Question 1

The total fixed overhead variance is

Accepted Answer

A) actual fixed overhead - applied fixed overhead. 
B) the sum of the spending and volume variances. 
C) the sum of the spending and efficiency variances. 
D) both actual fixed overhead - applied fixed overhead and the sum of the spending and efficiency variances. 
E) both actual fixed overhead - applied fixed overhead and the sum of the spending and volume variances. 
A) actual fixed overhead - applied fixed overhead. 
B) the sum of the spending and volume variances. 
C) the sum of the spending and efficiency variances. 
D) both actual fixed overhead - applied fixed overhead and the sum of the spending and efficiency variances. 
E) both actual fixed overhead - applied fixed overhead and the sum of the spending and volume variances.

Question 2

To create a meaningful performance report,

Accepted Answer

A) actual costs are compared with the expected costs found in the static budget. 
B) actual costs are calculated as a percentage of sales. 
C) actual costs are compared with the prior year's actual costs. 
D) expected costs of the static budget are compared with the expected costs of the flexible budget. 
E) actual costs are compared with the expected costs at the same level of activity. 
A) actual costs are compared with the expected costs found in the static budget. 
B) actual costs are calculated as a percentage of sales. 
C) actual costs are compared with the prior year's actual costs. 
D) expected costs of the static budget are compared with the expected costs of the flexible budget. 
E) actual costs are compared with the expected costs at the same level of activity.

Question 3

An after-the-fact flexible budget allows managers to generate financial results from a number of potential scenarios.

Accepted Answer

A) True 
 B)False

Question 4

Activity-based budgeting builds a budget for each activity based on the resources needed to provide the required activity output levels.

Accepted Answer

A) True 
 B)False

Question 5

Gina Production Company uses a standard costing system.The following information pertains to 2011:   The overhead rate is based on an activity level of 10,000 units.Standard cost data for 5,000 units is as follows:
  What is the fixed overhead volume variance for Gina Production Company?

Accepted Answer

A) $1,350 F 
B) $3,600 F 
C) $4,125 U 
D) $1,350 U 
A) $1,350 F 
B) $3,600 F 
C) $4,125 U 
D) $1,350 U

Question 6

Vallo Pharmacy operates a home delivery service with more than 2,000 housebound clients.Vallo has a fleet of vehicles and has invested in a sophisticated computerized communications system to coordinate its deliveries.Vallo has gathered the following data on last year's operations:
   Vallo uses a standard costing system.During the year,the following variable overhead rate was used: $8.10 per delivery hour.The labor standard requires 0.75 hours per delivery.
Compute the variable overhead spending variance and the variable overhead efficiency variance.

Accepted Answer

Variable overhead an

Question 7

Griffen Corporation uses a standard costing system.Information for the month of May is as follows:   The overhead rate is based on a normal volume of 12,000 direct labor hours.Standard cost data at 12,000 direct labor hours were as follows:
  What is the fixed overhead spending variance for Griffen?

Accepted Answer

A) $2,000 U 
B) $8,000 U 
C) $4,000 U 
D) $20,000 U 
A) $2,000 U 
B) $8,000 U 
C) $4,000 U 
D) $20,000 U

Question 8

The total variable overhead variance is the difference between

Accepted Answer

A) the actual overhead and the budgeted overhead. 
B) the total actual variable overhead and the total budgeted variable overhead. 
C) the total actual variable overhead and the total applied variable overhead. 
D) the total actual variable overhead and the total applied overhead. 
E) none of these. 
A) the actual overhead and the budgeted overhead. 
B) the total actual variable overhead and the total budgeted variable overhead. 
C) the total actual variable overhead and the total applied variable overhead. 
D) the total actual variable overhead and the total applied overhead. 
E) none of these.

Question 9

Define static budget and flexible budget.What is each type used for?

Accepted Answer

A static budget is a budget for a partic

Question 10

Responsibility for the variable overhead spending variance is usually assigned to

Accepted Answer

A) the purchasing department. 
B) the production department. 
C) the engineering department. 
D) the personnel department. 
E) none of these. 
A) the purchasing department. 
B) the production department. 
C) the engineering department. 
D) the personnel department. 
E) none of these.

Question 11

If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance

Accepted Answer

A) the direct materials usage variance will be unfavorable. 
B) the direct labor rate variance will be favorable. 
C) the variable manufacturing overhead efficiency variance will be unfavorable. 
D) the variable manufacturing overhead spending variance will be unfavorable. 
A) the direct materials usage variance will be unfavorable. 
B) the direct labor rate variance will be favorable. 
C) the variable manufacturing overhead efficiency variance will be unfavorable. 
D) the variable manufacturing overhead spending variance will be unfavorable.

Question 12

Because activities are what consume resources,activity-based budgeting may prove to be a much more powerful planning and control tool than the traditional approach.

Accepted Answer

A) True 
 B)False

Question 13

A performance report for variable overhead reveals

Accepted Answer

A) the aggregate variable overhead spending and efficiency variances. 
B) the volume and spending variances. 
C) the spending and efficiency variances for each variable overhead item. 
D) both the aggregate variable overhead spending and efficiency variances and the spending and efficiency variances for each variable overhead item. 
E) both the volume and spending variances and the spending and efficiency variances for each variable overhead item. 
A) the aggregate variable overhead spending and efficiency variances. 
B) the volume and spending variances. 
C) the spending and efficiency variances for each variable overhead item. 
D) both the aggregate variable overhead spending and efficiency variances and the spending and efficiency variances for each variable overhead item. 
E) both the volume and spending variances and the spending and efficiency variances for each variable overhead item.

