Q1 The method of adjusting the budget to reflect the actual volume of sales is called

Select one:

a.Incremental budgeting

b.Activity-based budgeting

c.Flexible budgeting

d.Program budgeting

Q2 A company makes bulk cookies sold in restaurants.The following standards have been developed:

Standard Inputs for Each

Batch of Cookies

Standard Price per InputDirect materials25 kilograms$2 per kilogramDirect labour4 hours$15 per hour

Each batch of cookies contains 1,000 cookies.During January, production of 100,000 cookies was planned, but 105,000 cookies were actually made.At an actual price of $2.15 per kilogram, 2,250 kilograms of direct materials were purchased and used.The total direct labour cost for the month was $5,600, and the actual pay per hour was $14.00.

The direct labour rate variance for January is

Select one:

a.$300 F

b.$400 F

c.$300 F

d.$400 U

Q3 During November, 35,000 direct labour hours were worked by the employees of Allied Industries.The direct labour rate variance for November was $26,250 U, and the standard direct labour rate was $12.50.What was the actual cost of direct labour during November?

Select one:

a.$12.50

b.$13.25

c.$14.00

d.$11.75

Q4 Granddad's Sauce Company's costing system shows the following information for the month of October:

Actual price per kg of direct material$3.50Standard price per kg of direct material$4.00Direct material efficiency variance$800 FActual # of units produced2,600Standard inputs used to produceActual output of 2,600 units5,200

What quantity of direct materials was purchased and used in October?

Select one:

a.5,000 kg

b.5,714 kg

c.5,200 kg

d.4,350 kg