1 Accounting As A Tool For Managers 2 Building Blocks Of Managerial Accounting 3 Cost-volume-profit Analysis 4 Job Order Costing 5 Process Costing 6 Activity-based, Variable, And Absorption Costing 7 Budgeting 8 Standard Costs And Variances 9 Responsibility Accounting And Decentralization 10 Short-term Decision Making 11 Capital Budgeting Decisions 12 Balanced Scorecard And Other Performance Measures 13 Sustainability Reporting Chapter8: Standard Costs And Variances
Chapter Questions Section: Chapter Questions
Problem 1MC: Why does a company use a standard costing system? A. to identify variances from actual cost that... Problem 2MC: This standard is set at a level that may be reached with reasonable effort. A. ideal standard B.... Problem 3MC: This standard is set at a level that could be achieved if everything ran perfectly. A. ideal... Problem 4MC: This variance is the difference involving spending more or using more than the standard amount. A.... Problem 5MC: This variance is the difference involving spending less, or using less than the standard amount. A.... Problem 6MC: What are some possible reasons for a material price variance? A. substandard material B. labor rate... Problem 7MC: When is the material price variance unfavorable? A. when the actual quantity used is greater than... Problem 8MC: When is the material price variance favorable? A. when the actual quantity used is greater than the... Problem 9MC: What are some reasons for a material quantity variance? A. building rental charges increase B. labor... Problem 10MC: When is the material quantity variance favorable? A. when the actual quantity used is greater than... Problem 11MC: When is the material quantity unfavorable? A. when the actual quantity used is greater than the... Problem 12MC: What are some possible reasons for a labor rate variance? A. hiring of less qualified workers B. an... Problem 13MC: When is the labor rate variance unfavorable? A. when the actual quantity used is greater than the... Problem 14MC: When is the labor rate variance favorable? A. when the actual quantity used is greater than the... Problem 15MC: What are some possible reasons for a direct labor time variance? A. utility usage decrease B. less... Problem 16MC: When is the direct labor time variance favorable? A. when the actual quantity used is greater than... Problem 17MC: When is the direct labor time variance unfavorable? A. when the actual quantity used is greater than... Problem 18MC: A flexible budget______. A. predicts estimated revenues and costs at varying levels of production B.... Problem 19MC: The variable overhead rate variance is caused by the sum between which of the following? A. actual... Problem 20MC: The variable overhead efficiency variance is caused by the difference between which of the... Problem 21MC: The fixed factory overhead variance is caused by the difference between which of the following? A.... Problem 22MC: Which of the following is a possible cause of an unfavorable material price variance? A. purchasing... Problem 23MC: Which of the following is a possible cause of an unfavorable material quantity variance? A.... Problem 24MC: Which of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring... Problem 25MC: Which of the following is a possible cause of an unfavorable labor rate variance? A. hiring too many... Problem 1Q: What two components are needed to determine a standard for materials? Problem 2Q: What two components are needed to determine a standard for labor? Problem 3Q: What elements require consideration before establishing an overhead standard? Problem 4Q: What is a variance? Problem 5Q: What causes the material price variance? Problem 6Q: What causes the material quantity variance? Problem 7Q: What are some possible causes of a material price variance? Problem 8Q: What are some possible causes of a material quantity variance? Problem 9Q: What is the direct labor rate variance? Problem 10Q: What is the direct labor time variance? Problem 11Q: What are some possible causes of a direct labor rate variance? Problem 12Q: What are some possible causes of a direct labor time variance? Problem 13Q: How is the total direct labor variance calculated? Problem 14Q: What causes the variable overhead rate variance? Problem 15Q: What causes the variable overhead efficiency variance? Problem 16Q: What is the main difference between a flexible budget and a master budget? Problem 17Q: What causes a favorable variance? Problem 18Q: What causes an unfavorable variance? Problem 19Q: When might a favorable variance not be a good outcome? Problem 20Q: When might an unfavorable variance be a good outcome? Problem 21Q: Identify several causes of a favorable material price variance. Problem 22Q: Identify several causes of an unfavorable material price variance. Problem 23Q: Identify several causes of a favorable material quantity variance. Problem 24Q: Identify several causes of an unfavorable material quantity. Problem 25Q: Identify several causes of a favorable labor rate variance. Problem 26Q: Identity several causes of an unfavorable labor rate variance. Problem 27Q: Identify several causes of a favorable labor efficiency variance. Problem 28Q: Identify several causes of an unfavorable labor efficiency variance. Problem 1EA: Moisha is developing material standards for her company. The operations manager wants grade A... Problem 2EA: Rene is working with the operations manager to determine what the standard labor cost is for a spice... Problem 3EA: Fiona cleans offices. She is allowed 5 seconds per square foot. She cleans building A, which is 3000... Problem 4EA: Use the information provided to create a standard cost card for production of one glove box switch.... Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The... Problem 6EA: Use the information provided to answer the questions. All material purchased was used in production.... Problem 7EA: Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.75... Problem 8EA: Queen Industries uses a standard costing system in the manufacturing of its single product. It... Problem 9EA: Penny Company manufactures only one product and uses a standard cost system. The following... Problem 10EA: ThingOne Company has the following information available for the past year. They use machine hours... Problem 11EA: A manufacturer planned to use $78 of variable overhead per unit produced, but in the most recent... Problem 12EA: Acme Inc. has the following information available: A. Compute the material price and quantity, and... Problem 13EA: Acme Inc. has the following information available: A. Compute the material price and quantity, and... Problem 14EA: Acme Inc. has the following information available: A. Compute the material price and quantity, and... Problem 1EB: Bristol is developing material standards for her company. The operations manager wants grade A... Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per... Problem 3EB: Use the following information to create a standard cost card for production of one photography drone... Problem 4EB: Mateo makes gizmos. He would like to set up a system to help him manage his business. The gizmos are... Problem 5EB: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The... Problem 6EB: Lizbeth, Inc., makes ice cream. The toffee coffee ice cream takes 4 quarts of cream, 3 cups of... Problem 7EB: Woodpecker manufactures sawmill equipment. They use a standard Costing system and recognize material... Problem 8EB: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450... Problem 9EB: Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured... Problem 10EB: A manufacturer planned to use $45 of variable overhead per unit produced, but in the most recent... Problem 11EB: Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The... Problem 12EB: Acme Inc. has the following information available: A. Compute the material price and quantity, and... Problem 13EB: Acme Inc. has the following information available: A. Compute the material price and quantity, and... Problem 14EB: Acme Inc. has the following information available: A. Compute the material price and quantity, and... Problem 1PA: The comptroller wants to set the standards according to a study done by a consulting firm for a... Problem 2PA: Stan is opening a coffee shop next to Big State University. He knows that controlling his costs will... Problem 3PA: What makes a variance favorable? Give an example of a favorable variance involving materials. What... Problem 4PA: April Industries employs a standard costing system in the manufacturing of its sole product, a park... Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but... Problem 6PA: The Whizbang Company makes a special type of toy. Each top takes 6 ounces of a special material that... Problem 7PA: Ellis Companys labor information for September is as follows: A. Compute the standard direct labor... Problem 8PA: Breakaway Companys labor information for May is as follows: A. What is the actual direct labor rate... Problem 9PA: Power Co.s labor information for June is as follows: A. What was the actual labor rate per hour? B.... Problem 10PA: Prepare a flexible budget for overhead based on the following data: Problem 11PA: Reddy Corporation has collected the following data for the month or June: What is the variable... Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc.... Problem 13PA: Recompute the variances from the second Acme Inc. exercise using $0.0725 as the standard cost of the... Problem 1PB: Sameerah is trying to determine the standard hours to make one unit. She has studied the... Problem 2PB: Carl cleans offices. He has the following buildings to clean every day: building A, which is 12,500... Problem 3PB: Freidrich is working with the operations manager to determine what the standard material cost is for... Problem 4PB: A company bought 45,000 pounds of plastic pellets to make DVDs at a cost of $9,900. The standard... Problem 5PB: Illinois Company is a medium-sized company that makes dresses. During the month of June, 8,575... Problem 6PB: Corolla Manufacturing has a standard cost for steel of $20 per pound for a product that uses 4... Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid... Problem 8PB: Adam Inc.s records for May include the following information: A. What are Adams standard labor hours... Problem 9PB: Ribcos labor cost information for making its only product for March is as follows: A. What is the... Problem 10PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual... Problem 11PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual... Problem 1TP: How do you balance a firms need to succeed and the need for not asking the workers for perfection? Problem 2TP: What type of firm would use standard costing? What type of firm would not use standard costing? Problem 4TP: Is labor a true variable cost? Problem 5TP: Why would managers use a flexible budget? What information does it provide that a regular budget... Problem 6TP: Fill in the blanks in the following flexible budget: Problem 7TP: Before automation became more prevalent, overhead was often calculated and allocated as a function... Problem 8TP: In your opinion, is it important that an organization set standards and measure them monthly? Why or... Problem 16Q: What is the main difference between a flexible budget and a master budget?
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Can you interpret the effect on revenue , expense and profits if the sale or production differ from master budget .
Definition Definition Summary of all functional budgets such as lower-level budgets, cash flow forecasts, budgeted financial statements, and financial plans of an organization for the upcoming period. A master budget provides the financial information of the company on a periodic basis such as monthly, quarterly, half yearly or annually.
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