CHAPTER 25
Standard Costs and Balanced Scorecard
ASSIGNMENT CLASSIFICATION TABLE
Learning Objectives
Questions
Brief
Exercises
Do It!
Exercises
1. Describe standard costs.
1, 2, 3, 4, 5,
6, 7, 8, 9
1, 2, 3
1
1, 2, 3, 4, 17
2. Determine direct materials
variances.
10
4
2
5, 6, 7, 8, 9,
13, 14, 21
3. Determine direct labor and
total manufacturing overhead
variances.
11, 12
5, 6
3
4, 6, 7, 8, 9,
10, 11, 12,
13, 21
4. Prepare variance reports and
13, 14, 15,
16, 17, 18
7
4
10, 14, 15,
16, 17, 18,
19
2A, 3A, 5A,
6A
system.
controllable and volume
variance.
20, 21, 22,
23
10, 11
23, 24, 25
7A, 8A, 9A,
10A
ASSIGNMENT CHARACTERISTICS TABLE
Problem
Number
Description
Difficulty
Level
Time
Allotted (min.)
1A
Compute variances.
Simple
20–30
2A
Compute variances, and prepare income statement.
Simple
30–40
3A
Compute and identify significant variances.
Moderate
20–30
4A
Answer questions about variances.
30–0
explain unfavorable variances.
income statement.
Compute overhead controllable and volume variances.
Simple
10–15
Compute overhead controllable and volume variances.
10–15
Compute overhead controllable and volume variances.
10–15
Compute overhead controllable and volume variances.
10–15
BLOOM’ S TAXONOMY TABLE
Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End–of-Chapter Exercises and Problems
Learning Objective
Knowledge
Comprehension
Application
Analysis
Synthesis
Evaluation
1. Describe standard costs.
Q25-3
Q25-8
Q25-1 Q25-6
Q25-2 Q25-7
Q25-4 Q25-9
Q25-5 E25–17
BE25-1 E25-1
BE25-2 E25-2
BE25-3 E25-3
DI25-1 E25–17
E25–21
E25-7
4. Prepare variance reports and
balanced scorecard.
Q25–13
Q25–14
Q25–15
Q25–16
Q25–17
Q25–18
E25–17
E25–18
E25–19
BE25-7 P25–6A
DI25-4
E25–10
E25–14
E25–15
E25–16
P25–2A
P25–5A
P25–3A
*5. Identify the features of a
standard cost accounting
system.
Q25–19
BE25-8
BE25-9
E25–20
E25–22
P25–6A
E25–21
Q25–20
Q25–21
Q25–22
Q25–23
BE25–11
E25–23
E25–24
E25–25
P25–7A
P25–8A
P25–9A
P25–10A
E25–23
E25–24
BYP25-4
BYP25-2
BYP25-1
BYP25-3
BYP25-5
BYP25-7
BYP25-8
BYP25-9
ANSWERS TO QUESTIONS
3. In addition to facilitating management planning, standard costs offer the following advantages to
an organization:
Questions Chapter 25 (Continued)
15. The four perspectives of the balanced scorecard are: financial, customer, internal process, and
Questions Chapter 25 (Continued)
*23. John should include the following points about overhead variances:
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE 25-1
BRIEF EXERCISE 25-2
BRIEF EXERCISE 25-3
BRIEF EXERCISE 25-4
BRIEF EXERCISE 25-5
BRIEF EXERCISE 25-6
BRIEF EXERCISE 25-7
*BRIEF EXERCISE 25-8
*BRIEF EXERCISE 25-9
*BRIEF EXERCISE 25–10
SOLUTIONS FOR DO IT! REVIEW EXERCISES
DO IT! 25-1
DO IT! 25-2
DO IT! 25-3
DO IT! 25-4
SOLUTIONS TO EXERCISES
EXERCISE 25-1
EXERCISE 25-2
EXERCISE 25-3
EXERCISE 25-4
EXERCISE 25-5
EXERCISE 25-6
EXERCISE 25-7
EXERCISE 25-7 (Continued)
EXERCISE 25-7 (Continued)
(Not Required)
Labor Variance Matrix
EXERCISE 25-8
(b) The unfavorable materials quantity variance may be caused by the
EXERCISE 25-9
EXERCISE 25–10
TOBY TOOL & DIE COMPANY
Direct Labor Variance Report
For the Month Ended March 31, 2017
EXERCISE 25–11
EXERCISE 25–12
EXERCISE 25–13
EXERCISE 25–14
(a) PICARD LANDSCAPING
Variance Report – Purchasing Department
For the Current Month
(b) PICARD LANDSCAPING
Variance Report – Production Department
For the Current Month
EXERCISE 25–15
URBAN CORPORATION
Variance Report – Purchasing Department
For Week Ended January 9, 2017
EXERCISE 25–16
FISK COMPANY
Income Statement
For the Month Ended January 31, 2017
EXERCISE 25–17
EXERCISE 25–18
EXERCISE 25–19
*EXERCISE 25–20
*EXERCISE 25-21
*EXERCISE 25-22
*EXERCISE 25-23
(a)
Item
Amount
Hours
Rate
Total overhead ………………………………….
$54,450
16,500
EXERCISE 25-23 (Continued)
*EXERCISE 25-24
*EXERCISE 25-25
SOLUTIONS TO PROBLEMS
PROBLEM 25–1A
PROBLEM 25–2A
PROBLEM 25-2A (Continued)
(c) AYALA CORPORATION
Income Statement
For the Month Ended June 30, 2017
PROBLEM 25–3A
PROBLEM 25-3A (Continued)
PROBLEM 25–4A
PROBLEM 25–5A
PROBLEM 25-5A (Continued)
(c) HART LABS, INC.
Income Statement
For the Month Ended November 30, 2017
*PROBLEM 25–6A
*PROBLEM 25-6A (Continued)
(d) JORGENSEN CORPORATION
Income Statement
For the Month Ended January 31, 2017
*PROBLEM 25–7A
*PROBLEM 25–8A
*PROBLEM 25–9A
*PROBLEM 25-10A
CD25 CURRENT DESIGNS
CD25 (Continued)
BYP 25-1 DECISION-MAKING ACROSS THE ORGANIZATION
(a) When setting a standard for computer/labor hours usage, Milton Profes-
sionals should consider the following factors:
(b) Logical alternatives for the standard include:
BYP 25-1 (Continued)
BYP 25-2 MANAGERIAL ANALYSIS
BYP 25-3 REAL-WORLD FOCUS
BYP 25-4 REAL-WORLD FOCUS
BYP 25-5 REAL-WORLD FOCUS
BYP 25-6 COMMUNICATION ACTIVITY
To: Professor Standard
From: I. M. Smart
Subject: Setting Standard Costs
This memorandum covers two points as follows:
BYP 25-6 (Continued)
BYP 25-7 ETHICS CASE
BYP 25-8 ALL ABOUT YOU
BYP 25-9 CONSIDERING YOUR COSTS AND BENEFITS