Chapter10.Standard Costing, Operational Performance Measures, and the Balanced Scorecard.doc



Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0

Chapter10.Standard Costing, Operational Performance Measures, and the Balanced Scorecard.doc



Uploaded by jbsantos09 







Save

Embed

Share

Print

Download

Chapter08.Cost Volume Profit

1

of 41

 

Chapter09.Profit Planning,

Chapter10.StandardCosting-Operational-

 Search document



MULTIPLE CHOICE QUESTIONS

1. A sta stand ndar ard d cost cost:: A. is the the "true" "true" cost of a unit of produc production tion.. B. is a budget budget for the the production production of one unit unit of a product product or servic service. e. C. can be be useful useful in calcu calculatin lating g equiva equivalent lent units. units. D. is normally normally the average average cost withi within n an indust industry ry.. . is almost almost always always the actual actual cost from previous previous years. years. Answer: B !: 1 #ype: #ype: $C

%. &hich of the following following is a predetermined estimated estimated cost that can be used in the calculati calculati a variance' A. (rod (roduc uctt cost cost.. B. Actua ctuall cos cost. C. )tan )tanda dard rd cost cost.. D. Diff Differ eren enti tial al cost cost.. . *arg *argin inal al co cost. Answer: C !: 1 #ype: #ype: $C +. ,ariances ,ariances are computed by ta-ing the the difference difference between which of the following' following' A. (roduc (roductt cost cost and and peri period od cos cost. t. B. Actual Actual cost cost and and diffe differen rentia tiall cost. cost. C. (rice (rice fact factors ors and rate rate facto factors. rs. D. Actual Actual cost cost and and stand standard ard cost. cost. . (roduc (roductt cos costt and and standa standard rd cost. cost. Answer: D !: 1 #ype: #ype: $C

Master your semester with Scribd Read Foron 30this Days Sign to vote title . #he term term "managem "management ent by e/cept e/ception" ion" is is best defined defined as: as:upFree A. choosi cho osing ng e/cep e/ceptio tional nal mana manager gers. s. & The New York Times  Useful  Not useful

 

Cancel anytime. B. controlli controlling ng actions actions of subordinates subordinates through through acceptan acceptance ce of management management techniques techniques.. C. invest investiga igatin ting g unfavora unfavorable ble varian variances ces..

Special offer for students: Only $4.99/month.





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

Master your semester with Scribd & The New York Times Special offer for students: Only $4.99/month.



Upload

Sign In

Read Free For 30 Days Cancel anytime.

Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



4. &hich &hich of the follow following ing are method methodss for setting setting standar standards' ds' A. Analy Analysis sis of hist histori orical cal data. data. B. #as- anal analy ysis. sis. C. #as#as- analysi analysiss and the the analysi analysiss of histori historical cal data. data. D. *atri/ *atri/ applic applicati ation on forms forms.. . 5oal 5oal cong congru ruen ence ce.. Answer: C !: % #ype: #ype: $C

6. &hich of the following following individuals individuals is least least li-ely to to become involved in the setting setting of eith direct material standards or direct labor standards' A. #he purch purchasi asing ng manage manager. r. B. A produc productio tion n supe supervi rvisor sor.. C. An eng engin inee eerr. D. A mac machi hine ne ope opera rato torr. . A com compa pany ny7s 7s pre presi side dent nt.. Answer:  !: % #ype: #ype: 3 8. A perf perfec ecti tion on stan standa dard rd:: A. tends to motivat motivatee employe employees es over a long period period of time. time. B. is attain attainable able in an an ideal ideal operat operating ing environm environment. ent. C. would would ma-e allow allowances ances for for normal normal amounts amounts of scrap and waste. waste. D. is general generally ly preferr preferred ed by behavioral behavioral scientist scientists. s. . will resul resultt in a number number of favorab favorable le variances variances on on a performanc performancee report. report. Answer: B !: % #ype: #ype: $C2 3 9. Consid Consider er the follo followin wing g stateme statements nts::

Master your semester with Scribd  Free Foron 30this Days Sign up to vote title .Behavioral scientists find that perfection standardsRead often discourage employees and resu  low wor-er morale. & The New York Times  Useful  Not useful Cancel anytime. .(ractical standards are also -nown as attainable standards. .(ractical standards incorporate a certain amount of inefficiency such as that caused by






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



4. &hich &hich of the follow following ing are method methodss for setting setting standar standards' ds' A. Analy Analysis sis of hist histori orical cal data. data. B. #as- anal analy ysis. sis. C. #as#as- analysi analysiss and the the analysi analysiss of histori historical cal data. data. D. *atri/ *atri/ applic applicati ation on forms forms.. . 5oal 5oal cong congru ruen ence ce.. Answer: C !: % #ype: #ype: $C

6. &hich of the following following individuals individuals is least least li-ely to to become involved in the setting setting of eith direct material standards or direct labor standards' A. #he purch purchasi asing ng manage manager. r. B. A produc productio tion n supe supervi rvisor sor.. C. An eng engin inee eerr. D. A mac machi hine ne ope opera rato torr. . A com compa pany ny7s 7s pre presi side dent nt.. Answer:  !: % #ype: #ype: 3 8. A perf perfec ecti tion on stan standa dard rd:: A. tends to motivat motivatee employe employees es over a long period period of time. time. B. is attain attainable able in an an ideal ideal operat operating ing environm environment. ent. C. would would ma-e allow allowances ances for for normal normal amounts amounts of scrap and waste. waste. D. is general generally ly preferr preferred ed by behavioral behavioral scientist scientists. s. . will resul resultt in a number number of favorab favorable le variances variances on on a performanc performancee report. report. Answer: B !: % #ype: #ype: $C2 3 9. Consid Consider er the follo followin wing g stateme statements nts::

Master your semester with Scribd  Free Foron 30this Days Sign up to vote title .Behavioral scientists find that perfection standardsRead often discourage employees and resu  low wor-er morale. & The New York Times  Useful  Not useful Cancel anytime. .(ractical standards are also -nown as attainable standards. .(ractical standards incorporate a certain amount of inefficiency such as that caused by






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



=. &hich &hich of the following following would would be considered considered if a company company desires desires to establish establish a series series of practical manufacturing standards' standards' A. #he product productivity ivity loss loss associa associated ted with with a short0term short0term wor-er wor-er slowdow slowdown. n. B. 3ormal 3ormal defect defect rates in an assem assembly bly proces process. s. C. >ighly >ighly unusua unusuall spoilage spoilage rates with direct direct material materials. s. D. ?uantity ?uantity discoun discounts ts associate associated d with purchase purchasess of direct direct materials. materials. . Bot Both "B "B" and and "D" "D" Answer:  !: % #ype: #ype: $C2 3

