Question : 41.The Boyle Company estimated that April sales would be 150,000 : 1257195

 

 

41.The Boyle Company estimated that April sales would be 150,000 units with an average selling price of $6.00. Actual sales for April were 149,000 units and average selling price was $6.12.The sales revenue flexible budget variance was:   

A. $6,120 favorable.

 

B. $6,000 unfavorable.

 

C. $17,880 favorable.

 

D. $17,880 unfavorable.

 

 

42.The Boyle Company estimated that April sales would be 150,000 units with an average selling price of $6.00. Actual sales for April were 149,000 units and average selling price was $6.12.The sales volume variance was:   

A. $6,120 favorable.

 

B. $6,000 unfavorable.

 

C. $17,880 favorable.

 

D. $17,880 unfavorable.

 

 

43.The Ferguson Company estimated that October sales would be 100,000 units with an average selling price of $6.00. Actual sales for October were 105,000 units and average selling price was $5.95.The sales revenue flexible budget variance was:   

A. $5,000 favorable.

 

B. $5,000 unfavorable.

 

C. $5,250 favorable.

 

D. $5,250 unfavorable.

 

 

44.The Ferguson Company estimated that October sales would be 100,000 units with an average selling price of $6.00. Actual sales for October were 105,000 units and average selling price was $5.95.The sales volume variance was:   

A. $30,000 favorable.

 

B. $30,000 unfavorable.

 

C. $29,750 favorable.

 

D. $29,750 unfavorable.

 

 

45.Which of the following equations can be used to compute a labor price variance? (A = Actual; S = Standard; H = Hour; P = Price)   

A. (AH × AP) – (AH × SP)

 

B. (AH × SP) – (SH × SP)

 

C. (AH × AP) – (SH × SP)

 

D. (SH × SP) – (SH × SP)

 

 

46.The following information is provided by the Atlas Company:  What is the direct material price variance?   

A. $1,000 favorable

 

B. $1,000 unfavorable

 

C. $5,000 unfavorable

 

D. Not enough information is provided

 

 

47.The following standard cost card is provided for Navid Company’s Product A:  The fixed overhead rate is based on total budgeted fixed overhead of $12,000. During the period, the company produced and sold 5,800 units at the following costs.Direct material 12,200 pounds @ $4.80 per poundDirect labor 5,950 hours @ $8.00 per hourOverhead $29,920The standard manufacturing cost per unit is $23.00 while the actual manufacturing cost per unit was (Do not round intermediate calculations):   

A. $23.46.

 

B. $36.16.

 

C. $17.96.

 

D. Cannot be determined from the information provided.

 

 

48.Heartwood Company reported a $4,000 favorable direct labor price variance and a $1,500 unfavorable direct labor usage variance. Select the correct statement from the following.   

A. It took the employees less time to produce the outputs than expected.

 

B. The total direct labor variance is $2,500 favorable.

 

C. The actual direct labor rate must have exceeded the standard direct labor rate.

 

D. It is probable that the supervisor attempted to use more highly skilled (and paid) employees than allowed for by the direct labor standards.

 

 

49.Which of the following statements is true?   

A. An unfavorable materials price variance could have resulted from actions taken by the purchasing agent.

 

B. An unfavorable materials usage variance could have resulted from actions taken by the production supervisor.

 

C. An unfavorable labor usage variance could have resulted from actions taken by the personnel department.

 

D. All of these answers are correct.

 

 

50.Which manager is usually held responsible for materials usage variances?   

A. Production supervisor

 

B. Marketing manager

 

C. Purchasing agent

 

D. None of these answers is correct.