Exam: 061402RR - Budget Analysis and Performance Measurement in Decision MakiWhen you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until youhit Submit Exam. If you need to exit before completing the exam, click Cancel Exam.Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a pagebreak, so be sure that you have seen the entire question and all the answers before choosing an answer.1. Garde Corporation keeps careful track of the time required to fill orders. Data concerning a particularorder appear below:What was the throughput time?A. 8.1 hoursB. 3.3 hoursC. 36.2 hoursD. 32.9 hours2. Brletich Corporation keeps careful track of the time required to fill orders. Data concerning a particularorder appear below:What was the delivery cycle time?A. 9.1 hoursB. 3.7 hoursC. 22.5 hoursD. 21.1 hours3. Blue Corporation's standards call for 2,500 direct labor-hours to produce 1,000 units of product. DuringMay 900 units were produced and the company worked 2,400 direct labor-hours. What would the standardhours allowed for May production be?A. 2,500 hoursB. 2,400 hoursC. 1,800 hoursD. 2,250 hours4. The following labor standards have been established for a particular product:The following data pertain to operations concerning the product for the last month:What is the labor efficiency variance for the month?A. $19,017 FB. $19,017 UC. $16,577 FD. $16,029 F5. The following information relates to next year's projected operating results of the Consumer Division ofXampa Corporation:If the Consumer Division were eliminated, $1,600,000 of the above fixed expenses could be avoided. Whatwill be the effect on Xampa's profit next year if Consumer Division is eliminated?A. $300,000 increaseB. $300,000 increaseC. $200,000 decreaseD. $200,000 increase6. Reidenbach Corporation applies manufacturing overhead to products on the basis of standard machinehours.The budgeted fixed manufacturing overhead cost for the most recent month was $17,100 and theactual fixed manufacturing overhead cost for the month was $17,450. The company based its originalbudget on 4,500 machine-hours. The standard hours allowed for the actual output of the month totaled4,810 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?A. $350 FavorableB. $1,178 UnfavorableC. $350 UnfavorableD. $1,178 Favorable7. Gershon Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets andperformance reports. The cost formula for plane operating costs is $38,720 per month plus $2,061 perflight plus $9 per passenger. The company expected its activity in June to be 76 flights and 238 passengers,but the actual activity was 75 flights and 239 passengers. The actual cost for plane operating costs in Junewas $196,310. What would the spending variance for plane operating costs in June be closest to?A. $864 FB. $1,188 FC. $1,188 UD. $864 U8. Hosang Corporation has two operating divisions&8212;an Atlantic Division and a Pacific Division. Thecompany's Logistics Department services both divisions. The variable costs of the Logistics Department arebudgeted at $32 per shipment. The Logistics Department's fixed costs are budgeted at $243,000 for theyear. The fixed costs of the Logistics Department are determined based on peak-period demand.How much Logistics Department cost should be charged to the Atlantic Division at the end of the year?A. $193,500B. $123,450C. $103,200D. $135,4509. Ishibashi Snow Removal's cost formula for its vehicle operating cost is $1,240 per month plus $337 persnow day. For the month of February, the company planned for activity of 17 snow days, but the actuallevel of activity was 12 snow days. The actual vehicle operating cost for the month was $5,140. Whatwould the spending variance for vehicle operating cost in February be closest to?A. $1,829 UB. $144 UC. $144 FD. $1,829 F10. Barbu Corporation has provided the following data concerning its direct labor costs for June:What would the Labor Rate Variance for June be recorded as?A. Debit of $6,305B. Debit of $6,500C. Credit of $6,500D. Credit of $6,30511. What is a static planning budget?A. A budget for a single level of activityB. Used only for fixed costsC. Used when the mix of products does not changeD. A budget that ignores inflation12. Comparing actual results to a budget based on the actual activity for the period is possible with the useof aA. monthly budget.B. rolling budget.C. master budget.D. flexible budget.13. During the month of May, Marian Manufacturing Corporation purchased materials that had a totalstandard cost of $37,000. The Materials Price Variance on these materials was $6,000 favorable. Whatsummary journal entry would Domino make to record this purchase and variance for May?A.B.C.D.14. Marusarz Corporation has provided the following data concerning its most important raw material,compound F55M:When recording the purchase of materials, what would Raw Materials be?A. Credited for $74,120B. Credited for $73,270C. Debited for $74,120D. Debited for $73,27015. Slife Corporation has provided the following data concerning its most important raw material, compound G81N:When recording the use of materials in production, what would Raw Materials be?A. Credited for $68,558B. Debited for $68,558C. Credited for $83,839D. Debited for $83,83916. Plaut Corporation has two operating divisions--a Consumer Division and a Commercial Division. Thecompany's Order Fulfillment Department provides services to both divisions. The variable costs of theOrder Fulfillment Department are budgeted at $55 per order. The Order Fulfillment Department's fixedcosts are budgeted at $403,200 for the year. The fixed costs of the Order Fulfillment Department aredetermined based on the peak-period orders.At the end of the year, actual Order Fulfillment Department variable costs totaled $409,528 and fixed coststotaled $422,330. The Consumer Division had a total of 1,730 orders and the Commercial Division had atotal of 5,480 orders for the year. For purposes of evaluation performance, how much Order FulfillmentDepartment cost should be charged to the Commercial Division at the end of the year?A. $632,258B. $606,895C. $583,640D. $607,85417. When a multi-product factory operates at full capacity, decisions must be made about which productsto emphasize. In making such decisions, products should be ranked based on what?A. Contribution margin per unitB. Celling price per unitC. Unit sales volumeD. Contribution margin per unit of the constraining resource18. Cybil Baunt just inherited a 1958 Chevy Impala from her late Aunt Joop. Aunt Joop purchased the car40 years ago for $6,000. Cybil is either going to sell the car for $8,000 or have it restored and sell it for$22,000. The restoration will cost $6,000. Cybil would be better off spendingA. $2,000 to have the vehicle restored.B. $10,000 to have the vehicle restored.C. $6,000 to have the vehicle restored.D. $8,000 to have the vehicle restored.End of exam19. Fabio Corporation is considering eliminating a department that has a contribution margin of $30,000and $60,000 in fixed costs. Of the fixed costs, $15,000 cannot be avoided. What would the effect ofeliminating this department on Fabio's overall net operating income be?A. A decrease of $30,000B. An increase of $30,000C. An increase of $15,000D. A decrease of $15,00020. Hoang Corporation makes three products that use compound W, the current constrained resource. Dataconcerning those products appear below:Rank the products in order of their current profitability from most profitable to least profitable. In otherwords, rank the products in the order in which they should be emphasized.A. RP,LH,KIB. KI,RP,LHC. RP,KI,LHD. LH,RP,KI