static planning budget and flexible budget

Laguardia Community College Accounting Multiple Choices Q&A Discussion

Laguardia community college

Question Description

 

21. Which of the following comparisons best isolates the impact that changes in operating efficiency have on performance?

A. static planning budget and flexible budget
B. static planning budget and actual results
C. flexible budget and actual results
D. master budget and static planning budget
22. Hoppy Corporation compares monthly operating results to a static budget prepared at the beginning of the month. When the actual level of activity is less than budgeted, which of the following would be true?

A. Variable costs would show favorable variances.
B. Variable costs would show unfavorable variances.
C. Fixed costs would show favorable variances.
D. Fixed costs would show unfavorable variances.
23. The WRT Corporation makes collections on sales according to the following schedule:
25% in month of sale, 65% in month following sale, 5% in second month following sale and
5% uncollectible
The following sales have been budgeted:sales

april $120,000

may 100,000

june 110,000

Budgeted cash collections in June would be:

A. $27,500
B. $98,500
C. $71,000
D. $115,500
24. Which of the following would produce a materials price variance?

A. An excess quantity of materials used.
B. An excess number of direct labor-hours worked in completing a job.
C. Shipping materials to the plant by air freight rather than by truck.
D. Breakage of materials in production.
25. The variance that is usually most useful in assessing the performance of the purchasing department manager is:

A. the materials quantity variance.
B. the materials price variance.
C. the labor rate variance.
D. the labor efficiency variance.
26. Which of the following would produce a labor rate variance?

A. Poor quality materials causing breakage and work interruptions.
B. Use of persons with high hourly wage rates in tasks that call for low hourly wage rates.
C. Excessive number of hours worked in completing a job.
D. An unfavorable variable overhead rate variance.
27. The following materials standards have been established for a particular product:

standard quantity per unit 1.7 meters

standard price $19.80 per meter

The following data pertain to operations concerning the product for the last month:

actual materials purchased 5,800 meters

actual cost of materials purchased $113,680

actual materials used in production 5,100 meter

actual output 3,200 units

What is the materials quantity variance for the month?

A. $13,720 U
B. $6,732 F
C. $13,860 U
D. $6,664 F
28. The standards for direct materials in making a certain product are 20 pounds at $0.75 per pound. During the past period, 56,000 units of product were made and the materials quantity variance was $30,000 U. The number of pounds of direct material used during the period amounted to:

A. 1,080,000
B. 1,160,000
C. 1,200,000
D. 784,000
29. The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per kilogram. The production of the product in April was 870 units, but production had been budgeted for 850 units. During April, 8,200 kilograms of the raw material were purchased for $6,888 and 7,150 kilograms of the raw material were used in production. The material variances for April were:
materials price variance material quantity variancea 286U 152U

b 286U 280U

c 328U 152U

d 328U 280U

C.
D.
30. The following materials standards have been established for a particular product:

standard quantity per unit of output 8.3 grams

standard price $19.15 per gram

The following data pertain to operations concerning the product for the last month:

actual materials purchased 7500 grams

actual cost of materials purchase $141,375

actual materials used in production 7,100

actual output 700 units

What is the materials price variance for the month?

A. $2,250 F
B. $7,540 U
C. $24,317 U
D. $7,660 U

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