Question 14

McCordy Company provided information on the following three overhead activities:
   McCordy has found that the following driver levels are associated with two different levels of production:

Accepted Answer

The answer of McCordy Company provided information on the following...

Question 15

_______________________ is the prediction of what activity costs will be as related output changes.

Accepted Answer

Activity f

Question 16

Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000.The standard allows one direct labor hour per unit.During 2011,Crawford produced 110,000 units of product,incurred $630,000 of fixed overhead costs,and recorded 212,000 actual hours of direct labor. What is Crawford's fixed overhead spending variance for 2011?

Accepted Answer

A) $60,000 F 
B) $24,000 F 
C) $36,000 U 
D) $30,000 U 
A) $60,000 F 
B) $24,000 F 
C) $36,000 U 
D) $30,000 U

Question 17

Discuss the following statement: "As long as the total variable overhead variance is small,the managers can be assured that actual activity is proceeding as planned.No further action is necessary."

Accepted Answer

While it may be reassuring for managers

Question 18

Which of the following relationships is valid concerning fixed overhead budgeted at the beginning of the year?

Accepted Answer

A) BFOH = SFOR ´ AH 
B) BFOH = SFOR ´ SH for actual production 
C) BFOH = SFOR ´ SH for planned production 
D) BFOH = SFOR/SH for actual production 
E) none of these 
A) BFOH = SFOR ´ AH 
B) BFOH = SFOR ´ SH for actual production 
C) BFOH = SFOR ´ SH for planned production 
D) BFOH = SFOR/SH for actual production 
E) none of these

Question 19

A company provided the following data:
   Required:

Accepted Answer

The answer of A company provided the following data:
 ...

Question 20

If actual fixed overhead was $98,400 and there was a $2,880 favorable spending variance and a $600 unfavorable volume variance,budgeted fixed overhead must have been

Accepted Answer

A) $101,280. 
B) $100,680. 
C) $99,000. 
D) $97,800. 
E) $95,520. 
A) $101,280. 
B) $100,680. 
C) $99,000. 
D) $97,800. 
E) $95,520.

The total fixed overhead variance is

To create a meaningful performance report,

An after-the-fact flexible budget allows managers to generate financial results from a number of potential scenarios.

Activity-based budgeting builds a budget for each activity based on the resources needed to provide the required activity output levels.

Gina Production Company uses a standard costing system.The following information pertains to 2011: The overhead rate is based on an activity level of 10,000 units.Standard cost data for 5,000 units is as follows: What is the fixed overhead volume variance for Gina Production Company?

Griffen Corporation uses a standard costing system.Information for the month of May is as follows: The overhead rate is based on a normal volume of 12,000 direct labor hours.Standard cost data at 12,000 direct labor hours were as follows: What is the fixed overhead spending variance for Griffen?

The total variable overhead variance is the difference between

Define static budget and flexible budget.What is each type used for?

Responsibility for the variable overhead spending variance is usually assigned to

If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance

Because activities are what consume resources,activity-based budgeting may prove to be a much more powerful planning and control tool than the traditional approach.

A performance report for variable overhead reveals

McCordy Company provided information on the following three overhead activities: McCordy has found that the following driver levels are associated with two different levels of production:

_______________________ is the prediction of what activity costs will be as related output changes.

Discuss the following statement: "As long as the total variable overhead variance is small,the managers can be assured that actual activity is proceeding as planned.No further action is necessary."

Which of the following relationships is valid concerning fixed overhead budgeted at the beginning of the year?

A company provided the following data: Required:

If actual fixed overhead was $98,400 and there was a $2,880 favorable spending variance and a $600 unfavorable volume variance,budgeted fixed overhead must have been

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 11: Flexible Budgets and Overhead Analysis

The total fixed overhead variance is

To create a meaningful performance report,

An after-the-fact flexible budget allows managers to generate financial results from a number of potential scenarios.

Activity-based budgeting builds a budget for each activity based on the resources needed to provide the required activity output levels.

Gina Production Company uses a standard costing system.The following information pertains to 2011: The overhead rate is based on an activity level of 10,000 units.Standard cost data for 5,000 units is as follows: What is the fixed overhead volume variance for Gina Production Company?

Griffen Corporation uses a standard costing system.Information for the month of May is as follows: The overhead rate is based on a normal volume of 12,000 direct labor hours.Standard cost data at 12,000 direct labor hours were as follows: What is the fixed overhead spending variance for Griffen?

The total variable overhead variance is the difference between

Define static budget and flexible budget.What is each type used for?

Responsibility for the variable overhead spending variance is usually assigned to

If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance

Because activities are what consume resources,activity-based budgeting may prove to be a much more powerful planning and control tool than the traditional approach.

A performance report for variable overhead reveals

McCordy Company provided information on the following three overhead activities: McCordy has found that the following driver levels are associated with two different levels of production:

_______________________ is the prediction of what activity costs will be as related output changes.

Discuss the following statement: "As long as the total variable overhead variance is small,the managers can be assured that actual activity is proceeding as planned.No further action is necessary."

Which of the following relationships is valid concerning fixed overhead budgeted at the beginning of the year?

A company provided the following data: Required:

If actual fixed overhead was $98,400 and there was a $2,880 favorable spending variance and a $600 unfavorable volume variance,budgeted fixed overhead must have been

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters