Question 1

Sade Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours.  The company has reported the following actual results for the product for December:  Required:
a.Compute the variable overhead rate variance for December.
b.Compute the variable overhead efficiency variance for December.

Accepted Answer

a.Variable overhead rate variance = (AH ...

Question 2

In a flexible budget, what will happen to fixed costs as the activity level increases?

Accepted Answer

A)  The fixed cost per unit will decrease.
B)  The fixed cost per unit will remain unchanged.
C)  The fixed cost per unit will increase.
D)  Fixed costs are not included in a flexible budget.E) A) and C)
F) B) and C)

Question 3

Hermansen Corporation produces large commercial doors for warehouses and other facilities.In the most recent month, the company budgeted production of 5,100 doors.Actual production was 5,400 doors.According to standards, each door requires 3.8 machine-hours.The actual machine-hours for the month were 20,880 machine-hours.The standard supplies cost is $7.90 per machine-hour.The actual supplies cost for the month was $152,063.Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:

Accepted Answer

A)  $10,045 F
B)  $10,045 U
C)  $2,844 F
D)  $2,844 UE) C) and D)
F) B) and C)

Question 4

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

Accepted Answer

A)  $46 U
B)  $42 F
C)  $46 F
D)  $42 UE) B) and D)
F) All of the above

Question 5

The labor efficiency variance for the month was:

Accepted Answer

A)  $420.00 U
B)  $420.00 F
C)  $415.80 U
D)  $415.80 FE) C) and D)
F) A) and B)

Question 6

The wages and salaries in the planning budget for May would be closest to:

Accepted Answer

A)  $25,070
B)  $25,009
C)  $23,919
D)  $23,984E) None of the above
F) All of the above

Question 7

The labor efficiency variance for the month is closest to:

Accepted Answer

A)  $3,876 U
B)  $4,199 F
C)  $4,199 U
D)  $3,876 FE) A) and B)
F) A) and C) D

Question 8

The standard amount of materials allowed for the actual output is closest to:

Accepted Answer

A)  23,310 ounces
B)  23,300 ounces
C)  22,687 ounces
D)  23,940 ouncesE) None of the above
F) All of the above

Question 9

The materials price variance for October is:

Accepted Answer

A)  $15,000 Unfavorable
B)  $15,000 Favorable
C)  $25,000 Unfavorable
D)  $25,000 FavorableE) B) and C)
F) A) and D)

Question 10

Dunbar Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.67 per unit of output.Last month the company had a $9,604 favorable spending variance for supplies.During that month, 19,600 units were produced.Budgeted activity for the month had been 19,200 units.The actual cost per unit for indirect materials must have been closest to:

Accepted Answer

A)  $1.73
B)  $2.67
C)  $2.18
D)  $1.69E) None of the above
F) A) and D)

Question 11

Jungman Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours. 
 The company produced 4,600 units of this product in November.
Required:
a.What is the total standard cost of one unit of this product?
b.What was the standard ounces allowed for the actual output of this product in November?
c.What was the standard hours allowed for the actual output of this product in November?

Accepted Answer

a.  b.SQ = 4,600 units × 6.9 ounces per unit = 31,740 ounces
c.SH = 4,600 units × 0.50 hours per unit = 2,300 hours

Question 12

Hislop Tech is a for-profit vocational school.The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course.The school uses the following data in its budgeting:

In June, the school budgeted for 1,910 students and 111 courses.The school's income statement showing the actual results for the month appears below:  Required:
Prepare a report showing the school's revenue and spending variances for June.Label each variance as favorable (F)or unfavorable (U).

Accepted Answer

The answer of Hislop Tech is a for-profit vocational school.The...

Question 13

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

Accepted Answer

A)  $1,900 F
B)  $1,900 U
C)  $380 U
D)  $380 FE) B) and D)
F) None of the above

Question 14

The labor rate variance for March is:

Accepted Answer

A)  $4,120 U
B)  $3,270 U
C)  $4,120 F
D)  $3,270 FE) A) and B)
F) A) and C)

Question 15

An unfavorable materials quantity variance indicates that:

Accepted Answer

A)  actual usage of material exceeds the standard material allowed for output.
B)  standard material allowed for output exceeds the actual usage of material.
C)  actual material price exceeds standard price.
D)  standard material price exceeds actual price.E) None of the above
F) A) and D)

Question 16

The materials price variance for January is:

Accepted Answer

A)  $2,482 F
B)  $2,740 U
C)  $2,482 U
D)  $2,740 FE) B) and C)
F) None of the above B

Question 17

Becka Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct  labor-hours.  The company produced 2,300 units of this product in November.
Required:
a.What is the total standard cost of one unit of this product?
b.What was the standard grams allowed for the actual output of this product in November?
c.What was the standard hours allowed for the actual output of this product in November?

