MGA 202 A Fall 2017 Quiz #8 Time: 15 minutes Name Section There are questions on
ID: 2562003 • Letter: M
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MGA 202 A Fall 2017 Quiz #8 Time: 15 minutes Name Section There are questions on the front and back of this page. Cirele T or Fto indicate whether each of the following statements is true or false. T F. Aproblem with directly comparing a static planning budget to actual costs is that 1. this comparison fails to distinguish between differences in costs that are due to changes in activity and differences that are due to how well costs were controlled of product materials should be charged to the production manager instead of the purchasing T F 2. The standard cost card shows what the company should spend to produce a single unit T F 3. Anunfavorable materials quantity variance resulting from the use of poor quality manager 2. Omega Corporation uses customers served as its measure of activity. During March, the company budgeted for 32,000 customers, but actually served 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.20q Wages and salaries: $33,900+$1.40q The actual revenue for March was $146,400 and actual cost for wages and salaries was $80,300. a. The revenue variance was Ans: SFavorable or Unfavorable (Circle one) b. The spending variance for wages and salaries was: Ans: SFavorable or Unfavorable (Cirele one) Turn this page over for remaining questionsExplanation / Answer
Q1 1 To compare the actual cost we need actual production flexible results, only then we can arrive at correct variances So it is True 2 Standard Cost Card shows the Desired composition and cost required to produce a particular product So it is True 3 Unfavourable or Adverse Variance arising from Poor quality of Material should be debited to Purchase Manager, Because he is required to maintain the quality standards while purchasing the Material So it is False Q2 Budgeted Customers 32000 Actual Customers 35000 Revenue 4.20q Wages& Salaries 33900+1.40q Actual Revenue 146400 Wages& Salaries 80300 226700 Standard at Actual Customers: Revenue 147000 Wages& Salaries 82900 Actual Budgeted Variance F/A Revenue 146400 147000 600 F Wages& Salaries 80300 82900 -2600 A
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