Question 1

The variable overhead efficiency variance for June is:

Accepted Answer

A) $372 F 
B) $372 U 
C) $360 F 
D) $360 U 
A) $372 F 
B) $372 U 
C) $360 F 
D) $360 U

Question 2

If demand is insufficient to keep everyone busy and workers are not laid off, an unfavorable (U)variable overhead efficiency variance often will be a result unless managers build excessive inventories.

Accepted Answer

A) True 
 B)False

Question 3

The variable overhead rate variance for January is:

Accepted Answer

A) $84 U 
B) $80 F 
C) $84 F 
D) $80 U 
A) $84 U 
B) $80 F 
C) $84 F 
D) $80 U

Question 4

Doby Corporation makes a product with the following standard costs:   In July the company produced 4,800 units using 13,450 ounces of the direct material and 970 direct labor-hours.During the month the company purchased 14,600 ounces of the direct material at a price of $7.20 per ounce.The actual direct labor rate was $16.20 per hour and the actual variable overhead rate was $5.40 per hour.The materials price variance is computed when materials are purchased.Variable overhead is applied on the basis of direct labor-hours.
Required:
a.Compute the materials quantity variance.
b.Compute the materials price variance.
c.Compute the labor efficiency variance.
d.Compute the labor rate variance.
e.Compute the variable overhead efficiency variance.
f.Compute the variable overhead rate variance.

Accepted Answer

a.SQ = 4,800 units × 2.7 ounces per unit

Question 5

The personnel expenses in the planning budget for September would be closest to:

Accepted Answer

A) $56,535 
B) $54,575 
C) $55,485 
D) $56,000 
A) $56,535 
B) $54,575 
C) $55,485 
D) $56,000

Question 6

The spending variance for supplies costs for the month is:

Accepted Answer

A) $2,370 U 
B) $2,370 F 
C) $2,830 F 
D) $2,830 U 
A) $2,370 U 
B) $2,370 F 
C) $2,830 F 
D) $2,830 U

Question 7

The spending variance for medical supplies in September would be closest to:

Accepted Answer

A) $392 F 
B) $680 U 
C) $680 F 
D) $392 U 
A) $392 F 
B) $680 U 
C) $680 F 
D) $392 U

Question 8

Ostler Hotel bases its budgets on guest-days.The hotel's static budget for April appears below:   The total overhead cost at an activity level of 9,700 guest-days per month should be:

Accepted Answer

A) $213,150 
B) $237,650 
C) $223,950 
D) $224,920 
A) $213,150 
B) $237,650 
C) $223,950 
D) $224,920

Question 9

The variable overhead rate variance for supplies is closest to:

Accepted Answer

A) $10,828 F 
B) $10,947 U 
C) $10,828 U 
D) $10,947 F 
A) $10,828 F 
B) $10,947 U 
C) $10,828 U 
D) $10,947 F

Question 10

The total expenses in the flexible budget for October would have been closest to:

Accepted Answer

A) $149,200 
B) $141,200 
C) $130,029 
D) $147,600 
A) $149,200 
B) $141,200 
C) $130,029 
D) $147,600

Question 11

The variable overhead efficiency variance for the month is closest to:

Accepted Answer

A) $366 F 
B) $372 U 
C) $372 F 
D) $366 U 
A) $366 F 
B) $372 U 
C) $372 F 
D) $366 U

Question 12

The labor efficiency variance for the month is closest to:

Accepted Answer

A) $1,080 F 
B) $1,176 F 
C) $1,080 U 
D) $1,176 U 
A) $1,080 F 
B) $1,176 F 
C) $1,080 U 
D) $1,176 U

Question 13

The variable overhead efficiency variance does not actually measure how efficiently variable manufacturing overhead resources were used.

Accepted Answer

A) True 
 B)False

Question 14

When the materials price variance is recorded at the time of purchase, raw materials are recorded as inventory at standard cost.

