CLASS / COURSE: Cost Accounting
1. To separate the semi-variable costs into their fixed and variable components, one can use which of the following methods? a. Labor variance method b. Material variance method c. Relevant range of activity method d. High-low point method
2. A budget prepared using several differing levels of activity is a: a. fixed budget. b. flexible budget. c. manufacturing cost budget. d. budget performance report.
3. Direct factory labor is usually considered to be a cost. a. variable b. fixed c. semi-variable d. mixed 4. The cost of utilities consumed in the factory is a good example of a ____cost. a. variable b. fixed c. semi-variable d. standard
5. The salary of the factory supervisor is a good example of a _ cost a. variable b. fixed c. semi-variable d. standard
6. As the level of activity increases, the fixed cost per unit of activity: a. increases. b. decreases. c. does not change. d. may increase or decrease.
7. As the level of activity increases, the variable cost per unit of activity: a. increases. b. decreases. c.does not change. d. may increase or decrease.
8. As the level of activity increases, the total variable costs for the period: a. increase. b.decrease. c.do not change. d. may increase or decrease.
9. As the level of activity increases, the total fixed costs for the period: a. increase. b.decrease. c. may increase or decrease. d. do not change.
10. Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are known as--------- costs. 3. variable b. fixed c. standard d. semi-variable
11. In a factory, the fixed costs per unit are $45 when 400 units are produced. If 450 units are produced, the fixed costs per unit would be: a. $45.00. b. $40.00. c. $10.00. d.$50.63.
12. In a factory, the total variable costs are $600 if 500 units are produced. If 400 units are produced, the total variable costs would be: a. $480. b.$600. c.$120. d. $333.
13. The standard quantity of materials for a product was 40 pounds per unit at the standard price of $2.00 per pound. The actual price per pound of materials was $1.50, and the actual quantity used was 44 pounds. An analysis would indicate a: a. $20.00 favorable price variance. b. $22.00 favorable price variance. c. $6.00 unfavorable quantity variance. d. $18.00 favorable price variance.
14. The labor standard for a product was five hours at a wage rate of $8 per hour. The firm produced 900 units of the item. Labor costs totaled $35,250 and 4,700 hours of labor were used. An analysis of labor costs would indicate: a. a $750 favorable labor rate varianc~. b. a $1,600 unfavorable labor time variance. c. both the labor rate variance and the labor time variance listed above. d. a $1,600 favorable labor rate variance.
15. The quantity variance for an item is the difference between its actual quantity and its standard quantity multiplied by the: a. standard cost of the item. b. actual cost of the item. c.price variance. d. budgeted amount for the item.
16. An unfavorable price variance for materials means that: a. the actual cost of the materials was more than the budgeted amount. b." more materials were used in' production than anticipated. c. more labor hours were required to work with the materials than expected. d. the actual cost of the materials was more than the standard cost.
17.The materials price variance for an item is the difference between its actual price and its standard cost: a. multiplied by the actual quantity used. b. multiplied by the standard quantity allowed. c. multiplied by the difference between the actual quantity and the standard quantity. d.divided by the actual quantity.
18. The flexible budget usually shows: a. only fixed costs. b. only variable costs. c. fixed and variable costs together. d. fixed and variable costs separately.
Use the following information to answer questions 19 and 20. The standard costs for a unit of product are shown below. Materials 2 pounds at $1.00 per pound $2.00 Labor 1 hour at $10.00 per hour 10.00 Overhead 60% of di.rect labor 6.00 During JUne, Job N-5 for 100 units was completed. The actual costs of the job are shown below. Materials 300 pounds at $1.45 per pound $435 Labor 200 hours at $9.50 per hour 1,900 Overhead Applied 60% of direct labor 1,140
19. Which of the following represents the material price variance? a. $325 unfavorable b. $235 unfavorable c. $100 unfavorable d. $135 unfavorable
20. Which of the following represents the material quantity variance? a. $325 unfavorable b. $235 unfavorable c. $100 unfavorable d. $135 unfavorable
Answers are given in the attachment to solution
SUBJECTS / CATEGORIES:
2. Financial Management
4. Corporate Finance