Horngrens Accounting The Managerial Chapters 12Th Edition Miller Nobles Test Bank Full Chapter PDF

Horngrens Accounting The Managerial
Chapters 12th Edition Miller-Nobles

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Horngren's Accounting, 12e (Miller-Nobles et al.)
Chapter 23 Flexible Budgets and Standard Cost Systems
Learning Objective 23-1
1) A static budget is prepared for only one level of sales volume.

Answer: TRUE
Diff: 1
LO: 23-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2: Performance Reports Using Static Budgets
2) A favorable variance reflects a decrease in operating income.

Answer: FALSE
Diff: 1
LO: 23-1
3) A variance is the difference between an actual amount and the budgeted amount.
Answer: TRUE
Diff: 1
LO: 23-1
4) A static budget presents financial data at multiple levels of sales volume.

Answer: FALSE
Diff: 1
LO: 23-1
1
Copyright © 2018 Pearson Education, Inc.
5) Alphonse Company manufactures staplers. The budgeted sales price is $14.00 per stapler, the variable
costs are $3.00 per stapler, and budgeted fixed costs are $10,000. What is the budgeted operating income
for 4300 staplers?
A) $47,300
B) $37,300
C) $60,200
D) $12,900
Answer: B
Explanation: Sales ($14.00 × 4300 staplers) $60,200
Variable costs ($3.00 × 4300 staplers) 12,900
Contribution margin 47,300
Fixed costs 10,000
Operating income $37,300
Diff: 1
LO: 23-1
PE Question Type: Application
6) Define variance. What is the difference between a favorable and an unfavorable variance?
Answer: A variance is the difference between an actual amount and the budgeted amount. A variance is
favorable if it increases operating income. For example, if actual revenue is greater than budgeted
revenue or if actual expense is less than budgeted expense, then the variance is favorable. If the variance
decreases operating income, the variance is unfavorable. For example, if actual revenue is less than
budgeted revenue or if actual expense is greater than budgeted expense, the variance is unfavorable.
Diff: 2
LO: 23-1
AACSB: Analytical thinking
PE Question Type: Critical thinking
7) A flexible budget summarizes revenues and costs for various levels of sales volume within a relevant
range.
Answer: TRUE
Diff: 1
LO: 23-1
H2: Performance Reports Using Flexible Budgets
2
8) The sales volume variance is the difference between the expected results in the flexible budget for the
actual units sold and the static budget.
Answer: TRUE
Diff: 1
LO: 23-1
9) The sales volume variance is a result of the difference between the actual sales price and the budgeted
sales price.
Answer: FALSE
Diff: 1
LO: 23-1
10) The flexible budget variance is the difference between expected results in the flexible budget for the
actual units sold and the static budget.
Answer: FALSE
Diff: 1
LO: 23-1
11) The flexible budget variance is the difference between the actual results and the expected results in
the flexible budget for the actual units sold.
Answer: TRUE
Diff: 1
LO: 23-1
3
12) Infinity Clock Company prepared the following static budget for the year:
Static Budget
Units/Volume 5000
Per Unit
Sales Revenue $7.00 $35,000
Variable Costs 1.00 5000
Contribution Margin 30,000
Fixed Costs 3000
Operating Income/(Loss) $27,000
If a flexible budget is prepared at a volume of 7800 units, calculate the amount of operating income. The
production level is within the relevant range.
A) $43,800
B) $27,000
C) $7800
D) $3000
Answer: A
Explanation: Infinity Clock Company
Flexible Budget
For the Year Ended December 31, 20XX
Budgeted
Amounts
Per Unit
Units 7800
Fixed Costs 3000
Operating Income $43,800
Diff: 2
LO: 23-1
4
13) Reflector Glass Company prepared the following static budget for the year:
Static Budget
Units/Volume 5000
Per Unit
Fixed Costs 4000
If a flexible budget is prepared at a volume of 8400 units, calculate the amount of operating income. The
A) $23,500
B) $12,600
C) $42,200
D) $4000
Answer: C
Explanation: Reflector Glass Company
Flexible Budget
For the Year Ended December 31, 20XX
Budgeted
Amounts
Per Unit
Units 8400
Variable Costs 1.50 12,600
Fixed Costs 4000
Diff: 2
LO: 23-1
5
14) Ibis Paper Company prepared the following static budget for November:
Static Budget
Units/Volume 12,000
Per Unit
Fixed Costs 13,000
If a flexible budget is prepared at a volume of 13,300 units, calculate the operating income. The
A) $172,900
B) $156,000
C) $143,000
D) $159,900
Answer: D
Explanation: Ibis Paper Company
Flexible Budget
For the Month Ended November 30
Budgeted
Amounts
Per Unit
Units 13,300
Fixed Costs 13,000
Diff: 2
LO: 23-1
6
15) Which of the following amounts of a flexible budget remains constant, within the specified relevant
range, when the sales volume changes?
A) total contribution margin
B) total fixed costs
C) total variable costs
D) total sales revenue
Answer: B
Diff: 1
LO: 23-1
16) Which of the following amounts of a flexible budget changes, within the specified relevant range,
with changes in sales volume?
A) sales price per unit
B) total fixed costs
C) variable cost per unit
D) total contribution margin
Answer: D
Diff: 1
LO: 23-1
17) The sales volume variance is the difference between the ________.
A) actual results and the expected results in the flexible budget for the actual units sold
B) expected results in the flexible budget for the actual units sold and the static budget
C) static budget and actual amounts due to differences in sales price
D) flexible budget and static budget due to differences in fixed costs
Answer: B
Diff: 1
LO: 23-1
7
18) The flexible budget variance is the difference between the ________.
A) actual results and the expected results in the flexible budget for the actual units sold
B) expected results in the flexible budget for the units expected to be sold and the static budget
C) flexible budget and actual amounts due to differences in volumes
D) flexible budget and static budget due to differences in fixed costs
Answer: A
Diff: 1
LO: 23-1
8
19) The static budget, at the beginning of the month, for Divine Décor Company, follows:
Static budget:
Sales volume: 1500 units; Sales price: $70.00 per unit
Variable costs: $32.00 per unit; Fixed costs: $38,000 per month
Operating income: $19,000
Actual results, at the end of the month, follows:

Actual results:
Operating income: $6600
Calculate the flexible budget variance for sales revenue.

A) $6980 U
B) $6980 F
C) $4950 U
D) $4950 F
Answer: D
Explanation:
Flexible Sales
Actual Budget Flexible Volume Static
Results Variance Budget Variance Budget
Units/Volume 990 0 990 510 U 1500
Sales Revenue* $74,250 $4950 F $69,300 $35,700 U $105,000
Variable Costs** 34,650 2970 U 31,680 $16,320 F 48,000
Contribution Margin $39,600 $1980 F $37,620 $19,380 U $57,000
Fixed Costs 33,000 5000 F 38,000 $0 38,000
Operating
Income/(Loss) $6600 $6980 F ($380) $19,380 U $19,000
* Sales price per unit × Units

** Variable cost per unit × Units
Diff: 2
LO: 23-1
9
20) The static budget, at the beginning of the month, for Vintage Wine Company follows:
Static budget:

Actual results:
Calculate the flexible budget variance for variable costs.

