121. What is the budgeted contribution margin per composite unit for the actual
admin
121. What
is the budgeted contribution margin per composite unit for the actual mix?
a. $8.00
b. $8.60
c. $9.00
d. $9.60
122. What is
the budgeted contribution margin per composite unit for the budgeted mix?
a. $8.00
b. $8.60
c. $9.00
d. $9.60
123. For May,
Edna will report a(n):
a. favorable sales-mix variance
b. unfavorable sales-mix variance
c. favorable sales-volume variance
d. unfavorable sales-volume variance
124. What
is the budgeted sales-mix percentage for the Standard and the Super vacuum
cleaners, respectively?
a. 0.80 and 0.20
b. 0.70 and 0.30
c. 0.20 and 0.80
d. 0.30 and 0.70
125. What
is the total sales-volume variance in terms of the contribution margin?
a. $108,000 unfavorable
b. $108,000 favorable
c. $278,000 favorable
d. $448,000 favorable
126. What
is the total sales-quantity variance in terms of the contribution margin?
a. $110,000 favorable
b. $170,000 favorable
c. $278,000 favorable
d. $448,000 favorable
127. What
is the total sales-mix variance in terms of the contribution margin?
a. $110,000 favorable
b. $170,000 favorable
c. $278,000 favorable
d. $448,000 favorable
128. More
insight into the sales-quantity variance can be gained by subdividing it into:
a. the sales-mix variance and the
sales-volume variance
b. the market-share variance and the
market-size variance
c. the flexible-budget variance and the
sales-volume variance
d. a cost hierarchy
129. The market-share
variance results from a difference between the:
a. actual market share and the budgeted
market share
b. actual contribution margin and the
budgeted contribution margin
c. budgeted contribution margin per composite
unit for the actual mix and the budgeted contribution margin per composite unit
for the budgeted mix
d. actual market size in units and the
budgeted market size in units
130. The
market-share variance will be favorable when:
a. the flexible-budget contribution margin is
greater than the static-budget contribution margin
b. the actual market share is greater than
the budgeted market share
c. actual market size in units is less than
budgeted market size in units
d. actual unit sales are less than budgeted
unit sales
131. The
market-share variance is MOST influenced by:
a. economic downturns in the economy
b. how well managers perform relative to
their peers
c. shifts in consumer preferences that are
outside of the managers control
d. rates of inflation
132. An
unfavorable market-share variance would MOST likely be caused by:
a. a competitor providing better service
b. a competitor having distribution problems
c. the company offering products at a lower
price
d. the company experiencing quality-control
problems that get negative media coverage
133. The
market-size variance results from a difference between the:
a. actual market share and the budgeted
market share
b. actual contribution margin and the
budgeted contribution margin
c. budgeted contribution margin per composite
unit for the actual mix and the budgeted contribution margin per composite unit
for the budgeted mix
d. actual market size in units and the
budgeted market size in units
134. The
market-size variance will be unfavorable when:
a. the flexible-budget contribution margin is
greater than the static-budget contribution margin
b. the actual market share is greater than
the budgeted market share
c. actual market size in units is less than
budgeted market size in units
d. actual unit sales are less than budgeted
unit sales
135. A
favorable market-size variance would MOST likely be caused by:
a. the company reducing the services provided
to customers
b. an increase in overall market size
c. a new competitor moving into the area
d. a competitor providing better prices
136. Reliable
information about market size and market share is available for:
a. no industries
b. the management consulting and personal
financial planning industries
c. the automobile and television industries
d. all industries
137. What is
the market-size variance?
a. $500 U
b. $1,500 U
c. $1,600 F
d. $1,000 F
138. What
is the market-share variance?
a. $1,000 F
b. $1,100 F
c. $500 U
d. $1,500 U
139. What is
the sales-quantity variance?
a. $1,500 U
b. $1,000 F
c. $500 U
d. The variance cannot be determined.
