Question 1
1.5 out of 1.5 points
A favourable cost variance of significant magnitude:
Selected
Answer: if investigated, may lead to improved production
methods
Correct
Answer: if investigated, may lead to improved production
methods
Question 2
0 out of 1.5 points
Answer the following questions using the information below:
Cootamundra Industries (CI), developed standard costs for direct material
and direct labour. In 2014, CI estimated the following standard costs for one
of their major products, the 30-litre heavy-duty plastic container.
Budgeted quantity Budgeted price
Direct materials 0.20 kilos $26 per kilo
Direct labour 0.10 hours $14 per hour
During July, CI produced and sold 10 000 containers using 2200 kilos of
direct materials at an average cost per kilo of $24 and 1050 direct
manufacturing labour hours at an average wage of $14.75 per hour.
July's direct material efficiency variance is:
Selected
Answer:
$4400
favourable
Correct
Answer:
$5200
unfavourable
Question 3
1.5 out of 1.5 points
Answer the following questions using the information below:
Barossa Valley Wines used the following data to evaluate their current
operating system. The company sells items for $10 each and used a
budgeted selling price of $10 per unit.
Actual Budgeted
Units sold 495 000 units 500 000 units
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https://www.coursehero.com/file/25092646/2104quiz8docx/
, Variable costs $1 250 000 $1 500 000
Fixed costs $925 000 $900 000
What is the static-budget variance of variable costs?
Selected
Answer:
$250 000
favourable
Correct
Answer:
$250 000
favourable
Response $1 250 000 - $1 500
Feedback:
000 = $250 000 F
Question 4
1.5 out of 1.5 points
Answer the following questions using the information below:
Hunter Valley Orchards (HVO), developed standard costs for direct material
and direct labour. In 2014, HVO estimated the following standard costs for
one of their most well-loved products, the HVO classic Grandma's large
apple pie which had a brown sugar coating on the top of the crust as well as
including cranberry and mince ingredients in addition to the apples.
Budgeted quantity Budgeted price
Direct materials 1.5 kilos $7.25 per kilo
Direct labour 0.25 hours $14.00 per hour
During September, HVO produced and sold 1200 pies using 1875 kilos of
direct materials at an average cost per kilo of $7.00 and 280
direct labour hours at an average wage of $14.25 per hour.
September's direct material flexible-budget variance is:
Selected
Answer:
$75.00
unfavourable
Correct
Answer:
$75.00
unfavourable
Response (1875 × $7.00) - (1200 × 1.5 × $7.25
Feedback:
) = $75.00 U
Question 5
1.5 out of 1.5 points
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https://www.coursehero.com/file/25092646/2104quiz8docx/
1.5 out of 1.5 points
A favourable cost variance of significant magnitude:
Selected
Answer: if investigated, may lead to improved production
methods
Correct
Answer: if investigated, may lead to improved production
methods
Question 2
0 out of 1.5 points
Answer the following questions using the information below:
Cootamundra Industries (CI), developed standard costs for direct material
and direct labour. In 2014, CI estimated the following standard costs for one
of their major products, the 30-litre heavy-duty plastic container.
Budgeted quantity Budgeted price
Direct materials 0.20 kilos $26 per kilo
Direct labour 0.10 hours $14 per hour
During July, CI produced and sold 10 000 containers using 2200 kilos of
direct materials at an average cost per kilo of $24 and 1050 direct
manufacturing labour hours at an average wage of $14.75 per hour.
July's direct material efficiency variance is:
Selected
Answer:
$4400
favourable
Correct
Answer:
$5200
unfavourable
Question 3
1.5 out of 1.5 points
Answer the following questions using the information below:
Barossa Valley Wines used the following data to evaluate their current
operating system. The company sells items for $10 each and used a
budgeted selling price of $10 per unit.
Actual Budgeted
Units sold 495 000 units 500 000 units
This study source was downloaded by 100000899606070 from CourseHero.com on 06-14-2025 14:45:49 GMT -05:00
https://www.coursehero.com/file/25092646/2104quiz8docx/
, Variable costs $1 250 000 $1 500 000
Fixed costs $925 000 $900 000
What is the static-budget variance of variable costs?
Selected
Answer:
$250 000
favourable
Correct
Answer:
$250 000
favourable
Response $1 250 000 - $1 500
Feedback:
000 = $250 000 F
Question 4
1.5 out of 1.5 points
Answer the following questions using the information below:
Hunter Valley Orchards (HVO), developed standard costs for direct material
and direct labour. In 2014, HVO estimated the following standard costs for
one of their most well-loved products, the HVO classic Grandma's large
apple pie which had a brown sugar coating on the top of the crust as well as
including cranberry and mince ingredients in addition to the apples.
Budgeted quantity Budgeted price
Direct materials 1.5 kilos $7.25 per kilo
Direct labour 0.25 hours $14.00 per hour
During September, HVO produced and sold 1200 pies using 1875 kilos of
direct materials at an average cost per kilo of $7.00 and 280
direct labour hours at an average wage of $14.25 per hour.
September's direct material flexible-budget variance is:
Selected
Answer:
$75.00
unfavourable
Correct
Answer:
$75.00
unfavourable
Response (1875 × $7.00) - (1200 × 1.5 × $7.25
Feedback:
) = $75.00 U
Question 5
1.5 out of 1.5 points
This study source was downloaded by 100000899606070 from CourseHero.com on 06-14-2025 14:45:49 GMT -05:00
https://www.coursehero.com/file/25092646/2104quiz8docx/
