Exam 12: Flexible Budgets and Variance Analysis

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000. -Flexible budgets help to measure

In most companies, variances are investigated only if they exceed a minimum dollar or percentage deviation from budgeted amounts.

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000. -If the total sales activity variance was $15,000 favourable, and the total master-budget variance was $17,500 favourable, then the total flexible-budget variance must have been

The following data are for Parker Corporation for 20X4. -The total of the flexible-budget variances is

Woodlund Company had the following information: -What are the total selling and administrative expenses for 15,000 units?

The following information is for Doran Corporation: ^*Direct material is measured in pounds -The total flexible-budget variance for direct material is

Favourable flexible-budget variances are always viewed as positive.

Flexible budgets evaluate whether operations are effective or not.

The Clamen Company makes table lamps, for which the following standards have been developed: During October, production of 100 lamps was expected, but 110 lamps were actually completed. Direct materials purchased and used were 2,100 pounds at an actual price of $2.20 per pound. Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00. -The direct-labour usage variance for the month of October is

The Clamen Company makes table lamps, for which the following standards have been developed: During October, production of 100 lamps was expected, but 110 lamps were actually completed. Direct materials purchased and used were 2,100 pounds at an actual price of $2.20 per pound. Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00. -The direct-material usage variance for October is

The following data apply to Walker Corporation for the year 20X4. -When actual volume is less than expected volume, fixed overhead is

The following data apply to Walker Corporation for the year 20X4. -For Product Y, the total standard material cost for producing the 300 units was

Harrison Company had the following information: -What are the total selling and administrative expenses for 10,000 units?

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000. -With regard to flexible-budget variances, Caulkins Corporation showed a $2,000 unfavourable variable cost variance and a $450 favourable fixed cost variance. The variance for operating income was

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000. -Identify which of the statements below is NOT a reason why actual results would differ from those projected in the master budget.

A usage variance measures actual deviations from the quantity of inputs that should have been used to achieve the actual output quantity.

Harrison Company had the following information: -What are the total selling and administrative expenses for 15,000 units?

Flexible budgets are designed to show different possible costs for one anticipated level of output.

Use the following information to answer the next question(s): The standard cost sheet for one of the Vitton Company's products is presented below. *Rate based on expected activity of 12,000 hours The following results for last year were recorded. -The labour efficiency variance is

One cause of a flexible-budget variance might be a difference between expected and actual hourly wages for factory workers.