A) $30,400 U
B) $1650 U
C) $5700 U
D) $24,700 F
Answer: C
Explanation:
Flexible Sales
Units/Volume 1900 0 1900 100 U 2000
Sales Revenue* $111,150 $16,150 F $95,000 $5000 U $100,000
Variable Costs** 30,400 5700 U 24,700 $1300 F 26,000
Contribution Margin $80,750 $10,450 F $70,300 $3700 U $74,000
Fixed Costs 34,300 8800 U 25,500 $0 25,500
Operating
Income/(loss) $46,450 $1650 F $44,800 $3700 U $48,500

Diff: 2
LO: 23-1
10
21) The static budget, at the beginning of the month, for Amira Company follows:
Static budget:

Actual results:
Calculate the flexible budget variance for fixed costs.

A) $2200 U
B) $2200 F
C) $0
D) $3180 F
Answer: B
Explanation:
Flexible Sales
Units 980 0 980 20 U 1000
Sales Revenue* $72,520 3920 F $68,600 $1400 U $70,000
Contribution Margin $38,220 $980 F $37,240 $760 U $38,000
Fixed Costs 34,600 2200 F 36,800 $0 36,800
Operating
Income/(Loss) $3620 $3180 F $440 $760 U $1200

Diff: 2
LO: 23-1
11
22) The static budget, at the beginning of the month, for Wadsworth Company follows:
Static budget:

Actual results:
Calculate the flexible budget variance for operating income.

A) $3600 U
B) $3600 F
C) $1550 F
D) $15,200 F
Answer: C
Explanation:
Flexible Sales
Units 1900 0 1900 100 U 2000
Sales Revenue* $110,200 $15,200 F $95,000 $5000 U $100,000
Contribution Margin $78,850 $10,450 F $68,400 $3600 U $72,000
Fixed Costs 34,000 8900 U 25,100 $0 25,100
Operating
Income/(Loss) $44,850 $1550 F $43,300 $3600 U $46,900

Diff: 2
LO: 23-1
12
23) The static budget, at the beginning of the month, for Beacon Banner Company follows:
Static budget:

Actual results:
Calculate the sales volume variance for revenue.
A) $2800 U
B) $7350 U
C) $3885 U
D) $4975 F
Answer: B
Explanation:
Flexible Sales
Units 995 0 995 105 U 1100
Sales Revenue* $74,625 $4975 F $69,650 $7350 U $77,000
Fixed Costs 35,000 2800 F 37,800 $0 37,800
Operating
Income/(Loss) $4800 $5785 F $(985) $3885 U $2900

Diff: 2
LO: 23-1
13
24) The static budget, at the beginning of the month, for La Verne Company follows:
Static budget:
Sales volume: 2100 units: Sales price: $56.00 per unit
Variable cost: $14.00 per unit: Fixed costs: $26,000 per month

Actual results:
Sales volume: 1800 units: Sales price: $59.00 per unit
Variable cost: $16.00 per unit: Fixed costs $35,000 per month
Calculate the sales volume variance for variable costs.

A) $12,600 U
B) $4200 F
C) $300 U
D) $12,600 F
Answer: B
Explanation:
Flexible Sales
Units 1800 0 1800 300 U 2100
Sales Revenue* $106,200 $5400 F $100,800 $16,800 U $117,600
Contribution Margin $77,400 $1800 U $75,600 $12,600 U $88,200
Fixed Costs 35,000 9000 U 26,000 $0 26,000
Operating
Income/(Loss) $42,400 $7200 U $49,600 $12,600 U $62,200

Diff: 2
LO: 23-1
14
25) The static budget, at the beginning of the month, for New England Furniture Company follows:
Static budget:

Actual results:
Calculate the sales volume variance for fixed costs.
A) $1920 U
B) $1200 F
C) $1520 U
D) $0
Answer: D
Explanation:
Flexible Sales
Units 960 0 960 40 U 1000
Sales Revenue* $71,040 $2880 F $68,160 $2840 U $71,000
Fixed Costs 35,000 1200 F 36,200 $0 36,200
Operating
Income/(loss) $2440 $2160 F $280 $1520 U $1800

Diff: 2
LO: 23-1
15
26) The static budget, at the beginning of the month, for Jabari Company follows:
Static budget:

Actual results:
Variable costs: $17.00 per unit; Fixed cost: $37,000 per month
Calculate the sales volume variance for operating income.

A) $8600 U
B) $200 F
C) $8000 U
D) $8000 F
Answer: C
Explanation:
Flexible Sales
Units 1900 0 1900 200 U 2100
Sales Revenue* $110,200 $11,400 F $98,800 $10,400 U $109,200
Fixed Costs 37,000 10,500 U 26,500 $0 26,500
Operating
Income/(Loss) $40,900 $8600 U $49,500 $8000 U $57,500

