Variance calculations for service organizations are similar to those performed for manufacturing companies.

Select one:

True

False

If the flexible budget variance is $1,000 F, and sales-volume variance is $400 U, what is the static budget variance?

Select one:

a. $1,400 U

b. $1,400 F

c. $600 U

d. $600 F

The specific process of analyzing variances that occur between budgeted and actual amounts is called:

Select one:

a. static-flexible analysis

b. variance analysis.

c. management by exception.

d. standards management

The specific process of analyzing and interpreting only the most significant of variances is known as:

Select one:

a. Feedback loops.

b. Variance analysis.

c. Static budgeting.

d. Management by exception.

The static budget variance is:

Select one:

a. the sum of the sales-volume and flexible budget variances

b. the sum of price and efficiency variances

c. the sum of selling-price and flexible budget variances

d. the sum of static and flexible budget variances

Langdon Lights Company manufactures table lamps. At the beginning of 2010, Langdon Lights budgeted that it would sell 150,000 lamps at a price of $10/lamp. However, throughout 2010, it actually sold 170,000 lamps at a price of $8/lamp. What was the selling-price variance for the year?

Select one:

a. $340,000 U

b. $340,000 F

c. $300,000 U

d. $300,000 F

What is the formula for direct materials efficiency variance?

Select one:

a. =(Budgeted Quantity of Input Used - Standard Quantity for Actual Output) x Actual Price

b. =(Budgeted Quantity of Input Used - Standard Quantity for Actual Output) x Standard Price

c. =(Actual Price of Input - Standard Quantity for Actual Output) x Standard Price

d. = (Actual Quantity of Input Used - Standard Quantity for Actual Output) x Standard Price