# Managarial Acct

Pages: 26 (3103 words) Published: February 4, 2013
EVQUES T3 SuB 2011 Key

1. In a recent period 12,250 units were made and there was a favorable labor efficiency variance of \$22,500. If 41,000 labor-hours were worked and the standard wage rate was \$12 per labor-hour, the standard hours allowed per unit of output is closest to:  A. 3.19

B. 3.35
C. 3.50
D. 6.00

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AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Analysis
Brewer - Chapter 09 #40
Learning Objective: 3
Level: Hard

A manufacturing company that has only one product has established the following standards for its variable overhead. The company uses direct labor-hours (DLHs) as its measure of activity.

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The following data pertain to operations for the last month:

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Brewer - Chapter 09

2. What is the variable overhead efficiency variance for the month?  A. \$504 U
B. \$1,120 U
C. \$1,120 F
D. \$1,144 F

SH = 2,400 ( 0.7 = 1,680

Variable overhead efficiency variance = SR (AH - SH) = \$14.30 (1,600 - 1,680) = \$1,144 F

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Application
Brewer - Chapter 09 #99
Learning Objective: 4
Level: Medium

The following data have been provided by Wordell Corporation:

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Brewer - Chapter 09

3. The variable overhead rate variance for power is closest to:  A. \$84 F
B. \$765 U
C. \$765 F
D. \$849 U

AR = \$33,105 ( 11,520 = \$2.87 (rounded)

Variable overhead rate variance = AH (AR - SR) = 11,520 (\$2.87 - \$2.80) = \$8,49 U (rounded)

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Application
Brewer - Chapter 09 #103
Learning Objective: 4
Level: Easy

4. The standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times are referred to as:  A. normal standards.
B. practical standards.
C. ideal standards.
D. budgeted standards.

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Knowledge
Brewer - Chapter 09 #14
Learning Objective: 1
Level: Easy

The following data have been provided by Dicus Corporation:

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Brewer - Chapter 09

5. The variable overhead rate variance for lubricants is closest to:  A. \$113 U
B. \$120 U
C. \$7 U
D. \$113 F

AR = \$2,387 ( 2,500 = \$0.95 (rounded)

Variable overhead rate variance = AH (AR - SR) = 2,500 (\$0.95 - \$1.00) = \$113 F (rounded)

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Application
Brewer - Chapter 09 #106
Learning Objective: 4
Level: Easy

Reenu Company manufactures wigs out of used dental floss. The variable cost standards for wig production developed by Reenu are as follows:

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Variable overhead at Reenu is based on direct labor-hours. The actual results for the month of October were as follows:

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Brewer - Chapter 09

6. What is Reenu's labor efficiency variance for October?  A. \$2,700 favorable
B. \$7,200 unfavorable
C. \$9,900 unfavorable
D. \$27,600 favorable

SH = 12,500 ( 0.75 = 9,375

Direct labor efficiency variance = SR (AH - SH) = \$12.00 (10,200 - 9,375) = \$9,900 U

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Application
Brewer - Chapter 09 #78
Learning Objective: 3
Level: Medium

7. The variable overhead rate variance for supplies is closest to:  A. \$133 U
B. \$47 F
C. \$180 U
D. \$133 F

AR = \$3,703 ( 2,500 = \$1.48 (rounded)

Variable overhead rate variance = AH (AR - SR) = 2,500 (\$1.48 - \$1.50) = \$47 F (rounded)

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Application
Brewer - Chapter 09 #107
Learning Objective: 4
Level: Easy

The Holmes Division recorded operating data as follows for the past year:

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Brewer - Chapter 10

8. For the past year,...

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