ACC Exam 3

An unfavorable materials quantity variance indicates that: A) actual usage of material exceeds the standard material allowed for output. B) standard material allowed for output exceeds the actual usage of material. C) actual material price exceeds standard price. D) standard material price exceeds actual price

Actual usage of material exceeds the standard material allowed for output

There are various budgets within the master budget. One of these budgets is the production budget. Which of t he following BEST describes the production budget? A) It details the required direct labor hours. B) It details the required raw materials p urchases. C) It is calculated based on the sales budget and the desired ending inventory. D) It summarizes the costs of producing units for the budget period.

It is calculated based on the sales budget and the desired ending inventory

Who is responsible for the material quantity variance?

Production Manager

Who is responsible for material price variance?

Purchasing Manager

When preparing a direct materials budget, the required purchases of raw materials in units equals: A) raw materials needed to meet the production schedule + desired ending inventory of raw materials − beginning inventory of raw materials. B) raw materials needed to meet the production schedule − desired ending inventory of raw materials − beginning inventory of raw materials. C) raw mater ials needed to meet the production schedule − desired ending inventory of raw materials + beginning inventory of raw materials. D) raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials.

Raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory of raw materials

The general model for calculating a quantity variance A) Actual quantity of inputs used × (Actual price − Standard price). B) Standard price × (Actual quantity of inputs used − Standard quantity allowed for output). C) (Actual quantity of inputs used × Actu al price) − (Standard quantity allowed for output × Standard price). D) Actual price × (Actual quantity of inputs used − Standard quantity allowed for ou

Standard price * (AQ-SQ)

Which of the following statements is NOT correct concerning the Manufacturing Overhead Budget? A) The Manufacturing Overhead Budget provides a schedule of all costs of production other than dir ect materials and labor costs. B) The Manufacturing Overhead Budget shows only the variable portion of manufacturing overhead. C) The Manufacturing Overhead Budget shows the expected cash disbursements for manufacturing overhead. D) The Manufacturing Overh ead Budget is prepared after the Sales Budget

The Manufacturing Overhead Budget shows only the variable portion off manufacturing overhead

The usual starting point for a master budget is: A) the direct materials purchase budget. B) the budgeted income statement. C) the sales forecast or sales budget. D) the production budget.

The sales forecast or sales budget

If variable manufacturing overhead is applied on the basis of direct labor- hours and the variable overhead rate variance is favorable, then: A) the actual variable overhead rate exceeded the standard rate. B) the standard variable overhead rate exceeded the actual rate. C) the actual direct labor - hours e xceeded the standard direct labor - hours allowed for the actual output. D) the standard direct labor - hours allowed for the actual output exceeded the actual hour

The standard variable overhead rate exceed the actual rate