Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 11, Problem 9QC
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To identify: The appropriate answer for the given statement.
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Accessibility tab summary: Financial information for Patterson Incorporated, is presented in cells A4 to G14 and rows 16 to 17. A statement of requirement is presented in rows 19 to 24. A table for Standard Cost Variance Analysis - Direct Materials for student presentation is presented in cells A26 to B29 and A31 to C32. A table for Standard Cost Variance Analysis - Variable Manufacturing Overhead for student presentation is presented in cells A43 to B45 and A47 to C48. A statement of requirement is presented in row 50. A table for student presentation is presented in cell A52 to E62.
Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month:
Direct materials:
Standard
2.4
yards @
$2.75
per yard
$6.60
Actual
3.0
yards @
$2.70
per yard
$8.10
Direct…
Which of the following cost categories tend to increase during the early years of TQM? Which of them tend to decrease over the years due to successful total quality management? Explain. a. Prevention b. Appraisal c. Internal Failure d. External Failure
An example of a performance measure with a long−timehorizon is ________.
A. quality of room service
B. direct materials efficiency variances
C. number of new patents developed
D. overhead spending variances
Chapter 11 Solutions
Managerial Accounting (5th Edition)
Ch. 11 - (Learning Objective 1) Which of the following is...Ch. 11 - (Learning Objective 2) The direct material price...Ch. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - (Learning Objective 4) Which of the following is...Ch. 11 - Prob. 7QCCh. 11 - (Learning Objective 6) Which of the following is...Ch. 11 - Prob. 9QCCh. 11 - (Learning Objective 7Appendix) Which of the...
Ch. 11 - Compute the standard cost of direct materials...Ch. 11 - Compute the standard cost of direct labor...Ch. 11 - Explain a direct material variance (Learning...Ch. 11 - Prob. 11.4SECh. 11 - Calculate direct material variances when the...Ch. 11 - Calculate direct labor variances (Learning...Ch. 11 - Prob. 11.7SECh. 11 - Prob. 11.8SECh. 11 - Calculate fixed overhead variances (Learning...Ch. 11 - Calculate and interpret fixed overhead variances...Ch. 11 - Prob. 11.11SECh. 11 - Calculate and interpret overhead variances...Ch. 11 - Record costing transactions (Learning Objective 7)...Ch. 11 - Record standard costing transactions (Learning...Ch. 11 - Identify ethical standards violated (Learning...Ch. 11 - Vocabulary (Learning Objectives 1, 2, 3, 4, 5, 6)...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Calculate and interpret direct material and direct...Ch. 11 - Calculate the material and labor variances...Ch. 11 - Record materials and labor transactions (Learning...Ch. 11 - Calculate the standard cost of a product before...Ch. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Compute and interpret overhead variances (Learning...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Make journal entries in a standard costing system...Ch. 11 - Prepare a standard cost income statement (Learning...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate the standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Prob. 11.38BECh. 11 - Prob. 11.39BECh. 11 - Prob. 11.40BECh. 11 - Prob. 11.41BECh. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Calculate and interpret overhead variances...Ch. 11 - Prob. 11.44BECh. 11 - Prob. 11.45BECh. 11 - Prob. 11.46BECh. 11 - Prob. 11.47BECh. 11 - Prob. 11.48BECh. 11 - Prob. 11.49APCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Prob. 11.52APCh. 11 - Prob. 11.53APCh. 11 - Prob. 11.54BPCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Work backward through labor variances (Learning...Ch. 11 - Determine all variances and make journal entries...Ch. 11 - Calculate labor variances in a hotel (Learning...