Accepted Answer

a. <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30">_TB2627_00 b.SQ = 2,300 uni...

Question 18

The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to:

Accepted Answer

A)  $3,100 U
B)  $13,600 U
C)  $3,100 F
D)  $13,600 FE) B) and D)
F) None of the above

Question 19

The raw materials quantity variance for the month is closest to:

Accepted Answer

A)  $50 U
B)  $57 U
C)  $57 F
D)  $50 FE) A) and D)
F) B) and C)

Question 20

The variable overhead efficiency variance for July is:

Accepted Answer

A)  $380 F
B)  $399 U
C)  $380 U
D)  $399 FE) A) and B)
F) B) and C)

Exam 9: Flexible Budgets Standard Costs and Variance Analysis

Correct Answer
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a.Variable overhead rate variance = (AH ...
View Answer

In a flexible budget, what will happen to fixed costs as the activity level increases?

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

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The labor efficiency variance for the month was:

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The wages and salaries in the planning budget for May would be closest to:

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The labor efficiency variance for the month is closest to:

Correct Answer
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D

The standard amount of materials allowed for the actual output is closest to:

Correct Answer
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The materials price variance for October is:

Correct Answer
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a. 11ea7998_5ce9_b052_911b_257051298e29_TB2627_00_TB2627_00 b.SQ = 4,600 units × 6.9 ounces per unit = 31,740 ounces c.SH = 4,600 units × 0.50 hours per unit = 2,300 hours

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

Correct Answer
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The labor rate variance for March is:

Correct Answer
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An unfavorable materials quantity variance indicates that:

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The materials price variance for January is:

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B

Correct Answer
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a. _TB2627_00 b.SQ = 2,300 uni...
View Answer

The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to:

Correct Answer
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The raw materials quantity variance for the month is closest to:

Correct Answer
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The variable overhead efficiency variance for July is:

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

Correct Answerverifieda.Variable overhead rate variance = (AH ...View AnswerShow Answer

In a flexible budget, what will happen to fixed costs as the activity level increases?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The labor efficiency variance for the month was:

Correct AnswerverifiedShow Answer

The wages and salaries in the planning budget for May would be closest to:

Correct AnswerverifiedShow Answer

The labor efficiency variance for the month is closest to:

Correct AnswerverifiedD

The standard amount of materials allowed for the actual output is closest to:

Correct AnswerverifiedShow Answer

The materials price variance for October is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answerverifieda. 11ea7998_5ce9_b052_911b_257051298e29_TB2627_00_TB2627_00 b.SQ = 4,600 units × 6.9 ounces per unit = 31,740 ounces c.SH = 4,600 units × 0.50 hours per unit = 2,300 hours

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The labor rate variance for March is:

Correct AnswerverifiedShow Answer

An unfavorable materials quantity variance indicates that:

Correct AnswerverifiedShow Answer

The materials price variance for January is:

Correct AnswerverifiedB

Correct Answerverifieda. _TB2627_00 b.SQ = 2,300 uni...View AnswerShow Answer

The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to:

Correct AnswerverifiedShow Answer

The raw materials quantity variance for the month is closest to:

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for July is:

Correct AnswerverifiedShow Answer

Correct Answer
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a.Variable overhead rate variance = (AH ...
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D

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a. 11ea7998_5ce9_b052_911b_257051298e29_TB2627_00_TB2627_00 b.SQ = 4,600 units × 6.9 ounces per unit = 31,740 ounces c.SH = 4,600 units × 0.50 hours per unit = 2,300 hours

Correct Answer
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Correct Answer
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B

Correct Answer
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a. _TB2627_00 b.SQ = 2,300 uni...
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Correct Answer
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Correct Answer
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Correct Answer
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