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41.
Which of the following is
true
about an unfavorable variance appearing in a performance
report?
42.
ABC Company's standard direct labor cost per unit includes 3 hours @ $15 per hour.
During May ABC Company produced 380 units and incurred total labor cost of $16,200 for
1,200 actual direct labor hours worked. ABC's labor rate variance for May is:
43.
ABC Company's standard direct labor cost per unit includes 3 hours @ $15 per hour.
During May ABC Company produced 380 units and incurred total labor cost of $16,200 for
1,200 actual direct labor hours worked. ABC's labor efficiency variance for May is:
44.
How are unfavorable standard cost variances reported in an organization's annual report?
45.
Which of the following organizational perspectives is
not
reported on a balanced
scorecard?
46.
A high-level integrated approach to measuring and reporting organizational performance is
accomplished by using:
47.
A balanced scorecard framework is integrated through four key perspectives. The
presentation of these key perspectives on a balanced scorecard from the lowest level
perspective to the highest level perspectives is:
Essay Questions
48.
Patrick Company manufactures a single product. The original budget for April was based
on expected production of 12,000 units; actual production for April was 10,600 units. The
original budget and actual costs for the manufacturing department are shown below:
Original
Actual
Budget
Costs
Direct Materials
$96,000
$90,500
Direct Labor
50,400
48,400
Variable Overhead
42,000
38,700
Fixed Overhead
84,000
82,000
Total
$272,400
$259,600
Prepare an appropriate performance report for the manufacturing department.
49.
The cost formula for the maintenance department of the Raven Co. is $13,000 per month
plus $6.50 per machine hour used by the production department.
a. Calculate the maintenance cost that would be budgeted for the month of November in
which 10,800 machine hours are planned to be used.
b. Prepare an appropriate performance report for the maintenance department assuming
that 11,130 machine hours were actually used in the month of November, and the total
maintenance cost incurred was $86,485.
50.
The standards for one case of Saycheles are:
Direct materials
7 lbs. @ $5.90/lb.
Direct labor
4.2 hrs. @ $13.00/hr.
During the week ended April 15, the following activity took place:
• 14,500 lbs. of raw material were purchased for inventory at a total cost of $81,200;
• 1,800 cases of finished product were produced;
• 13,680 lbs. of raw material were used;
• 7,380 labor hours were worked at an average rate of $13.40 per hour.
Calculate each of the following variances:
(a.) Raw materials purchase price variance.
(b.) Raw materials usage variance.
(c.) Direct labor rate variance.
(d.) Direct labor efficiency variance.
(e.) Explain the factors that most likely caused the variances computed above.
51.
The standards for one carton of Wonder Wax are:
Direct materials
4 lbs. @
$2.55
Direct labor
6 hrs. @
$5.25
Variable overhead (based on direct
labor hours)
6 hrs. @
$3.40
During the week ended December 4, the following activity took place:
• 4,600 lbs. of raw material were purchased for inventory at a cost of $2.63 per pound;
• 1,050 cartons of finished product were produced;
• 4,225 lbs. of raw material were used;
• 6,140 labor hours were worked at a total cost of $33,463;
• $20,569 actual variable overhead costs were incurred.
Calculate each of the following variances:
(a.) Price variance for raw materials purchased.
(b.) Raw materials usage variance.
(c.) Direct labor rate variance.
(d.) Direct labor efficiency variance.
(e.) Variable overhead spending variance.
(f.) Variable overhead efficiency variance.
52.
The standards for one carton of Flavor Rite are:
Direct materials
3.2 lbs. @
$6.00/lb.
Direct labor
2.4 hrs. @
$10.00/hr.
During the week ended May 17, the following activity took place:
• 4,800 lbs. of raw material were purchased for inventory at a cost of $5.60 per pound;
• 1,200 cartons of finished product were produced;
• 4,020 lbs. of raw material were used;
• 3,110 labor hours were worked at a total cost of $26,435.
Calculate each of the following variances:
(a.) Raw materials purchase price variance.
(b.) Raw materials usage variance.
(c.) Direct labor rate variance.
(d.) Direct labor efficiency variance.
(e.) Explain the factors that most likely caused the variances computed above.
