Question : 1. A budget for a single unit of a product or : 1291595

1. A budget for a single unit of a product or service is called as a: A. fixed cost.B. real cost.C. standard cost.D. total cost.

2. Which of the following statements is true regarding the budgeted cost for direct materials? A. It would be used on a static budget but not a flexible budget.B. It would consist of two components – a standard quantity and a standard price.C. It must be determined after materials are purchased for the year.D. It can not be determined if a company uses a just-in-time inventory system.

3. Variance analysis compares: A. practical standards and ideal standards.B. static budgets and flexible budgets.C. standard costs and actual costs.D. product costs and period costs.

4. Which of the following statements is false regarding task analysis? A. It examines the production process in detail.B. It may involve the use of engineers.C. It emphasizes what it should cost to produce a product rather than historical costs.D. It uses actual historical data in the determination of standard costs.

5. Task analysis: A. is used to determine the tasks that production employees should complete on a daily basis.B. is used to evaluate employee performance.C. is used to set standard costs.D. emphasizes the historical costs of a product.

6. A(n) ____ is attainable only when near-perfect conditions exist. A. practical standardB. ideal standardC. static budgetD. flexible budget

7. In most companies, machines break down occasionally and employees are often less than perfect. Which type of standard acknowledges these characteristics when determining the standard cost of a product? A. Efficiency standardB. Ideal standardC. Practical standardD. Budgeted standard

8. Hathaway Inc. produces and sells golf umbrellas to local resorts. Hathaway anticipates April to be a busy month with the sale of 2,000 umbrellas. The company has prepared the following static budget for April: 

Sales revenue (2,000 units)

$60,000

Variable costs:

Direct materials

6,000

Direct labor

8,000

Overhead

2,500

Fixed costs

    6,000

Net operating income

$37,500

During April, Hathaway actually produced and sold 2,300 umbrellas. What should be Hathaway’s net operating income in April based on a flexible budget? A. $44,025B. $43,125C. $37,500D. $35,025

9. Hoppe Inc. manufactures widgets. Management has determined that each widget has a standard materials cost of $3.50 when 2.5 ounces of raw material at a cost of $1.40 per ounce are used. The static budget for the month of December showed an estimated production of 4,000 widgets in December. During December, 4,300 widgets were actually produced. The actual cost for each widget was $3.60 when 2.25 ounces of raw material at a cost of $1.60 per ounce were purchased and used. What should be the total direct materials cost according to Hoppe’s flexible budget for December? A. $14,400B. $15,050C. $14,000D. $15,480

10. Violetta Inc. manufactures plastic storage boxes. Management has determined that each medium-sized box has a standard materials cost of $1.20 when 4 pounds of raw material at a cost of $.30 per pound are used. The static budget for the month of March showed an estimated production of 15,000 boxes in March. During March, 17,000 boxes were actually produced. The actual cost for each box was $1.56 when 3.9 pounds of raw material at a cost of $.40 per pound were purchased and used. What should be the total direct materials cost according to Violetta’s flexible budget for March? A. $20,400B. $26,520C. $18,000D. $23,400