Exam 8: Flexible Budget and Variance Analysis

Doghouse Company had the following information: At a manufacturing level of 5,000 units, variable and fixed manufacturing costs are $32 and $18 per unit, respectively. Selling price is $70 per unit. is the total manufacturing cost for 10,000 units.

In a manufacturing area of an organization, poor product design, problems with the quality of materials, and scheduling conflicts will, more than likely, result in:

Garner Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. _ is the flexible budget amount for processing.

Scooby Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. _ is the activity- level variance for processing.

Efficiency is indicated by:

The following data for the Unbreakable Company pertain to the production of 1,000 bottles during July: Standard variable overhead cost: $26.00 per pound of glass. Total actual variable overhead cost: $24,800. Standard variable overhead cost allowed for units produced was $26,000. Variable overhead efficiency variance was $740 unfavorable. Is the variable overhead rate variance.