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Exam 24: Standard Costs and Balanced Scorecard

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Question 41

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Pepper Industries uses a standard cost accounting system. During March, 2016, the company reported the following manufacturing variances: In addition, 15,000 units of product were sold at $18 per unit. Each unit sold had a standard cost of $14. Selling and administrative expenses for the month were $15,000. Instructions Prepare an income statement for management for the month ending March 31, 2016.

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Question 42

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The difference between a budget and a standard is that

A) a budget expresses what costs were, while a standard expresses what costs should be.
B) a budget expresses management's plans, while a standard reflects what actually happened.
C) a budget expresses a total amount, while a standard expresses a unit amount.
D) standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system.

E) All of the above
F) None of the above

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Question 43

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The cost of freight-in

The standard direct labor cost for producing one unit of product is 5 direct labor hours at a standard rate of pay of $20. Last month, 15,000 units were produced and 73,500 direct labor hours were actually worked at a total cost of $1,350,000. The direct labor quantity variance was

Normal standards should be rigorous but attainable.

The standard unit cost is used in the calculation of which of the following variances?

In using variance reports, top management normally looks carefully at every variance.

Standard cost is the industry average cost for a particular item.

In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done is 40,000 hours. Glazier's predetermined overhead rate is $5.00 per direct labor hour. Instructions Compute the total manufacturing overhead variance.

The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing 2,400 units, the actual direct labor cost was $46,000 for 3,000 direct labor hours worked, the total direct labor variance is

The difference between actual quantity of materials times the standard price and standard quantity times the standard price is the materials ________________ variance.

A standard cost is

Caroline, Inc. planned to produce 20,000 units of product and work 100,000 direct labor hours in 2016. Manufacturing overhead at the 100,000 direct labor hours level of activity was estimated to be: At the end of 2016, 19,000 units of product were actually produced and 98,000 actual direct labor hours were worked. Total actual overhead costs for 2016 were $935,000. Instructions (a) Compute the total overhead variance. (b) Compute the overhead controllable variance. (c) Compute the overhead volume variance.

Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Dillon used 3,100 pounds of materials at a total cost of $18,135. Dillon's materials quantity variance is

The perspectives included in the balanced scorecard approach include all of the following except the

The formula for the labor price variance is

In Zero Company's income statement, they report gross profit of $55,000 at standard and the following variances: Materials price $ 420 F Materials quantity 600 F Labor price 420 U Labor quantity 1,000 F Overhead 900 F Zero would report actual gross profit of

The following direct materials data pertain to the operations of Wright Co. for the month of December. Standard materials price $5.00 per pound Actual quantity of materials purchased and used 16,500 pounds The standard cost card shows that a finished product contains 4 pounds of materials. The 16,500 pounds were purchased in December at a discount of 4% from the standard price. In December, 4,000 units of finished product were manufactured. Instructions Prepare a matrix for materials and calculate the materials variances.

Dillon has a standard of 2 hours of labor per unit, at $12 per hour. In producing 2,000 units, Dillon used 3,850 hours of labor at a total cost of $46,970. Dillon's total labor variance is

A variance is the difference between actual costs and standard costs.