Question 1

The labor rate variance for May is:

Accepted Answer

A) $6,460 U 
B) $6,118 U 
C) $6,118 F 
D) $6,460 F 
A) $6,460 U 
B) $6,118 U 
C) $6,118 F 
D) $6,460 F

Question 2

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

Accepted Answer

A) $6,568 
B) $6,021 
C) $6,257 
D) $7,080 
A) $6,568 
B) $6,021 
C) $6,257 
D) $7,080

Question 3

The raw materials quantity variance for the month is closest to:

Accepted Answer

A) $77 F 
B) $70 U 
C) $77 U 
D) $70 F 
A) $77 F 
B) $70 U 
C) $77 U 
D) $70 F

Question 4

The net operating income in the planning budget for September would be closest to:

Accepted Answer

A) $9,500 
B) $7,259 
C) $10,260 
D) $7,503 
A) $9,500 
B) $7,259 
C) $10,260 
D) $7,503

Question 5

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

Accepted Answer

A) $5,400 
B) $5,346 
C) $5,405 
D) $5,435 
A) $5,400 
B) $5,346 
C) $5,405 
D) $5,435

Question 6

The materials quantity variance for August is:

Accepted Answer

A) $5,576 F 
B) $5,576 U 
C) $5,440 F 
D) $5,440 U 
A) $5,576 F 
B) $5,576 U 
C) $5,440 F 
D) $5,440 U

Question 7

Heye Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours.   The company has reported the following actual results for the product for August:   Required:
a.Compute the materials price variance for August.
b.Compute the materials quantity variance for August.
c.Compute the labor rate variance for August.
d.Compute the labor efficiency variance for August.
e.Compute the variable overhead rate variance for August.
f.Compute the variable overhead efficiency variance for August.

Accepted Answer

a.Materials price variance = (AQ × AP)−

Question 8

The following materials standards have been established for a particular product:    The following data pertain to operations concerning the product for the last month:   The direct materials purchases variance is computed when the materials are purchased.
Required:
a.What is the materials price variance for the month?
b.What is the materials quantity variance for the month?

Accepted Answer

a.Materials price variance = (AQ × AP)−

Question 9

The labor rate variance for February is:

Accepted Answer

A) $1,146 U 
B) $1,176 U 
C) $1,176 F 
D) $1,146 F 
A) $1,146 U 
B) $1,176 U 
C) $1,176 F 
D) $1,146 F

Question 10

During June, Tarras Corporation plans to serve 36,000 customers.The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $3.50q
Wages and salaries: $35,100 + $0.90q
Supplies: $0.70q
Insurance: $8,500
Miscellaneous expense: $4,100 + $0.30q

Required:
Prepare the company's planning budget for June.

Accepted Answer

The answer of During June, Tarras Corporation plans to serve...

Question 11

The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the fixed part of the predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Question 12

During February, Barreca Clinic plans for an activity level of 2,700 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:

Revenue: $49.10q
Personnel expenses: $34,100 + $13.20q
Medical supplies: $1,300 + $9.40q
Occupancy expenses: $8,300 + $1.40q
Administrative expenses: $6,100 + $0.30q
Required:
Prepare the clinic's planning budget for February.

Accepted Answer

The answer of During February, Barreca Clinic plans for an...

Question 13

The variable overhead rate variance for October is:

Accepted Answer

A) $1,400 Favorable 
B) $1,900 Unfavorable 
C) $3,750 Favorable 
D) $4,375 Unfavorable 
A) $1,400 Favorable 
B) $1,900 Unfavorable 
C) $3,750 Favorable 
D) $4,375 Unfavorable

Question 14

The amount shown for "Refurbishing materials" in the planning budget for March would have been closest to:

Accepted Answer

A) $16,700 
B) $18,200 
C) $18,878 
D) $16,100 
A) $16,700 
B) $18,200 
C) $18,878 
D) $16,100

Question 15

During December, Hynes Corporation plans to serve 35,000 customers.Revenue is $2.00 per customer served.Wages and salaries are $24,600 per month plus $0.50 per customer served.Supplies are $0.30 per customer served.Insurance is $5,400 per month.Miscellaneous expenses are $4,100 per month plus $0.10 per customer served.

Required:
Prepare the company's planning budget for December.

Accepted Answer

The answer of During December, Hynes Corporation plans to serve...

Question 16

The spending variance for occupancy expenses in September would be closest to:

Accepted Answer

A) $10 F 
B) $106 F 
C) $10 U 
D) $106 U 
A) $10 F 
B) $106 F 
C) $10 U 
D) $106 U

Question 17

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

Accepted Answer

A) $460 U 
B) $510 F 
C) $510 U 
D) $460 F 
A) $460 U 
B) $510 F 
C) $510 U 
D) $460 F

Question 18

Bondi Corporation makes automotive engines.For the most recent month, budgeted production was 1,500 engines.The standard power cost is $3.10 per machine-hour.The company's standards indicate that each engine requires 9.3 machine-hours.Actual production was 1,800 engines.Actual machine-hours were 15,860 machine-hours.Actual power cost totaled $51,593.

Required:
Determine the rate and efficiency variances for the variable overhead item power cost and indicate whether those variances are unfavorable or favorable.Show your work!

Accepted Answer

Variable overhead rate variance = (AH ×

Question 19

Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies.The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps.One vehicle used in one tour on one day counts as a jeep.Each jeep has one tour guide.The company uses the following data in its budgeting:

In May, the company budgeted for 447 guests and 152 jeeps.The company's income statement showing the actual results for the month appears below:   Required:
Prepare a report showing the company's revenue and spending variances for May.Label each variance as favorable (F)or unfavorable (U).

Accepted Answer

The answer of Cryan Jeep Tours operates jeep tours in...

Question 20

The labor rate variance for July is:

Accepted Answer

A) $252 U 
B) $225 U 
C) $225 F 
D) $252 F 
A) $252 U 
B) $225 U 
C) $225 F 
D) $252 F

The labor rate variance for May is:

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

The raw materials quantity variance for the month is closest to:

The net operating income in the planning budget for September would be closest to:

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

The materials quantity variance for August is:

The labor rate variance for February is:

The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the fixed part of the predetermined overhead rate.

The variable overhead rate variance for October is:

The amount shown for "Refurbishing materials" in the planning budget for March would have been closest to:

The spending variance for occupancy expenses in September would be closest to:

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

The labor rate variance for July is:

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

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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The labor rate variance for May is:

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

The raw materials quantity variance for the month is closest to:

The net operating income in the planning budget for September would be closest to:

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

The materials quantity variance for August is:

The labor rate variance for February is:

The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the fixed part of the predetermined overhead rate.

The variable overhead rate variance for October is:

The amount shown for "Refurbishing materials" in the planning budget for March would have been closest to:

The spending variance for occupancy expenses in September would be closest to:

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

The labor rate variance for July is:

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