Diff: 2
LO: 23-1
16
27) The Crockery Pottery Company completed the flexible budget analysis for the second quarter, which
is given below.
Flexible Sales
Units 12,900 0 12,900 1100 F 11,800
Sales Revenue $62,710 $2894 U $65,604 $5594 F $60,010
Variable Costs 27,580 13 U 27,593 $2353 U 25,240
Contribution Margin $35,130 $2881 U $38,011 $3241 F $34,770
Fixed Costs 34,240 150 U 34,090 $0 34,090
Operating
Income/(Loss) $890 $3031 U $3921 $3241 F $680
Which of the following would be a correct factor to explain the sales volume variance for sales revenue?
A) increase in sales price per unit
B) increase in sales volume
C) increase in variable cost per unit
D) increase in fixed costs
Answer: B
Diff: 2
LO: 23-1
17
28) The Comfort Foam Products Company completed the flexible budget analysis for the second quarter,
which is given below.
Flexible Sales
Units 12,830 0 12,830 930 F 11,900
Sales Revenue $62,760 $1983 U $64,743 $4693 F $60,050
Fixed Costs 34,270 190 U 34,080 $0 34,080
Operating
Income/(Loss) $880 $2570 U $3450 $2720 F $730
Which of the following would be a correct factor to explain the sales volume variance for variable costs?
A) decrease in sales price per unit
B) increase in variable cost per unit
C) increase in sales volume
Answer: C
Diff: 2
LO: 23-1
18
29) The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is
given below.
Flexible Sales
Units 12,820 0 12,820 1020 F 11,800
Sales Revenue $62,730 $2478 U $65,208 $5188 F $60,020
Fixed Costs 34,290 250 U 34,040 $0 34,040
Operating
Income/(Loss) $910 $2836 U $3746 $3006 F $740
Which of the following statements would be a correct factor to explain the sales volume variance for
operating income?
Answer: C
Diff: 2
LO: 23-1
19
30) The Chesapeake Oyster Company completed the flexible budget analysis for the second quarter,
Flexible Sales
Units 12,830 0 12,830 830 F 12,000
Sales Revenue $62,780 $1391 U $64,171 $4151 F $60,020
Fixed Costs 34,220 140 U 34,080 $0 34,080
Operating
Income/(Loss) $980 $2093 U $3073 $2403 F $670
Which of the following statements would be a correct factor to explain the flexible budget variance for
sales revenue?
Answer: A
Diff: 2
LO: 23-1
20
31) The Body Balance Fitness Company completed the flexible budget analysis for the second quarter,
Flexible Sales
Units 12,800 0 12,800 1000 F 11,800
Sales Revenue $62,770 $2391 U $65,161 $5091 F $60,070
Fixed Costs 34,280 270 U 34,010 $0 34,010
Operating Income/(loss) $950 $2811 U $3761 $2951 F $810
variable costs?
Answer: B
Diff: 2
LO: 23-1
21
32) The Dear Dairy Cheese Company completed the flexible budget analysis for the second quarter,
Flexible Sales
Units 12,800 0 12,800 1000 F 11,800
Sales Revenue $62,750 $2422 U $65,172 $5092 F $60,080
Fixed Costs 34,200 200 U 34,000 $0 34,000
Operating
Income/(Loss) $1000 $2804 U $3804 $2954 F $850
fixed costs?
Answer: D
Diff: 2
LO: 23-1
33) A company is analyzing its month-end results by comparing it to both static and flexible budgets.
During the month, the actual sales price was higher than the expected sales price as per the static budget.
This difference results in a(n) ________.
A) favorable flexible budget variance for sales revenues
B) favorable sales volume variance for sales revenues
C) unfavorable flexible budget variance for sales revenues
D) unfavorable sales volume variance for sales revenues
Answer: A
Diff: 2
LO: 23-1
22
During the month, the actual variable costs per unit were lower than the expected variable costs per unit
as per the static budget. This difference results in a(n) ________.
A) favorable flexible budget variance for variable costs
B) favorable sales volume variance for variable costs
C) unfavorable flexible budget variance for variable costs
D) unfavorable sales volume variance for variable costs
Answer: A
Diff: 2
LO: 23-1
During the month, the actual fixed costs were lower than the expected fixed costs as per the static budget.
This difference results in a(n) ________.
A) unfavorable flexible budget variance for fixed costs
B) favorable sales volume variance for fixed costs
C) favorable flexible budget variance for fixed costs
D) unfavorable sales volume variance for fixed costs
Answer: C
Diff: 2
LO: 23-1
During the month, the actual sales volume was lower than the expected sales volume as per the static
budget. This difference results in an unfavorable ________.
A) flexible budget variance for variable costs
B) sales volume variance for variable costs
C) flexible budget variance for sales revenue
D) sales volume variance for sales revenue
Answer: D
Diff: 2
LO: 23-1
23
37) A favorable flexible budget variance in sales revenue suggests a(n) ________.
B) increase in volume
C) decrease in variable cost per unit
D) decrease in fixed costs
Answer: A
Diff: 2
LO: 23-1
38) An unfavorable flexible budget variance in variable costs suggests a(n) ________.
B) decrease in sales volume
Answer: C
Diff: 2
LO: 23-1
39) An unfavorable flexible budget variance in operating income might be due to a(n) ________.
B) decrease in sales volume
Answer: C
Diff: 2
LO: 23-1
24
40) A favorable sales volume variance in sales revenue suggests a(n) ________.
A) increase in actual sales price per unit as compared to budgeted sales price
B) increase in number of actual units sold when compared to the expected number of units sold
C) increase in actual variable cost per unit as compared to expected variable cost per unit
D) decrease in actual fixed costs
Answer: B
Diff: 2
LO: 23-1
41) A favorable sales volume variance in variable costs suggests a(n) ________.
A) increase in number of actual units sold when compared to the expected number of units sold
B) decrease in number of actual units sold when compared to the expected number of units sold
Answer: B
Diff: 2
LO: 23-1
42) An unfavorable sales volume variance in operating income suggests a(n) ________.
A) increase in number of actual units sold when compared to the expected number of units sold
B) decrease in number of actual units sold when compared to the expected number of units sold
Answer: B
Diff: 2
LO: 23-1
25
43) Global Engineering's actual operating income for the current year is $56,000. The flexible budget
operating income for actual sales volume is $51,000, while the static budget operating income is $54,000.
What is the sales volume variance for operating income?
A) $3000 favorable
B) $2000 unfavorable
C) $3000 unfavorable
D) $2000 favorable
Answer: C
Explanation: Sales volume variance for operating income = Flexible budget operating income - Static
budget operating income
Sales volume variance for operating
Diff: 2
LO: 23-1
44) Bear Creek Golf Center reported actual operating income for the current year as $65,000. The flexible
budget operating income for actual volume is $58,000, while the static budget operating income is
$59,000. What is the flexible budget variance for operating income?
A) $7000 favorable
B) $7000 unfavorable
C) $1000 unfavorable
D) $1000 favorable
Answer: A
Explanation: Flexible budget variance for operating income = Actual operating income - Expected
operating income in the flexible
Diff: 2
LO: 23-1
26
45) Marathon Sports Equipment Company projected sales of 81,000 units at a unit sales price of $14 for
the year. Actual sales for the year were 75,000 units at $13.00 per unit. Variable costs were budgeted at $2
per unit, and the actual amount was $4 per unit. Budgeted fixed costs totaled $375,000, while actual fixed
costs amounted to $425,000. What is the sales volume variance for total revenue?
A) $159,000 favorable
B) $159,000 unfavorable
C) $84,000 unfavorable
D) $84,000 favorable
Answer: C
Explanation: Flexible budget sales = 75,000 × $14 = $1,050,000
Static budget sales = 81,000 × $14 = $1,134,000
Sales volume variance for
Diff: 2
LO: 23-1
46) Benefit Pillow Company projected sales of 79,000 units for the year at a unit sales price of $12.00.
Actual sales for the year were 73,000 units at $14.00 per unit. Variable costs were budgeted at $4.00 per
unit, and the actual variable cost was $5.00 per unit. Budgeted fixed costs totaled $375,000 while actual
fixed costs amounted to $415,000. What is the flexible budget variance for operating income?
A) $209,000 unfavorable
B) $33,000 favorable
C) $33,000 unfavorable
Answer: B
Explanation:
Flexible
Actual Budget Flexible
Results Variance Budget
Units 73,000 0 73,000
Sales Revenue $1,022,000 $146,000 F $876,000
Variable Costs 365,000 73,000 U 292,000
Contribution Margin $657,000 $73,000 F $584,000
Fixed Costs 415,000 40,000 U 375,000
Operating Income/(loss) $242,000 $33,000 F $209,000
Diff: 2
LO: 23-1
27
47) Midnight Sun Outfitters projected sales of 76,000 units for the year at a unit sales price of $12.00.
Actual sales for the year were 72,000 units at $15.00 per unit. Variable costs were budgeted at $4.50 per
unit, and the actual variable cost was $4.75 per unit. Budgeted fixed costs totaled $378,000, while actual
fixed costs amounted to $410,000. What is the sales volume variance for operating income?
C) $30,000 favorable
D) $166,000 unfavorable
Answer: B
Explanation:
Flexible Sales
Units 72,000 0 72,000 4000 U 76,000
Sales Revenue $1,080,000 $216,000 F $864,000 48,000 U $912,000
Variable Costs 342,000 18,000 U 324,000 18,000 F 342,000
Contribution
Margin $738,000 $198,000 U $540,000 30,000 U $570,000
Fixed Costs 410,000 32,000 U 378,000 0 378,000
Operating
Income/(loss) $328,000 $166,000 U $162,000 $30,000 U $192,000
Diff: 2
LO: 23-1
48) Hercules Sports Equipment Company projected sales of 79,000 units at a unit sales price of $12 for the
year. Actual sales for the year were 75,000 units at $14 per unit. Variable costs were budgeted at $3 per
unit, and the actual amount was $5 per unit. Budgeted fixed costs totaled $387,000, while actual fixed
costs amounted to $450,000. What is the flexible budget variance for variable costs?
C) $150,000 favorable
Answer: B
Explanation: Flexible budget variance for variable costs = 75,000 × ($5 - $3) = $150,000 unfavorable
Diff: 2
LO: 23-1
28
49) Top Half produces and sells two types of t-shirts—Fancy and Plain. The company provides the
following data:
Budget Actual
Unit sales price—Fancy $24 $25
Unit sales price—Plain $18 $17
Unit sales—Fancy 1,300 1,250
Unit sales—Plain 900 875
Compute the flexible budget variance for Fancy t-shirts for sales revenue.
Answer:
Flexible Sales
Units 1,250 1,250 1,300
Sales Revenue $31,250 $1,250 F $30,000 $1,200 U $31,200
Diff: 2
LO: 23-1
29
50) Top managers of Marshall Industries predicted annual sales of 23,600 units of its product at a unit
price of $5.00. Actual sales for the year were 22,800 units at $5.50 each. Variable costs were budgeted at
$2.45 per unit, and actual variable costs were $2.40 per unit. Actual fixed costs of $45,000 exceeded
budgeted fixed costs by $2,000. Prepare Marshall's flexible budget performance report.
Answer:
MARSHALL INDUSTRIES
FLEXIBLE BUDGET PERFORMANCE REPORT
FOR THE YEAR ENDED DECEMBER 31, 2016
1 2 3 4 5
(1) - (3) (3) - (5)
Budget Flexible Sales
Amount per Actual Budget Flexible Volume Static
Unit Results Variance Budget Variance Budget
Units 22,800 0 22,800 800 U 23,600
Sales Revenue $5.00 $11,400 F $4,000 U
Variable Costs 2.45 1,140 F 1,960 F

