP ́ AQ $0.50 ́ 210,000 = $105,000
SP ́ SQ $0.50 ́ 200,000 = $100,000
SP ́ SQ $0.50 ́ 200,000 = $100,000
|_____$10,500 U _____|________ $5,000 U_____|
Direct materials price variance = $10,500 U Direct materials efficiency variance = $5,000 U Total direct materials variance = $15,500 U

8. Refer to Java Gourmet Coffee. Calculate the flexible budget for direct materials.

100,000
SP ́ SQ = flexible budget for materials
$0.50 ́ 200,000 = $100,000

9. Refer to Java Gourmet Coffee. Calculate the direct labor price variance.

11,000
AP ́ AQ $19.00 ́ 11,000 = $209,000
SP ́ AQ $20.00 ́ 11,000 = $220,000
SP ́ SQ $20.00 ́ (0.05 ́ 200,000) = $200,000
SP ́ SQ $20.00 ́ (0.05 ́ 200,000) = $200,000
|_____$11,000 F _____|________ $20,000 U_____|
Direct labor price variance = $11,000 F Direct labor variance =

More about Accounting Quiz Week 7

Open Document