Unit 2 : Business 2 - Quiz

Top of FormTime Remaining:

Question 1.1.(TCO E) (CPA-04172) For a company that produces more than one product, the sales volume variance can be divided into which two of the following additional variances?(Points : 10)

Sales price variance and flexible budget variance.Sales efficiency variance and sales price variance.Sales quantity variance and sales mix variance.Sales mix variance and production volume variance.

Question 2.2.(TCO E) (CPA-04843) Which of the following forecasting methods relies mostly on judgment?(Points : 10)

Time series models.Econometric models.Delphi.Regression.

Question 3.3.(TCO E) (C)A-06978) Which of the following types of variances would a purchasing manager most likely influence?(Points : 10)

Direct materials price.Direct materials quantity.Direct labor rate.Direct labor efficiency.

Question 4.4.(TCO E) (CPA-03914) In managerial accounting, the term "relevant range" is often used to describe:(Points : 10)

The theoretical maximums and minimum ranges the company could operate in.The range over which costs fluctuate.The range over which relevant costs are incurred.The range over which cost relationships are valid.

Question 5.5.(TCO E) (CPA-03721) Clay Co. has considerable excess manufacturing capacity. A special job order's cost sheet includes the following applied manufacturing overhead costs:Fixed costs $21,000Variable costs 33,000The fixed costs include a normal $3,700 allocation for in-house design costs, although no in-house design will be done. Instead the job will require the use of external designers costing $7,750. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?(Points : 10)

$36,700$40,750$54,000$58,050

Question 6.6.(TCO E) (CPA- 05874) A company uses a standard costing system. At the end of the current year, the company provides the following overhead information:

Actual overhead incurred: Variable $ 90,000 Fixed $ 62,000Budgeted fixed overhead $ 65,000Variable overhead rate (per direct labor hour) $ 8Standard hours allowed for actual production 12,000Actual labor hours used 11,000

What amount is the variable overhead efficiency variance?(Points : 10)

$8,000 favorable.$8,000 unfavorable.$6,000 favorable.$2,000 unfavorable.

Question 7.7.(TCO E) (CPA-06165) Anderson Corporation budgeted sales of 6,250 at $12 per unit but achieved sales of 5,000 at $15 per unit. Anderson would compute a selling price variance of:(Points : 10)

$0$3,750$15,000$18,750

Question 8.8.(TCO E) (CPA-04186) The controller for Durham Skates is reviewing the production cost report for July. An analysis of direct material costs reflects an unfavorable flexible budget variance of $25. The plant manager believes this is excellent performance on a flexible budget for 5,000 units of direct material. However, the production supervisor is not pleased with this result as he claims to have saved $1,200 in material cost on actual production using 4,900 units of direct material. The standard material cost is $12 per unit. Actual material used for the month amounted to $60,025.If the direct material variance was investigated further, it would reflect a price variance of:(Points : 10)

$850 unfavorable.$1,200 favorable.$1,225 unfavorable.$2,500 favorable.

Question 9.9.(TCO E) (CPA-04262) Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flows. The following cost information relates to the product.Unit Costs Direct materials $3.25 Direct labor 4.00 Distribution .75The company will also be absorbing $120,000 of additional fixed-costs associated with this new product. A corporate fixed charge of $20,000 currently absorbed by other products will be allocated to this new product.How many surge protectors (rounded to the nearest hundred) must Bruell Electronics sell at a selling price of $14 per unit to gain $30,000 additional income before taxes?(Points : 10)

12,100 units.20,000 units.25,000 units.28,300 units.

Question 10.10.(TCO E) (CPA-03852) Folsom Fashions sells a line of women's dresses. Folsom's performance report for November Year 1 follows.

ActualBudgetDresses sold 5,000 6,000Sales $ 235,000 $ 300,000Variable costs 145,000 180,000Contribution margin 90,000 120,000Fixed costs 84,000 80,000Operating income$ 6,000$ 40,000The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.

The variable cost flexible budget variance for November is:(Points : 10)

$5,000 favorable.$5,000 unfavorable.$4,000 favorable.$4,000 unfavorable.

Bottom of Form