Contribution
Margin 70,680 12,540 F 58,140 2,040 U 60,180
Fixed Costs 45,000 2,000 U 0 43,000

Operating
Income $25,680 $10,540 F $15,140 $2,040 U $17,180
\ / \ /
\_________________________/ \_______________________/
Flexible Budget Variance Sales Volume Variance
$10,540 F $2,040 U
\ /
\________________________________________________/
Static Budget Variance
$8,500 F
_________________________________________________________________________________
$5.50 per unit × 22,800 units = $125,400
$2.40 per unit × 22,800 units = $54,720
$5.00 per unit × 22,800 units = $114,000
$2.45 per unit × 22,800 units = $55,860
fixed costs of $43,000 from static budget
$5.00 per unit × 23,600 units = $118,000
$2.45 per unit × 23,600 units = $57,820
Diff: 2
LO: 23-1
30
51) Complete the following table:
Variance How is the variance calculated? How does the variance arise?
Flexible budget
Sales volume
Answer:
Variance How is the variance calculated? How does the variance arise?
Different selling price per unit, variable
Actual results - Flexible budget cost per unit and fixed costs than
Flexible budget based on actual units sold expected for the actual units sold
Flexible budget based on actual The actual number of units sold
units sold - Static budget based differed from the number of units on
Sales volume on expected units to be sold which the static budget was based.
Diff: 3
LO: 23-1
52) Which of the following is NOT a benefit of a static budget performance report?
A) It is useful in evaluating a manager's effectiveness when actual sales approximate budgeted amounts.
B) It is useful in evaluating a manager's control over fixed costs.
C) It is useful in evaluating a manager's control over variable costs.
D) It is useful in evaluating a manager's control over fixed selling and administrative expenses.
Answer: C
Diff: 1
LO: 23-1
53) A report that summarizes actual results, budgeted amounts and the difference between them is called
the ________.
A) static budget performance report
B) mobile budget report
C) budgetary control report
D) strategic budget report
Answer: A
Diff: 1
LO: 23-1
31
1) A standard is a sales price, cost, or quantity that is expected under normal conditions.
Answer: TRUE
Diff: 2
LO: 23-2
H2: Why Do Managers Use a Standard Cost System to Control Business Activities? (H1)
2) A standard cost system is an accounting system that uses standards for product costs.
Answer: TRUE
Diff: 1
LO: 23-2
3) In a standard costing system, each input of direct materials, direct labor, and manufacturing overhead
has a cost standard and an efficiency standard.
Answer: TRUE
Diff: 1
LO: 23-2
4) Which of the following best describes a standard?

A) a sales price, cost, or quantity that is expected under normal conditions
B) costs incurred to produce a product
C) cost variance
D) actual sales price, cost, or quantity
Answer: A
Diff: 1
LO: 23-2
32
5) Setting standard costs is a function of the company's production department and does not require
input from other departments.
Answer: FALSE
Diff: 1
LO: 23-2
H2: Setting Standards
6) Standard costs are developed by the cooperative effort of purchasing, production, human resources,
and accounting personnel.
Answer: TRUE
Diff: 1
LO: 23-2
7) Companies conduct time-and-motion studies and use benchmarks from other companies when
developing standards.
Answer: TRUE
Diff: 1
LO: 23-2
8) Developing efficiency standards based on best practices is called benchmarking.

Answer: TRUE
Diff: 2
LO: 23-2
33
9) A company is setting its direct materials and direct labor standards for its leading product. Direct
materials cost from the supplier are $9 per square foot, net of purchase discount. Freight-in amounts to
$0.40 per square foot. Basic wages of the assembly line personnel are $14 per hour. Payroll taxes are
approximately 21% of wages. Benefits amount to $2 per hour. How much is the direct materials cost
standard per square foot?
A) $9.40
B) $9.00
C) $16.00
D) $25.00
Answer: A
Explanation: Direct materials cost standard (per square foot) = Cost per square foot + Freight-in cost
Direct materials cost standard (per square foot) = $9.00 + $0.40 = $9.40
Diff: 1
LO: 23-2
10) A company is setting its direct materials and direct labor standards for its leading product. Direct
material costs from the supplier are $9 per square foot, net of purchase discount. Freight-in amounts to
$0.30 per square foot. Basic wages of the assembly line personnel are $19 per hour. Payroll taxes are
approximately 23% of wages. How much is the direct labor cost standard per hour? (Round your answer
to the nearest cent.)
A) $4.37
B) $19.00
C) $23.37
D) $32.37
Answer: C
Explanation: Direct labor cost standard = Basic wages + Payroll taxes
Direct labor cost
Diff: 1
LO: 23-2
34
11) Oak Valley Company, a custom cabinet manufacturing company, is setting standard costs for one of
its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is
$6.00 per square foot from the supplier. Delivery costs are $0.20 per square foot. Carpenters' wages are
$20.00 per hour. Payroll costs are $4.00 per hour, and benefits are $5.00 per hour. How much is the direct
materials standard cost per square foot?
A) $11.20
B) $10.20
C) $6.20
D) $6.00
Answer: C
Explanation: Direct materials cost standard (per square foot) = Cost per square foot + Delivery costs
Diff: 1
LO: 23-2
12) Cedar Designs Company, a custom cabinet manufacturing company, is setting standard costs for one
of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood
is $4.00 per square foot from the supplier. Delivery costs are $0.20 per square foot. Carpenters' wages are
$20.00 per hour. Payroll costs are $3.00 per hour, and benefits are $6.00 per hour. How much is the direct
labor standard cost per hour?
A) $20.00
B) $9.00
C) $23.00
D) $29.00
Answer: D
Explanation: Direct labor cost standard = Wages per hour + Payroll costs per hour + Benefits per hour
Diff: 1
LO: 23-2
35
13) Which of the following is an example of a direct materials cost standard?
A) $40 per direct labor hour
B) 50 square feet per unit
C) $0.95 per square foot
D) 6 direct labor hours per unit
Answer: C
Diff: 1
LO: 23-2
14) Which of the following is an example of a direct materials efficiency standard?

