Question

In: Accounting

1. Identify the situation below that will result in a favorable variance. Multiple Choice Actual revenue...

1. Identify the situation below that will result in a favorable variance.

Multiple Choice

  • Actual revenue is higher than budgeted revenue.

  • Actual revenue is lower than budgeted revenue.

  • Actual income is lower than expected income.

  • Actual costs are higher than budgeted costs.

  • Actual expenses are higher than budgeted expenses.

2 Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standard labor cost is $12 per hour. During August, Hassock produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Hassock’s labor rate variance for August?

Multiple Choice

  • $2,000 favorable.

  • $2,104 unfavorable.

  • $2,104 favorable.

  • $4,160 favorable.

  • $2,000 unfavorable.

A flexible budget may be prepared:

Multiple Choice

  • Before the operating period only.

  • After the operating period only.

  • During the operating period only.

  • At any time in the planning period.

  • Only when the company encounters excessive costs.

Which department is often responsible for the direct materials price variance?

Multiple Choice

  • The accounting department.

  • The production department.

  • The purchasing department.

  • The finance department.

  • The budgeting department.

Grant Co. uses the following standard to produce a single unit of its product: Variable overhead (2 hrs. per unit @ $4/hr.) Actual data for the month show total variable overhead costs of $190,000, and 23,000 units produced. The total variable overhead variance is:

Multiple Choice

  • $6,000F.

  • $6,000U.

  • $78,000U.

  • $78,000F.

  • $0.

Using the information below, compute the manufacturing cycle time:

Process time 6.0 hours
Inspections time .5 hours
Move time .6 hours
Wait time .9 hours
Warehouse storage time 72.0 hours

Multiple Choice

  • 7.5 hours.

  • 6.5 hours.

  • 8.0 hours.

  • 80.0 hours.

  • 7.1 hours.

Solutions

Expert Solution

1. Identify the situation below that will result in a favorable variance.
Multiple Choice
Actual revenue is higher than budgeted revenue. Correct
Actual revenue is lower than budgeted revenue. incorrect Actual revenue is more than the budgeted or planned revenues.
Actual income is lower than expected income. incorrect Actual income is higher than expected income.
Actual costs are higher than budgeted costs. incorrect Actual costs are lower than budgeted costs.
Actual expenses are higher than budgeted expenses. incorrect Actual expenses are lower than budgeted expenses.
2 Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standard labor cost is $12 per hour. During August, Hassock produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Hassock’s labor rate variance for August?
Multiple Choice Direct labor rate variance = (Standard rate – Actual rate) x Actual quantity
$2,000 favorable. Actual Rate = $250,376/21040 $                                                                     11.90
$2,104 unfavorable. Direct labor rate variance = (12 – 11.90) x 21040 2104 F
$2,104 favorable. Correct
$4,160 favorable.
$2,000 unfavorable.
A flexible budget may be prepared:
Multiple Choice
Before the operating period only.
After the operating period only.
During the operating period only.
At any time in the planning period. Correct Flexible budget is  prepared using the
actual output  achieved in the budget period
Only when the company encounters excessive costs.
Which department is often responsible for the direct materials price variance?
Multiple Choice
The accounting department.
The production department.
The purchasing department. Correct The purchasing department deals with purchasing  the raw materials so material price variance is responsible by this department.
The finance department.
The budgeting department.

ekkarill92 answered 7 months ago
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