Essay about Acc3320-Final Exam

1663 Words Feb 10th, 2013 7 Pages
Instructor: xx. xxxxx ACC3320 Accounting for Decision Making
Final Exam

1. Riggs Enterprise's flexible budget cost formula for indirect materials, a variable cost, is $0.45 per unit of output. If the company's performance report for last month shows a $90 favorable variance for indirect materials and if 8,700 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:
A. $4,005
B. $3,915
C. $3,825
D. $3,735 2. Chmielewski Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,560 patient-visits and the actual level of activity was 1,530 patient-visits. The clinic's director budgets
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A production run of 1,000 desks in March resulted in usage of 12,600 square feet of vinyl at a cost of $2.00 per square foot, a total cost of $25,200. The materials quantity variance resulting from the above production run was:
A. $1,200 unfavorable
B. $1,350 unfavorable
C. $1,800 favorable
D. $3,150 favorable 17. Magno Cereal Corporation uses a standard cost system to collect costs related to the production of its "crunchy pickle" cereal. The pickle (materials) standards for each batch of cereal produced are 1.4 pounds of pickles at a standard cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of pounds at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of cereal. What is Magno's materials quantity variance for the month of August?
A. $1,500 unfavorable
B. $18,000 favorable
C. $19,500 unfavorable
D. $54,000 unfavorable 18. The following materials standards have been established for a particular product:

What is the materials quantity variance for the month?
A. $4,220 U
B. $1,188 F
C. $1,266 F
D. $3,960 U 19. The following materials standards have been established for a particular product:

What is the materials price variance for the month?
A. $6,250 U
B. $4,030 U
C. $8,679 U
D. $6,575 U 20. Construction Safety Corporation manufactures orange plastic safety suits for road workers. The following information relates to the

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