IVY SOFTWARE MBA PREPWORKS
MANAGERIAL ACCOUNTING E(1) LATEST
UPDATE
Simms has a production budget for 2014. Simms expects to sell 5000 units at $100 per
unit. If the desired ending inventory is 500 units and the total units produced is 4500, the
beginning inventory is:
A) 1,000 units
B) 1,500 units
C) 4,500 units
D) none - CORRECT ANSWERS-A) 1,000 units
Penn produces a product that requires 4 standard labor hours at a standard labor rate
of $20 per hour. Penn produced 1000 units of the product and used 3900 labor hours at
$21 per hour which is a labor rate variance of $3900. Is the labor rate variance for the
1000 unit production run favorable or unfavorable? - CORRECT ANSWERS-B)
unfavorable, Penn paid more per hour
Penn produces a product that requires 4 standard labor hours at a standard labor hour
rate
of $20 per hour. Penn produced 1,000 units of the product and used 3,900 labor hours
at
$21.00 per hour which is a labor rate variance of $3,900. What is the labor efficiency
variance?
A) $7,000 B) $3,000 C) $2,000 D) none - CORRECT ANSWERS-C) $2,000
Penn produces a product that requires 4 standard labor hours at a standard labor rate
of $20 per hour. Penn produced 1000 units of the product and used 3900 labor hours at
$21 per hour which is a labor rate variance of $3900. The labor efficiency variance is
$2,000. Is this variance favorable or unfavorable? - CORRECT ANSWERS-A-
favorable, Penn used less hours (3,900) than the standard 4,000
Caralic's actual overhead costs for the perios was $397,000. Cralic's overhead applied
using the standard rate was $390,000. The controlled overhead variance is
a) $7,000
b) $3,000
c) unable to tell from data
d) none - CORRECT ANSWERS-C- not enough info
Penn produces a product that requires 4 standard labor hours at a standard labor rate
of $20 per hour. Penn produced 1000 units of the product and used 3900 labor hours at
$21 per hour. What is the labor rate variance for the 1,000 unit production run.
, a) $6,000
b) $1,900
c) $3,900
D) none - CORRECT ANSWERS-C- 3,900
Activity based costing helps to refine the costs associated with direct materials. T/F -
CORRECT ANSWERS-F- refine the costs associated with overhead not direct materials
Computer time is a good example of a cost driver. T/F - CORRECT ANSWERS-T
Planning a course will be an example of an activity associated with instruction. T/F -
CORRECT ANSWERS-T
Although activity based costing helps refine the overhead costs, the cost may outweigh
the benefits of activity based costing. - CORRECT ANSWERS-T
A discount factor:
A) is the reverse of compounding future cash flows
B) performs the reverse function of a compounding interest rate
C) allows investors to quantify a figure which would make them indifferent to the returns
from an investment
D) B and C
E) A,B, and C - CORRECT ANSWERS-E all the above
As an interest rate used to discount future cash flows is increased, present value of
future cash inflows:
A) increases
B) decreases
C) remins the same - CORRECT ANSWERS-B-
If you invested $100 in an account that would return $121.00 at the end of two years,
and you discounted the returns from the investment at 10% annual interest, what is the
present value of the investment?
A) 82.64
B) 100$
C) 110.00$
D) 121.00$ - CORRECT ANSWERS-B- $100
Present Value calculations
A) can hinder the creation of value
B) can provide managers with a means of identifying the best investment choices
C) cause managers to mix asset and financing considerations
D) A and B
E) B and C - CORRECT ANSWERS-B
MANAGERIAL ACCOUNTING E(1) LATEST
UPDATE
Simms has a production budget for 2014. Simms expects to sell 5000 units at $100 per
unit. If the desired ending inventory is 500 units and the total units produced is 4500, the
beginning inventory is:
A) 1,000 units
B) 1,500 units
C) 4,500 units
D) none - CORRECT ANSWERS-A) 1,000 units
Penn produces a product that requires 4 standard labor hours at a standard labor rate
of $20 per hour. Penn produced 1000 units of the product and used 3900 labor hours at
$21 per hour which is a labor rate variance of $3900. Is the labor rate variance for the
1000 unit production run favorable or unfavorable? - CORRECT ANSWERS-B)
unfavorable, Penn paid more per hour
Penn produces a product that requires 4 standard labor hours at a standard labor hour
rate
of $20 per hour. Penn produced 1,000 units of the product and used 3,900 labor hours
at
$21.00 per hour which is a labor rate variance of $3,900. What is the labor efficiency
variance?
A) $7,000 B) $3,000 C) $2,000 D) none - CORRECT ANSWERS-C) $2,000
Penn produces a product that requires 4 standard labor hours at a standard labor rate
of $20 per hour. Penn produced 1000 units of the product and used 3900 labor hours at
$21 per hour which is a labor rate variance of $3900. The labor efficiency variance is
$2,000. Is this variance favorable or unfavorable? - CORRECT ANSWERS-A-
favorable, Penn used less hours (3,900) than the standard 4,000
Caralic's actual overhead costs for the perios was $397,000. Cralic's overhead applied
using the standard rate was $390,000. The controlled overhead variance is
a) $7,000
b) $3,000
c) unable to tell from data
d) none - CORRECT ANSWERS-C- not enough info
Penn produces a product that requires 4 standard labor hours at a standard labor rate
of $20 per hour. Penn produced 1000 units of the product and used 3900 labor hours at
$21 per hour. What is the labor rate variance for the 1,000 unit production run.
, a) $6,000
b) $1,900
c) $3,900
D) none - CORRECT ANSWERS-C- 3,900
Activity based costing helps to refine the costs associated with direct materials. T/F -
CORRECT ANSWERS-F- refine the costs associated with overhead not direct materials
Computer time is a good example of a cost driver. T/F - CORRECT ANSWERS-T
Planning a course will be an example of an activity associated with instruction. T/F -
CORRECT ANSWERS-T
Although activity based costing helps refine the overhead costs, the cost may outweigh
the benefits of activity based costing. - CORRECT ANSWERS-T
A discount factor:
A) is the reverse of compounding future cash flows
B) performs the reverse function of a compounding interest rate
C) allows investors to quantify a figure which would make them indifferent to the returns
from an investment
D) B and C
E) A,B, and C - CORRECT ANSWERS-E all the above
As an interest rate used to discount future cash flows is increased, present value of
future cash inflows:
A) increases
B) decreases
C) remins the same - CORRECT ANSWERS-B-
If you invested $100 in an account that would return $121.00 at the end of two years,
and you discounted the returns from the investment at 10% annual interest, what is the
present value of the investment?
A) 82.64
B) 100$
C) 110.00$
D) 121.00$ - CORRECT ANSWERS-B- $100
Present Value calculations
A) can hinder the creation of value
B) can provide managers with a means of identifying the best investment choices
C) cause managers to mix asset and financing considerations
D) A and B
E) B and C - CORRECT ANSWERS-B
