Question : Multiple Choice Questions The following budget for the 80,000-unit normal production : 1229632

 

 

Multiple Choice Questions
 

The following budget for the 80,000-unit normal production level was prepared by the Montgomery Corporation for September:

  

During September, the Production Department actually produced 90,000 units at a total manufacturing cost of $165,000.

 

113. Which of the following is not an accurate budgeted amount for an output level of 90,000 units? 
A. Total overhead cost, $86,900
B. Total manufacturing costs, $183,150
C. Direct materials, $39,375
D. Direct labor, $49,500

 

 

 

114. A summary of Montgomery’s performance in September would not show: 
A. Actual total costs under budget by $1,000.
B. Total costs of $183,150 budgeted for 90,000 units.
C. Actual total costs under budget by $18,150.
D. Overhead applied to production of $64,350.

115. The cost-volume relationship used to prepare the flexible budget for this department includes: 
A. Manufacturing overhead cost of $1.00 per unit.
B. Fixed cost of $0.65 per unit.
C. Total cost of $1.90 per unit.
D. Variable costs of $1.32 per unit.

116. Under standard cost procedures, any differences between actual costs and standard costs are: 
A. Ignored until the end of the fiscal period, when they are shown in footnotes to the income statement.
B. Recorded in variance accounts.
C. Added to or subtracted from the standard cost amount immediately.
D. Treated as extraordinary production gains or losses.

117. If the actual number of direct labor hours used exceeds the standard direct labor hours allowed, this indicates: 
A. An unfavorable labor efficiency variance.
B. A favorable labor efficiency variance.
C. An unfavorable labor rate variance.
D. An unfavorable total labor variance.

 

 

Matson Company incurred actual direct labor costs of $70,500 in April for 6,000 direct labor hours, although the standard labor cost for output produced was only $67,200 (6,400 hours at $10.50 per hour).

 

118. Matson’s labor rate variance for April is: 
A. $7,500 unfavorable.
B. $8,000 unfavorable.
C. $4,200 favorable.
D. $3,300 unfavorable.

 

 

119. Matson’s labor efficiency variance for April is: 
A. $3,300 unfavorable.
B. $7,500 unfavorable.
C. $4,700 favorable.
D. $4,200 favorable.

 

 

120. The journal entry to record direct labor costs relating to work performed in April includes: 
A. A debit to Work-in-Process Inventory for $70,500.
B. A credit to Labor Rate Variance for $7,500.
C. A credit to Labor Efficiency Variance for $4,200.
D. A credit to Direct Labor for $67,200.

 

 

121. Smith’s actual manufacturing costs for May totaled $72,000, whereas budgeted manufacturing costs (at standard) were $80,000. A comparison of the budgeted costs and actual amounts: 
A. Is not significant unless the budgeted and actual figures are based upon the same level of production.
B. Demonstrates that Smith’s Manufacturing Department operated very efficiently during May.
C. Indicates that production cost per unit was 10% below budgeted cost per unit.
D. Indicates that Smith produced only 90% of the number of units budgeted for production in May.

 

 

122. When standard costs are used in a cost accounting system, the transfer of units from the Finished Goods Inventory to the Cost of Goods Sold account involves: 
A. A debit to the Cost of Goods Sold account for the actual cost of units transferred.
B. A credit to the Finished Goods Inventory account for the standard cost of units transferred.
C. Recording a cost variance for the difference between the actual and standard cost of units transferred.
D. The elimination of any cost variances relating to units sold.

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more