79. A company makes a product using two materials, one of which is interchangeable with a
third material. The standards for producing one 200-pound batch are presented below. The last
200-pound batch was produced using 140 pounds of M and 90 pounds of O. The price of M was
$0.03 per pound and the actual price of O was $0.10.
Is the materials mix variance favorable or unfavorable?
80. A company makes a product using two materials, one of which is interchangeable with a
third material. The standards for producing one 200-pound batch are presented below. The last
200-pound batch was produced using 140 pounds of M and 90 pounds of O. The price of M was
$0.03 per pound and the actual price of O was $0.10.
What is the materials yield variance?
81. A company makes a product using two materials, one of which is interchangeable with a
third material. The standards for producing one 200-pound batch are presented below. The last
200-pound batch was produced using 140 pounds of M and 90 pounds of O. The price of M was
$0.03 per pound and the actual price of O was $0.10.
Is the materials yield variance favorable or unfavorable?
82. Tiger Company’s direct labor cost for March was as follows:
What was Tiger’s direct labor yield variance?
83. Tiger Company’s direct labor cost for March was as follows:
Is the direct labor yield variance favorable or unfavorable?
84. Sample Inc. has the following information:
What was the standard direct labor rate?
85. Sample Inc. has the following information:
What was Sample’s actual direct labor rate?
86. The budget for a given cost during a given period was $80,000. The actual cost for the
period was $72,000. Considering these facts, the plant manager has done a better-than-expected
job in controlling the cost if: (CPA adapted)
87. For a company that produces more than one product, the sales volume variance can be
divided into which two of the following additional variances? (CMA adapted)
88. Actual and budgeted information about the sales of a product are presented below for
June: (CIA adapted)
The sales price variance for June was:
89. The exhibit below reflects a summary of performance for a single item of a retail store’s
inventory for the month ended April 30: (CIA adapted)
The sales volume variance is:
90. Folsom Fashions sells a line of women’s dresses. Folsom’s performance report for
November is shown below: (CMA adapted)
The company uses a flexible budget to analyze its performance and to measure the effect on
operating income of the various factors affecting the difference between budgeted and actual
operating income.
The effect of the sales quantity variance on the contribution margin for November is:
91. Folsom Fashions sells a line of women’s dresses. Folsom’s performance report for
November is shown below: (CMA adapted)
The company uses a flexible budget to analyze its performance and to measure the effect on
operating income of the various factors affecting the difference between budgeted and actual
operating income.
The sales price variance for November is:
92. Folsom Fashions sells a line of women’s dresses. Folsom’s performance report for
November is shown below: (CMA adapted)
The company uses a flexible budget to analyze its performance and to measure the effect on
operating income of the various factors affecting the difference between budgeted and actual
operating income.
The variable cost flexible budget variance for November is:
93. Folsom Fashions sells a line of women’s dresses. Folsom’s performance report for
November is shown below: (CMA adapted)
The company uses a flexible budget to analyze its performance and to measure the effect on
operating income of the various factors affecting the difference between budgeted and actual
operating income.
What additional information is needed for Folsom to calculate the dollar impact of a change in
market share on operating income for November? (CMA adapted)
94. Compound Q11H is a raw material used to make Grater Corporation’s major product. The
standard cost of compound Q11H is $23.00 per ounce and the standard quantity is 3.8 ounces per
unit of output. Data concerning the compound for October appear below:
The raw material was purchased on account.
The debit to the Raw Materials account for October would total:
95. Compound Q11H is a raw material used to make Grater Corporation’s major product. The
standard cost of compound Q11H is $23.00 per ounce and the standard quantity is 3.8 ounces per
unit of output. Data concerning the compound for October appear below:
The raw material was purchased on account.
The credit to the Raw Materials account for October would total:
96. Compound Q11H is a raw material used to make Grater Corporation’s major product. The
standard cost of compound Q11H is $23.00 per ounce and the standard quantity is 3.8 ounces per
unit of output. Data concerning the compound for October appear below:
The raw material was purchased on account.
The Materials Price Variance for October would be recorded as a:
97. Compound Q11H is a raw material used to make Grater Corporation’s major product. The
standard cost of compound Q11H is $23.00 per ounce and the standard quantity is 3.8 ounces per
unit of output. Data concerning the compound for October appear below:
The raw material was purchased on account.
The Materials Quantity Variance for October would be recorded as a:
98. Compound K47E is used to make Goforth Corporation’s major product. The standard cost
of compound K47E is $24.50 per ounce and the standard quantity is 6.1 ounces per unit of output.
In the most recent month, 5,030 ounces of the compound were used to make 700 units of the
output. When recording the use of materials in production, Raw Materials would be:
99. Durrant Corporation has provided the following data concerning its most important raw
material, compound O96H:
When recording the use of materials in production, Raw Materials would be: