Midterm Quiz 1 - Attempt Review

11/3/22, 5:35 PM Midterm Quiz 1: Attempt review
Started on Monday, 17 October 2022, 3:30 PM

State Finished
Completed on Monday, 17 October 2022, 3:43 PM
Time taken 13 mins
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Complete
Mark 1.00 out of 1.00
The difference between the actual time used and the amount of time that should have been used for actual production, multiplied by the
standard labor rate per time is called
Select one:
a. Time variance
b. Spending variance
c. Quantity variance
d. Efficiency variance
semestral.amaes.com/2212/mod/quiz/review.php?attempt=125775&cmid=16734 1/18
Question 2
Complete
When developing a budget, an external factors to consider in the planning process is
Select one:
a. A change in management.
b. Development of new product.
c. The implementation of employees' retirement plan.
d. The activities of competitors.
Question 3
Complete
Variable overhead is applied on the basis of

standard direct labor hours. If, for a given period, the direct labor
efficiency variance is favorable,
the variable overhead efficiency variance
will be
Select one:
a. Unfavorable

b. Zero
c.
The
same amount as the labor efficiency variance

d. Favorable
Question 4
Complete
Josefina Company expects to manufacture and sell

30,000 baskets in 2019 for P6 each. There are 3,000 baskets in beginning finished
goods
inventory with target ending inventory of 4,000 baskets. The company
keeps no work-in-process inventory. What amount of sales revenue will
be
reported on the 2019 budgeted income statement?
Select one:
a. P180,000
b.
P204,000

c. P186,000

d. P174,000
Question 5
Complete
A standard cost is an estimate of what a cost should be under normal operating conditions. In establishing standard costs, the following
organizational personnel may be involved, except
Select one:
a. Top management
b. Quality control personnel
c. Industrial engineers
d. Budgetary accountants
Question 6
Complete
Backstreet Corporation plans to sell 200,000

units of product Xey in July and anticipated a growth in sales of 5% per month.
The target ending
inventory in units of the product is 80% of the next month’s
estimated sales. There are 150,000 units in inventory as of the end of June.
The
production requirement in units of Xey for the quarter ending September 30
would be
Select one:
a. 691,525
b.
675,925

c. 670,560

d. 665,720
Question 7
Complete
The process of creating a formal plan and

translating goals into a quantitative format is
Select one:
a.
Process
costing

b. Activity-based
costing
c.
Budgeting

d. Variance
analysis
Question 8
Complete
In a master budget plan, sales forecast is under
Select one:
a.
Capital
budget

b. Operating budget
c.
Performance
budget

d. Financial
budget
Question 9
Complete
Standard costing systems may be used with
Select one:
a. Just-in-time systems
b. Computer-integrated manufacturing systems
c. Total quality management
d. All of the above
Question 10
Complete
In the budgeting process, top management should
Select one:
a. Separate the budgeting process and the business planning process into two separate processes.
b. Be involved only in the approval process.
c. Limit their involvement because they lack the detailed knowledge of the daily operations.
d. Be involved, including using the budget process to communicate goals.
Question 11
Complete
Samson Company uses a standard costing system in

the production of its only product. The 84,000 units of raw materials inventory
were
purchased for P126,000 and 4 units of raw materials are required to
produce one unit of final product. In October, the company produced
14,400
units of product. The standard cost allowed for materials was P72,000, and
there was an unfavorable usage variance of P3.000. The
materials price variance
for the units used in October was
Select one:
a. P3,000
favorable
b.
P15,000
favorable

c. P3,000
unfavorable
d. P15,000 unfavorable
Question 12
Complete
Soda, Inc. desires to reduce its inventory of a

particular raw material by 40%. The inventory at the beginning of the budget
period is 240,000
units, and the company plans to manufacture 168,000 units of
output. Each of these units requires 2.5 units of raw materials. How much of
the
raw materials should be purchased during the budget period?
Select one:
a. 276,000
units
b.
316,000
units

c. 139,600
units

d. 324,000 units
Question 13
Complete
A strategic budget
Select one:
a. Involves evaluating specific long-term investment decisions.
b. Is a short-range consideration related to liquidity.
c. Is a short-range management tool.
d. Describes the long-term position, goals, and objectives of an organization within it's environment.
Question 14
Complete
The difference between the actual price or rate paid and the standard price or rate that should have been paid, multiplied by the actual quantity
or actual time is called
Select one:
a. Efficiency variance
b. Spending variance
c. Time variance
d. Quantity variance
Question 15
Complete
Aristeo Company produced 3,200 units of product.