Answer: B
Diff: 1
LO: 23-2
15) Which of the following is an example of a direct labor cost standard?

D) 0.5 direct labor hours per unit
Answer: A
Diff: 1
LO: 23-2
36
16) Which of the following is an example of a direct labor efficiency standard?
Answer: D
Diff: 1
LO: 23-2
17) For each of the following cost standards, indicate which manager is responsible for the standard, and
list one factor that should be used in setting the standard.
Cost standard Responsible manager Factor used in setting the standard

Direct materials
Direct labor
Answer:
Cost standard Responsible manager Factor used in setting the standard
Purchase cost, discounts, delivery
Direct materials Purchasing requirements, credit policies
Wage rate based on experience
requirements, payroll taxes, fringe
Direct labor Human Resources benefits
Diff: 3
LO: 23-2
37
18) For each of the following efficiency standards, indicate which parties are responsible for the standard
and list one factor that should be used in setting the standard.
Efficiency standard Responsible party Factor used in setting the standard

Direct materials
Direct labor
Answer:
Efficiency standard Responsible party Factor used in setting the standard
Production manager Product specifications, spoilage,
Direct materials and engineers production scheduling
Production manager Time requirements for the production
Direct labor and engineers level and employee experience needed.
Diff: 2
LO: 23-2
19) A standard cost system helps management set performance standards.

Answer: TRUE
Diff: 1
LO: 23-2
H2: Standard Cost System Benefits
20) Which of the following is a reason companies use standard costs?

A) to enhance customer loyalty
B) to set sales prices of products and services
C) to share best practices with other companies
D) to ensure the accuracy of the financial records
Answer: B
Diff: 1
LO: 23-2
38
21) Which of the following is a reason companies use standard costs?
A) to enhance customer loyalty
B) to ensure the accuracy of the financial records
C) to share best practices with other companies
D) to identify performance standards
Answer: D
Diff: 1
LO: 23-2
22) List three ways in which using a standard cost system helps managers.
Answer: 1. Prepare the master budget.
2. Set target levels of performance for flexible budgets.
3. Identify performance standards.
4. Set sales prices of products and services.
5. Decrease accounting costs.
Diff: 2
LO: 23-2
23) An efficiency variance measures how well a company keeps unit costs of material and labor inputs
within standards.
Answer: FALSE
Diff: 1
LO: 23-2
H2: Variance Analysis for Product Costs
24) An efficiency variance measures how well the business uses its materials or human resources.
Answer: TRUE
Diff: 1
LO: 23-2
39
25) A cost variance measures the difference in quantities of actual inputs used and the standard quantity
of inputs allowed for the actual number of units produced.
Answer: FALSE
Diff: 1
LO: 23-2
26) The static budget is used to compute flexible budget variances as well as cost and efficiency variances
for direct materials and direct labor.
Answer: FALSE
Diff: 2
LO: 23-2
27) Which of the following is the correct formula for measuring a cost variance?
A) Cost Variance = (Actual Cost + Standard Cost) / Actual Quantity
B) Cost Variance = (Actual Cost - Standard Cost) × Actual Quantity
C) Cost Variance = (Actual Cost + Standard Cost) + Actual Quantity
D) Cost Variance = (Actual Cost - Standard Cost) - Actual Quantity
Answer: B
Diff: 1
LO: 23-2
28) Which of the following is the correct formula for measuring an efficiency variance?
A) Efficiency Variance = (Actual Quantity + Standard Quantity) - Standard Cost
B) Efficiency Variance = (Actual Quantity × Standard Quantity) / Standard Cost
C) Efficiency Variance = (Actual Quantity / Standard Quantity) × Standard Cost
D) Efficiency Variance = (Actual Quantity - Standard Quantity) × Standard Cost
Answer: D
Diff: 1
LO: 23-2
40
29) What does a cost variance measure?
A) the difference between the cost the company pays and the cost its competitors pay
B) the change in costs over time
C) how well the business keeps unit costs of material and labor inputs within standards
D) the volume discounts companies receive when ordering direct materials in large quantities
Answer: C
Diff: 2
LO: 23-2
30) The efficiency variance measures ________.

A) the difference between the quantity used by the company and the quantity used by its competitors
B) the change in quantities used over time
C) how well the business uses its materials or human resources
D) how quickly direct materials are processed into finished goods
Answer: C
Diff: 2
LO: 23-2
31) The sum of the cost variances and efficiency variances equal ________.
A) the static budget variance
B) the flexible budget variance
C) the difference between the flexible budget and the static budget
D) the difference between the static budget and the previous year's actual results
Answer: B
Diff: 1
LO: 23-2
41
32) The difference between a standard and a budget is that ________.
A) a budget generally indicates a total amount while a standard indicates a per unit amount
B) a standard acts as an overall guide for operating the business on a planned course of action
C) a budget generally indicates a per unit amount while a standard indicates a total amount
D) a standard projects future costs while a budget examines past costs
Answer: A
Diff: 2
LO: 23-2
33) Purchase discounts, freight in and receiving costs ________.

A) are considered selling costs
B) should not be considered when setting a cost standard for materials
C) are used when setting a cost standard for materials
D) are determined by a company's accountants and human resource managers
Answer: C
Diff: 2
LO: 23-2
42
Match the variance to the correct definition.
A) measures how well the business uses its materials or human resources
B) the difference between the expected results in the flexible budget for the actual units sold and the static
budget
C) the difference between actual results and expected results in the flexible budget for the actual units
sold
D) measures how well the business keeps unit material and labor costs within standards
E) the difference between actual results and the expected results in the static budget
34) Cost variance

Diff: 2
LO: 23-2
35) Efficiency variance

Diff: 2
LO: 23-2
36) Flexible budget variance

Diff: 2
LO: 23-2
37) Sales volume variance

Diff: 2
LO: 23-2
43
38) Static budget variance
Diff: 2
LO: 23-2
Answers: 34) D 35) A 36) C 37) B 38) E
1) Only substantial unfavorable variances should be investigated to determine their causes.

