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17-21
33.
34.
Barium Corporation has provided the following data concerning its most important raw
material, Compound XYY2:
Standard cost, per liter
$23.80
Standard quantity, liters per unit of
5.7
output
Material used in production in August,
liters
2,350
Actual output in August, units
400
35.
36.
The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately.
The company's accountant resigned without leaving adequate records or explanations for
what she did. In reviewing the records, you find the following information for May:
Materials Purchased
20,000 units
Materials Used
15,000 units
You find a copy of the budget which shows that materials were budgeted at $0.60/unit.
You know that the materials price variance is recorded at the time of purchase and you
find some handwritten notes among the accountant's work papers, which indicate the
following:
Materials price variance
$200 F
Materials efficiency (quantity) variance
$600 F
37.
The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately.
The company's accountant resigned without leaving adequate records or explanations for
what she did. In reviewing the records, you find the following information for May:
Materials Purchased
20,000 units
Materials Used
15,000 units
You find a copy of the budget which shows that materials were budgeted at $0.60/unit.
You know that the materials price variance is recorded at the time of purchase and you
find some handwritten notes among the accountant's work papers, which indicate the
following:
Materials price variance
$200 F
Materials efficiency (quantity) variance
$600 F
38.
The Fantasy Gifts Company, a maker of Holiday novelties, needs your help immediately.
The company's accountant resigned without leaving adequate records or explanations for
what she did. In reviewing the records, you find the following information for May:
Materials Purchased
20,000 units
Materials Used
15,000 units
You find a copy of the budget which shows that materials were budgeted at $0.60/unit.
You know that the materials price variance is recorded at the time of purchase and you
find some handwritten notes among the accountant's work papers, which indicate the
following:
Materials price variance
$200 F
Materials efficiency (quantity) variance
$600 F
39.
Which of the following sales variances is further analyzed into the market size and
industry volume variances?
40.
41.
The sales activity variance is equal to the sum of the market share variance and the:
42.
Using the abbreviations listed below, what is the formula for the industry volume variance?
AMS = actual market share
BMS = budgeted market share
BCM = budgeted contribution margin per unit
ACM = actual contribution margin per unit
ATM = actual total market
BTM = budgeted total market
43.
Using the abbreviations listed below, what is the market share variance?
AMS = actual market share
BMS = budgeted market share
BCM = budgeted contribution margin per unit
ACM = actual contribution margin per unit
ATM = actual total market
BTM = budgeted total market
44.
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)
45.
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)
Actual
Results
Flexible
Budget
Variances
Flexible
Budget
Static
(Master)
Budget
Sales
(units)
11,000
—
11,000
12,000
Revenue
(sales)
$208,000
$12,000
U
$220,000
$240,000
Variable
costs
121,000
11,000
U
110,000
120,000
Contribution
margin
$87,000
$23,000
U
$110,000
$120,000
Fixed costs
72,000
—
72,000
72,000
Operating
Income
$15,000
$23,000
U
$38,000
$48,000
46.
Danner Fashions sells a line of women's dresses. Danner'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.
Actual
Budget
Dresses sold
5,000
6,000
Sales
$235,000
$300,000
Variable costs
(145,000)
(180,000)
Contribution margin
$90,000
120,000
Fixed Costs
(84,000)
(80,000)
Operating income
$6,000
$40,000
47.
Danner Fashions sells a line of women's dresses. Danner'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.
Actual
Budget
Dresses sold
5,000
6,000
Sales
$235,000
$300,000
Variable costs
(145,000)
(180,000)
Contribution margin
$90,000
120,000
Fixed Costs
(84,000)
(80,000)
Operating income
$6,000
$40,000
The sales price variance for November is:
48.
Danner Fashions sells a line of women's dresses. Danner'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.
Actual
Budget
Dresses sold
5,000
6,000
Sales
$235,000
$300,000
Variable costs
(145,000)
(180,000)
Contribution margin
$90,000
120,000
Fixed Costs
(84,000)
(80,000)
Operating income
$6,000
$40,000
49.
Danner Fashions sells a line of women's dresses. Danner'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.
Actual
Budget
Dresses sold
5,000
6,000
Sales
$235,000
$300,000
Variable costs
(145,000)
(180,000)
Contribution margin
$90,000
120,000
Fixed Costs
(84,000)
(80,000)
Operating income
$6,000
$40,000
50.
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)
51.
Actual and budgeted information about the sales of a product are presented below for
June: (CIA adapted)
Actual
Budget
Units
8,000
10,000
Sales Revenue
$92,000
$105,000
52.
Which of the following income statement items is analyzed using the sales mix and the
sales quantity variances?
53.
The sales mix variance would be:
54.
The sales quantity variance would be favorable when a company sells:
