Question 1

The variable overhead efficiency variance claims to measure

Accepted Answer

A)  changes in spending efficiency. 
B)  productive efficiency. 
C)  changes in variable overhead costs because of the efficient (inefficient) use of the cost driver. 
D)  changes in variable overhead costs attributable to inefficient purchase of variable inputs. 
E)  None of these. 
A)  changes in spending efficiency. 
B)  productive efficiency. 
C)  changes in variable overhead costs because of the efficient (inefficient) use of the cost driver. 
D)  changes in variable overhead costs attributable to inefficient purchase of variable inputs. 
E)  None of these.

Question 2

Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs:
  
-Refer to Figure 11-3. Using an after-the-fact flexible budget, calculate the variance for power.

Accepted Answer

A)  $1,000 F 
B)  $1,010 U 
C)  $3,000 U 
D)  $1,010 F 
E)  None of these. 
A)  $1,000 F 
B)  $1,010 U 
C)  $3,000 U 
D)  $1,010 F 
E)  None of these.

Question 3

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

Accepted Answer

direct lab

Question 4

The two variances for variable overhead are

Accepted Answer

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

Question 5

Activity-based budgeting classifies costs as variable or fixed with respect to the activity output measure.

Accepted Answer

A) True 
 B)False

Question 6

Refer to Figure 11-8. Prepare an annual budget for the activity, assuming that all of the capacity of the activity is used (use miles as the activity driver). Identify which resources you would treat as fixed costs and which would be viewed as variable costs.

Accepted Answer

@#IMG-DLM& 
Capacity is determ

Question 7

A performance report using activity flexible budgeting compares

Accepted Answer

A)  budgeted costs for actual activity usage levels with the actual activity costs. 
B)  actual activity costs with budgeted overhead costs. 
C)  actual overhead costs with the budgeted activity costs for actual activity usage levels. 
D)  the static activity budget costs with the budgeted activity costs for the actual activity usage levels. 
E)  None of these. 
A)  budgeted costs for actual activity usage levels with the actual activity costs. 
B)  actual activity costs with budgeted overhead costs. 
C)  actual overhead costs with the budgeted activity costs for actual activity usage levels. 
D)  the static activity budget costs with the budgeted activity costs for the actual activity usage levels. 
E)  None of these.

Question 8

Activity-based budgeting builds a budget for each activity based on the resources needed to provide the required activity output levels.

Accepted Answer

A) True 
 B)False

Question 9

Griffen Corporation uses a standard costing system. Information for the month of May is as follows:   The factory 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 variable overhead efficiency 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 10

If an organization has implemented an ABC or ABM system, they will already have accomplished which of the following?

Accepted Answer

A)  Identified the activities within an organization. 
B)  Estimated the demand for each activity's output. 
C)  Assessed the cost of resources required to produce this activity output. 
D)  All of these. 
E)  None of these. 
A)  Identified the activities within an organization. 
B)  Estimated the demand for each activity's output. 
C)  Assessed the cost of resources required to produce this activity output. 
D)  All of these. 
E)  None of these.

Question 11

If actual fixed overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed overhead must have been

Accepted Answer

A)  $56,300. 
B)  $50,300. 
C)  $53,000. 
D)  $52,700. 
A)  $56,300. 
B)  $50,300. 
C)  $53,000. 
D)  $52,700.

Question 12

Because fixed overhead is made up of many items

Accepted Answer

A)  the fixed overhead spending variance is not meaningful. 
B)  it is not possible to calculate a fixed overhead volume variance. 
C)  the fixed overhead volume variance will always be unfavorable. 
D)  a line by line comparison of budgeted costs with actual costs provides more information. 
E)  All of these. 
A)  the fixed overhead spending variance is not meaningful. 
B)  it is not possible to calculate a fixed overhead volume variance. 
C)  the fixed overhead volume variance will always be unfavorable. 
D)  a line by line comparison of budgeted costs with actual costs provides more information. 
E)  All of these.

The variable overhead efficiency variance claims to measure

Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs: -Refer to Figure 11-3. Using an after-the-fact flexible budget, calculate the variance for power.

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

The two variances for variable overhead are

Activity-based budgeting classifies costs as variable or fixed with respect to the activity output measure.

Refer to Figure 11-8. Prepare an annual budget for the activity, assuming that all of the capacity of the activity is used (use miles as the activity driver). Identify which resources you would treat as fixed costs and which would be viewed as variable costs.

A performance report using activity flexible budgeting compares

Activity-based budgeting builds a budget for each activity based on the resources needed to provide the required activity output levels.

If an organization has implemented an ABC or ABM system, they will already have accomplished which of the following?

If actual fixed overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed overhead must have been

Because fixed overhead is made up of many items

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

The variable overhead efficiency variance claims to measure

Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs: -Refer to Figure 11-3. Using an after-the-fact flexible budget, calculate the variance for power.

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

The two variances for variable overhead are

Activity-based budgeting classifies costs as variable or fixed with respect to the activity output measure.

Refer to Figure 11-8. Prepare an annual budget for the activity, assuming that all of the capacity of the activity is used (use miles as the activity driver). Identify which resources you would treat as fixed costs and which would be viewed as variable costs.

A performance report using activity flexible budgeting compares

Activity-based budgeting builds a budget for each activity based on the resources needed to provide the required activity output levels.

If an organization has implemented an ABC or ABM system, they will already have accomplished which of the following?

If actual fixed overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed overhead must have been

Because fixed overhead is made up of many items

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