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- Which of the following statements is true with respect to the performance metrics useful for productivity improvement? A)Cost of quality can be a useful measure for improvements conducted in one department of a company (INCORRECT) B)When the number of the indirect labor increases in relation to the direct labor, the productivity increases C)When the lead time to work content in a process is nearly equal, the process is likely to have very little waste D)When the First Pass Yield is more, we have greater opportunity to detect defects in the process when it is executedarrow_forwardWhich of the following statements about variable overhead variances is correct? Variable overhead efficiency variance is not a useful control tool. Variable overhead spending variance may be caused by lower than expected usage of direct labour hours. Variable overhead spending variance is useful only as a product costing tool. Variable overhead efficiency variance highlights any inefficient uses of variable indirect costs such as electricity.arrow_forwardplease answer the following questions: 1. Debiting Work in Process Inventory for $102,000 variable OH will result in: a. Decreasing Work in Pocess Inventory based on Actual Variable OH rate. b. Increasing Work in Pocess Inventory based on actual Variable OH rate. c. Decreasing Work in Pocess Inventory based on standard Variable OH rate. d. Increasing Work in Pocess Inventory based on standard Variable OH rate. 2. Debiting Variable Overhead Efficiency Variance means we had an unfavorable outcome. a. True b. False 3. Crediting Variable Overhead Spending Variance means we had an unfavorable outcome for Variable Overhead Spending Variance a. True b. False 4. We normally credit Factory Overhead to apply the actual cost to Overhead to the Work in Process a. True b.Falsearrow_forward
- Which of the following would produce a labor rate variance? A. Poor quality materials causing breakage and work interruptions.B. Use of persons with high hourly wage rates in tasks that call for low hourly wage rates.C. Excessive number of hours worked in completing a job.D. An unfavorable variable overhead spending variance.arrow_forwardManagement accounting uses variance analysis to explain what and why something happened in the cost of producing products. It is done by comparing actual outcomes to expected, or standard, costs. What is the expectation when the usage of raw materials unexpectedly decreases below the standard quantity used? Multiple Choice Favorable price variance Favorable quantity variance Unfavorable price variance Unfavorable quantity variancearrow_forwardI. In throughput costing, using SD cost, all variances including direct labor variances must be closed to Cost of sales if the said variances are immaterial.II. When units sold exceeded the units produced, then income under direct costing will be higher than absorption costing income. A• True False B• True True C• False True D• False Falsearrow_forward
- 1. If demand is insufficient to keep everyone busy and workers are not laid off, which of the following labor efficiency variance often will be a result: A) favorable. B) unfavorable. C) zero. D) either favorable or unfavorable 2. A/an ______________ materials quantity variance occurs when the actual quantity used in production is less than the standard quantity allowed for the actual output of the period. A) favorable. B) unfavorable. C) zero. D) either favorable or unfavorable 3. When the materials price variance is recorded at the time of purchase, raw materials are recorded as inventory at: A) replacement cost B) standard cost C) absorption cost D) actual cost 4.When more hours of labor time are necessary to complete a job than the standard allows, the labor efficiency variance is A) favorable. B) unfavorable. C) zero D) either favorable or unfavorable.arrow_forwardIn gross profit analysis, if the cost variance is zero, such variance indicates that a. Manufacturing management was able to control production cost below budgeted costs b. Manufacturing management was unable to keep production costs at budgeted costs. c. Manufacturing management was able to control production cost at budgeted costs. d. Manufacturing management was not able to control production at budgeted costs but purchasing was able to keep at budgeted price.arrow_forwardWhen a change in the manufacturing process reduces the number of direct labor hours and the standards are unchanged, the resulting variance will be * a favorable usage variance an unfavorable labor usage variance an unfavorable labor rate variance a favorable labor rate variancearrow_forward
- Continuous improvement is the governing principle of a lean accounting system. Following are several performance measures. Some of these measures would be associated with a traditional standard-costing accounting system, and some would be associated with a lean accounting system. a. Materials price variances b. Cycle time c. Comparison of actual product costs with target costs d. Materials quantity or efficiency variances e. Comparison of actual product costs over time (trend reports) f. Comparison of actual overhead costs, item by item, with the corresponding budgeted costs g. Comparison of product costs with competitors product costs h. Percentage of on-time deliveries i. First-time through j. Reports of value- and non-value-added costs k. Labor efficiency variances l. Days of inventory m. Downtime n. Manufacturing cycle efficiency (MCE) o. Unused (available) capacity variance p. Labor rate variance q. Using a sister plants best practices as a performance standard Required: 1. Classify each measure as lean or traditional (standard costing). If traditional, discuss the measures limitations for a lean environment. If it is a lean measure, describe how the measure supports the objectives of lean manufacturing. 2. Classify the measures into operational (nonfinancial) and financial categories. Explain why operational measures are better for control at the shop level (production floor) than financial measures. Should any financial measures be used at the operational level? 3. Suggest some additional measures that you would like to see added to the list that would be supportive of lean objectives.arrow_forwardWhich of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring substandard workers B. making too many Units C. buying higher-quality material D. paying too much for workersarrow_forwardWhich of the following is a possible cause of an unfavorable material quantity variance? A. purchasing substandard material B. hiring higher-quality workers C. paying more than should have for workers D. purchasing too much materialarrow_forward
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