140. What is
the contribution margin for the flexible budget?
a. $1,200,000
b. $4,200,000
c. $5,200,000
d. $5,400,000
141. What is
the total static-budget variance in terms of the contribution margin?
a. $900,000 favorable
b. $700,000 favorable
c. $200,000 unfavorable
d. $360,000 unfavorable
142. What is
the total flexible-budget variance in terms of the contribution margin?
a. $900,000 favorable
b. $700,000 favorable
c. $200,000 unfavorable
d. $360,000 unfavorable
143. What
is the total sales-volume variance in terms of the contribution margin?
a. $900,000 favorable
b. $1,260,000 favorable
c. $200,000 unfavorable
d. $360,000 unfavorable
144. What
is the total sales-quantity variance in terms of the contribution margin?
a. $200,000 unfavorable
b. $900,000 favorable
c. $360,000 unfavorable
d. $1,260,000 favorable
145. What
is the total sales-mix variance in terms of the contribution margin?
a. $200,000 unfavorable
b. $360,000 unfavorable
c. $900,000 favorable
d. $1,260,000 favorable
Difficulty: 3 Objective: 7
Terms
to Learn: sales-mix variance
Sales-mix variance
Actual units of all products sold
Actual sales-mix % – Budgeted sales-mix %
Budgeted CM
per unit
Sales-mix variance
ZENITH
32,000 x
(0.125 0.200) x
$300
=
$720,000 F
House-Helper
32,000 x
(0.875 0.800) x
$150
= $360,000 U
Total
$360,000 U
146. What
is the budgeted contribution margin per composite unit of the budgeted mix?
a. $140.625
b. $180.000
c. $208.000
d. $162.500
147. What
is the market-size variance?
a. $1,152,000 F
b. $108,000 F
c. $360,000 U
d. $1,260,000 F
148. What is
the market-share variance?
a. $360,000 U
b. $1,260,000 F
c. $1,152,000 F
d. $108,000 F
149. More
insight into the flexible-budget variance for direct materials can be gained by
subdividing it into the direct materials:
a. mix and volume variances
b. market-share and market-size variances
c. mix and yield variances
d. price and efficiency variances
150. More
insight into the efficiency variance for direct materials can be gained by
subdividing it into the direct materials:
a. mix and volume variances
b. market-share and market-size variances
c. mix and yield variances.
d. price and efficiency variances
151. The
direct materials mix variance will be favorable when:
a. the flexible-budget contribution margin is
greater than the actual contribution margin
b. the actual direct materials input mix is
less expensive than the budgeted direct materials input mix
c. the actual quantity of total inputs used
is greater than the flexible budget for total inputs
d. actual unit sales are less than budgeted
unit sales
152. The
materials yield variance will be unfavorable when:
a. the flexible-budget contribution margin is
greater than the actual contribution margin
b. the actual direct materials input mix is
less expensive than the budgeted direct materials input mix
c. the actual quantity of total inputs used
is greater than the flexible budget for total inputs
d. actual unit sales are less than budgeted
unit sales
153. The
direct materials mix variance is the:
a. average of the direct materials mix
variances for each input
b. sum of the direct materials mix variances
for each input
c. difference between the direct materials
mix variances for each input
d. multiple of the direct materials mix
variances for each input
EXERCISES AND PROBLEMS
154. For each cost pool listed select an
appropriate allocation base from the list below. An allocation base may be used
only once. Assume a manufacturing company.
Allocation bases for which the
information system can provide data:
1. Number
of employees per department
2. Employee
wages and salaries per department
3. Production
facility square footage
4. Hours
of operation of each production department
5. Machine
hours by department
6. Operations
costs of each department
7. Hours
of computer use per month per department
8. Indirect
labor-hours per department
Cost pools:
_______ a. Vice President of Finances office
expenses
_______ b. Computer operations used in conjunction
with manufacturing
_______ c. Personnel Department
_______ d. Manufacturing machinery cost
_______ e. Energy costs
155. Handy-Man
Services is a repair-service company specializing in small household jobs. Each
client pays a fixed monthly service fee based on the number of rooms in the
house. Records are kept on the time and material costs used for each repair.
