QUESTION 1 The difference between what costs should have been based on actual production (in other words, the flexible budget) and what actual results were is referred to as the company's variance. O cost O efficiency O flexible budget O sales volume O none of the aboveQUESTION 2 The following information pertains to ABC Company's fixed overhead costs for the production of widgets during the month of December 20XX: . The company budgeted for $200,000 of fixed overhead costs . The company used direct labor hours as its cost driver and budgeted for 10,000 labor hours during the period . The company's direct laborers actually worked 9,000 hours during the period . The company allocated fixed manufacturing overhead costs to products at a rate of $20 per direct labor hour during the period . The company incurred $196,000 of actual fixed costs during the month of December What was ABC Company's fixed overhead cost variance for the month of December? O $0 O $400 favorable O $20,000 favorable O $20,000 unfavorable O None of the aboveQUESTION 5 XYZ Company sells widgets for $60 per unit. The company's total variable cost to produce a widget is $15. What is XYZ Company's contribution margin ratio? O 25% O 75% O 133% O 400% O None of the aboveQUESTION 8 The difference between what costs should have been based on actual units sold (in other words, the flexible budget) and the amount predicted in a company's master budget is referred to as a variance. O Cost O Efficiency O Flexible Budget O Sales Volume O None of the aboveQUESTION 19 Gonuts lncoporated produces nothing but wire nuts used by electricians. For the month of January 20XX, Gonuts Inc. believes the following will be true: . "he company will have to produced 2,000,000 wire nuts during the period . Each wire nut requires 0.1 pounds of plastic to produce . "he company would like to have enough plastic on hand at month's end to produce 500,000 wire nuts during February . "he company expects to start the month ofJanuary with 25,000 pounds of plastic in beginning raw materials inventory . Each pound of plastic purchased during January will cost $200 What is the company's budgeted cost of direct materials purchases forthe month of January? '52:?- $450,000 O $550,000 {:31- $575,000 {:31- $'l ,350,000 {:31- There isn't enough information to answer this question QUESTION 27 The subset of cost-volume-profit analysis which companies use to determine the necessary sales volume the firm needs to cover its fixed and variable costs exactly is called analysis. O Zero profit O Costs covered O Breakeven O Diagnostic O None of the aboveQUESTION 28 Which ofthe following accounts would be used by a manufacturing rm that uses process costing but would not be used by a manufacturer who uses job order costing? (:3- Raw materials inventory 0 WIP Inventory C3- Finished goods inventory (:3- Cost of goods sold {:3- All of these accounts would be used by a manufacturing firm regardless l5 it used process costing or job order costing. QUESTION 31 Addison Apparel projects the following figures for the month of November 20XX: . Budgeted net sales revenue will be $3,000,000 . Budgeted cost of goods sold will be $1,200,000 . Budgeted S&A expenditures will be $1,000,000 . Budgeted interest payments on outstanding debt will be $50,000 . The expected tax rate the company will have to pay will be equal to 20% of taxable income Based on this information, what amount of net income should Addison budget to make for the month of November 20XX? O $500,000 O $600,000 O $640,000 O $3,000,000 O None of the aboveQUESTION 32 Which type of variance can be further broken down into the portion of that variance which is attributable to changes in price and the portion of that variance which is attributable to efficiency? O Sales volume variance O Flexible budget variance O Both the sales volume and flexible variance O Budgeted versus actual O None of the above