Question :
71. The sales volume variance was:
A. $25,600 favorable.
B. $25,600 unfavorable.
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71. The sales volume variance was:
A. $25,600 favorable.
B. $25,600 unfavorable.
C. $25,000 unfavorable.
D. $25,000 favorable.
72.The Bach Company provides the following standard and actual cost relating to material price and labor usage. Based on the above information, which statement is correct?
A. Both the material price variance and the labor usage variance are unfavorable.
B. Both the materials price variance and the labor usage variance are favorable.
C. The labor usage variance is unfavorable.
D. The materials price variance is unfavorable.
73. Which of the following statements is incorrect?
A. The cost of goods sold variance is favorable.
B. The S&A expense variance is favorable.
C. The sales revenue variance is favorable.
D. The wage expense variance is unfavorable.
74. The sales volume variance was:
A. $15,000 unfavorable.
B. $7,000 favorable.
C. $15,000 favorable.
D. $7,000 unfavorable.
75.The difference between actual materials cost per unit and the standard materials cost per unit multiplied by actual quantity used is known as a:
A. Sales volume variance.
B. Materials price variance.
C. Labor price variance.
D. Materials usage variance.
76.What is the result when the quantity of materials used is less than the standard quantity?
A. A favorable materials usage variance
B. A favorable materials price variance
C. An unfavorable materials usage variance
D. An unfavorable materials price variance
77.What is the result when the actual rate paid for labor is less than the standard rate?
A. A favorable labor price variance
B. An unfavorable labor price variance
C. A favorable labor usage variance
D. An unfavorable labor usage variance
78.Which of the following statements is incorrect regarding variable overhead variances?
A. Variable overhead variances are based on the same general formulas used to compute the materials and labor price variances.
B. Variable overhead costs represent many inputs such as supplies, utilities and indirect labor.
C. All companies must calculate price and usage variances for variable overhead costs.
D. None of these answers is correct.
79.Stafford Company prepared a static budget that for a production and sales volume of 10,000 units. What is net income if 9,000 units are sold?
A. $152,100
B. $152,400
C. $137,300
D. $122,400
80.Timberlake Company planned for a production and sales volume of 12,000 units. However, the company actually makes and sells 13,000 units. What was the sales volume variance?
A. $65,000 favorable
B. $65,000 unfavorable
C. $29,800 unfavorable
D. $29,800 favorable
81.Timberlake Company planned for a production and sales volume of 12,000 units. However, the company actually makes and sells 13,000 units. What was the total variable cost volume variance?
A. $29,800 unfavorable
B. $29,800 favorable
C. $35,200 unfavorable
D. $35,200 favorable
82.Which of the following statements is correct?
A. Establishing standards is the least difficult aspect of using a standard cost system.
B. Managers should be praised or punished based on variances.
C. A favorable variance may indicate the existence of unfavorable conditions.
D. Budget slack exists when performance standards are set at an ideal, unachievable level.
83.Which of the following statements is incorrect?
A. In deciding whether to investigate a variance, managers should not consider the materiality of the variance.
B. A material variance is one that will influence stockholders’ investment decisions.
C. The primary advantage of a standard cost system is to price products consistently.
D. None of these answers is correct.
84.Jared expects to charge $60 per hour for his industrial maintenance business during the following year. He expects to reach 50,000 hours at that price. Jared’s partner disagrees with the estimate and expects closer to 40,000 hours.What should Jared do when preparing the budget for the year?
A. Create a flexible budget showing a range of outcomes between 40,000 hours and 50,000 hours.
B. Create two master budgets, one at 50,000 hours and one at 40,000 hours.
C. Create only one budget at the more optimistic volume of 50,000 hours.
D. Create a volume budget based on actual performance.
