Question 1

Tos Corporation's flexible budget cost formula for indirect materials, a variable cost, is $0.60 per unit of output.If the company's performance report for last month shows an $800 unfavorable spending variance for indirect materials and if 9,000 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:

Accepted Answer

A)  $5,600
B)  $4,600
C)  $5,400
D)  $6,200E) All of the above
F) A) and C)

Question 2

The spending variance for "Employee salaries and wages" for October would have been closest to:

Accepted Answer

A)  $700 F
B)  $5,800 U
C)  $700 U
D)  $5,800 FE) B) and C)
F) A) and B)

Question 3

The amount shown for net operating income in the planning budget for March would have been closest to:

Accepted Answer

A)  ($700) 
B)  ($791) 
C)  $6,700
D)  ($4,400) E) All of the above
F) None of the above

Question 4

The variable overhead efficiency variance for the month is closest to:

Accepted Answer

A)  $1,003 U
B)  $935 U
C)  $1,003 F
D)  $935 FE) B) and C)
F) A) and B)

Question 5

The amount shown for "Servicing materials" in the planning budget for November would have been closest to:

Accepted Answer

A)  $19,000
B)  $16,200
C)  $16,548
D)  $18,600E) B) and C)
F) A) and C)

Question 6

The labor efficiency variance for January is:

Accepted Answer

A)  $200 U
B)  $213 U
C)  $200 F
D)  $213 FE) None of the above
F) C) and D)

Question 7

The materials price variance is computed based on the amount of materials purchased during the period.

Accepted Answer

A) True 
 B)False

Question 8

Lightsey Natural Dying Corporation measures its activity in terms of skeins of yarn dyed.Last month, the budgeted level of activity was 14,800 skeins and the actual level of activity was 15,100 skeins.The company's owner budgets for dye costs, a variable cost, at $0.51 per skein.The actual dye cost last month was $8,660.What would have been the spending variance for dye costs?

Accepted Answer

A)  $959 U
B)  $172 U
C)  $1,112 U
D)  $153 UE) B) and D)
F) None of the above

Question 9

The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to:

Accepted Answer

A)  $84,300
B)  $89,757
C)  $79,400
D)  $81,300E) A) and D)
F) A) and B)

Question 10

The variable overhead efficiency variance for supplies is closest to:

Accepted Answer

A)  $10,947 F
B)  $119 U
C)  $10,947 U
D)  $119 FE) A) and B)
F) A) and D)

Question 11

The amount shown for total expenses in the planning budget for March would have been closest to:

Accepted Answer

A)  $126,700
B)  $143,226
C)  $128,600
D)  $133,700E) A) and B)
F) A) and C)

Question 12

The manufacturing overhead in the flexible budget for January would be closest to:

Accepted Answer

A)  $57,004
B)  $57,647
C)  $57,630
D)  $57,170E) None of the above
F) All of the above

Question 13

The variable overhead rate variance for July is:

Accepted Answer

A)  $213 F
B)  $216 F
C)  $216 U
D)  $213 UE) All of the above
F) B) and D)

Question 14

The spending variance for power costs for the month should be:

Accepted Answer

A)  $2,060 F
B)  $2,060 U
C)  $300 F
D)  $300 UE) B) and C)
F) A) and B)

Question 15

The materials price variance for August is:

Accepted Answer

A)  $5,440 F
B)  $6,320 F
C)  $5,440 U
D)  $6,320 UE) B) and C)
F) A) and D)

Question 16

The variable overhead efficiency variance for January is:

Accepted Answer

A)  $1,496 F
B)  $1,496 U
C)  $1,540 U
D)  $1,540 FE) None of the above
F) All of the above

Question 17

The facility expenses in the flexible budget for January would be closest to:

Accepted Answer

A)  $14,157
B)  $14,712
C)  $15,170
D)  $15,062E) A) and B)
F) B) and C)

Question 18

The variable overhead efficiency variance for October is:

Accepted Answer

A)  $1,400 Favorable
B)  $1,225 Unfavorable
C)  $1,900 Unfavorable
D)  $2,700 FavorableE) B) and D)
F) C) and D)

Question 19

Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) .The company has provided the following data for the most recent month:  What was the variable overhead rate variance for the month?

Accepted Answer

A)  $2,000 Favorable
B)  $720 Favorable
C)  $1,260 Unfavorable
D)  $1,980 FavorableE) C) and D)
F) None of the above

Question 20

If variable manufacturing overhead is applied on the basis of direct labor-hours and the variable overhead rate variance is favorable, then:

Accepted Answer

A)  the actual variable overhead rate exceeded the standard rate.
B)  the standard variable overhead rate exceeded the actual rate.
C)  the actual direct labor-hours exceeded the standard direct labor-hours allowed for the actual output.
D)  the standard direct labor-hours allowed for the actual output exceeded the actual hours.E) B) and C)
F) A) and D)

Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The materials price variance is computed based on the amount of materials purchased during the period.

Correct Answer
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The materials price variance for August is:

Correct Answer
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The manufacturing overhead in the flexible budget for January would be closest to:

Correct Answer
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Correct Answer
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The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to:

Correct Answer
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The variable overhead rate variance for July is:

Correct Answer
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The spending variance for "Employee salaries and wages" for October would have been closest to:

Correct Answer
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Correct Answer
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The amount shown for net operating income in the planning budget for March would have been closest to:

Correct Answer
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Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) .The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

Correct Answer
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If variable manufacturing overhead is applied on the basis of direct labor-hours and the variable overhead rate variance is favorable, then:

Correct Answer
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The spending variance for power costs for the month should be:

Correct Answer
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The amount shown for "Servicing materials" in the planning budget for November would have been closest to:

Correct Answer
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The variable overhead efficiency variance for supplies is closest to:

Correct Answer
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The labor efficiency variance for January is:

Correct Answer
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The amount shown for total expenses in the planning budget for March would have been closest to:

Correct Answer
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The facility expenses in the flexible budget for January would be closest to:

Correct Answer
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The variable overhead efficiency variance for October is:

Correct Answer
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The variable overhead efficiency variance for January is:

Correct Answer
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The variable overhead efficiency variance for the month is closest to:

Correct Answer
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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The materials price variance is computed based on the amount of materials purchased during the period.

Correct AnswerverifiedShow Answer

The materials price variance for August is:

Correct AnswerverifiedShow Answer

The manufacturing overhead in the flexible budget for January would be closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to:

Correct AnswerverifiedShow Answer

The variable overhead rate variance for July is:

Correct AnswerverifiedShow Answer

The spending variance for "Employee salaries and wages" for October would have been closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The amount shown for net operating income in the planning budget for March would have been closest to:

Correct AnswerverifiedShow Answer

Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) .The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

Correct AnswerverifiedShow Answer

If variable manufacturing overhead is applied on the basis of direct labor-hours and the variable overhead rate variance is favorable, then:

Correct AnswerverifiedShow Answer

The spending variance for power costs for the month should be:

Correct AnswerverifiedShow Answer

The amount shown for "Servicing materials" in the planning budget for November would have been closest to:

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for supplies is closest to:

Correct AnswerverifiedShow Answer

The labor efficiency variance for January is:

Correct AnswerverifiedShow Answer

The amount shown for total expenses in the planning budget for March would have been closest to:

Correct AnswerverifiedShow Answer

The facility expenses in the flexible budget for January would be closest to:

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for October is:

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for January is:

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for the month is closest to:

Correct AnswerverifiedShow Answer

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