1@. &hich of the following following would not be considered considered if a company desires to establish a series practical manufacturing standards' standards' A. (roductio (roduction n time lost lost during during unusual unusual machin machinery ery brea-dow brea-downs. ns. B. 3orm 3ormal al wor wor-e -err fati fatigu gue. e. C. reigh reightt charges charges on on incomi incoming ng raw mate materia rials. ls. D. (roductio (roduction n time lost during during setup setup procedures procedures for new manufac manufacturin turing g runs. . #he histori historical cal % defect defect rate rate associate associated d with raw material material inputs inputs.. Answer: A !: % #ype: #ype: $C2 3

11. &hich of the following following choices choices correctly notes a characteristic characteristic associated associated with perfection standards and one associated with practical standards' (erfection )tandards (ractical )tandards A. Attainable in an ideal environment ncorpo rporate abnorma rmal oc occurrences w setting quantity and efficiency targets B. $esu $esult lt in many any unfa unfavo vora rab ble var varian iances ces Are often ften atta attain inab able le by wor-e or-ers rs C. #end to boost wor-er morale 5enerally preferred by behavioral scientists D. 5ene 5enera rall lly y2 are are easi easily ly ach achie ieve ved d by $esult in both favorable and unfavora wor-ers variances  Read Free For 30this Days Sign up to vote on title . 5ene 5enera rall lly y pre prefe ferr rred ed by by beh behav avio iora rall Are easier to achieve than perfection  scientists standards Useful  Not useful 


Answer: B !: % #ype: #ype: $C2 3

Cancel anytime.





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 




 Search document

Read Free Foron 30this Days Sign up to vote title



 Not useful Cancel anytime.

Useful



 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



1+. &hich of the following choices correctly notes the use of the standard price per unit of d material when calculating the materials price variance and the materials quantity variance (rice ,ariance ?uantity ,ariance A. sed Always used B. sed ccasionally used C. sed 3ot used D. 3ot used Always used . 3ot used 3ot used Answer: A !: + #ype: $C 1. *ost companies base the calculation of the materials price variance on the: A. number of units purchased. B. number of units spoiled. C. number of units that should have been used. D. number of units actually used. . number of units to be purchased during the ne/t accounting period. Answer: A !: + #ype: $C 14. &hich of the following correctly lists all the information needed to calculate a labor rat variance' Reading a Preview A. )tandard labor rate andYou're actual hours wor-ed. B. Actual hours wor-ed and actual units produced. Unlock full access with a free trial. C. )tandard labor rate2 actual labor rate2 and actual units produced. D. Actual labor rate and actual hours wor-ed. Download With Trial . Actual labor rate2 standard labor rate2 andFree actual hours wor-ed. Answer:  !: + #ype: $C

16.semester &hich of the following are most similar with respect to the manner in which th Master your withvariances Scribd  Read Free Foron 30this Days Sign up to vote title are calculated'  A. !abor rate variance and labor efficiency variance. & The New York Times  Useful  Not useful Cancel anytime. B. *aterials price variance and materials quantity variance. C. *aterials price variance2 materials quantity variance2 and total materials variance.






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



19. f a company has an unfavorable direct0material quantity variance2 then: A. the direct0material price variance is favorable. B. the total direct0material variance is unfavorable. C. the total direct0material variance is favorable. D. the direct0labor efficiency variance is unfavorable. . any of the above variances can occur. Answer:  !: + #ype: 3 1=. A favorable labor efficiency variance is created when: A. actual labor hours wor-ed e/ceed standard hours allowed. B. actual hours wor-ed are less than the standard hours allowed. C. actual wages paid are less than amounts that should have been paid. D. actual units produced e/ceed budgeted production levels. . actual units produced e/ceed standard hours allowed. Answer: B !: + #ype: 3

%@. ,ictoria2 nc.2 recently completed 4%2@@@ units of a product that was e/pected to consume pounds of direct material per finished unit. #he standard price of the direct material was per pound. f the firm purchased and consumed %692@@@ pounds in manufacturing ;cos You're Reading a Preview %2+@29@@<2 the direct0materials quantity variance would be figured as: A. 8%2@@@. Unlock full access with a free trial. B. 8%2@@@. C. 1@82%@@. Download With Free Trial D. 1@82%@@. . none of the above. Answer: B !: + #ype: A

Master your semester with Scribd  Free Foron 30this Days Sign up to vote %1. )olo Corporation recently purchased %42@@@ gallonsRead of direct material at title 4.6@ pergallon sageTimes by the end of the period amounted to %+2@@@ gallons. the Not standard & The New York Useful f  usefulcost is 6.@@

Cancel anytime. gallon and the company believes in computing variances at the earliest point possible2 the direct0material price variance would be calculated as:






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



*anufacturing activity2 product no. 9=: =26@@ units completed

You're Reading a Preview Unlock full access with a free trial.

Download With Free Trial






Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



%%. #he direct0material quantity variance is: A. 12@@@. B. 12@@@. C. 12@@. D. 12@@. . %2@@@. Answer: B !: + #ype: A %+. #he direct0material price variance is: A. %299@. B. %2=%@. C. %2=%@. D. +2@@@. . +2@@@. Answer:  !: + #ype: A %. Consider the following information: Direct material purchased and used2 9@2@@@ gallons Readingallowed a Preview )tandard quantity of You're direct material for *ay production2 862@@@ gallons Actual cost of direct materials purchased and used2 1862@@@ Unlock full access with a free trial. nfavorable direct0material quantity variance2 =2@@

Download #he direct0material price variance is: With Free Trial A. 112@@. B. 112@@. C. 1%2@@@. D. 1%2@@@. Read Free Foron 30this Days Sign up to vote title . none of the above.

Master your semester with Scribd & The New York Times Answer: C !: + #ype: A2 3





Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document










Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



%6. >olland nterprises recently used %@2@@@ labor hours to produce 92+@@ completed units. According to manufacturing specifications2 each unit is anticipated to ta-e %.4 hours to complete. #he company7s actual payroll cost amounted to +8@2@@@. f the standard labo per hour is 192 >olland7s labor rate variance is: A. 1@2@@@. B. 1@2@@@. C. 1@2+84. D. 1@2+84. . none of the above. Answer: B !: + #ype: A

%8. Denver nterprises recently used 12@@@ labor hours to produce 824@@ completed units. According to manufacturing specifications2 each unit is anticipated to ta-e two hours to complete. #he company7s actual payroll cost amounted to 1492%@@. f the standard labo per hour is 112 Denver7s labor efficiency variance is: A. 112@@@. B. 112@@@. C. 112+@@. D. 112+@@. . none of the above. Answer: B !: + #ype: AYou're Reading a Preview Unlock full access with a free trial.

