quiz-ma7-6en

Management Accounting, Chapter 7, Set 6

10 multiple-choice questions. Recommended time: 15-20 minutes.

The following data for items 1-4

	Budget	Actual
units produced and sold	10,000	9,000
Total VC (baht)	300,000	288,000
Total FC (baht)	600,000	594,000
Selling price per unit (baht)	100	105

1. What is the total static budget variance?

36,000 baht favorable 36,000 baht unfavorable 37,000 baht favorable 37,000 baht unfavorable None of the above responses is correct.

2. What is the total flexible-budget variable costs?

260,000 baht 270,000 baht 280,000 baht 290,000 baht None of the above responses is correct.

3. What is the total flexible-budget variance?

32,000 baht unfavorable 32,000 baht favorable 33,000 baht unfavorable 33,000 baht favorable None of the above responses is correct.

4. What is the total sales-volume variance?

80,000 baht favorable 80,000 baht unfavorable 70,000 baht favorable 70,000 baht unfavorable None of the above responses is correct.

The following data for items 5-8

Nirvana Company Limited produces plastic chairs. The company has established a standard costs for producing one chair as follows:

- Direct materials (2 pounds of plastic @ 5 baht) 10 baht
- Direct labor (1.5 hours @ 10 baht) 15 baht

During April 2026, the company produced 3,000 units of chair, and incurred cost:
Direct materials purchased and used 5,950 pounds at 5.80 baht.
Direct labor 4,560 hours at 9.80 baht

5. What is the price variance of the direct materials?

476 baht unfavorable 476 baht favorable 465 baht unfavorable 465 baht favorable None of the above responses is correct.

6. What is the efficiency variance of the direct materials?

500 baht favorable 500 baht unfavorable 250 baht favorable 250 baht unfavorable None of the above responses is correct.

7. What is the price (rate) variance of the direct labor?

912 baht unfavorable 912 baht favorable 925 baht unfavorable 925 baht favorable None of the above responses is correct.

8. What is the efficiency variance of the direct labor?

900 baht unfavorable 900 baht favorable 588 baht unfavorable 588 baht favorable None of the above responses is correct.

The following data for items 9-10

Budgeted MO per year = 900,000 baht +15 baht × MH
(MH: Machine Hour; MO: Manufacturing Overhead)
Budgeted machine-hours (denominator activity)........... 40,000
Budgeted machine-hours allowed per unit of product... 0.5
Number of units produced ......................................... 75,000
Actual variable MO (baht) ......................................... 612,950
Actual fixed MO (baht) ............................................. 898,500
Actual machine-hours .............................................. 41,000

9. What is the variable manufacturing overhead efficiency variance?

52,500 baht favorable 52,500 baht unfavorable 15,000 baht favorable 15,000 baht unfavorable None of the above responses is correct.

10. What is the production volume variance?

22,500 baht favorable 22,500 baht unfavorable 56,250 baht favorable 56,250 baht unfavorable None of the above responses is correct.