CHAPTER 11 Standard Costs and Balanced Scorecard ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Exercises Do It Exercises Problems Problems Brief A B 1 1 1 2 3 4 17 4 5 6 7 8 9 10 13 14 19 2 3 1 3 1A 2A 3A 4A 5A 6A 1B 2B 3B 4B 5B 6B 12 6 11 12 19 1A 2A 3A 4A 5A 6A 1B 2B 3B 4B 5B 6B 10 14 15 3A 3B 16 2A 5A 6A 2B 5B 6B 1 Distinguish between a standard and a budget 2 Identify the advantages of standard costs 1 2 3 3 Describe how companies set standards 4 5 6 7 8 9 4 State the formulas for 10 11 1 2 3 4 5 determining direct materials and direct labor variances 5 State the formula for determining the total manufacturing overhead variance 6 Discuss the reporting 13 14 of variances 7 Prepare an income 18 statement for management under a standard costing system 8 Describe the balanced scorecard approach to performance evaluation 9 Identify the features of a standard cost accounting system 15 16 17 7 4 17 19 8 9 18 19 20 6A 6B 11 1 Copyright 2012 John Wiley Sons Inc Weygandt Managerial Accounting 6 e Solutions Manual For Instructor Use Only 10 Compute overhead controllable and volume variances 20 21 22 23 10 11 21 22 23 7A 8A 9A 10A 7B 8B 9B 10B 11 2 Copyright 2012 John Wiley Sons Inc Weygandt Managerial Accounting 6 e Solutions Manual For Instructor Use Only 1A 2A 3A 4A 5A 6A 7A 8A 9A 1B 2B 3B 4B 5B 6B 7B 8B 9B Difficulty Level Time Allotted min Journalize and post standard cost entries and prepare income statement Moderate 40 50 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Compute variances Compute variances and prepare income statement Compute and identify significant variances Answer questions about variances Compute variances prepare an income statement and explain unfavorable variances Compute overhead controllable and volume variances Compute overhead controllable and volume variances Compute overhead controllable and volume variances 10A Compute overhead controllable and volume variances Compute variances Compute variances and prepare income statement Compute and identify significant variances Answer questions about variances Compute variances prepare an income statement and explain unfavorable variances Simple Simple Moderate Complex Moderate Simple Simple Moderate Moderate Simple Simple Moderate Complex Moderate Journalize and post standard cost entries and prepare income statement Moderate 40 50 Compute overhead controllable and volume variances Compute overhead controllable and volume variances Simple Simple Compute overhead controllable and volume variances Moderate Compute overhead controllable and volume variances 10B 11 3 Copyright 2012 John Wiley Sons Inc Weygandt Managerial Accounting 6 e Solutions Manual For Instructor Use Only Moderate 10 15 20 30 30 40 20 30 30 0 30 40 10 15 10 15 10 15 10 15 20 30 30 40 30 40 30 40 30 40 10 15 10 15 10 15 11 4 Copyright 2012 John Wiley Sons Inc Weygandt Managerial Accounting 6 e Solutions Manual For Instructor Use Only C o p y r i g h t 2 0 1 2 i l J o h n W e y S o n s I n c W e y g a n d t M a n a g e r i a l A c c o u n t i n g 6 e S o u l t i o n s M a n u a l F o r I n s t r u c t o r U s e O n y l 1 1 3 B L O O M S T A X O N O M Y T A B L E Correlation Chart between Bloom s Taxonomy Learning Objectives and End of Chapter Exercises and Problems Learning Objective Knowledge Comprehension Application Analysis Synthesis Evaluation 1 Distinguish between a standard and a budget Identify the advantages of standard costs 2 3 Describe how companies set standards 4 State the formulas for determining direct materials and direct labor variances Q11 3 Q11 8 Q11 10 Q11 11 Q11 1 Q11 2 Q11 4 Q11 5 Q11 6 Q11 7 Q11 9 5 State the formula for determining the total manufacturing overhead variance 6 Discuss the reporting of variances 7 Prepare an income statement for management under a standard costing system 8 Describe the balanced scorecard approach to performance evaluation Identify the features of a standard cost accounting system 9 10 Compute overhead controllable and volume variances Broadening Your Perspective Q11 12 Q11 13 Q11 14 Q11 18 Q11 15 Q11 16 Q11 17 Q11 19 Q11 20 Q11 21 Q11 22 Q11 23 BYP11 5 BYP11 7 DI11 4 BE11 1 E11 1 E11 1 BE11 2 BE11 3 DI11 1 BE11 4 BE11 5 DI11 2 DI11 3 E11 4 E11 5 E11 6 BE11 6 DI11 3 E11 11 E11 12 E11 19 E11 10 E11 14 E11 16 P11 2A P11 5A BE11 7 E11 17 E11 4 E11 17 P11 5A P11 6A P11 1B P11 2B P11 5B P11 6B E11 8 E11 19 P11 3A P11 4A P11 3B P11 4B P11 2B P11 5B P11 6B E11 11 E11 12 E11 19 P11 3A P11 4A E11 15 P11 3A P11 3B P11 6B E11 1 E11 2 E11 3 E11 7 E11 9 E11 10 E11 13 E11 14 P11 1A P11 2A P11 1A P11 2A P11 5A P11 6A P11 1B P11 6A P11 2B P11 5B P11 3B P11 4B E11 20 P11 6A P11 6B P11 7A P11 8A P11 9A P11 10A P11 7B BE11 8 BE11 9 E11 18 BE11 10 BE11 11 E11 21 E11 22 E11 23 BYP11 3 E11 19 P11 8B P11 9B P11 10B E11 20 E11 21 E11 22 BYP11 1 BYP11 2 BYP11 4 BYP11 6 BYP11 8 BYP11 9 BYP11 10 ANSWERS TO QUESTIONS 1 2 3 4 5 6 a This is incorrect Standard costs are predetermined unit costs b Agree Examples of governmental regulations that establish standards for a business are the Fair Labor Standards Act the Equal Employment Opportunity Act and a multitude of environmental laws a Standards and budgets are similar in that both are predetermined costs and both contribute significantly to management planning and control The two terms differ in that a standard is a unit amount and a budget is a total amount b There are important accounting differences between budgets and standards Except in the application of manufacturing overhead to jobs and processes budget data are not journalized in cost accounting systems In contrast standard costs may be incorporated into cost accounting systems It is possible for a company to report inventories at standard costs in its financial statements but it is not possible to report inventories at budgeted costs In addition to facilitating management planning standard costs offer the following advantages to an organization 1 They promote greater economy by making employees more cost conscious 2 They may be useful in setting selling prices 3 They contribute to management control by providing a basis for evaluating …
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