Site MapHelpFeedbackOnline Quizzes
Online Quizzes
(See related pages)

1
For product-costing purposes, management accountants:
A)do not need to include variable manufacturing costs.
B)treat variable selling expenses as if they were variable manufacturing costs.
C)"unitize" fixed manufacturing costs (as if they were variable product costs).
D)treat variable manufacturing costs as if they were fixed costs.
E)none of the above.
2
Finding a single cost driver that changes in the same proportion as fixed factory overhead costs is:
A)simplified by using multiple cost drivers.
B)best accomplished by consideration of labor hours in manufacturing.
C)not acceptable for income tax reporting purposes.
D)simplified by the use of activity-based costing.
E)not possible.
3
The total variable overhead variance for a period can be broken down into:
A)a volume variance and an output efficiency variance.
B)a spending variance and an efficiency variance.
C)fixed and variable cost components.
D)Only A and B are correct.
E)None of the above.
4
The fixed overhead production volume variance represents:
A)money lost or gained because of achieved production levels.
B)a rough estimate of the cost under- or over-utilization of facilities or capacity.
C)information useful for short-term cost control.
D)both answers A and B are correct.
E)none of the above.
5
Alphie Company's production budget for the year ended December 31, 2010 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $180,000 for the year, and the fixed overhead rate was estimated to be $12.00 per unit. Both fixed and variable overhead are assigned to production on the basis of standard direct labor hours allowed. The actual data for the year ended December 31, 2010, are presented below:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966412/ch15_q5_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

The total standard direct hours allowed for actual production for the year is:

A)10,000
B)19,800
C)20,000
D)22,000
6
Alphie Company's production budget for the year ended December 31, 2010 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $180,000 for the year, and the fixed overhead rate was estimated to be $12.00 per unit. Both fixed and variable overhead are assigned to production on the basis of standard direct labor hours allowed. The actual data for the year ended December 31, 2010, are presented below:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966412/ch15_q6_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

The variable overhead efficiency variance for the year is:

A)$4,400 unfavorable
B)$6,000 unfavorable
C)$6,600 unfavorable
D)$12,000 unfavorable
E)$12,000 favorable
7
Alphie Company's production budget for the year ended December 31, 2010 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $180,000 for the year, and the fixed overhead rate was estimated to be $12.00 per unit. Both fixed and variable overhead are assigned to production on the basis of standard direct labor hours allowed. The actual data for the year ended December 31, 2010, are presented below:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966412/ch15_q7_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

The variable overhead spending variance for the year is:

A)$6,600 unfavorable
B)$9,200 unfavorable
C)$15,200 unfavorable
D)$15,800 unfavorable
E)$45,500 unfavorable
8
Alphie Company's production budget for the year ended December 31, 2010 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $180,000 for the year, and the fixed overhead rate was estimated to be $12.00 per unit. Both fixed and variable overhead are assigned to production on the basis of standard direct labor hours allowed. The actual data for the year ended December 31, 2010, are presented below:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966412/ch15_q8_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

The fixed overhead spending variance for the year is:

A)$1,200 unfavorable
B)$17,000 unfavorable
C)$18,200 unfavorable
D)$41,800 unfavorable
E)$77,000 unfavorable
9
Alphie Company's production budget for the year ended December 31, 2010 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $180,000 for the year, and the fixed overhead rate was estimated to be $12.00 per unit. Both fixed and variable overhead are assigned to production on the basis of standard direct labor hours allowed. The actual data for the year ended December 31, 2010, are presented below:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966412/ch15_q9_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

The fixed overhead applied to production for the year is:
A)$96,840
B)$115,000
C)$118,800
D)$120,000
E)$180,000
10
Alphie Company's production budget for the year ended December 31, 2010 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $180,000 for the year, and the fixed overhead rate was estimated to be $12.00 per unit. Both fixed and variable overhead are assigned to production on the basis of standard direct labor hours allowed. The actual data for the year ended December 31, 2010, are presented below:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966412/ch15_q10_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

The fixed overhead production volume variance for the year is:

A)$1,200 unfavorable
B)$3,800 favorable
C)$5,000 favorable
D)$11,000 unfavorable
E)$18,160 unfavorable
11
Alphie Company's production budget for the year ended December 31, 2010 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $180,000 for the year, and the fixed overhead rate was estimated to be $12.00 per unit. Both fixed and variable overhead are assigned to production on the basis of standard direct labor hours allowed. The actual data for the year ended December 31, 2010, are presented below:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966412/ch15_q11_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

Give the appropriate journal entry to apply variable overhead for the period.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966412/ch15_q11_2.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (24.0K)</a>
A)a
B)b
C)c
D)d
12
If inventories in a business using a standard cost system are considered insignificant, the firm would be justified in disposing of variances each year:
A)as adjustments to the inventory accounts only.
B)as adjustments to cost of goods sold (CGS) only.
C)as adjustments to both inventory and CGS accounts.
D)only if the variance exceeds a dollar or percentage minimum.
E)only if required to do so for income tax purposes.
13
Which of the following is NOT a benefit of a standard cost system to a service organization?
A)Helps managers to grasp behavioral patterns of cost items.
B)Helps managers to assess and monitor the efficiency and profitability of their organizations.
C)Helps managers to identify deviations in operations.
D)Helps managers to target areas in need of attention.
E)All of the above are potential benefits to a service organization.
14
Using an activity-based cost (ABC) system enables a firm to calculate overhead variances in more detail for:
A)larger operations.
B)smaller operations.
C)each overhead cost driver.
D)All of the above are correct.
E)Only A and C are correct.
15
For control purposes, managers typically want to isolate random versus systematic variances. Which of the following tools can be used by managers to address this question?
A)Regression analysis
B)Systematic variance analysis
C)A statistical control chart
D)Queuing theory
E)Histograms





To learn more about the book this website supports, please visit its Information Center.
(c)2013 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Blocher, 6eOnline Learning Center

Home > Chapter 15 > Online Quizzes