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1
Which of the following is not true?
A)Actual sales greater than expected sales result in an unfavorable variance.
B)Actual sales less than expected sales result in an unfavorable variance.
C)Actual costs less than expected costs result in a favorable variance
D)Actual costs greater than expected costs result in an unfavorable variance.
2
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What is the sales price variance?
A)$120,000 F
B)$120,000 U
C)$240,000 F
D)$240,000 U
3
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What is the sales volume variance?
A)$120,000 F
B)$120,000 U
C)$240,000 F
D)$240,000 U
4
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What is the amount of the Flexible Budget Variance for Variable Manufacturing Costs?
A)0
B)$6,000 U
C)$24,000 F
D)$46,000 U
5
The ability to attain the sales volume indicated in the master budget is usually referred to as:
A)Creating the numbers
B)Making the numbers
C)Budgetary slack
D)Achieving the numbers
6
Gary's Manufacturing Company had the following:

Planned:
Production 22,000 units
Standards 100 lbs. @ $2.50/lb. = $250/unit
Direct Labor 2 hrs/unit * $10/hour = $20/unit
Variable Overhead $2.50/direct labor hour = $5/unit
Fixed Overhead $698,500

Actual:
Production 24,000 units
Material used 2,640,000 lbs @ $2.40/lb
Direct Labor 49,000 hours total $465,500
Variable Overhead $128,000
Fixed Overhead $750,000

Calculate the materials usage variance.
A)$600,000 U
B)$600,000 F
C)$264,000 U
D)$264,000 F
7
Gary's Manufacturing Company had the following:

Planned:
Production 22,000 units
Standards 100 lbs. @ $2.50/lb. = $250/unit
Direct Labor 2 hrs/unit * $10/hour = $20/unit
Variable Overhead $2.50/direct labor hour = $5/unit
Fixed Overhead $698,500

Actual:
Production 24,000 units
Material used 2,640,000 lbs @ $2.40/lb
Direct Labor 49,000 hours total $465,500
Variable Overhead $128,000
Fixed Overhead $750,000

Calculate the materials price variance.
A)$600,000 U
B)$600,000 F
C)$264,000 U
D)$264,000 F
8
Which of the following persons would be held accountable for the materials price variance?
A)Production Foreman
B)Assembly Manager
C)Assembly Workers
D)Purchasing Manager
9
Gary's Manufacturing Company had the following:

Planned:
Production 22,000 units
Standards 100 lbs. @ $2.50/lb. = $250/unit
Direct Labor 2 hrs/unit * $10/hour = $20/unit
Variable Overhead $2.50/direct labor hour = $5/unit
Fixed Overhead $698,500

Actual:
Production 24,000 units
Material used 2,640,000 lbs @ $2.40/lb
Direct Labor 49,000 hours total $465,500
Variable Overhead $128,000
Fixed Overhead $750,000

Calculate the labor price variance.
A)$24,500 U
B)$24,500 F
C)$ 5,000 U
D)$ 5,000 F
10
Gary's Manufacturing Company had the following:

Planned:
Production 22,000 units
Standards 100 lbs. @ $2.50/lb. = $250/unit
Direct Labor 2 hrs/unit * $10/hour = $20/unit
Variable Overhead $2.50/direct labor hour = $5/unit
Fixed Overhead $698,500

Actual:
Production 24,000 units
Material used 2,640,000 lbs @ $2.40/lb
Direct Labor 49,000 hours total $465,500
Variable Overhead $128,000
Fixed Overhead $750,000

Calculate the labor usage variance.
A)$24,500 U
B)$24,500 F
C)$10,000 U
D)$10,000 F
11
Gary's Manufacturing Company had the following:

Planned:
Production 22,000 units
Standards 100 lbs. @ $2.50/lb. = $250/unit
Direct Labor 2 hrs/unit * $10/hour = $20/unit
Variable Overhead $2.50/direct labor hour = $5/unit
Fixed Overhead $698,500

Actual:
Production 24,000 units
Material used 2,640,000 lbs @ $2.40/lb
Direct Labor 49,000 hours total $465,500
Variable Overhead $128,000
Fixed Overhead $750,000

Calculate the fixed overhead spending variance.
A)$63,500 F
B)$63,500 U
C)$51,500 F
D)$51,500 U
12
The practice of intentionally understating expected sales volume is referred to as:
A)Lowballing
B)Highballing
C)Budgetary slack
D)Budgetary overstatement
13
When evaluating operations management sometimes uses the difference between expected and actual performance. This is referred to as:
A)Management by Expectations.
B)Management by Deception.
C)Management by Objective
D)Management by Exception.
14
A primary advantage of a standard cost system is the efficient use for management to control costs. Secondary advantages include all of the following except:
A)Alerting management to trouble spots.
B)Boosting morale and motivating employees.
C)Allowing employees to optimize resources thereby minimizing waste and reducing costs.
D)Encourage good planning.
15
Budget and actual information related to Snoop's Dog Houses follows:
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Which of the above have unfavorable variances?
A)All of the above except labor usage.
B)Sales revenue and cost of goods sold.
C)Sales price per unit and sales revenue.
D)All are unfavorable except sales revenue.







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