Principles of Accounting II- Please help me to answer these questions and explanation so I can re-read through the chapters and understand better.

The total manufacturing cost variance consists of

	direct materials price variance, direct labor cost variance, and fixed factory overhead volume variance
	direct materials cost variance, direct labor rate variance, and factory overhead cost variance
	direct materials cost variance, direct labor cost variance, and variable factory overhead controllable variance
	direct materials cost variance, direct labor cost variance, and factory overhead cost variance

Match the following formulas or descriptions with the term (a-e) it defines.

__3__	(2)	(Actual rate per hour – Standard rate per hour) × Actual hours
__4__	(1)	(Actual price – Standard price) × Actual quantity
__5__		Standard variable overhead for actual units produced
__1__	(4)	(Actual quantity – Standard quantity) × Standard price
__2__	(3)	(Actual direct hours – Standard direct hours) × Standard rate per hour

1.	Direct materials price variance
2.	Direct labor rate variance
3.	Direct labor time variance
4.	Direct materials quantity variance
5.	Budgeted variable factory overhead

The master budget of a small manufacturer would normally include all necessary component budgets except the capital expenditures budget.

		True
		False

Cash flows from investing activities, as part of the statement of cash flows, include payments for the acquisition of fixed assets.

		True
		False

__5__	(1)	Amortization of intangible assets
__7__		Exchange of land for common stock
__1__	(3)	Sale of land
__3__	(2)	Decrease in accounts payable balance
__2__	(4)	Purchase of equipment
__7__	(6)	Acquisition of treasury stock
__4__	(6)	Payment of dividends
__6__	(2)	Gain on sale of investments
__1__	(2)	Increase in accounts receivable balance
__2__	(6)	Repayment of long-term note payable

1.	Increase cash from operating activities
2.	Decrease cash from operating activities
3.	Increase cash from investing activities
4.	Decrease cash from investing activities
5.	Increase cash from financing activities
6.	Decrease cash from financing activities
7.	Noncash investing and financing supplement

The number of days' sales in inventory is one means of expressing the relationship between the cost of goods sold and inventory.

		True
		False

In addition to the differential costs in an equipment-replacement decision, the remaining useful life of the old equipment and the estimated life of the new equipment are important considerations.

		True
		False

__3__		Purchase of the stock of another company as investment
	__1__		Decrease in inventory
	__4__		Exchange of land for note payable
	__2__		Issuance of bond payable
	__1__		Increase in accounts receivable
	__2__		Payment of dividends to stockholders
	__1__	(3)	Sale of machinery held for use by the company
	__1__		Loss on sale of equipment
	__3__	(1)	Dividends received on investment
	__1__		Increase in income taxes payable

1.	Operating activities
2.	Financing activities
3.	Investing activities
4.	Schedule of noncash financing and investing

To determine cash payments for operating expenses for the statement of cash flows using the direct method, a decrease in accrued expenses is added to operating expenses payable other than depreciation.

		True
		False

Job order cost accounting systems can be used only for companies that manufacture a product.

True

False

__1__		Cupcake mix
__2__		Factory rent
__2__		Depreciation expense—factory
__4__		Depreciation expense—office
__4__		Salesman commissions
__3__		Baker’s wages
__2__		Sprinkles for decoration (indirect material)
__3__	(1)	Frosting

1.	Prime costs
2.	Conversion costs
3.	Both prime and conversion costs
4.	Neither prime or conversion costs

Standard costs should always be revised when they differ from actual costs.

		True
		False