The following profitability data apply to five customers:
Customer
Revenues Customer
Costs
Marveline
Burnett $300 $225
J
Jackson 200 305
Roger
Jones 80 75
Paul
Saas 75 110
Becky
Stephan 350 220
Required:
a. Compute the operating income for each of the
five customers.
b. What options should Handy-Man Services
consider in light of the customer-profitability results?
c. What problems might Handy-Man Services
encounter in accurately estimating the operating costs of each customer?
121. What
is the budgeted contribution margin per composite unit for the actual mix? a. $8.00 b. $8.60 c. $9.00 d. $9.60 122. What is
the budgeted contribution margin per composite unit for the budgeted mix? a. $8.00 b. $8.60 c. $9.00 d. $9.60 123. For May,
Edna will report a(n): a. favorable sales-mix variance b. unfavorable sales-mix variance c. favorable sales-volume variance d. unfavorable sales-volume variance 124. What
is the budgeted sales-mix percentage for the Standard and the Super vacuum
cleaners, respectively? a. 0.80 and 0.20 b. 0.70 and 0.30 c. 0.20 and 0.80 d. 0.30 and 0.70 125. What
is the total sales-volume variance in terms of the contribution margin? a. $108,000 unfavorable b. $108,000 favorable c. $278,000 favorable d. $448,000 favorable 126. What
is the total sales-quantity variance in terms of the contribution margin? a. $110,000 favorable b. $170,000 favorable c. $278,000 favorable d. $448,000 favorable 127. What
is the total sales-mix variance in terms of the contribution margin? a. $110,000 favorable b. $170,000 favorable c. $278,000 favorable d. $448,000 favorable 128. More
insight into the sales-quantity variance can be gained by subdividing it into: a. the sales-mix variance and the
sales-volume variance b. the market-share variance and the
market-size variance c. the flexible-budget variance and the
sales-volume variance d. a cost hierarchy 129. The market-share
variance results from a difference between the: a. actual market share and the budgeted
market share b. actual contribution margin and the
budgeted contribution margin c. budgeted contribution margin per composite
unit for the actual mix and the budgeted contribution margin per composite unit
for the budgeted mix d. actual market size in units and the
budgeted market size in units 130. The
market-share variance will be favorable when: a. the flexible-budget contribution margin is
greater than the static-budget contribution margin b. the actual market share is greater than
the budgeted market share c. actual market size in units is less than
budgeted market size in units d. actual unit sales are less than budgeted
unit sales 131. The
market-share variance is MOST influenced by: a. economic downturns in the economy b. how well managers perform relative to
their peers c. shifts in consumer preferences that are
outside of the managers control d. rates of inflation 132. An
unfavorable market-share variance would MOST likely be caused by: a. a competitor providing better service b. a competitor having distribution problems c. the company offering products at a lower
price d. the company experiencing quality-control
problems that get negative media coverage133. The
market-size variance results from a difference between the: a. actual market share and the budgeted
market share b. actual contribution margin and the
budgeted contribution margin c. budgeted contribution margin per composite
unit for the actual mix and the budgeted contribution margin per composite unit
for the budgeted mix d. actual market size in units and the
budgeted market size in units 134. The
market-size variance will be unfavorable when: a. the flexible-budget contribution margin is
greater than the static-budget contribution margin b. the actual market share is greater than
the budgeted market share c. actual market size in units is less than
budgeted market size in units d. actual unit sales are less than budgeted
unit sales 135. A
favorable market-size variance would MOST likely be caused by: a. the company reducing the services provided
to customers b. an increase in overall market size c. a new competitor moving into the area d. a competitor providing better prices 136. Reliable
information about market size and market share is available for: a. no industries b. the management consulting and personal
financial planning industries c. the automobile and television industries d. all industries 137. What is
the market-size variance? a. $500 U b. $1,500 U c. $1,600 F d. $1,000 F 138. What
is the market-share variance? a. $1,000 F b. $1,100 F c. $500 U d. $1,500 U 139. What is
the sales-quantity variance? a. $1,500 U b. $1,000 F c. $500 U d. The variance cannot be determined. 140. What is
