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Exam 11: Standard Costs and Balanced Scorecard

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Question 21

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Variances from standards are

A) expressed in total dollars.
B) expressed on a per-unit basis.
C) expressed on a percentage basis.
D) All of these answers are correct.

E) A) and D)
F) A) and C)

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Question 22

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The perspectives included in the balanced scorecard approach include all of the following except the

A) internal process perspective.
B) capacity utilization perspective.
C) learning and growth perspective.
D) customer perspective.

E) All of the above
F) None of the above

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Question 23

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The investigation of a materials quantity variance usually begins in the

What is a standard cost?

Which one of the following statements is true?

Which is not one of the four most commonly used perspectives on a balanced scorecard?

Monster Company produces a product requiring 3 direct labor hours at $16.00 per hour. During January, 2,000 products are produced using 6,300 direct labor hours. Monster's actual payroll during January was $98,280. What is the labor quantity variance?

Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. Edgar, Inc.'s materials price variance is

If production exceeds normal capacity, the overhead volume variance will be favorable.

A materials quantity variance is calculated as the difference between the standard direct materials price and the actual direct materials price multiplied by the actual quantity of direct materials used.

If a company incurs direct labor cost of $82,000 when the standard cost is $84,000, it will

Debit balances in variance accounts represent

Which of the following statements about standard costs is false?

In concept, standards and budgets are essentially the same.

Parnell Company prepared its income statement for internal use. How would amounts for cost of goods sold and variances appear?

The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. $\begin{array}{l}\begin{array}{lr}\text { Variable manufacturing overhead costs } & \$ 92,400 \\\text { Fixed manufacturing overhead costs } & \$ 55,440 \\\text { Normal production level in labor hours } & 30,800 \\\text { Normal production level in units } & 5,775\end{array}\\\text { Standard labor hours per unit }\end{array}$ During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's volume overhead variance is

Standard cost + price variance + quantity variance = Budgeted cost.

Budgeted overhead for Haft, Inc. at normal capacity of 60,000 direct labor hours is $3 per hour variable and $2 per hour fixed. In May, $310,000 of overhead was incurred in working 63,000 hours when 64,000 standard hours were allowed. The overhead volume variance is

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1,800 units, the actual direct labor cost was $48,000 for 3,000 direct labor hours worked, the total direct labor variance is

An unfavorable labor quantity variance indicates that the actual number of direct labor hours worked was greater than the number of direct labor hours that should have been worked for the output attained.