Suppose the standard for a given cost during a period was $80,000. The actual cost for the period was $72,000. Under what circumstances would you consider the variance from budget to be a positive performance indication?
A) The cost is fixed, and actual production was 90 percent of the standard level of budgeted production.
B) The cost is variable, and the standard cost noted above is the cost at a production level lower than the actual production level.
C) The cost is variable, and actual production was 90 percent of the standard level of production.
D) The cost is variable, and actual production was 75 percent of the standard level of production.
B
You might also like to view...
Explain the meaning of the terms contingent liabilities and provisions as they relate to U.S. GAAP and IFRS?
________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands
A) Points-of-parity B) Points-of-difference C) Points-of-inflection D) Points-of-presence E) Points-of-divergence
Carlton Corporation Carlton Corporation produces and sells faux-leather handbags. In the current year, the company budgeted for the production and sale of 1,000 handbags; however, 900 handbags were actually produced and sold. Each bag has a standard requiring two yards of material at a cost of $4.00 per yard and 1 hour of assembly time at a cost of $9.50 per hour. Actual costs for the production
of 900 bags were $7,215 for materials (1,850 yards purchased and used @ $3.90 per yard) and $10,125 for labor (1,125 hours @ $9.00 per hour). Refer to the Carlton Corporation information above. Carlton's direct labor rate variance is: A) $562.50 F. B) $562.50 U. C) $450.00 F. D) $450.00 U.
In the automobile industry during the late 1980s and early 1990s, the order-winning quality criterion was ______.
a. quality b. cost c. volume d. materials used