IVY SOFTWARE MBA PREPWORKS
MANAGERIAL ACCOUNTING FINAL PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Attainable standards. Answer: standards that factor in variables
such as machine breakdown, inexperienced workers, etc.
◉ material quantity variance. Answer: multiplying the standard rate
per square foot by the difference between the square feet actually
used and the standard square feet for the units produced.
◉ material price variance. Answer: multiply the quantity used by the
difference in prices. The sign of the difference is not a factor
(negative or positive)
◉ labor efficiency variance. Answer: isolate the standard wage rate
and multiply it by the difference in hours.
◉ efficiency variance. Answer: a usage variance involving labor.
◉ Labor rate variance. Answer: multiply the actual labor hours
worked by the difference in rates
,◉ controllable overhead variance. Answer: Actual overhead
MINUS
flexible budget overhead for actual production
(includes fixed and variable overhead for both)
◉ overhead volume variance. Answer: Flexible budget for overhead
for actual units produced (includes fixed and variable overhead)
MINUS
overhead applied to actual units produced at standard overhead
rate. (number of units X (total overhead/ # units)
◉ activity based costing (ABC). Answer: all about fine tuning
overhead application rate. gives you information not available in the
simplistic averaging technique of applying overhead.
◉ Steps in Activity Based Costing. Answer: 1) identify overhead
activity associated with manufacturing.
2) identify cost drivers that drive that particular activity
3) compute a cost rate per cost driver unit
◉ direct materials variance. Answer: the price variance is calculated
using the actual quantity multiplied by the price difference (actual
versus standard). The quantity variance is calculated using a
, standard price multiplied by the quantity difference (actual versus
standard)
◉ Direct labor variance. Answer: the rate variance is calculated
using the actual number of labor hours multiplied by the rate
difference (actual versus standard). The usage variance is calculated
using a standard labor rate multiplied by the difference in labor
hours (actual versus standard).
◉ CC inc. produced a product that requires 100 standard square feet
per unit at a standard price of $4 per square foot. If CC produces 200
units and uses 21,000 square feet at $4.20 per square foot, what is
the material quantity variance?
$2000
$6000
$10000
$4000. Answer: $4,000. The material quantity variance is obtained
by multiplying the standard rate per square foot (4) times the
differenve between the square feet actually used (21,000) and the
standard square feet for the units produced (200 units x 100 square
feet = 20,000 square feet)
$4 (21,000 - 20,000) = $4,000
◉ CC inc. produced a product that requires 100 standard square feet
per unit at a standard price of $4 per square foot. If CC produces 200
MANAGERIAL ACCOUNTING FINAL PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Attainable standards. Answer: standards that factor in variables
such as machine breakdown, inexperienced workers, etc.
◉ material quantity variance. Answer: multiplying the standard rate
per square foot by the difference between the square feet actually
used and the standard square feet for the units produced.
◉ material price variance. Answer: multiply the quantity used by the
difference in prices. The sign of the difference is not a factor
(negative or positive)
◉ labor efficiency variance. Answer: isolate the standard wage rate
and multiply it by the difference in hours.
◉ efficiency variance. Answer: a usage variance involving labor.
◉ Labor rate variance. Answer: multiply the actual labor hours
worked by the difference in rates
,◉ controllable overhead variance. Answer: Actual overhead
MINUS
flexible budget overhead for actual production
(includes fixed and variable overhead for both)
◉ overhead volume variance. Answer: Flexible budget for overhead
for actual units produced (includes fixed and variable overhead)
MINUS
overhead applied to actual units produced at standard overhead
rate. (number of units X (total overhead/ # units)
◉ activity based costing (ABC). Answer: all about fine tuning
overhead application rate. gives you information not available in the
simplistic averaging technique of applying overhead.
◉ Steps in Activity Based Costing. Answer: 1) identify overhead
activity associated with manufacturing.
2) identify cost drivers that drive that particular activity
3) compute a cost rate per cost driver unit
◉ direct materials variance. Answer: the price variance is calculated
using the actual quantity multiplied by the price difference (actual
versus standard). The quantity variance is calculated using a
, standard price multiplied by the quantity difference (actual versus
standard)
◉ Direct labor variance. Answer: the rate variance is calculated
using the actual number of labor hours multiplied by the rate
difference (actual versus standard). The usage variance is calculated
using a standard labor rate multiplied by the difference in labor
hours (actual versus standard).
◉ CC inc. produced a product that requires 100 standard square feet
per unit at a standard price of $4 per square foot. If CC produces 200
units and uses 21,000 square feet at $4.20 per square foot, what is
the material quantity variance?
$2000
$6000
$10000
$4000. Answer: $4,000. The material quantity variance is obtained
by multiplying the standard rate per square foot (4) times the
differenve between the square feet actually used (21,000) and the
standard square feet for the units produced (200 units x 100 square
feet = 20,000 square feet)
$4 (21,000 - 20,000) = $4,000
◉ CC inc. produced a product that requires 100 standard square feet
per unit at a standard price of $4 per square foot. If CC produces 200
