Ivy Software Mba Prepworks Managerial
Accounting Comprehensive Resource To Help You
Ace 2026-2027 Includes Frequently Tested
Questions With ELABORATED 100% Correct
COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. Lucius Smith is an assembler for a chair manufacturer. normally he spends
one hour (at $25/hour) for each chair he assembles. after assembling 500
chairs he wants to spend 10 minutes more per chair to improve quality.
Management approves. This will change the:
a) fixed cost line
b) variable cost line
c) semi variable cost
d) semi fixed cost - ANSWER variable cost. The slope of the variable cost
line is changed from $25/unit to $25 (1 x 10/60) = $29.17/unit. this is a
variable cost and has nothing to do with the other costs listed.
2. The standard for direct materials for product A is 6 square feet at $10 per
square foot. If a firm produces 100 units of product A and uses 600 square
feet at $11 per square foot the materials price variance is:
a) $660 unfavorable
b) $660 favorable
c) $600 unfavorable
d) $600 favorable - ANSWER $600 unfavorable
,3. The difference between the actual overhead cost and the flexible budget
level of overhead for actual production is called:
a) overhead volume variance
b) controllable overhead variance
c) budget variance
d) none of the above - ANSWER Controllable overhead variance
4. If the actual overhead is $152,000 and the flexible budget overhead for
actual production is $151,000, the controllable overhead variance is
a) $1000 favorable
b) $1000 unfavorable
c) 0
d) None of the above - ANSWER $1000 unfavorable
5. The standard for direct materials for product A is 6 square feet at $10 per
square foot. If a firm produces 100 units of product A and uses 600 square
feet at $11 per square foot, the materials quantity variance is:
a) $660 unfavorable
b) $660 favorable
c) 0
d) None of the above - ANSWER 0
6. To calculate the overhead volume variance actual overhead costs are
required. True or False - ANSWER False
7. The standard for direct labor for product C is three hours at $25 per hour. If
the direct labor efficiency variance is $1500 unfavorable, how many units
were produced?
a) 200
,b) 300
c) 400
d) unable to tell from data given - ANSWER unable to tell from data given
8. A CMA is expected to live by a code of ethics promulgated by the IMA (T or
F) - ANSWER True.
9. The financial information reported in an annual report differs considerably
from many internal management documents because it is "backward"
looking versus "forward" looking (true or false) - ANSWER True.
10.Bryan Brown of Bryan Brown Associates purchased a computer for $1,800
and expensed it for tax purposes. The $1,800 is a cost. True or False -
ANSWER True.
11.Fixed cost per unit remains the same over all levels of production. True or
False - ANSWER False. Total fixed costs remain the same over all levels
of production. Fixed Cost Per Unit changes.
12. Which of the following have a flexible budget?
a) Building maintenance
b) Legal department
c) production department
d) treasurer department - ANSWER production department
13. Work in process is comprised of partially completed units (true or false) -
ANSWER True
, 14. Costs that change in total with increased production are: - ANSWER
variable costs
15. Which of the following items will be found in the balance sheet of a
manufacturing company?
a) Raw materials
b) work in process
c) finished goods
d) all of the above - ANSWER all of the above
16.If a firm spends more on an item than is budgeted, the variance is
a) unfavorable
b) favorable
c) neither - ANSWER unfavorable
17. A variable cost per unit decreases as the production level increases
true or false - ANSWER False
18. A fixed cost per unit decreases as the production level increases (true or
false) - ANSWER true
13. Standard rates for overhead are based on - ANSWER anticipated
factory costs divided by the anticipated labor hours for the year. Dividing the costs
by the labor hours gives an overhead application rate.
Accounting Comprehensive Resource To Help You
Ace 2026-2027 Includes Frequently Tested
Questions With ELABORATED 100% Correct
COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. Lucius Smith is an assembler for a chair manufacturer. normally he spends
one hour (at $25/hour) for each chair he assembles. after assembling 500
chairs he wants to spend 10 minutes more per chair to improve quality.
Management approves. This will change the:
a) fixed cost line
b) variable cost line
c) semi variable cost
d) semi fixed cost - ANSWER variable cost. The slope of the variable cost
line is changed from $25/unit to $25 (1 x 10/60) = $29.17/unit. this is a
variable cost and has nothing to do with the other costs listed.
2. The standard for direct materials for product A is 6 square feet at $10 per
square foot. If a firm produces 100 units of product A and uses 600 square
feet at $11 per square foot the materials price variance is:
a) $660 unfavorable
b) $660 favorable
c) $600 unfavorable
d) $600 favorable - ANSWER $600 unfavorable
,3. The difference between the actual overhead cost and the flexible budget
level of overhead for actual production is called:
a) overhead volume variance
b) controllable overhead variance
c) budget variance
d) none of the above - ANSWER Controllable overhead variance
4. If the actual overhead is $152,000 and the flexible budget overhead for
actual production is $151,000, the controllable overhead variance is
a) $1000 favorable
b) $1000 unfavorable
c) 0
d) None of the above - ANSWER $1000 unfavorable
5. The standard for direct materials for product A is 6 square feet at $10 per
square foot. If a firm produces 100 units of product A and uses 600 square
feet at $11 per square foot, the materials quantity variance is:
a) $660 unfavorable
b) $660 favorable
c) 0
d) None of the above - ANSWER 0
6. To calculate the overhead volume variance actual overhead costs are
required. True or False - ANSWER False
7. The standard for direct labor for product C is three hours at $25 per hour. If
the direct labor efficiency variance is $1500 unfavorable, how many units
were produced?
a) 200
,b) 300
c) 400
d) unable to tell from data given - ANSWER unable to tell from data given
8. A CMA is expected to live by a code of ethics promulgated by the IMA (T or
F) - ANSWER True.
9. The financial information reported in an annual report differs considerably
from many internal management documents because it is "backward"
looking versus "forward" looking (true or false) - ANSWER True.
10.Bryan Brown of Bryan Brown Associates purchased a computer for $1,800
and expensed it for tax purposes. The $1,800 is a cost. True or False -
ANSWER True.
11.Fixed cost per unit remains the same over all levels of production. True or
False - ANSWER False. Total fixed costs remain the same over all levels
of production. Fixed Cost Per Unit changes.
12. Which of the following have a flexible budget?
a) Building maintenance
b) Legal department
c) production department
d) treasurer department - ANSWER production department
13. Work in process is comprised of partially completed units (true or false) -
ANSWER True
, 14. Costs that change in total with increased production are: - ANSWER
variable costs
15. Which of the following items will be found in the balance sheet of a
manufacturing company?
a) Raw materials
b) work in process
c) finished goods
d) all of the above - ANSWER all of the above
16.If a firm spends more on an item than is budgeted, the variance is
a) unfavorable
b) favorable
c) neither - ANSWER unfavorable
17. A variable cost per unit decreases as the production level increases
true or false - ANSWER False
18. A fixed cost per unit decreases as the production level increases (true or
false) - ANSWER true
13. Standard rates for overhead are based on - ANSWER anticipated
factory costs divided by the anticipated labor hours for the year. Dividing the costs
by the labor hours gives an overhead application rate.
