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When computing standard cost variances, the difference between actual and standard price multiplied by actual quantity yields a(n): efficiency variance. quantity variance. price variance. com

When computing standard cost variances, the difference between actual and standard price multiplied by actual quantity yields a(n):
 
efficiency variance.
 
quantity variance.
 
price variance.
 
combined price and quantity variance.

The purchasing agent of the Clampett Company ordered materials of lower quality in an effort to economize on price and in response to the demands of the production manager due to a mistake in production scheduling. The materials were shipped by airfreight at a rate higher than that ordinarily charged for shipment by truck, resulting in an unfavorable materials price variance. The lower quality material proved to be unsuitable on the production line and resulted in excessive waste. In this situation, who should be held responsible for the materials price and quantity variances?

  
 
Option B
 
Option A
 
Option D
 
Option C

The materials quantity variance should be computed:
 
only when there is a difference between standard and actual cost per unit for the materials.
 
when materials are purchased.
 
based upon the amount of materials used in production.
 
based upon the difference between the actual and standard prices per unit times the actual quantity used.

Which department should usually be held responsible for an unfavorable materials price variance?
 
Materials Handling.
 
Engineering.
 
Production.
 
Purchasing.

Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound. Actual production in November was 3,100 units of Titactium. There was an unfavorable materials price variance of $380 and a favorable materials quantity variance of $120. Based on these variances, one could conclude that:
 
the actual cost per pound for materials was less than the standard cost per pound.
 
more materials were purchased than were used.
 
the actual usage of materials was less than the standard allowed.
 
more materials were used than were purchased.

If the labor efficiency variance is unfavorable, then
 
the standard rate exceeded the actual rate.
 
actual hours exceeded standard hours allowed for the actual output.
 
the actual rate exceeded the standard rate.
 
standard hours allowed for the actual output exceeded actual hours.

A labor efficiency variance resulting from the use of poor quality materials should be charged to:
 
the industrial engineering department.
 
manufacturing overhead.
 
the production manager.
 
the purchasing agent.

An unfavorable direct labor efficiency variance could be caused by:
 
a favorable variable overhead rate variance.
 
an unfavorable materials quantity variance.
 
a favorable materials quantity variance.
 
an unfavorable variable overhead rate variance.


Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the direct labor efficiency variance is unfavorable, the variable overhead efficiency variance will be:
 
either favorable or unfavorable.
 
favorable.
 
zero.
 
unfavorable.

Which of the following statements concerning ideal standards is incorrect?
 
Ideal standards may be better than practical standards when managers seek continual improvement.
 
Ideal standards generally do not provide the best motivation for workers.
 
Ideal standards are better suited for cash budgeting than practical standards.
 
Ideal standards do not make allowances for waste, spoilage, and machine breakdowns.

Which of the following will not result in an increase in the residual income, assuming other factors remain constant?
 
An increase in the minimum required rate of return.
 
An increase in sales.
 
A decrease in operating assets.
 
A decrease in expenses.


All other things the same, which of the following would increase residual income?
 
Increase in minimum required return.
 
Increase in average operating assets.
 
Decrease in net operating income.
 
Decrease in average operating assets.

A company's current net operating income is $24,500 and its average operating assets are $109,000. The company's required rate of return is 18%. A new project being considered would require an investment of $20,700 and would generate annual net operating income of $5,600. What is the residual income of the new project?
 
$5,600
 
$1,874
 
($1,190)
 
$3,726


Garnick Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

     Hours
  Move time    2.9     
  Wait time    35.4     
  Queue time    11.2     
  Process time    0.9     
  Inspection time    0.4     

The delivery cycle time was: (Round your intermediate calculation and final answer to 1 decimal place.)
 
2.9 hours
 
50.8 hours
 
14.1 hours
 
49.5 hours

Galanis Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:

     Hours
  Wait time    27.6   
  Process time    7.8   
  Inspection time    0.5   
  Move time    3.4   
  Queue time    5.4   

The throughput time was: (Round your answer to 1 decimal place.)
 
11.7 hours
 
44.7 hours
 
33.0 hours
 
17.1 hours

Niemiec Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

     Hour
  Move time    2.7     
  Wait time    14.7     
  Queue time    16.2     
  Process time    2.9     
  Inspection time    0.7     

The manufacturing cycle efficiency (MCE) was closest to: (Round your intermediate calculation and final answer to 2 decimal places.)
 
0.13
 
0.07
 
0.21
 
0.97

Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:

  Sales    $17,860,000 
  Net operating income    $1,125,180 
  Average operating assets    $4,970,000 

The division's margin is closest to: (Round your answer to 1 decimal place.)
 
23.8%
 
22.6%
 
6.3%
 
30.1%


Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:

  Sales    $17,910,000 
  Net operating income    $1,199,970 
  Average operating assets    $4,250,000 

The division's turnover is closest to: (Round your answer to 2 decimal places.)
 
0.28
 
14.93
 
4.21
 
3.54

Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:

  Sales    $18,080,000 
  Net operating income    $940,160 
  Average operating assets    $4,810,000 

The division's return on investment (ROI) is closest to: (Do not round intermediate calculations. Round your answer to 2 decimal places.)
 
2.20%
 
5.20%
 
15.70%
 
19.55%


The purpose of the Data Processing Department of Falena Corporation is to assist the various departments of the corporation with their information needs free of charge. The Data Processing Department would best be evaluated as a:
 
profit center.
 
cost center.
 
revenue center.
 
investment center.

                                        


 MuhammadYousaf
quote
e amount of materials used in production. based upon the difference between the actual and standard prices per unit times the actual quantity used. Which department should usually be held responsible for an unfavorable materials price variance? Materials Handling. Engineering. Production. Purchasing. Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound. Actual production in November was 3,100 units of Titactium. There was an unfavorable materials price variance of $380 and a favorable materials quantity variance of $120. Based on these variances, one could conclude that: the actual cost per pound for materials was less than the standard cost per pound. more materials were purchased than were used. the actual usage of materials was less than the standard allowed. more materials were used than were purchased. If the labor efficiency variance is unfavorable, then the standard rate exceeded the actual rate. actual hours exceeded standard hours allowed for the actual output. the actual rate exceeded the standard rate. standard hours allowed for the actual output exceeded actual hours. A labor efficiency variance resulting from the use of poor quality materials should be charged to: the industr...(7447 more words & 1 attachments).
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