Each unit requires 2 standard hours. The standard labor rate is P15 per hour.
Actual direct
labor for the period was P79,200 (6,600 hours x P12). What is the
direct labor rate variance?
Select one:
a. P16,800
favorable

b. P6,400
unfavorable
c.
P3,000
unfavorable

d. P19,800 favorable
Question 16
Complete
In developing an annual master budget, individual budget schedules are prepared. The budget schedule that would provide the necessary input
data for the direct labor budget would be the
Select one:
a. Sales forecast
b. Production budget
c. Schedule of cash receipts and disbursements
d. Raw materials purchases budget
Question 17
Complete
Ernie Trading Co. budgeted merchandise purchases of P40,000 units next month. The expected beginning inventory is 12,000 units and the
desired inventory at the end of next month is 15,000 units. Budgeted sales in units for next month is
Select one:
a. 55,000
b. 52,000
c. 37,000
d. 43,000
Question 18
Complete
The materials efficiency variance is the difference between actual and standard quantities used in production, multiplied by the standard price.
This variance may be the responsibility of
Select one:
a. Production department
b. Purchasing department
c. Personnel department
d. Sales department
Question 19
Complete
Charis Corporation produces a single product

with a standard direct labor cost of 4 hours @ 12 per hour. During May, 1,000
units were
produced using 4,100 hours @ P12.20 per hour. The total labor cost
variance is
Select one:
a. P2,020
favorable

b. P820
unfavorable
c.
P2,020 unfavorable

d. P1,200
unfavorable
Question 20
Complete
This management practice involves giving significant attention only to those areas in which material variances from expectations occur, giving
less attention on areas operating as expected.
Select one:
a. Management by objectives
b. Materials control
c. Responsibility accounting
d. Management by exception

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11/3/22, 5:35 PM Midterm Quiz 1: Attempt review

Started on Monday, 17 October 2022, 3:30 PM

Mark 1.00 out of 1.00

Mark 1.00 out of 1.00

When developing a budget, an external factors to consider in the planning process is

b. Development of new product.

c. The implementation of employees' retirement plan.

d. The activities of competitors.

Mark 1.00 out of 1.00

Variable overhead is applied on the basis of

Mark 1.00 out of 1.00

Josefina Company expects to manufacture and sell

Mark 1.00 out of 1.00

b. Quality control personnel

Mark 1.00 out of 1.00

Backstreet Corporation plans to sell 200,000

Mark 1.00 out of 1.00

The process of creating a formal plan and

Mark 1.00 out of 1.00

In a master budget plan, sales forecast is under

Mark 1.00 out of 1.00

Standard costing systems may be used with

b. Computer-integrated manufacturing systems

c. Total quality management

d. All of the above

Mark 1.00 out of 1.00

In the budgeting process, top management should

b. Be involved only in the approval process.

Mark 1.00 out of 1.00

Samson Company uses a standard costing system in

Mark 1.00 out of 1.00

Soda, Inc. desires to reduce its inventory of a

Mark 1.00 out of 1.00

b. Is a short-range consideration related to liquidity.

c. Is a short-range management tool.

Mark 1.00 out of 1.00

Mark 1.00 out of 1.00

Aristeo Company produced 3,200 units of product.

Mark 1.00 out of 1.00

c. Schedule of cash receipts and disbursements

d. Raw materials purchases budget

Mark 1.00 out of 1.00

Mark 1.00 out of 1.00

Mark 1.00 out of 1.00

Charis Corporation produces a single product

Mark 1.00 out of 1.00

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