%9. Ale/ Company recently completed 1@26@@ units of its single product2 consuming +%2@@@ l hours that cost the firm 9@2@@@. According to manufacturing specifications2 each unit Download With Trial should have required + hours of labor time at Free 14.@ per hour. n the basis of this information2 determine Ale/Gs labor rate variance and labor efficiency variance. $ate fficiency A. 1%28%@ +2@@@ B. 1%28%@ +2@@@  Read Free Foron 30this Days Sign up to vote title C. 1%29@@ +2@9@  D. 1%29@@ +2@9@ Not useful  Useful  Cancel anytime. . 1%29@@ +2@9@ Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



%=. #he direct0labor rate variance is: A. 92=@@. B. 92=@@. C. =2@@@. D. =2@@@. . none of the above. Answer: D !: + #ype: A +@. #he direct0labor efficiency variance is: A. 82@@@. B. 82@@@. C. 821@@. D. 821@@. . none of the above. Answer: B !: + #ype: A +1. Consider the following information: Actual direct labor hours )tandard direct laborYou're hours Reading a Preview #otal actual direct labor cost Unlock full access with a free trial. Direct0labor efficiency variance2 favorable

+24@@ +42@@@ %124@@ +2%@@

Download With Free Trial #he direct0labor rate variance is: A. 182%4@. B. %@28@@. C. %@28@@. D. %12@@@. Read Free Foron 30this Days Sign up to vote title . none of the above.

Master your semester with Scribd & The New York Times Answer: B !: + #ype: A2 3 Special offer for students: Only $4.99/month.




Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 





 Search document

se the following to answer questions ++0+8: Cost standards for product no. C88: Direct material + pounds at %.4@ per pound Direct labor 4 hours at 8.4@ per hour Actual results: nits produced Direct material purchased Direct material used Direct labor

829@@ units %62@@@ pounds at %.8@ %+21@@ pounds at %.8@ @21@@ hours at 8.+@

 8.4@ +8.4@

 8@2%@@ 6%2+8@ %=%28+@

++. #he direct0material quantity variance is: A. 84@. B. 84@. C. 624@@. D. 82%4@. . none of the above. Answer: A !: + #ype: A

You'reis: Reading a Preview +. #he direct0material price variance A. 26%@. Unlock full access with a free trial. B. 26%@. C. 42%@@. Download With Free Trial D. 42%@@. . none of the above. Answer: D !: + #ype: A

Master your semester with Scribd +4. #he direct0labor rate variance is: A. 829@@. & The New York Times B. 82=4@. C. 92@%@.






Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



+8. #he standard hours allowed for the wor- performed are: A. 4. B. 4.1. C. +=2@@@. D. @21@@. . none of the above. Answer: C !: + #ype: A +9. &hen considering whether to investigate a variance2 managers should consider all of the following e/cept the variance7s: A. sie. B. pattern of recurrence. C. trends over time. D. nature2 namely2 whether it is favorable or unfavorable. . controllability. Answer: D !:  #ype: $C

+=. &hich of the following combinations of direct0material variances might prompt managem to underta-e a detailed variance investigation' You're Reading a Preview A. (rice2 unfavorableH quantity2 unfavorable. B. (rice2 unfavorableH quantity2 favorable. Unlock full access with a free trial. C. (rice2 favorableH quantity2 unfavorable. D. (rice favorableH quantity2 favorable. Download With Free Trial . All of the above. Answer:  !:  #ype: 3 @.semester Consider the following about variance investigation: Master your withstatements Scribd Read Free Foron 30this Days Sign up to vote title .,ariance investigation involves a loo- at only unfavorable & The New York Times  Useful variances.  Not useful

 

Cancel anytime. .,ariance investigation is typically based on a cost0benefit analysis. .,ariance investigation is often performed by establishing guidelines similar to the






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



1. A statistical control chart is best used for determining: A. direct0material price variances. B. direct0labor variances. C. whether a variance is favorable or unfavorable. D. who should be held accountable for specific variances. . whether a particular variance should be investigated. Answer:  !:  #ype: $C %. #he individual generally responsible for the direct0material price variance is the: A. sales manager. B. production supervisor. C. purchasing manager. D. finance manager. . head of the human resources department. Answer: C !: 4 #ype: $C +. A production supervisor generally has little influence over the: A. direct0material quantity variance. B. direct0labor rate variance. You're Reading a Preview C. direct0labor efficiency variance. D. direct0material price variance. Unlock full access with a free trial. . number of units produced. Answer: D !: 4 #ype: 3Download With Free Trial . n which department would an investigation normally begin regarding an unfavorable materials quantity variance' A. ?uality control.  Read Free Foron 30this Days Sign up to vote title B. (urchasing.  C. ngineering. Not useful  Useful  Cancel anytime. D. (roduction. Special offer for students: Only $4.99/month. . $eceiving.






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



6. $ogers2 nc.2 had an unfavorable labor efficiency variance and an unfavorable materials quantity variance. &hich department might be held accountable for these variances' A. (urchasing2 because bad materials can harm labor efficiency. B. (roduction2 because inefficient wor-ers may use more materials than allowed. C. (urchasing andKor production. D. *ar-eting. . )hipping. Answer: C !: 4 #ype: 3 8. A direct0material quantity variance can be caused by all of the following e/cept: A. improper employee training. B. changes in sales volume. C. acquisition of materials at a very attractive price. D. adFustment problems with machines. . disgruntled wor-ers. Answer: B !: 4 #ype: 3 9. A direct0labor efficiency variance cannot be caused by: A. ine/perienced employees. You're Reading a Preview B. poor quality raw materials. C. employee inefficiency. Unlock full access with a free trial. D. an out0of0date labor time standard. . producing fewer finished units than originally planned.


Answer:  !: 4 #ype: 3

=. Lustin Company recently purchased materials from a new supplier at a very attractive pri #he materials were found to be of poor quality2 and the company7s laborers struggled  Read Free For 30 Days Signproduct. up to vote this title significantly as they shaped the materials into finished non a desperation move to  ma-e up for some of the time lost2 the manufacturing in more0senior Useful brought Not useful  supervisor Cancel anytime. employees from another part of the plant. &hich of the following variances would have a Special offer for students: Only $4.99/month. high probability of arising from this situation'






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



4@. !isted below are five variances ;and possible causes< that are under review by manageme

Mno/ Company. &hich of the following is least li-ely to cause the variance indicated' A. #he need to ship goods acquired from a distant supplier via ed/ rather than via truc material price variance. B. #he need to complete goods on a timely basis during a period of high absenteeismH rate variance. C. A wor-0team that is very unhappy with its supervisorH labor efficiency variance. D. #he need to close a plant for two days because of bliard conditionsH material quant variance2 part no. 4%. . A malfunctioning piece of manufacturing equipmentH labor efficiency variance. Answer: D !: 4 #ype: 3

41. !uc-y Corporation7s purchasing manager obtained a special price on an aluminum alloy a new supplier2 resulting in a direct0material price variance of =24@@. #he alloy produc more waste than normal2 as evidenced by a direct0material quantity variance of %2@@@2 was also difficult to use. #his slowed wor-er efficiency2 generating a %24@@ labor efficiency variance. #o help remedy the situation2 the production manager used senior lin employees2 which gave rise to a =@@ labor rate variance. f overall product quality did suffer2 what variance amount is best used in Fudging the appropriateness of the purchasing manager7s decision to acquire substandard material' You're Reading a Preview A. 21@@. B. 42@@@. Unlock full access with a free trial. C. 82@@@. D. 824@@. Download With Free Trial . =24@@. Answer: A !: 4 #ype: A2 3 4%. semester )tandard costs: with Scribd Master your Read Free Foron 30this Days Sign up to vote title A. allow a manager to assess the efficiency of operations. B. allow a company to practice management by e/ception. & The New York Times  Useful  Not useful Cancel anytime.

C. $4.99/month. provide management with a basis for performance evaluations. Special offer for students: Only D. if set correctly2 can provide a motivational tool for employees.

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



4+. &hich of the following is a criticism of standard costing2 as applied to today7s manufactur environment' A. Automated manufacturing processes are very consistent in meeting production specifications2 ma-ing variances very small and relatively unimportant. B. ,ariance information is usually aggregated ;i.e.2 combined< rather than associated wi particular batch of goods or a specific product line. C. #raditional standard costing fails to focus on -ey business issues such as customer and bringing products to mar-et faster than the competition. D. )tandard costing pays considerable attention to labor cost and labor efficiency2 which becoming a relatively unimportant factor of production. . All of the above are valid criticisms. Answer:  !: 9 #ype: $C

4. &hich of the following is not a valid way to adapt standard cost systems to today7s manufacturing environment' A. mphasie material and overhead costs. B. se more non0traditional cost drivers such as number of setups or number of engine change orders. C. pdate standards more frequently to adFust for the elimination of non0value0added co D. se additional nonfinancial measures for performance evaluation and control. Readingofadirect Preview . Devote more resources You're to the trac-ing labor cost. Unlock full access with a free trial.

Answer:  !: 9 #ype: $C

Download With Free Trial management may study: 44. #o assess how customers perceive a company7s products2 A. the number of customer complaints. B. the number of warranty claims. C. the number of products returned. D. the cost of repairing returned products.  Read Free Foron 30this Days Sign up to vote title . all of the above measures. 

Master your semester with Scribd & The New York Times Answer:  !: = #ype: $C Special offer for students: Only $4.99/month.



Useful

 Not useful

Cancel anytime.





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



48. n the calculation of manufacturing cycle efficiency2 which of the following activities resu in value0added time' A. *oving. B. (rocessing. C. nspection. D. &aiting. . All of the above. Answer: B !: = #ype: $C

49. #he manufacturing cycle efficiency for (?$ Company when the processing time is si/ ho and inspection2 waiting2 and move time are one hour each is: A. @.68. B. @.84. C. @.89. D. @.99. . an amount other than those shown above. Answer: A !: = #ype: A

4=. &hich of the following would not be a concern of a company that desires to compete in a global manufacturing arena'You're Reading a Preview A. 3umber of new products introduced. Unlock full access with a free trial. B. *anufacturing cycle efficiency. C. 3umber of customer complaints. Download With Free Trial D. 3umber of on0time deliveries. . All of the above would be concerns. Answer:  !: = #ype: $C

Master your semester with Scribd  Read Free Foron 30this Days Sign up to vote title 6@. An increasingly popular approach that integrates financial and customer performance  measures with measures in the areas of internal operations learning and growth is -no & The New York Times Not useful  Usefuland  Cancel anytime. as: A. the integrated performance measurement tool ;(*#<.






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



Answer:  !: 1@ #ype: $C








Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



6%. )wedish Cruise !ines ;)C!<2 which operates in a very competitive mar-etplace2 is consid four categories of performance measures: ;1< profitability measures2 ;%< customer0satisfac measures2 ;+< efficiency and quality measures2 and ;< learning and growth measures. company assigns one manger to each ship in its fleet to oversee the ship7s general operatio f )C! desired to adopt a balanced0scorecard approach2 which measures should the firm the evaluation of its managers' A. 1. B. 12 %. C. %2 +. D. 12 %2 . . 12 %2 +2 . Answer:  !: 1@ #ype: 3 6+. !ead indicators guide management to: A. ta-e actions now that will have positive effects on organiational performance now. B. ta-e actions now that will have positive effects on organiational performance in the future. C. ta-e actions in the future that will have positive effects on organiational performa now. D. ta-e actions in the past that will have positive effects on organiational performance You're Reading a Preview future. . pursue identical strategies as those implemented with lag indicators. Unlock full access with a free trial.

Answer: B !: 1@ #ype: $C


6. &hen using a balanced scorecard2 a company7s mar-et share is typically classified as an element of the firm7s: A. financial performance measures. B. customer performance measures.  Free Foron 30this Days Sign up to vote title C. learning and growth performance measures. Read  D. internal0operations performance measures.  Useful  Not useful Cancel anytime. . interdisciplinary performance measures. Special offer for students: Only $4.99/month.






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



66. &hich of the following perspectives is influenced by a company7s vision and strategy' A. inancial. B. Customer. C. nternal operations. D. !earning and growth. . All of the above. Answer:  !: 1@ #ype: $C 68. &hich of the following Fournal entries definitely contains an error' A. $aw0*aterial nventory %@@2@@@ Direct0*aterial (rice ,ariance 42@@@ Accounts (ayable B. $aw0*aterial nventory +92@@@ Direct0*aterial (rice ,ariance Accounts (ayable C. $aw0*aterial nventory 1462@@@ Direct0*aterial (rice ,ariance &or-0in0(rocess nventory D. &or-0in0(rocess nventory 682@@@ Direct0*aterial ?uantity ,ariance +2@@@ You're Reading a Preview $aw0*aterial nventory . &or-0in0(rocess nventory 8=2@@@ Unlock full access with a free trial. Direct0*aterial ?uantity ,ariance $aw0*aterial nventory


%@42@@@ %2@@@ +62@@@ 92@@@ 192@@@

8@2@@@ 2@@@ 842@@@

Answer: C !: 11 #ype: 3 69. At the end of the accounting period2 most companies close variance accounts to: A. $aw0*aterial nventory.  Read Free Foron 30this Days Sign up to vote title B. &or-0in0(rocess nventory.  Not useful C. inished05oods nventory.  Useful  Cancel anytime. D. $4.99/month. Cost of 5oods )old. Special offer for students: Only . ncome )ummary.