the contribution margin for the flexible budget? a. $1,200,000 b. $4,200,000 c. $5,200,000 d. $5,400,000 141. What is
the total static-budget variance in terms of the contribution margin? a. $900,000 favorable b. $700,000 favorable c. $200,000 unfavorable d. $360,000 unfavorable 142. What is
the total flexible-budget variance in terms of the contribution margin? a. $900,000 favorable b. $700,000 favorable c. $200,000 unfavorable d. $360,000 unfavorable 143. What
is the total sales-volume variance in terms of the contribution margin? a. $900,000 favorable b. $1,260,000 favorable c. $200,000 unfavorable d. $360,000 unfavorable 144. What
is the total sales-quantity variance in terms of the contribution margin? a. $200,000 unfavorable b. $900,000 favorable c. $360,000 unfavorable d. $1,260,000 favorable 145. What
is the total sales-mix variance in terms of the contribution margin? a. $200,000 unfavorable b. $360,000 unfavorable c. $900,000 favorable d. $1,260,000 favorable Difficulty: 3 Objective: 7 Terms
to Learn: sales-mix varianceSales-mix varianceActual units of all products soldActual sales-mix % – Budgeted sales-mix %Budgeted CMper unitSales-mix variance32,000 x(0.125 0.200) x$300=
$720,000 FHouse-Helper32,000 x(0.875 0.800) x$150= $360,000 U Total$360,000 U146. What
is the budgeted contribution margin per composite unit of the budgeted mix? a. $140.625 b. $180.000 c. $208.000 d. $162.500 147. What
is the market-size variance? a. $1,152,000 F b. $108,000 F c. $360,000 U d. $1,260,000 F 148. What is
the market-share variance? a. $360,000 U b. $1,260,000 F c. $1,152,000 F d. $108,000 F 149. More
insight into the flexible-budget variance for direct materials can be gained by
subdividing it into the direct materials: a. mix and volume variances b. market-share and market-size variances c. mix and yield variances d. price and efficiency variances 150. More
insight into the efficiency variance for direct materials can be gained by
subdividing it into the direct materials: a. mix and volume variances b. market-share and market-size variances c. mix and yield variances. d. price and efficiency variances 151. The
direct materials mix variance will be favorable when: a. the flexible-budget contribution margin is
greater than the actual contribution margin b. the actual direct materials input mix is
less expensive than the budgeted direct materials input mix c. the actual quantity of total inputs used
is greater than the flexible budget for total inputs d. actual unit sales are less than budgeted
unit sales 152. The
materials yield variance will be unfavorable when: a. the flexible-budget contribution margin is
greater than the actual contribution margin b. the actual direct materials input mix is
less expensive than the budgeted direct materials input mix c. the actual quantity of total inputs used
is greater than the flexible budget for total inputs d. actual unit sales are less than budgeted
unit sales 153. The
direct materials mix variance is the: a. average of the direct materials mix
variances for each input b. sum of the direct materials mix variances
for each input c. difference between the direct materials
mix variances for each input d. multiple of the direct materials mix
variances for each input EXERCISES AND PROBLEMS154. For each cost pool listed select an
appropriate allocation base from the list below. An allocation base may be used
only once. Assume a manufacturing company. Allocation bases for which the
information system can provide data: 1. Number
of employees per department 2. Employee
wages and salaries per department 3. Production
facility square footage 4. Hours
of operation of each production department 5. Machine
hours by department 6. Operations
costs of each department 7. Hours
of computer use per month per department 8. Indirect
labor-hours per department Cost pools: _______ a. Vice President of Finances office
expenses _______ b. Computer operations used in conjunction
with manufacturing _______ c. Personnel Department _______ d. Manufacturing machinery cost _______ e. Energy costs 155. Handy-Man
Services is a repair-service company specializing in small household jobs. Each
client pays a fixed monthly service fee based on the number of rooms in the
house. Records are kept on the time and material costs used for each repair.
The following profitability data apply to five customers: Customer
Revenues Customer
Costs Marveline
Burnett $300 $225 J
Jackson 200 305 Roger
Jones 80 75 Paul
Saas 75 110 Becky
Stephan 350 220 Required: a. Compute the operating income for each of the
five customers. b. What options should Handy-Man Services
consider in light of the customer-profitability results? c. What problems might Handy-Man Services
encounter in accurately estimating the operating costs of each customer?