Answer: FALSE
Diff: 1
LO: 23-3
H2: How Are Standard Costs Used to Determine Direct Materials and Direct Labor Variances? (H1)
44
2) Aquatic Marine Stores Company manufactures special metallic materials and decorative fittings for
luxury yachts that require highly skilled labor. Aquatic uses standard costs to prepare its flexible budget.
For the first quarter of the year, direct materials and direct labor standards for one of their popular
products were as follows:
Direct materials: 4 pounds per unit; $6 per pound

Direct labor: 2 hours per unit; $17 per hour
During the first quarter, Aquatic produced 4000 units of this product. Actual direct materials and direct
labor costs were $65,000 and $329,000, respectively.
For the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a
production volume of 4000 units.
A) $96,000
B) $65,000
C) $16,000
D) $24,000
Answer: A
Explanation:
Diff: 2
LO: 23-3
H2: How Are Standard Costs Used to Determine Direct Materials and Direct Labor Variances? (H1)
45
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of Germinal, 271;
of Prairial, 272;
of Vendémiaire, 281.
Intendants, position of, 7-10;

decline of, 47;
fall of, 62.
Isnard, 184, 266.
Issy l'Evêque, priest of, 138.
J.
Jacobin Club, origin of, 105,106;

organisation of, 142-145;
attitude of, in summer of 1791, 150-154;
protests against war, 167;
share of, in elections of 1792, 182, 183;
under the Terror, 213;
parties at, in 1793-94, 241-246;
under Robespierre, 255, 259;
close of, 263, 265.
Jacobins, rise of the, 129-154;

theory of the, 137-140, 209;
numbers and organisation of the, 142-147, 199;
leaders of the, 143, 229-235;
in the Constituent, 105, 149-153;
in the Legislative, 163, 164;
opposed to war, 166, 167;
attitude of, towards Prison Massacres, 178, 179;
in the Convention, 182-183;
attitude of, on question of Louis' death, 191;
struggle with Girondists, 189-206;
Government of, 212-216;
principles applied, 218-229;
character of, 187, 216, 217, 229-235, 283;
schisms and struggles among, 237-260, 262-273.
Jansenists, the, 103.
Javogues, 217, 231.
Jemappes, Battle of, 180.
Jeunes Gens, the, 264, 272, 279.
Jeunesse Dorée, the, 264.
Jews, attacks on the, 61.
Joseph, Emperor, 42, 156-158.
Jourdan, 206, 274, 275.
Journal de Paris, the, 106.
Journal des Débats, 108.
Journal des Etats-Généraux, Mirabeau's journal, 107.
Journal Général de la Cour et de la Ville, Reactionary journal, 112.
K.
Kellermann, 255.
King. See Louis XVI.
Kléber, 274, 276.

Kosciusko, 277.
L.
Labourers. See Peasants and Artisans.
Laclos, 113, 144.
Lacombe, Proconsul in Bordeaux, 217;

Rose, 186.
Lacretelle, 264.
Lacroix, 237.
Lafayette, and the National Guard, 67, 68, 118, 153;

on 5th October, 70;
Marat and, 111;
Orleans and, 114;
character and views of, 116-118;
Mirabeau and, 73, 121, 122;
party of, 131, 135, 150, 153, 163;
at Massacre of Champ de Mars, 151;
not elected Mayor, 165;
policy of, in spring and summer, 1792, 166-173;
flight of, 177.
Lakanal, 216.
Lally-Tollendal, 100.
La Marck, 121, 123.
Lameths, the, in the Constituent, 104;

party of, 131, 135, 150.
Landes, District of the, 217.
Languedoc, one of the Pays d'État, 6.
Lanjuinais, 103, 184, 266.
Laon, distress in, 270.
Laplanche, 231.
Lebon, 143, 217, 232, 273.
Lecarpentier, 216.
Lecointre, 237, 263.
Legendre, 237, 263, 265.
Legislative Assembly, meeting of, 163;

parties in, 163, 164;
policy of, 165, 167, 168, 169, 171, 172, 173, 178, 179.
Le Mans, Battle of, 276.
Leopold II, succeeds Emperor Joseph, 157, 158;

policy of, 159-163;
death of, 168.
Lepelletier Section, the, 281.
Lindet, 214, 215, 234, 273.
Linguet, 107.
Local Government, new system of, 75-79.
Locke, 110
Loire, war on the, 205.
London, Journalism in, 107.
Longwy, surrender of, 177.
Louis XI, 5.
Louis XIV, 14.
Louis XVI, Court of, 44;

emancipates serfs, 44;
charities of, 44, 45;
character of, 45;
early reforms of, 45-47;
States-General and, 53, 55, 57, 58, 67;
visit to Paris, 67;
on 5th and 6th October, 69, 70;
Constituent Assembly and, 73, 74, 87, 150, 152;
flight to Varennes, 149;
army under, 81;
deposition demanded, 150;
Legislative Assembly and, 165-173;
Lafayette and, 70, 172;
the Allies and, 173, 174;
Girondists and, 167, 171, 174, 175, 191;
dethroned, 175;
executed, 191, 194.
Loustallot, 108, 109.
Louvet, 184, 266.
Lyons, troubles at, 61, 134, 141;

declares against Jacobin Government, 205, 216, 217;
trade of, ruined by Revolution, 224;
distress in, 225, 270.
M.
Maignet, 217, 258.
Mallet du Pan, 107, 112, 173, 174.
Malmesbury, 277.
Malouet in Constituent Assembly, 64, 100, 101, 152;

his estimate of the Jacobins, 143;
Louis and, 173.
Manfredini, 42.
Marat, editor of Ami du Peuple, 109;

early career and character of, 109-111;
in July, 1791, 150, 151;
protests against war, 167;
approves, September Massacres, 178;
in the Convention, 182, 190, 197, 210;
assassination of, 206.
Maréchaussée, the, 8.
Maret, 108.
Marie Antoinette, character of, 48;

political influence of, 48, 58, 125, 162, 165, 186;
execution of, 207.
Marseilles, disorder in, 141;

declares against Jacobin Government, 205;
under the Terror, 216, 217, 225;
reaction at, 279.
Massacre, of Champ de Mars, 151;
of September, in the prisons, 178.
Masséna, 274.
Maury, 99.
Maximum, the, established, 198, 222, 223;

repealed, 266-270.
Mayence, emigrants at, 159;

retaken by Allies, 205.
Mercure, Constitutional journal, 106, 112.
Méricourt, Théroigne de, 186.
Merlin, of Douai, 105, 263;

of Thionville, 263, 274.
Mesmerists, the, 42.
Messidor, 228.
Métayers, position of the, 20, 21, 132.
Middle classes, under Ancien Régime, 16, 17, 18, 43;

gainers by Revolution, 132;
cease to support Revolution, 202, 203;
Jacobin measures against, 222, 223;
in the Reaction, 264.
Milhaud, 274.
Militia, the, 22, 23.

Mirabeau, Comte de, in the Constituent Assembly, 57, 63, 64, 65,
72, 73,
74, 84, 89, 90, 91, 92, 103, 106, 122, 123;
as journalist, 107;
political aims, 118, 119, 120;
Lafayette and, 121, 122;
notes for the Court, 123-127;
pensioned by the Court, 127, 128;
character of, 128;
death of, 128, 147;
Marquis de, 44;
Vicomte de, 99.
Molleville, Bertrand de, 166.
Momoro, 237; Sophie, 186.
Monasteries, abolition of the, 84, 85.
Monciel, Terrier de, 172, 173.
Moniteur, the, 107, 108.
Monsieur. See Provence.
Montaubon, religious troubles at, 141.
Montesquieu, 31, 32.
Montmartre, relief works at, 69.
Montmorin, 122, 126, 166, 173.
Montreuil-sur-Mer, distress at, 270.
Moreau, 274.
Morelly, 36.
Mounier, 50, 100, 101.
Mountain, the, 197, 198;

after Thermidor, 262, 263, 271.
See Jacobins.
Municipality of Paris. See Commune.
Muscadins, the, 220, 264.
Mysticism, revival of, in eighteenth century, 42.
N.
Nancy, mutiny at, 82;

distress at, 270, 271.
Nantes, Vendéans at, 206;

Carrier at, 217;
decline of commerce at, 224.
Napoleon, at the capture of the Tuileries, 175.

See Bonaparte.
Narbonne, 166, 167.
National Agents, 213.
National Assembly, title taken by Commons, 57.

