Question 1

A performance report for variable overhead reveals

Accepted Answer

A)  the aggregate variable overhead spending and efficiency variances. 
B)  the volume and spending variances. 
C)  the spending and efficiency variances for each variable overhead item. 
D)  both the aggregate variable overhead spending and efficiency variances and the spending and efficiency variances for each variable overhead item. 
E)  both the volume and spending variances and the spending and efficiency variances for each variable overhead item. 
A)  the aggregate variable overhead spending and efficiency variances. 
B)  the volume and spending variances. 
C)  the spending and efficiency variances for each variable overhead item. 
D)  both the aggregate variable overhead spending and efficiency variances and the spending and efficiency variances for each variable overhead item. 
E)  both the volume and spending variances and the spending and efficiency variances for each variable overhead item.

Question 2

A budget that allows the determination of expected costs for various levels of activity is a(n)

Accepted Answer

A)  operational budget. 
B)  sales budget. 
C)  production budget. 
D)  financial budget. 
E)  flexible budget. 
A)  operational budget. 
B)  sales budget. 
C)  production budget. 
D)  financial budget. 
E)  flexible budget.

Question 3

A before-the-fact flexible budget

Accepted Answer

A)  calculates expected costs for various levels of activity. 
B)  allows managers to deal with uncertainty. 
C)  can be used to generate results for a number of plausible scenarios. 
D)  is a useful planning tool. 
E)  All of these. 
A)  calculates expected costs for various levels of activity. 
B)  allows managers to deal with uncertainty. 
C)  can be used to generate results for a number of plausible scenarios. 
D)  is a useful planning tool. 
E)  All of these.

Question 4

Refer to Figure 11-8. Assume that the company uses only 90% of the activity capacity. The actual costs incurred at this level were:

Accepted Answer

The answer of Refer to Figure 11-8. Assume that the...

Question 5

An activity-based budgeting system may help support continuous improvement and process management.

Accepted Answer

A) True 
 B)False

Question 6

A performance report

Accepted Answer

A)  always uses static budgets. 
B)  compares actual costs with budgeted costs. 
C)  uses a static or a flexible budget. 
D)  both compares actual costs with budgeted costs and always uses static budget. 
E)  both always uses static budgets and usually uses flexible budgets. 
A)  always uses static budgets. 
B)  compares actual costs with budgeted costs. 
C)  uses a static or a flexible budget. 
D)  both compares actual costs with budgeted costs and always uses static budget. 
E)  both always uses static budgets and usually uses flexible budgets.

Question 7

Budgeted variable overhead for the year is $120,000. Expected activity is 20,000 standard direct labor hours. The actual hours worked were 18,000 and the standard hours allowed for actual production were 19,500. The variable overhead efficiency variance is

Accepted Answer

A)  $0. 
B)  $12,000 F. 
C)  $3,000 F. 
D)  $9,000 F. 
E)  None of these. 
A)  $0. 
B)  $12,000 F. 
C)  $3,000 F. 
D)  $9,000 F. 
E)  None of these.

Question 8

Match the following terms with the items below:
-Flexible budget

Accepted Answer

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 
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

Question 9

The two variances for fixed overhead are

Accepted Answer

A)  budget and volume. 
B)  spending and budget. 
C)  volume and spending. 
D)  efficiency and volume. 
E)  volume and efficiency. 
A)  budget and volume. 
B)  spending and budget. 
C)  volume and spending. 
D)  efficiency and volume. 
E)  volume and efficiency.

Question 10

Match the following terms with the items below:
-A _____________________ compares actual costs with budgeted costs.

Accepted Answer

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

Question 11

Match the following terms with the items below:
-Performance report

Accepted Answer

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 
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

Question 12

-Refer to Figure 11-4. Calculate the fixed overhead volume variance.

Accepted Answer

A)  $32,000 U 
B)  $20,000 F 
C)  $22,000 F 
D)  $4,000 U 
E)  None of these. 
A)  $32,000 U 
B)  $20,000 F 
C)  $22,000 F 
D)  $4,000 U 
E)  None of these.

Question 13

Because activities are what consume resources, activity-based budgeting may prove to be a much more powerful planning and control tool than the traditional approach.

Accepted Answer

A) True 
 B)False

Question 14

Shorts, Inc. produces small engines. For last year's operations, the following data were gathered:   Shorts, Inc. employs a standard costing system. During the year, a variable overhead rate of $8.00 was used. The labor standard requires 1.5 hours per unit produced. The variable overhead spending and efficiency variances are, respectively

Accepted Answer

A)  $100,000 U and $20,000 U. 
B)  $100,000 U and $20,000 F. 
C)  $20,000 U and $80,000 U. 
D)  $20,000 U and $80,000 F. 
E)  None of these. 
A)  $100,000 U and $20,000 U. 
B)  $100,000 U and $20,000 F. 
C)  $20,000 U and $80,000 U. 
D)  $20,000 U and $80,000 F. 
E)  None of these.

Question 15

When overhead is applied on the basis of direct labor hours, the variable overhead efficiency variance always has the same sign as the labor efficiency variance.

Accepted Answer

A) True 
 B)False

Question 16

A _________________ enables a firm to compute expected costs for a range of activity levels.

Accepted Answer

The answer of A _________________ enables a firm to compute...

Question 17

The formula for the fixed overhead spending variance is

Accepted Answer

A)  AFOH - SFOR * SH 
B)  AFOH - SFOR * AH 
C)  AFOH - BFOH 
D)  AFOH - SFOR * SH. 
E)  None of these. 
A)  AFOH - SFOR * SH 
B)  AFOH - SFOR * AH 
C)  AFOH - BFOH 
D)  AFOH - SFOR * SH. 
E)  None of these.

Question 18

In an activity flexible budget, the variable cost component typically corresponds to

Accepted Answer

A)  those resources that vary with direct labor hours. 
B)  resources acquired as needed. 
C)  resources acquired in advance of usage. 
D)  resources that do not change as the activity output changes. 
E)  None of these. 
A)  those resources that vary with direct labor hours. 
B)  resources acquired as needed. 
C)  resources acquired in advance of usage. 
D)  resources that do not change as the activity output changes. 
E)  None of these.

Question 19

The company expects to perform 25 setups in May.
-Refer to Figure 11-6. Calculate the fuel budget for the year for moving materials.

Accepted Answer

A)  $436,090 
B)  $228,300 
C)  $496,050 
D)  $312,100 
E)  $437,760 
A)  $436,090 
B)  $228,300 
C)  $496,050 
D)  $312,100 
E)  $437,760

Question 20

Activity-based budgeting focuses on estimating the costs of activities rather than the costs of departments and plants.

Accepted Answer

A) True 
 B)False

A performance report for variable overhead reveals

A budget that allows the determination of expected costs for various levels of activity is a(n)

A before-the-fact flexible budget

Refer to Figure 11-8. Assume that the company uses only 90% of the activity capacity. The actual costs incurred at this level were:

An activity-based budgeting system may help support continuous improvement and process management.

A performance report

Budgeted variable overhead for the year is $120,000. Expected activity is 20,000 standard direct labor hours. The actual hours worked were 18,000 and the standard hours allowed for actual production were 19,500. The variable overhead efficiency variance is

Match the following terms with the items below: -Flexible budget

The two variances for fixed overhead are

Match the following terms with the items below: -A _____________________ compares actual costs with budgeted costs.

Match the following terms with the items below: -Performance report

-Refer to Figure 11-4. Calculate the fixed overhead volume variance.

Because activities are what consume resources, activity-based budgeting may prove to be a much more powerful planning and control tool than the traditional approach.

When overhead is applied on the basis of direct labor hours, the variable overhead efficiency variance always has the same sign as the labor efficiency variance.

A _________________ enables a firm to compute expected costs for a range of activity levels.

The formula for the fixed overhead spending variance is

In an activity flexible budget, the variable cost component typically corresponds to

The company expects to perform 25 setups in May. -Refer to Figure 11-6. Calculate the fuel budget for the year for moving materials.

Activity-based budgeting focuses on estimating the costs of activities rather than the costs of departments and plants.

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

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Exam 11: Flexible Budgets and Overhead Analysis

A performance report for variable overhead reveals

A budget that allows the determination of expected costs for various levels of activity is a(n)

A before-the-fact flexible budget

Refer to Figure 11-8. Assume that the company uses only 90% of the activity capacity. The actual costs incurred at this level were:

An activity-based budgeting system may help support continuous improvement and process management.

A performance report

Budgeted variable overhead for the year is $120,000. Expected activity is 20,000 standard direct labor hours. The actual hours worked were 18,000 and the standard hours allowed for actual production were 19,500. The variable overhead efficiency variance is

Match the following terms with the items below: -Flexible budget

The two variances for fixed overhead are

Match the following terms with the items below: -A _____________________ compares actual costs with budgeted costs.

Match the following terms with the items below: -Performance report

-Refer to Figure 11-4. Calculate the fixed overhead volume variance.

Because activities are what consume resources, activity-based budgeting may prove to be a much more powerful planning and control tool than the traditional approach.

When overhead is applied on the basis of direct labor hours, the variable overhead efficiency variance always has the same sign as the labor efficiency variance.

A _________________ enables a firm to compute expected costs for a range of activity levels.

The formula for the fixed overhead spending variance is

In an activity flexible budget, the variable cost component typically corresponds to

The company expects to perform 25 setups in May. -Refer to Figure 11-6. Calculate the fuel budget for the year for moving materials.

Activity-based budgeting focuses on estimating the costs of activities rather than the costs of departments and plants.

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