Question 1

A static budget compares actual cost with budgeted costs.

Accepted Answer

A) True 
 B)False  False

Question 2

The variable overhead efficiency variance is directly related to the __________________ or usage variance.

Accepted Answer

direct labor efficiency

Question 3

The major differences between activity-based budgeting and traditional budgeting are found in

Accepted Answer

A)  the materials and labor categories. 
B)  the sales and production budgets. 
C)  the cash budget. 
D)  the overhead and selling and administrative categories. 
E)  None of these. 
A)  the materials and labor categories. 
B)  the sales and production budgets. 
C)  the cash budget. 
D)  the overhead and selling and administrative categories. 
E)  None of these. D

Question 4

MATCHING
Match the following terms with the items below:
a.
(Actual hours -Standard hours)SVOR
b.
Prediction of what activity costs will be as activity output changes
c.
A measure of capacity utilization
d.
Actual variable overhead - (SVOR * Actual hours)
e.
Difference between the actual amount and the flexible budget amount
f.
A budget that specifies costs for a range of activity
g.
A budget for a particular level of activity
h.
Estimating activity output and then assessing the cost of resources to produce this output
i.
A report that compares actual with planned costs
j.
Difference between actual and budgeted fixed overhead
-Flexible budget variance

Accepted Answer

The answer of MATCHING
Match the following terms with the items...

Question 5

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.

Question 6

Activity flexible budgeting is the prediction of what activity costs will be as production output changes.

Accepted Answer

A) True 
 B)False

Question 7

Favor Company budgeted the following amounts:
     Required: Prepare a flexible budget for 1,500 units, 1,800 units and 2,100 units.

Accepted Answer

The answer of Favor Company budgeted the following amounts:
 ...

Question 8

The major differences between functional and activity-based budgeting are found within which of the following categories?

Accepted Answer

A)  overhead 
B)  selling 
C)  administration 
D)  All of these. 
E)  None of these. 
A)  overhead 
B)  selling 
C)  administration 
D)  All of these. 
E)  None of these.

Question 9

The fixed overhead spending variance is affected primarily by changes in production levels.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not one of the steps in building an activity-based budget?

Accepted Answer

A)  identifying activities 
B)  classifying activities as value-added or nonvalue-added 
C)  estimating the demand for each activity's output 
D)  estimating the cost of producing the output demanded by each activity 
E)  None of these. 
A)  identifying activities 
B)  classifying activities as value-added or nonvalue-added 
C)  estimating the demand for each activity's output 
D)  estimating the cost of producing the output demanded by each activity 
E)  None of these.

Question 11

The ____________________ is the difference between budgeted fixed overhead and applied fixed overhead.

Accepted Answer

fixed over

Question 12

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 13

Figure 11-4.
Kris Company calculates its predetermined rates using practical volume, which is 325,000 units. The standard cost system allows 3 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead. The actual results for the year are as follows:
  
-Refer to Figure 11-4. The predetermined variable overhead rate is

Accepted Answer

A)  $3.00 per direct labor hour. 
B)  $2.50 per direct labor hour. 
C)  $5.50 per direct labor hour. 
D)  $3.35 per direct labor hour. 
E)  None of these are correct. 
A)  $3.00 per direct labor hour. 
B)  $2.50 per direct labor hour. 
C)  $5.50 per direct labor hour. 
D)  $3.35 per direct labor hour. 
E)  None of these are correct.

Question 14

The formula for calculating the variable overhead efficiency variance is

Accepted Answer

A)  (AVOR * AH) - (SVOR * AH). 
B)  (AVOR - SVOR)SH. 
C)  (AH - SH)SVOR. 
D)  (AH - SH)AVOR. 
E)  None of these. 
A)  (AVOR * AH) - (SVOR * AH). 
B)  (AVOR - SVOR)SH. 
C)  (AH - SH)SVOR. 
D)  (AH - SH)AVOR. 
E)  None of these.

Question 15

Figure 11-6.
Kyle Company uses forklifts to move materials from the storage area to the production floor. There are five forklifts. They are fully used 20 hours per day (making 8 moves per hour). The company works 320 days per year, running two 7-hour shifts per day. Fork-lift operators work 1,800 hours per year and are paid an annual salary of $56,000.
Based on a recent study each forklift uses 0.45 gallons of fuel per move. The cost of fuel is $3.80 per gallon.
-Refer to Figure 11-6. Suppose that the actual moves made are 80% of the forklifts' capacity. What is the after-the-fact budgeted fuel cost?