Accepted Answer

A) True 
 B)False

Question 15

The net operating income in the flexible budget for January would be closest to:

Accepted Answer

A) $13,878 
B) $13,788 
C) $12,963 
D) $13,070 
A) $13,878 
B) $13,788 
C) $12,963 
D) $13,070

Question 16

Freytag Corporation's variable overhead is applied on the basis of direct labor-hours.The company has established the following variable overhead standards for product N06C:    The following data pertain to the most recent month's operations during which 1,600 units of product N06C were made:   Required:
a.What was the variable overhead rate variance for the month?
b.What was the variable overhead efficiency variance for the month?

Accepted Answer

a.Variable overhead rate variance = (AH

Question 17

The variable overhead rate variance for March is:

Accepted Answer

A) $4,796 F 
B) $5,120 U 
C) $5,120 F 
D) $4,796 U 
A) $4,796 F 
B) $5,120 U 
C) $5,120 F 
D) $4,796 U

Question 18

Zanny Electronics Corporation uses a standard cost system for the production of its water ski radios.The direct labor standard for each radio is 0.9 hours.The standard direct labor cost per hour is $7.20. During the month of August, Zanny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708.This resulted in production of 6,900 water ski radios for August.What is Zanny's labor rate variance for August?

Accepted Answer

A) $972 Favorable 
B) $1,188 Unfavorable 
C) $2,160 Favorable 
D) $2,808 Unfavorable 
A) $972 Favorable 
B) $1,188 Unfavorable 
C) $2,160 Favorable 
D) $2,808 Unfavorable

Question 19

A revenue variance is unfavorable if the revenue in the static planning budget is less than the revenue in the flexible budget.

Accepted Answer

A) True 
 B)False

Question 20

What is the labor efficiency variance for the month?

Accepted Answer

A) $8,910 U 
B) $12,555 F 
C) $12,555 U 
D) $8,640 U 
A) $8,910 U 
B) $12,555 F 
C) $12,555 U 
D) $8,640 U

The variable overhead efficiency variance for June is:

If demand is insufficient to keep everyone busy and workers are not laid off, an unfavorable (U)variable overhead efficiency variance often will be a result unless managers build excessive inventories.

The variable overhead rate variance for January is:

The personnel expenses in the planning budget for September would be closest to:

The spending variance for supplies costs for the month is:

The spending variance for medical supplies in September would be closest to:

Ostler Hotel bases its budgets on guest-days.The hotel's static budget for April appears below: The total overhead cost at an activity level of 9,700 guest-days per month should be:

The variable overhead rate variance for supplies is closest to:

The total expenses in the flexible budget for October would have been closest to:

The variable overhead efficiency variance for the month is closest to:

The labor efficiency variance for the month is closest to:

The variable overhead efficiency variance does not actually measure how efficiently variable manufacturing overhead resources were used.

When the materials price variance is recorded at the time of purchase, raw materials are recorded as inventory at standard cost.

The net operating income in the flexible budget for January would be closest to:

The variable overhead rate variance for March is:

A revenue variance is unfavorable if the revenue in the static planning budget is less than the revenue in the flexible budget.

What is the labor efficiency variance for the month?

Managerial Accounting and Cost Concepts

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Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The variable overhead efficiency variance for June is:

If demand is insufficient to keep everyone busy and workers are not laid off, an unfavorable (U)variable overhead efficiency variance often will be a result unless managers build excessive inventories.

The variable overhead rate variance for January is:

The personnel expenses in the planning budget for September would be closest to:

The spending variance for supplies costs for the month is:

The spending variance for medical supplies in September would be closest to:

Ostler Hotel bases its budgets on guest-days.The hotel's static budget for April appears below: The total overhead cost at an activity level of 9,700 guest-days per month should be:

The variable overhead rate variance for supplies is closest to:

The total expenses in the flexible budget for October would have been closest to:

The variable overhead efficiency variance for the month is closest to:

The labor efficiency variance for the month is closest to:

The variable overhead efficiency variance does not actually measure how efficiently variable manufacturing overhead resources were used.

When the materials price variance is recorded at the time of purchase, raw materials are recorded as inventory at standard cost.

The net operating income in the flexible budget for January would be closest to:

The variable overhead rate variance for March is:

A revenue variance is unfavorable if the revenue in the static planning budget is less than the revenue in the flexible budget.

What is the labor efficiency variance for the month?

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters