Acct final

Which of the following would produce a materials price variance?

Breakage of materials in production.
An excess quantity of materials used.
Shipping materials to the plant by air freight rather than by truck.
An excess number of direct labor-hours worked in completing a job.
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Which of the following would produce a materials price variance?

Breakage of materials in production.
An excess quantity of materials used.
Shipping materials to the plant by air freight rather than by truck.
An excess number of direct labor-hours worked in completing a job.
Shipping materials to the plant by air freight rather than by truck.
Poor quality materials could have an unfavorable effect on which of the following variances?

Labor Efficiency Variance Materials Quantity Variance
A)Yes Yes
B)Yes No
C)No Yes
D)No No
Option A
Comparing actual results to a budget based on the actual activity for the period is possible with the use of a:

Master budget.
Rolling budget.
Flexible budget.
Monthly budget.
flexible budget
A static planning budget is:

Used when the mix of products does not change.
A budget for a single level of activity.
A budget that ignores inflation.
Used only for fixed costs.
a budget for a single level of activity.
A major weakness of flexible budgets is that:

They compare actual costs at one level of activity to budgeted costs at a different level of activity.
They are valid for only a single level of activity.
They ignore fixed costs.
None of these is a major weakness of flexible budgets.
None of these is a major weakness of flexible budgets.
The variance that is usually most useful in assessing the performance of the purchasing department manager is:

The labor rate variance.
The labor efficiency variance.
The materials quantity variance.
The materials price variance.
the materials price variance.
When preparing a production budget, the required production equals:
budgeted sales − beginning inventory + desired ending inventory
Which is NOT an objective of the budgeting process?
To ensure that the company continues to grow.
Which represents the normal sequence in which the below budgets are prepared?
Sales Budget, Budgeted Income Statement, Budgeted Balance Sheet
The budget method that maintains a constant twelve-month planning horizon by adding a new month on the end as the current month is completed is called:
a continuous budget.
Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a ________ percentage of total product cost and where there is ________ diversity among the various products that they produce.high, considerableThe labor time required to assemble a product is an example of a(n):Unit-level activity.Setting up a machine to change from producing one product to another is an example of a(n):Batch-level activity.The plant manager's salary is an example of a(n):Organization-sustaining activity.A good description of "cost of goods manufactured" is the recorded cost of the: Units started and completed during the period. Units completed during the period. Work done on all units during the period. Work done this period on units completed this period.units completed during the period.Overapplied manufacturing overhead means that: The estimated manufacturing overhead cost was less than the applied manufacturing overhead cost. The applied manufacturing overhead cost was less than the actual manufacturing overhead cost. The applied manufacturing overhead cost was greater than the actual manufacturing overhead cost. The estimated manufacturing overhead cost was less than the actual manufacturing overhead cost.The applied manufacturing overhead cost was greater than the actual manufacturing overhead cost.What document is used to determine the actual amount of direct materials to record on a job cost sheet? Bill of materials Materials purchase order Production order Materials requisition formmaterials requisition formWhich of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves? Machine-hours Machine setups Power consumption Direct labor-hoursdirect labor-hoursIn a job-order costing system, the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period: Is closed to Cost of Goods Sold. Is transferred to Finished Goods at the end of the period. Is part of the ending balance of the Work in Process inventory account. Is deducted on the Income Statement as overapplied overhead.is part of the ending balance of the Work in Process inventory account.The job cost sheet: Contains only direct costs such as direct materials and direct labor. Is useful only in process costing. Summarizes all costs charged to a particular job. Is discarded after production is completed on a particular job.summarizes all costs charged to a particular job.Departmental overhead rates are generally preferred to plant-wide overhead rates when: All departments in the plant are heavily automated. The activities of the various departments in the plant are not homogeneous. The activities of the various departments in the plant are homogeneous. Most of the overhead costs are fixed.the activities of the various departments in the plant are not homogeneous.Contribution margin is the amount remaining after: Fixed expenses have been deducted from sales revenue. Variable expenses have been deducted from sales revenue. Fixed expenses have been deducted from variable expenses. Cost of goods sold has been deducted from sales revenues.variable expenses have been deducted from sales revenue.Minist Corporation sells a single product for $15 per unit. Last year, the company's sales revenue was $225,000 and its net operating income was $18,000. If fixed expenses totaled $72,000 for the year, the break-even point in unit sales was: 15,000 14,100 9,900 12,00012,000The contribution margin ratio is equal to: Total manufacturing expenses/Sales. (Sales − Variable expenses)/Sales. 1 − (Gross Margin/Sales). 1 − (Contribution Margin/Sales).(Sales − Variable expenses)/Sales.Florek Inc. produces and sells a single product. The company has provided its contribution format income statement for March. ----- Sales (5,700 units)$228,000 Variable expenses 131,100 Contribution margin 96,900 Fixed expenses 86,300 Net operating income $10,600 ----- If the company sells 5,900 units, its net operating income should be closest to:$14,000The margin of safety is: The excess of budgeted or actual sales over the break-even volume of sales. The excess of budgeted or actual sales over budgeted or actual variable expenses. The excess of budgeted or actual sales over budgeted or actual fixed expenses. The excess of budgeted net operating income over actual net operating income.the excess of budgeted or actual sales over the break-even volume of sales.At a break-even point of 800 units sold, White Corporation's variable expenses are $8,000 and its fixed expenses are $4,000. What will the Corporation's net operating income be at a volume of 801 units? $20 $15 $5 $10$5Which of the following is NOT a correct definition of the break-even point? The point where total profit equals total fixed expenses. The point where total sales equals total expenses. The point where total profit equals zero. The point where total contribution margin equals total fixed expenses.the point where total profit equals total fixed expenses.Within the relevant range: Fixed cost per unit increases as production decreases. Fixed cost per unit decreases as production decreases. Variable cost per unit increases as production decreases. Variable cost per unit decreases as production decreases.fixed cost per unit increases as production decreases.Which of the following is classified as a direct labor cost? Wages of assembly-line workers Wages of a factory supervisor A) No No B) Yes Yes C) No Yes D) Yes NoOption DThe nursing station on the fourth floor of Central Hospital is responsible for the care of orthopedic surgery patients. The costs of prescription drugs administered by the nursing station to patients should be classified as: Period costs of the hospital. Indirect patient costs. Direct patient costs. Overhead costs of the nursing station.direct patient costs.When the activity level declines within the relevant range, what should happen with respect to the following? Fixed cost per unit Variable cost per unit A) No change Increase B) Increase Increase C) Increase No change D) No change No changeOption CContribution margin means: The sum of cost of goods sold and variable expenses. What remains from total sales after deducting cost of goods sold. What remains from total sales after deducting all variable expenses. What remains from total sales after deducting fixed expenses.what remains from total sales after deducting all variable expenses.The following costs were incurred in April: ----- Direct materials $18,000 Direct labor $21,000 Manufacturing overhead $33,000 Selling expenses $14,000 Administrative expenses $19,000 ----- Conversion costs during the month totaled:$54,000A sunk cost is: A cost which cannot be avoided because it has already been incurred. A cost which may be saved by not adopting an alternative. A cost which may be shifted to the future with little or no effect on current operations. A cost which does not entail any dollar outlay but which is relevant to the decision-making process.a cost which cannot be avoided because it has already been incurred.The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be: Indirect costs. Direct costs. Incremental costs. Opportunity costs.indirect costs.Which of the following would most likely be included as part of manufacturing overhead in the production of a wooden table? The cost of the wood used in the table. The commission paid to the salesperson who sold the table. The amount paid to the individual who stains the table. The cost of glue used in the table.The cost of glue used in the table.Inventoriable costs are also known as: Product costs. Conversion costs. Fixed costs. Variable costs.product costs.In a manufacturing company, direct labor costs combined with direct materials costs are known as: Conversion costs. Prime costs. Opportunity costs. Period costs.prime costs.All of the following would be classified as product costs except: Wages of machine operators. salaries of the marketing staff. Property taxes on production equipment. Insurance on factory machinery.salaries of the marketing staff.Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships them to customers using United Parcel Service (UPS). Which two terms below describe the cost of shipping these wreaths? Variable cost and period cost Fixed cost and product cost Fixed cost and period cost Variable cost and product costvariable cost and period costWhich of the following costs, if expressed on a per unit basis, would be expected to decrease as the level of production and sales increases? Variable manufacturing overhead. Direct materials. Fixed manufacturing overhead. Sales commissions.Fixed manufacturing overhead