See Constituent Assembly.
National Debt. See Finance.
National Guard, creation of the, 62, 76, 78;

Lafayette and the, 67, 68, 118, 153, 172;
action of the, 136, 140, 141, 179;
reorganised as battalions of the Sections, 199;
under Hanriot, 204, 205, 212, 256, 260;
changes in the, after Thermidor, 262, 271, 273;
on 13th Vendémiaire, 281.
Necker, reforming ministry of, 14, 42, 46;

fall of, 47, 48;
recall of, 51;
vacillation of, 53, 56;
dismissed again, 58;
finance of, 88, 89;
failure of, 114, 115;
Madame, 185.
Neerwinden, defeat of Dumouriez at, 194.
Newton, 110.
Ney, 274.
Nice, French successes at, 194.
Nîmes, religious troubles at, 141.
Nivôse, 227.
Noailles, Vicomte de, 104.
Nobles, under the Ancien Régime, 11-14, 44;

in States-General, 56, 57.
Notables, of 1787, 49;

of 1788, 53.
Notre Dame, Goddess of Reason installed in, 227.

O.
Orange, tribunal of, 258;

Prince of, 277.
Orateur du Peuple, Fréron's journal, 263.
Orleans, high court at, 80;

Duke of, 12, 14, 69, 112-114, 150, 207.
P.
Pache, minister of war, 190, 192, 193;

Mayor of Paris, 193, 212, 236;
proscription of, 273.
Palais Royal, meetings in, 60, 69, 113, 264.
Panckoucke, 106, 107.
Panis, 178, 212, 273.
Paris, excitement and distress in, 26, 51, 58, 59, 60, 67, 68, 69,
133,
136, 171, 173;
influence of, on finance of Constituent Assembly, 89, 95;
clubs in, 105, 106, 144;
numbers of Jacobins in, 143;
government of, 145-147;
Prison Massacres in, 175-179;
agitation against Louis, 171, 173, 191;
the Girondists and, 193, 196-205;
under the Terror, 222-228, 242, 260;
Reaction in, 263, 264, 271, 272, 273, 279, 281.
Paris, Parlement of, 49, 50.
Parlements, the local, 6, 7, 79.
Parties, in Constituent Assembly, 98-105;

in Legislative Assembly, 163, 164;
in Convention, 183, 184, 237, 240, 259, 262, 263, 273, 279.
Patriote Français, Brissot's journal, 108.
Payan, 256.
Pays d'Élection, provincial assemblies created in, 46.
Pays d'État, the, 6.
Peasantry, condition of, under Ancien Régime, 19-27;

outbreak of, in 1789, 58-62;
disappointed with the Revolution, 132, 133, 136, 137, 139, 141;
under the Terror, 217, 219, 220, 223, 224, 225;
in the Reaction, 270, 282.
Père Duchesne, Hébert's journal, 231.
Pétion, in Constituent Assembly, 105, 106, 153;

Mayor of Paris, 165, 179, 184, 190.
Petit Gautier. See Journal Général de la Cour et de la Ville.
Philippe Egalité. See Orleans.
Philippeaux, 237, 245.
Philosophers, the, in eighteenth century, 28-36.
Physiocrats, the, 36.

Picardy, distress in, 270.
Pichegru, 271, 274, 275, 276.
Pillnitz, conference of, 159-162.
Pitt, policy of, 42, 156, 157, 194;

Robespierre on, 252.
See England.
Pluviôse, 228.
Point du Jour, Barère's paper, 108.
Poland, influence of, on European politics, 157-159, 277;

Kosciusko's revolt in, 277.
Police of Paris, under Ancien Régime, 60;

during Revolution, 199, 200, 202.
Poll-tax, 12, 24, 95.
Pombal, 42.
Pope, the, alienated by Constituent Assembly, 86, 87;

rule of, at Avignon, 141.
Prairial, 228.
See Insurrection.
Press, the, controlled by Church, 15, 33;

new power of, 106-112;
during the Reaction, 263.
Prieur (of the Côte-d'Or), 214, 215.

Prieur (of the Marne), 214, 215.
Provence, Comte de, policy of, 115, 116;

Mirabeau and, 126;
Emigrants and, 161, 165, 279.
Provincial Assemblies, in 1787, 46.
Prudhomme, 106, 107.
Prussia, policy of, 156-162, 276-278.

See Allies.
Q.
Queen. See Marie Antoinette.
Quesnai, 36.
Quiberon, Emigrants at, 279.
R.
Rabaut de St. Etienne, 103.
Reason, worship of, 186, 227, 237.
Representatives on mission, 195, 213, 215-217, 274.
Republic, talk of, 150;

proclamation of, 189.
Réveil du Peuple, Reactionary song, 264.
Révolutions de France et de Brabant, Desmoulins' paper, 109.

Révolutions de Paris, Democratic paper, 107, 108.
Revolutionary Army, the, 199, 212, 233.
Revolutionary Government, the, 212-217.
Revolutionary Tribunal, the, established, 195;

reorganised, 212, 257, 258;
abolished, 273.
Rewbell, 105, 274.
Reynaud, 217.
Rhine, war on the, 194, 276, 277.
Richard, 274.
Richelieu, policy of, 5.
Rights of Man, declaration of the, 66.
Robespierre, in the Constituent Assembly, 105, 106, 147-153;

the typical Jacobin, 41, 143, 147;
policy and position of, in 1791, 147-153;
opposes war, 167;
action on the 20th June, 172;
elected to the Convention, 182;
attacks of Girondists on, 190;
in Committee of Public Safety, 213, 214, 220, 221, 226, 228, 229,
230, 234;
attacks the Commune, 241-246;
deserts Danton, 247;
ascendency of, 248-260;
character of, 148, 248-255;
review of his career, 249-255;
power of, in 1794, 255, 256;
his belief in the Terror, 255-257;
his action when in power, 257, 258;
his fall, 259, 260.
Rochefoucauld-Liancourt, Duc de, 100.
Rohan, Cardinal de, 16.
Roland, Minister of the Interior, 167;

dismissal of, 171;
return of, to office, 175;
and September Massacres, 179;
carries dissolution of Insurrectionary Commune, 189;
resignation of, 192;
Madame, 164, 171, 184, 185, 207.
Romme, 263, 273.
Ronsin, 232, 236, 243.
Rosicrucians, the, 42.
Rouen, Archbishop of, 15, 99;

rising at, 61;
Mirabeau advises the King to retire to, 121;
distress at, 225.
Rousseau, influence of, 31, 34, 36-41.

See Contrat Social.
Rühl, 212, 273.
Russia, policy of, 156-159, 277, 278.