Accepted Answer

A)  $448,000 
B)  $299,600 
C)  $492,000 
D)  $353,600 
E)  $350,208 
A)  $448,000 
B)  $299,600 
C)  $492,000 
D)  $353,600 
E)  $350,208

Question 16

The following standard overhead costs were developed for one of the products of Mildey Company:
   The following information is available regarding the company's operations for the period:
   Budgeted fixed overhead for the period is $1,350,000, and the standard fixed overhead rate is based on expected capacity of 90,000 direct labor hours.
Required:

Accepted Answer

The answer of The following standard overhead costs were developed...

Question 17

Allen Company produced 44,000 units last year. The information on the actual costs and budgeted costs at actual production of three activities is provided below.
   Required:
Prepare an activity-based performance report for the three activities for the past year.

Accepted Answer

@#IMG-DLM& Variances equal actual amounts less bud

Question 18

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

Accepted Answer

Activity f

Question 19

MATCHING
Match the following terms with the items below:
a.
(Actual hours -Standard hours)SVOR
b.
Prediction of what activity costs will be as activity output changes
c.
A measure of capacity utilization
d.
Actual variable overhead - (SVOR * Actual hours)
e.
Difference between the actual amount and the flexible budget amount
f.
A budget that specifies costs for a range of activity
g.
A budget for a particular level of activity
h.
Estimating activity output and then assessing the cost of resources to produce this output
i.
A report that compares actual with planned costs
j.
Difference between actual and budgeted fixed overhead
-Flexible budget

Accepted Answer

The answer of MATCHING
Match the following terms with the items...

Question 20

In a standard cost system, variable overhead is applied

Accepted Answer

A)  using actual direct labor hours. 
B)  using budgeted indirect labor hours. 
C)  using direct labor hours at practical capacity. 
D)  using standard direct labor hours. 
E)  All of these. 
A)  using actual direct labor hours. 
B)  using budgeted indirect labor hours. 
C)  using direct labor hours at practical capacity. 
D)  using standard direct labor hours. 
E)  All of these.

A static budget compares actual cost with budgeted costs.

The variable overhead efficiency variance is directly related to the __________________ or usage variance.

The major differences between activity-based budgeting and traditional budgeting are found in

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

Activity flexible budgeting is the prediction of what activity costs will be as production output changes.

Favor Company budgeted the following amounts: Required: Prepare a flexible budget for 1,500 units, 1,800 units and 2,100 units.

The major differences between functional and activity-based budgeting are found within which of the following categories?

The fixed overhead spending variance is affected primarily by changes in production levels.

Which of the following is not one of the steps in building an activity-based budget?

The ____________________ is the difference between budgeted fixed overhead and applied fixed overhead.

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 formula for calculating the variable overhead efficiency variance is

Allen Company produced 44,000 units last year. The information on the actual costs and budgeted costs at actual production of three activities is provided below. Required: Prepare an activity-based performance report for the three activities for the past year.

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

In a standard cost system, variable overhead is applied

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

A static budget compares actual cost with budgeted costs.

The variable overhead efficiency variance is directly related to the __________________ or usage variance.

The major differences between activity-based budgeting and traditional budgeting are found in

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

Activity flexible budgeting is the prediction of what activity costs will be as production output changes.

Favor Company budgeted the following amounts: Required: Prepare a flexible budget for 1,500 units, 1,800 units and 2,100 units.

The major differences between functional and activity-based budgeting are found within which of the following categories?

The fixed overhead spending variance is affected primarily by changes in production levels.

Which of the following is not one of the steps in building an activity-based budget?

The ____________________ is the difference between budgeted fixed overhead and applied fixed overhead.

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 formula for calculating the variable overhead efficiency variance is

Allen Company produced 44,000 units last year. The information on the actual costs and budgeted costs at actual production of three activities is provided below. Required: Prepare an activity-based performance report for the three activities for the past year.

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

In a standard cost system, variable overhead is applied

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