Exam 9: Standard Costing and Variances

Beech has budgeted fixed overhead of $202,500 based on budgeted production of 13,500 units.During July,14,100 units were produced and $214,200 was spent on fixed overhead.What is the budgeted fixed overhead rate?

A standard cost system records cost at their actual amounts.A standard cost system records cost at standard rather than actual amounts.

A quantity standard is the amount of input that should go into a single unit of the product.This is the definition of a quantity standard.

Delaware Corp.prepared a master budget that included $21,360 for direct materials,$33,600 for direct labor,$18,000 for variable overhead,and $46,440 for fixed overhead.Delaware Corp.planned to sell 4,000 units during the period,but actually sold 4,300 units.How much would fixed overhead cost be on a flexible budget for the period based on actual sales?

At the end of the accounting period,all variances are closed to the _____________ account.

The difference between actual volume and budgeted production,multiplied by the fixed overhead rate based on practical capacity,is the

The overall difference between the actual and applied manufacturing overhead is the

In a standard cost system,the initial debit to an inventory account is based on

A standard cost system initially records manufacturing costs at the standard rather than the actual amount.In a standard cost system,costs are initially recorded at standard amounts,and are adjusted to actual amounts through variances.

The formula AQ × (SP - AP)is the

A budget depends upon the level of output as well as the input standards.A budget depends on both input standards and output level.

Jupiter Co.applies overhead based on direct labor hours.The variable overhead standard is 4 hours at $12 per hour.During February,Jupiter Co.spent $113,400 for variable overhead.9,150 labor hours were used to produce 2,400 units.What is the over- or underapplied variable overhead?

Which of the following types of standards can be achieved only under perfect conditions?

A spending variance is calculated by comparing actual costs with the static budget.A spending variance is calculated by comparing actual costs with the flexible budget.

Delaware Corp.prepared a master budget that included $21,360 for direct materials,$33,600 for direct labor,$18,000 for variable overhead,and $46,440 for fixed overhead.Delaware Corp.planned to sell 4,000 units during the period,but actually sold 4,300 units.How much would direct materials cost be on a flexible budget for the period based on actual sales?

Warner Co.has budgeted fixed overhead of $150,000.Practical capacity is 6,000 units,and budgeted production is 5,000 units.During February,4,800 units were produced and $155,600 was spent on fixed overhead.What is the unexpected (unplanned)capacity variance?

Bonnie Company has a direct labor standard of 15 hours per unit of output.Each employee has a standard wage rate of $14 per hour.The standard variable overhead rate is $10 per hour.During March,employees worked 13,100 hours.The direct labor rate variance was $9,170 favorable,the variable overhead rate variance was $13,100 unfavorable,and the direct labor efficiency variance was $15,400 unfavorable.What is the actual variable overhead?

The budget that is based on a single estimate of sales volume is called a static budget.This is the definition of a static budget.

The difference between the actual fixed manufacturing overhead cost and the budgeted fixed manufacturing overhead cost is the

The fixed overhead volume variance is the difference between actual production volume and actual sales volume.The fixed overhead volume variance is the difference between applied fixed overhead and budgeted fixed overhead.