Liberty ACCT 212 Chapter 8 Reading Assignment Answers Complete Solutions

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When recording journal entries for production costs using a standard cost accounting system, the debit to Work in Process Inventory account is for the ______ amount.

Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 and budgeted price per unit is $15.75. The sales price variance is $ .

The difference between the actual amount paid and the standard price paid to purchase an item is called a

A company had a standard sales price of $1.79 per unit and expected to sell 10,000 units. Due to a downturn in the economy, the product was marked down to $1.59 per unit and the company only sold 9,500 units. Calculate the sales price variance.

The overhead cost variance is the difference between:

To determine a standard overhead cost rate, the overhead costs must be classified as:

A variance is the difference between the actual price per unit and the standard price per unit.

Fixed costs equal $25,000; variable cost per unit is $2.50 and units produced are 10,000. The total budgeted costs is $ .

XYZ Company makes one product and has calculated the following amounts for direct materials: AQ x AP = $150,000; AQ x SP = $145,000; SQ x SP = $152,000. Compute the total direct materials variance.

Budget reports are commonly prepared for:

The formula to calculate total budgeted costs is:

The fixed budget indicates direct labor costs of $27,500. Actual direct labor costs were $27,000. The variance is:

Budget contain relevant information that compares actual results to planned activities.

Which of the following is the correct formula?

A(n) ________ budget is based on a single predicted amount of sales or other measure of activity.

As the volume of activity increases, the predetermined overhead rate will:

A company has budgeted total overhead of $10,575 and actual total overhead of $9,775. The controllable variance is:

Budgetary control refers to management’s use of budgets to:

The controllable variance is the difference between the actual overhead incurred and:

When compared to the budgeted amount, if the actual cost or revenue contributes to a higher income, then the variance is considered .

Management uses a(n) ______ budget to establish the standard overhead rate.

When recording journal entries for production costs using a standard cost accounting system, the favorable variances are recorded as ______ and the unfavorable variances are recorded as ______.

A manufacturing company has the following budgeted overhead costs: Indirect materials: $0.50 per unit; Utilities: $0.25 per unit; Supervisory salaries: $60,000; Building rent: $80,000. If the company expects to produce 200,000 units using 100,000 hours of direct labor, the standard overhead rate will be $ per direct labor hour.

A report which presents overhead variance information along with variances from budgeted amounts is called an

A standard cost ____ indicated the amount of direct labor, direct materials and overhead for one unit of product.

When preparing a flexible budget, variable costs are expressed as a constant amount_____, and fixed costs are expressed as a constant amount ___.