See Catherine and Allies.
S.
Sabran, Madame de, 185.
Sainte-Amaranthe, Mme de, 185.
Santerre, 172.
Sardinia, policy of, 160.
Saverne, Cardinal de Rohan's palace at, 16.
Savoy, war in, 194.
Sections, organisation of the Parisian, 145-147, 199, 200, 212, 213,

242;
insurrections prepared in the, 174, 175, 198, 201, 203, 204, 205,
260, 281;
committees in the, 146, 195, 200, 212, 213;
battalions of the, 199;
police of the, 146, 199, 200;
reaction in the, 264, 271.
Seigneur, rights of. See Feudal.
Sémonville, 126.
Sentinelle du Peuple, Democratic paper, 107.
Serfdom, extinction of, 20, 44.
Sergent, 178.
Servan, 170, 171, 254.
Sieyès, Abbé, writings of, 51;

in the Constituent Assembly, 84, 102;
the Girondists and, 164;
in the Convention, 211;
during the Reaction, 263, 280.
Social Compact. See Contrat Social.
Socialism, beginnings of, 36, 218-226.
Soho, Marat in, 110.
Soubrany, 263, 273.
Soult, 274.
Spain, policy of, 156, 160, 278.
St. André, Jean Bon, 214, 234, 273.
St. Antoine, Faubourg, insurrection of, 174;

disarmed, 273.
St. Domingo, trouble in, 71.
St. Etienne, Terror at, 217.
St. Hurugues, Marquis de, 113.
St. Just, among the Jacobin leaders, 143;

in Committee of Public Safety and Convention, 213, 214, 220,
221,
222, 226, 229, 234, 241;
on mission, 216, 274;
relations with Danton and Robespierre, 245, 246, 255, 256, 257,
259, 260.
Staël, Madame de, 166, 185.

States-General, elections to the, 31-54;
opening of the, 55-57.
See Constituent Assembly.
Strasbourg, Bishop of, 16;

rising at, 61;
plots at, 161;
decline of trade in, 224;
working men imprisoned in, 225.
Subdelegates, powers of, 9, 47.
Suvórof, 277.
Sweden, policy of, 156, 160.

See Gustavus.
Swedenborgians, the, 42.
T.
Taille, the, 23, 24.
Talleyrand, 102, 106.
Tallien, on mission, 216;

in Thermidor, 259;
during the Reaction, 263, 264;
Madame, 186.
Talma, Madame, 185.
Talon, 126.
Tarascon, Reaction at, 279.

Target, 103.
Taxes, under Ancien Régime, 23-25;

of the Constituent Assembly, 93-96;
resistance to, 139, 196, 267;
on the rich, 198, 220.
See Finance.
Tennis Court Oath, the, 57.
Tenures, of the Ancien Régime, 19-21.
Terror, establishment of the, 170, 195, 206, 212;

government of the, 212-217;
principles of the, 218-230;
character of the leaders of the, 230-235, 283;
Danton and the, 238, 240, 242;
Robespierre and the, 256, 257, 258, 261;
end of the, 261, 262, 273.
Thermidor, 228;
insurrection of, 259, 260.
Thermidorians, the, 263, 279.
Thibeaudeau, 263.
Thouret, 103, 126.
Three Hundred, the, 145.
Thugut, 276.
Thuriot, 263, 271.
Tiers-État, importance of the, 51, 52, 53;

constitutes itself the National Assembly, 57.
Toulon, declares against Jacobin government, 205, 216, 217;
capture of, 244.
Toulouse, Archbishop of, 15, 49;

distress in, 134.
Trèves, Emigrants at, 159.
Trianon, the Queen at, 44.
Tronchet, 103.
Troyes, Bishop of, 15;

rising at, 61;
distress in, 270.
Tuileries, attacks on, 172, 175.
Turgot, observations of, 23, 26;

contributes to Encyclopaedia, 34;
one of the economists, 36;
Comptroller-General, 45;
fall of, 47.
Turkey, critical position of, 157.
Turreau, 'Hellish Columns' of, 278.
V.
Vacheron, 231.
Vadier, in Constituent Assembly, 105;

in Committee of General Security, 212, 232;
fall of, 265, 271.
Valenciennes, captured, 205.
Valmy, Battle of, 180.
Varennes, Louis' flight to, 149.
Vaucluse, Terror in the, 217.
Vendée, la, nobles of, 13;

rising in, 199, 205, 206, 276, 278, 279.
Vendémiaire, 227;
insurrection of, 281.
Ventôse, 228.
Verdun, surrender of, 177, 178.
Vergniaud, in the Legislative, 164;

in the Convention, 183, 184;
on the execution of the King, 191;
death of, 207.
Versailles, King's Council at, 7, 9;

Court at, 12, 13;
States General at, 55-58, 63-67;
Parisian mob at, 69;
suggested meeting of Convention at, 201.
Veto, debates on the, 67.
Victor, 274.
Vieux Cordelier, Desmoulins' paper, 242-245.
Vincent, 236, 243.

Vingtièmes, the, 12, 24.
Vizille, Assembly of, 50.
Volney, 107.
Voltaire, 31-33, 110.
W.
War, desired by Girondists, 164;

opposed by Jacobins, 166, 167;
declared against Austria, 168;
effects of, 168, 169, 170, 181, 224;
progress of, 170, 173, 177, 180, 181, 194, 205, 206, 235, 273-
279;
in La Vendée, 199, 205, 206, 276, 278, 279.
Warsaw, Polish revolt at, 277.
Wattignies, Battle of, 206.
Westermann, 237.
West Indies, trade of, affected, 224.
Women, part played by, in the Revolution, 184-186.
Worms, Emigrants at, 161.
Y.
Young, Arthur, observations of, 19, 43, 224.

Ysabeau, 216.
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Horngrens Accounting The Managerial

Chapters 12th Edition Miller-Nobles

Learning Objective 23-1

1) A static budget is prepared for only one level of sales volume.

2) A favorable variance reflects a decrease in operating income.

4) A static budget presents financial data at multiple levels of sales volume.

Actual results, at the end of the month, follows:

Calculate the flexible budget variance for sales revenue.

* Sales price per unit × Units

Actual results, at the end of the month, follows:

Calculate the flexible budget variance for variable costs.

* Sales price per unit × Units

Actual results, at the end of the month, follows:

Calculate the flexible budget variance for fixed costs.

* Sales price per unit × Units

Actual results, at the end of the month, follows:

Calculate the flexible budget variance for operating income.

* Sales price per unit × Units

Actual results, at the end of the month, follows:

* Sales price per unit × Units

Actual results, at the end of the month, follows:

Calculate the sales volume variance for variable costs.

* Sales price per unit × Units

Actual results, at the end of the month, follows:

* Sales price per unit × Units

Actual results, at the end of the month, follows:

Calculate the sales volume variance for operating income.

* Sales price per unit × Units

Sales Revenue $5.00 $11,400 F $4,000 U

Variable Costs 2.45 1,140 F 1,960 F

Fixed Costs 45,000 2,000 U 0 43,000

4) Which of the following best describes a standard?

8) Developing efficiency standards based on best practices is called benchmarking.

14) Which of the following is an example of a direct materials efficiency standard?

15) Which of the following is an example of a direct labor cost standard?

Cost standard Responsible manager Factor used in setting the standard

Efficiency standard Responsible party Factor used in setting the standard

19) A standard cost system helps management set performance standards.

20) Which of the following is a reason companies use standard costs?

30) The efficiency variance measures ________.

33) Purchase discounts, freight in and receiving costs ________.

34) Cost variance

35) Efficiency variance

36) Flexible budget variance

37) Sales volume variance

Answers: 34) D 35) A 36) C 37) B 38) E

Learning Objective 23-3

1) Only substantial unfavorable variances should be investigated to determine their causes.

Direct materials: 4 pounds per unit; $6 per pound

Intendants, position of, 7-10;

Isnard, 184, 266.

Issy l'Evêque, priest of, 138.

Jacobin Club, origin of, 105,106;

Jacobins, rise of the, 129-154;

Jansenists, the, 103.

Javogues, 217, 231.

Jemappes, Battle of, 180.