Exam 11: Flexible Budgets, Segment Analysis, and Performance Reporting

The following information is available for West Chemical Corporation for this last year: What is the Direct Labor Flexible Budget Variance?

Which of the following areas is not a category on the balanced scorecard?

Which of the following are benefits of flexible budget reporting?

The following information is available for Simon & Simon Corporation for this last year: What is the Direct Materials Static Budget Variance?

After determining the transfer price, the manager of the buying profit center should be allowed to decide whether or not to purchase components from a supplying profit center.

Which of the following are benefits of flexible budget reporting?

Jumping Joes is a manufacturing company that has two major divisions. Both divisions have required a significant investment, and management wants to compare their performance. Below is information related to the two divisions. Division A: Sales: $80,000,000 Expenses: $70,000,000 Asset investment: $150,000,000 Division B: Sales: $50,000,000 Expenses: $40,000,000 Asset investment: $150,000,000 Management is confused that the ROI seems to be the same for both divisions, and wants a deeper evaluation. Which division generates greater profitability per sales dollar?

HSS Company provides security services to senior executives of prominent corporations when they travel outside the United States. HSS applies both fixed and variable overhead using direct labor hours. The annual budget for one if its customers is as follows: During the year, HSS had the following activity related to this customer: $\bullet$ Actual hours were 850 at a total cost of $44,200. $\bullet$ Actual fixed overhead was $12,750. $\bullet$ Actual variable overhead was $22,950. What is the overall Static Budget Variance?