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 



 Search document



EXERCISES Setting a Standard

6=. Cloverleaf2 nc.2 produces glass shelves that are used in furniture. ach shelf requires +.6 pounds of raw material at a cost of % per pound. nfortunately2 given the nature of the manufacturing process2 one out of every five shelves is chipped2 scratched2 or bro-en at th beginning of production and has to be scrapped.

n average2 %@ good shelves are completed during each hour. !aborers who wor- on the units are paid 14 per hour. $equired: A. Distinguish between perfection standards and practical standards. B. &ho within an organiation would be in the best position to assist in setting: 1. the direct0material price standard' %. the direct0material quantity standard' +. the direct0labor efficiency standard' C. Calculate a practical direct0material and direct0labor standard for each good shelf produced. !: %2 +2 4 #ype: A2 3


Answer: A. (erfection standards2 or those achieved under nearly perfect operating conditions2 With Free Trial assume pea- efficiencyDownload at minimum cost. mployees are pushed to reach these idea measures2 often becoming discouraged. (ractical standards2 on the other hand2 are h but attainable2 thus presenting a realistic target for personnel. )uch standards incorporate allowances for normal downtime and other typical inefficiencies.

Master your semester with Scribd Read Free Foron 30this Days Sign up to vote title B. 1. #he purchasing manager. %. #he production supervisor as well as production engineers. & The New York Times  Useful  Not useful Cancel anytime.

+. #he production supervisor as well as industrial engineers. Special offer for students: Only $4.99/month.

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



Direct-Material Standards, Variance Data

8@. Diamond Corporation manufactures a variety of liquid lawn fertiliers2 including a very popular product called !ush 73 5reen. Data about !ush 73 5reen and (roctol2 a maFor ingredient2 follow.

E"pected operation#$ (roctol is purchased in 440gallon drums at a cost of 4 per drum. A % cash • discount is offered for prompt payment of invoices2 and Diamond ta-es advantage of discounts offered. Diamond normally purchases %@@ drums of (roctol at a time2 paying shipping • of %@ per shipment. ach gallon of !ush 73 5reen requires three quarts of (roctolH however2 beca • of evaporation and spills2 Diamond loses  of all (roctol that enters production. that there are four quarts in a gallon.<

Actual operation#$ or the period Fust ended2 Diamond purchased 12%@@ drums of (roctol at a tot • cost of 42=6@. #here was no beginning inventory2 but an end0of0period inventory revealed that 14 drums were still on hand. *anufacturing activity output totaled 9%2@@@ gallons of !ush 73 5reen. •

You're Reading a Preview

$equired: Unlock full access with a free trial. A. Compute the standard purchase price for one gallon of (ro B. Compute the standard quantity of (roctol to be used in pro Download With Free Trialin quarts. one gallon of !ush 73 5reen. /press your answer C. Compute the direct0material price variance for (roctol. D. >ow much (roctol was used in manufacturing activity and much should have been used' /press your answer in quarts.

Master your semester with Scribd !: %2 + #ype: A2 3 & The New York Times Special offer for students: Only $4.99/month.





Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 





 Search document

Answer: A. (urchase price per drum !ess: % discount

4.@@ ;@.=@< .1@ %.1@ 6.%@

)hipping fee per drum ;%@ Q %@@ drums< #otal

#otal purchase price ;6.%@< Q 44 gallons E @.9 per gallon B.

#hree quarts of (roctol are required for each gallon of !ush 73 5reenH however2  of (roctol input is lost through evaporation and spills. #hus2 the standard input is +.1%4 quarts ;+ Q @.=6<.

C.

)tandard cost of purchases ;12%@@ drums / 6.%@< Actual cost of purchases Direct0material price variance

D.

Actual usage: ;12%@@ 0 14< E 12194 drumsH 12194 drums / 44 gallons /  quarts E %6@28@@ quarts )tandard usage: 9%2@@@ gallons / +.1%4 E %462%4@ quarts

442@ 42=6@  9@

You're Reading a Preview Straigt!"r#ard Calc$lati"n "! Variances Unlock full access with a free trial.

81. ?uic-sand Company has set the following standards for one unit of product:

Download With Free Trial Direct material ?uantity: 6.% pounds per unit (rice per pound: 11 per pound Direct labor ?uantity: 6 hours per unit Read Free Foron 30this Days Sign up to vote title $ate per hour: %+ per hour





Useful

Actual costs incurred in the production of %29@@ units were as follows:


 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 



 Search document



Answer: Actual *aterial Cost Actual Actual Actual / ?uantity (rice ?uantity 162=@@ / 11.4@ 162=@@ 1=2+4@ 924@ Direct0material price variance P%29@@ units / 6.% pounds Actual !abor Cost Actual Actual Actual / >ours $ate >ours 1824@@ / %%.4@ 1824@@ +=+284@ 9284@ Direct0labor rate variance R%29@@ units / 6 hours

/ / 1942=@@

/ / @%24@@

)tandard *ate )tandard )tandard / (rice ?uantity 11.@@ 182+6@P / 1=@2=6 42@6@ Direct0material quantity variance

)tandard !ab )tandard / >ours 1629@@R / +962@ 1621@@ Direct0labor efficiency variance

)tandard $ate %+.@@

Straigt!"r#ard Calc$lati"n "! Variances You're Reading a Preview Unlock full has access a free trial. 8%. pstate manufactures a product that thewith following standard costs:

Direct materials: @Download yards at %.8@ per yardTrial With Free Direct labor: 9 hours at 19.@@ per hour #otal

1@9 1 %4%

#he following information pertains to Luly: Master your semester with Scribd  Read Free Foron 30this Days Sign up to vote title Direct material purchased: %24@@ yards at %.89 per yard2 or 119214@  & The New York Times  Useful  Not useful Direct material used: +62@@@ yards Cancel anytime.

Special offer for students: Only $4.99/month. Direct labor: 824@@ hours at 19.+@ per hour2 or 1+82%4@

Actual completed production: 12@4@ units





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 



 Search document



Answer: Actual *aterial Cost Actual Actual Actual / ?uantity (rice ?uantity %24@@ / %.89 %24@@ 119214@ +2@@ Direct0material price variance

Actual ?uantity +62@@@

/ / =82%@@

)tandard (rice %.8@

/ / 11284@

)tandard *aterial Cost )tandard )tandard )tandard / (rice ?uantity (rice %.8@ %2@@@P / %.8@ 11+2@@ 162%@@ Direct0material quantity variance

P12@4@ units / @ yards Actual !abor Cost )tandard !abo Actual Actual You're Actual )tandard )tandard Reading a/ Preview / / >ours $ate >ours $ate >ours 824@@ / 19.+@ Unlock824@@ 19.@@ 92@@R / full access with/ a free trial. 1+82%4@ 1+42@@@ 1412%@@ %2%4@ 162%@@ Download With Free Trial Direct0labor Direct0labor rate variance efficiency variance R12@4@ units / 9 hours






Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 



 Search document



Variance Calc$lati"n and Inter%retati"n

8+. $ichie ,entura operates a commercial painting business in )acramento2 which has a very labor mar-et. *uch of his wor- focuses on newly constructed apartments and townhouse

#he following data relate to crew no. 4 for a recently concluded period when 94 apartmen units were painted: #hree new employees were assigned to crew no. 4. &ages averaged 19.9@ p • hour for each employeeH the crew too- %244@ hours to complete the wor-. Based on his -nowledge of the operation2 articles in trade Fournals2 and • conversations with other painters2 ,entura established the following standards: #ypical hourly wage rate of crew personnel: 14 Anticipated crew time for each unit: + hours #he paint quantity variance was 62@8@. • #he operation did not go as smoothly as planned2 with customer complaints a • problems being much higher than e/pected. $equired: A. Compute ,entura7s direct0labor variances. B. s the direct0labor rate variance consistent with what you migh e/pect in a tight labor mar-et' /plain. You're Reading a Preview C. Analye the information given and that you calculated2 and de what li-ely happened that would give rise customer Unlock full access withto a free trial. complaints' !: +2 4 #ype: A2 3


Answer: A. Actual !abor Cost Actual Actual Actual / >ours $ate >ours %244@ / 19.9@ %244@ 82=@ Special offer for students: Only $4.99/month. =26=@ Direct0labor

Master your semester with Scribd / / & The New York Times +92%4@

)tandard !abor Co )tandard )tandard I Read Free For>ours 30this Days Sign up to vote on title $ate  14.@@ %29=@P Not useful /  Useful  Cancel anytime. +2+4@ 421@@ Direct0labor





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



Variance C"&%$tati"n, 'nal(sis "! Per!"r&ance

8. Diablo (roducts uses a standard costing system to assist in the evaluation of operations. company has had considerable employee difficulties in recent months2 so much so that management has hired a new production supervisor ;Loe )imms<. )imms has been on the for si/ months and has seemingly brought order to an otherwise chaotic situation.

#he vice0president of manufacturing recently commented that "S )imms has really done tric-. Loe7s team0buildingKmorale0boosting e/ercises have truly brought things under cont #he vice0president7s comments were based on both a plant tour2 where he observed a contented wor- force2 and review of a performance report that showed a total labor varian 12@@@. #his variance is truly outstanding2 given that it is less than % of the company budgeted labor cost. Additional data follow. #otal completed production amounted to %@2@@@ units. • A review of the firm7s standard cost records found that each completed unit • requires %.84 hours of labor at 1 per hour. Diablo7s production actually required % labor hours at a total cost of 8462@@@. $equired: A. As Fudged by the information contained in the performance re should the vice0president be concerned about the company7s labor variances' &hy' You're Reading a Preview B. Calculate Diablo7s direct0labor variances. C. nUnlock the basis of your answers to requirement "B2" should Diab full access with a free trial. concerned about its labor situation' &hy' D. Briefly analye and e/plain the direct0labor variances.


!: +2 2 4 #ype: A2 3 Answer: A. 3o. #he variance is favorable and small2 being less than % of the budgetedamoun

Master your semester with Scribd B. Times & The New York !abor Cost Special offer for students: Actual Only $4.99/month. Actual Actual /

Actual


 /


Useful

)tandard



)tandard !abor Co )tandard /





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document










Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 



 Search document



D. #he favorable efficiency variance means that the company is producing units by consuming fewer hours than e/pected. #his may be the result of the team0 buildingKmorale0boosting e/ercises2 as a contented2 well0trained wor- force tends to b efficient in nature. >owever2 another totally plausible e/planation could be that Diab paying premium wages ;as indicated by the unfavorable rate variance< to hire laborer with above0average s-ill levels. Variance 'nal(sis) *"r+ing ac+#ard

84. A manufacturing company is e/pected to complete a tas- in 4 minutes. During a recent accounting period2 +2%@@ completed units were produced2 resulting in the following labor variances: !abor rate variance: 4%@ favorable !abor efficiency variance: %29@@ unfavorable #he standard labor rate is 1 per hour.

$equired: Calculate ;1< the standard hours allowed for the wor- performed2 ;%< the actual hours wor and ;+< the actual wage rate. !: + #ype: A Answer: Actual !abor Cost Actual Actual / >ours $ate %26@@ / 1+.9@ +4294@


Download With Free Trial Actual >ours %26@@

/ / +62@@

Master your semester with Scribd 4%@ Direct0labor & The New York Times rate variance P+2%@@ units / @.84 hours Special offer for students: Only $4.99/month.

)tandard !abor Co )tandard )tandard / $ate >ours 1.@@ %2@@P / ++26@@  %29@@ Read Free Foron 30this Days Sign up to vote title  Direct0labor Useful variance Not useful efficiency  Cancel anytime.





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



Variance 'nal(sis) *"r+ing ac+#ard

86. >ermosa nterprises recently e/perienced a fire2 forcing the company to use incomplete information to analye operations. Consider the following data and assume that all mater purchased during the period were used in production: Direct materials: )tandard price per pound: = Actual price per pound: 9 (rice variance: %@2@@@ #otal of direct0material variances: %2@@@ Direct labor: Actual hours wor-ed: @2@@@ Actual rate per hour: 14 fficiency variance: %92@@@ #otal of direct0labor variances: 1%2@@@ >ermosa completed 1%2@@@ units.

$equired: Preview Determine the following: ;1






Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0




Uploaded by jbsantos09 Chapter08.Cost Volume Profit









Save

Embed

Share

Print

1

Download

of 41

 



 Search document



Answer: Actual *aterial Cost Actual Actual Actual / ?uantity (rice ?uantity %@2@@@ / 9.@@ %@2@@@ 16@2@@@ %@2@@@ Direct0material price variance Actual !abor Cost Actual Actual Actual / >ours $ate >ours @2@@@ / 14.@@ @2@@@ 6@@2@@@ @2@@@ Direct0labor rate variance

1. %. +. . 4.

/ / 19@2@@@

/ / 46@2@@@

)tandard *ate )tandard )tandard / (rice ?uantity =.@@ 192@@@ / 16%2@@ 192@@@ Direct0material quantity variance )tandard !ab )tandard )tandard / $ate >ours 1.@@ %2@@@ / 4992@@ %92@@@ Direct0labor efficiency variance

Actual materials used: %@2@@@ pounds *aterials quantity variance: 192@@@ !abor rate variance: @2@@@ You're Reading a Preview )tandard labor rate per hour: 1 full unit: access+.4 withhours a free ;%2@@@ trial. )tandard labor time perUnlock finished hours Q 1%2@@@ units<

Variance Inter%retati"n) Resta$rant Download With Free Trial

88. 3ancy )imon is the long0time catering director of 3aples0on0the0Beach2 a hotel noted throughout the industry for quality2 profitability2 and cost control. #he hotel recently cater stea- dinner for a %2@@@0person convention. )trict standards were in place for the dinner:  pounds of beef per plate at = per pound. A reviewRead of the accounting records Free Foron 30this Days Sign up to vote title shortly afte  the convention showed that 1269@ pounds of beef were purchased and consumed2 costing Useful  Not useful  Cancel anytime. 1+2@.


$equired:





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 



 Search document

Answer: A. Budget: %2@@@ plates / @.84 / = Actual #otal variance2 unfavorable



1+24@@ 1+2@  6@

#he variance should not be a concern to the hotel because it is less than 1 of the bu B.

)imon did a marginal Fob in managing the purchase. Although the total variance i it is composed of two siable2 offsetting amounts. )he saved the hotel a considerabl money in the acquisition but the savings were more than consumed in e/cess usage.

Actual *aterial Cost Actual Actual Actual / ?uantity (rice ?uantity 1269@ / 9.@@ 1269@ 1+2@ 1269@ Direct0material price variance P%2@@@ plates / @.84 pounds

C.

)tandard *ate )tandard / ?uantity 124@@P / 1+24@@ 126%@ Direct0material quantity variance

)tandard (rice =.@@

/ / 1421%@

t is possible that )imon bought a marginal product. #he price variance and quant You're Reading a Preview may indicate that she purchased cheap beef2 which turned out to be of poor quality2 r Unlock fullnormal access with a free trial. staff. #he beef7s overall quality greater waste ;trimming< than by the -itchen toughness< may be the underlying reason behind the conventioneers7 complaints.







Useful

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 





 Search document

Eents. I&%act "n Variances

89. #he following events occurred at Crescent *anufacturing ;C*<2 an assembler of engine p during *ay: 1.

2. 3.

4. 5.

Because of a stoc- shortage at its regular supplier2 C* had to rely on a new vendo two purchases of raw material parts. #he vendor required C* to pay air0freight chargesH however2 upon arrival2 the company found the goods to be above0average quality. #he local municipality raised its property ta/ rates by %. A flu outbrea- on the assembly line forced management to use more e/perienced2 senior personnel to complete production orders on a timely basis. #hese wor-ers m than made up for lost time. A shoddy maintenance program resulted in an abnormally high number of brea-do on machine no. 86 and slowed production. #he implementation of a new program had positive effects for the company with respect to material usage and wor-er productivity.

$equired: Create a table with the following headings: materials price variance2 materials quantity variance2 labor rate variance2 and labor efficiency variance. Determine which of these You're Reading a Preview variances would be affected by the individual events and whether the variance would be favorable or unfavorable. Unlock full access with a free trial. !: 4 #ype: 3


Answer: *aterials (rice ,ariance 

*aterials ?uantity ,ariance 

Master your semester with Scribd 1. %. Times & The New York +. $4.99/month. Special offer for students: Only .

!abor $ate ,ariance

!abor fficiency ,ariance 





Useful



 







Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 





 Search document

E!!icienc( Meas$res

8=. #he following information for a recent proFect was ta-en from the records of Argon Comp (rocessing time nspection time &aiting time: rom order receipt until start of production rom start of production through proFect completion *ove time

14.@ days @.4 days 6.@ days +.@ days 1.4 days

$equired: A. >ow long did it ta-e to complete the proFect once production commenced' B. Compute the manufacturing cycle efficiency. C. As Fudged by the cycle efficiency2 what percentage of the overall production time was spent on ;1< value0adding activities and ;%< non0value adding activities' D. Compute the company7s delivery cycle time. !: = #ype: A2 3 Answer: You're Reading a Preview A. (rocessing time 14.@ nspection time @.4 Unlock full access with a free trial. &aiting time in production +.@ *ove time 1.4 Download With Free Trial #otal %@.@ B.

(rocessing time ;14.@< Q T(rocessing time ;14.@< O inspection time ;@.4< O waiting time in production ;+.@< O move time ;1.4
Master your semester with Scribd C. 1. 84 ;cycle efficiency< %. %4 ;1@@ 0 84< & The New York Times Special offer for students: Only $4.99/month.

D.

&aiting time until start of proFect





Useful

6.@

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0













Save

Embed

Share

Print

1

Download

of 41

 



 Search document



Ele&ents "! a alanced Sc"recard

9@. Balanced scorecards contain a number of factors that are important to the success of a business. #hese factors are often divided into four categories: financial2 customer2 learnin and growth2 and internal operations. Consider the twelve factors that follow. 1. %. +. . 4. 6. 8. 9. =. 1@. 11. 1%.

*ar-et share arnings per share *anufacturing cycle efficiency *achine downtime 3umber of patents held mployee suggestions 3umber of repeat sales !evels of inventories held 3umber of vendors used Cash flow from operations mployee training hours 5ross margin

You're Reading a Preview $equired: Determine the proper classification ;financial2 customer2 learning and growth2 or internal Unlock full access with a free trial. operations< for each of the twelve factors listed. !: 1@ #ype: $C2 3 Answer: 1. Customer %. inancial +. nternal operations . nternal operations 4. !earning and growth Special offer for students: Only $4.99/month. 6. !earning and growth


8. 9. =. 1@. 11. 1%.


Customer nternal operations Read Free Foron 30this Days Sign up to vote title nternal operations inancial  Useful  Not useful Cancel anytime. !earning and growth inancial

 





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 



 Search document



alanced Sc"recard

91. Bob7s Burgers and )uch2 a national fast0food chain2 has e/perienced a number of problem the past few years2 and management is considering the adoption of a balanced scorecard a part of a turnaround effort.

$equired: A. Briefly e/plain the concept of a balanced scorecard. &hat general factors are inclu a typical balanced scorecard' B. ndependent of your answer in requirement "A2" assume that Bob7s is very concern about customer satisfaction. !ist four different ;and specific< customer0satisfaction measures that may be appropriate for the firm ;and for other fast0food providers<. C. ndependent of requirement "A2" assume that Bob7s wants to return to former levels profitability. !ist several financial measures that would allow management to assess success or failure with respect to the following goals: ;1< pay creditors on a timely ba ;%< -eep shareholders happy2 and ;+< improve profitability over time at stores that hav been open at least one year. !: 1@ #ype: $C2 3

Answer: Reading a Preview A. A balanced scorecard isYou're a tool that incorporates a variety of different measures2 both financial and non0financial2 in the performance0evaluation process. #he measures are Unlock full access with a free trial. critical to a firm7s success and are tied to organiational strategy. #he goal of a balanc scorecard is to allow improvement in a number of broad0reaching areas rather than pe Download Withof Free a manager to improve only a small facet the Trial business at the e/pense of others. #y factors are often divided into four categories: financial2 customer2 learning and growth and internal operations.

B. Answers willwith vary butScribd often include mar-et share2 queue time2 results of a customer Master your semester  Free For 30this Days Sign up toof vote on titleand number o quality survey2 number of customer complaints2Read number order errors2  customers. & The New Yorkrepeat Times  Useful  Not useful Special offer for students: Only $4.99/month.

Cancel anytime.

C. (ay creditors on a timely basis: stipulated end0of0period cash balance and current rat





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print


1

Download

of 41

 





 Search document

Standard C"sts and /"$rnal Entries

9%. >owell Company has established the following standards: Direct materials: %.@ pounds at .1@ Direct labor: 1.4 hours at 8 per hour Additional information was e/tracted from the accounting records: Actual production: +%2@@@ completed units Direct materials purchased: 8@2@@@ pounds at +.9%2 or %682@@ Direct materials consumed: 642@@@ pounds Actual labor incurred: 412@@@ hours at 6.+@2 or +%12+@@ Direct0labor rate variance: +82%@@ favorable Direct0labor efficiency variance: %%24@@ unfavorable $equired: (repare Fournal entries to record the: A. (urchase of direct materials. B. sage of direct materials. C. ncurrence of direct labor costs.

You're Reading a Preview

!: 11 #ype: A

Unlock full access with a free trial.

Answer: Download Free Trial A. $aw0*aterial nventory ;8@2@@@ / With .1@< Direct0*aterial (rice ,ariance ;8@2@@@ / @.%9< Accounts (ayable ;8@2@@@ / +.9%<

%982@@@ 1= %68

B. &or-0in0(rocess nventory ;+%2@@@ / % / .1@< %6%2@@  Master your semester with Scribd Read Free Foron 30this Days Sign up to vote title Direct0*aterial ?uantity ,ariance ;12@@@ / .1@< 21@@  $aw0*aterial nventory ;642@@@ / .1@< Useful  Not useful %66 & The New York Times Special offer for students: Only $4.99/month.

C.

&or-0in0(rocess nventory ;+%2@@@ / 1.4 / 8.@@<

Cancel anytime.

++62@@@





Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Sign In

Upload

Join

RELATED TITLES

0











Save

Embed

Share

Print

Download


1

of 41

 



 Search document



DISCUSSION QUESTIONS Use!$lness "! Standard C"sts in Per!"r&ance Eal$ati"ns

9+. )tandard costs are said to be useful in performance evaluation. Assume that the standard direct materials cost per unit of finished product is 6 ;three pounds at % per pound<.

$equired: A. /plain how such a standard can be used to evaluate performance. B. &hy is the degree of controllability important when utiliing standard costs to evalua performance' !: 12 4 #ype: $C

Answer: A. #he standard provides a measure of how much material should be used for a unit of product and how much each pound of raw material should cost. #his standard serves basis for evaluating performance by allowing a comparison to be made of standard costKusage against actual costKusage.

B. #he degree of controllability is important because not all factors are subFect to the Reading a Preview amount of control. or You're e/ample2 the mar-et for the raw material may be a seller7s ma in which case management would have very little control over the material price varia Unlock full access with a free trial. n the other hand2 management generally has more control over the usage of materia because of the ability to influence the amount of scrap and reFected units produced.


Interacti"n "! Material and La0"r Variances

9. or the quarter Fust ended2 Bo)an2 nc.2 reported the following variances in one of its manufacturing departments: 

Master your semester with Scribd *aterial price variance2  & The New York Times *aterial quantity variance2  Special offer for students: Only $4.99/month. !abor efficiency variance2 





Useful







Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join





Search



Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music

463 views

0



Upload

Sign In

Join

RELATED TITLES

0













Save

Embed

Share

Print

Download

1

of 41

 



 Search document



Answer: &hile a connection between these variances cannot be guaranteed2 the following scenario plausible. Better0than0standard quality materials were purchased2 leading to an unfavorab materials price variance. &hen these materials were used during the period ;L# basis for materials purchases<2 favorable efficiency variances arose because the material was easier labor and machines to process. M"tiati"nal E!!ects "! Standard C"st S(ste&s

94. )tandard cost systems can have motivational effectsH some are desirable2 some are not. Consider the following situation:

#he materials purchasing manager is paid a salary plus a bonus based on the net favorable materials price variance. 5enerally2 this bonus amounts to +@ 0 @ of the manager7s tota compensation. Due to the ban-ruptcy of a company in a related field2 there is an opportun to buy a -ey raw material. #he standards for this material call for grade %A2 usually purch for 46 per ton. Because of the ban-ruptcy2 the company can obtain a higher grade2 A2 f 6% per ton. &hile the quality of the final product will be the same regardless of the grad material used2 there will be substantial savings in material yield and labor productivity if  used. #hese savings are e/pected to be two to three times the additional cost of 6 per ton

You're Reading a Preview $equired: A. >ow would an unfavorable price variance on a particular purchase affect the overall p Unlock full access with a free trial. variance for the year' B. &ould the use of the materials price variance as a basis for the manager7s bonus lead With Free /plain2 Trial desirable or undesirableDownload behavioral outcome' being sure to note whether the manager would li-ely pursue acquisition of the grade A material. !: 4 #ype: 3

Master your semester with Scribd  Read Free Foron 30this Days Sign up to vote title Answer:  A. An unfavorable price variance reduces any net favorable that may have arise & The New York Times Useful variance  Not useful

Cancel anytime. during the year. A sufficient number of such events could cause the net materials pric variance to be unfavorable and would eliminate the bonus to the materials purchasing






Home



Saved



Books



Audiobooks



Magazines



News



Documents



Sheet Music




Upload

Sign In


Join



Chapter10.Standard Costing, Operational Performance Measures, and the Balanced Scorecard.doc

Recommend Documents