Exam 12: Flexible Budgets and Variance Analysis

Warren Company's overhead cost information is given below: Required: a. Compute the total overhead variance. b. Calculate the flexible-budget variance. c. Determine the fixed overhead volume variance.

The variances between the flexible budget and the actual results.

The following data apply to Walker Corporation for the year 20X4. -For Product X, the total actual quantity used was

The following information pertains to Finger Company: ^*Direct labour is measured in hours -The price variance for direct labour is

A company had the following information pertaining to two different cases: -The applied factory overhead cost in Case Y was

The amount of fixed manufacturing overhead applied to each unit of production.

Harrison Company had the following information: -What are the total manufacturing costs for 15,000 units?

The following data apply to Walker Corporation for the year 20X4. -The costing system that uses actual direct labour and materials cost but uses standards for applying overhead is called

A budget that adjusts for changes in sales volume and other cost driver activities.

The differences between the master budget amounts and the amounts in the flexible budget.

A performance report should include variances that indicate the difference between expected future results and desired results.

A company had the following information pertaining to two different cases: -The total overhead variance in Case Y was

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

The following data apply to Walker Corporation for the year 20X4. -For Product Y, the usage variance was

Fill in the missing information in the following table: Actual quantity produced 400 units

All master budgets are prepared for only one level of activity.

The Fenmore Company uses standard costing for direct materials and direct labour. Management would like to use standard costing for variable and fixed overhead also. The following monthly cost functions were developed for manufacturing overhead items: The cost functions are considered reliable within a relevant range of 30,000 to 55,000 direct labour hours. Fenmore expects to operate at 40,000 direct labour hours per month. Information for the month of September is as follows: a. Calculate the standard manufacturing overhead rate based upon expected capacity showing the breakdown between the fixed overhead rate and the variable overhead rate. b. Calculate the variable manufacturing overhead spending variance. c. Calculate the variable manufacturing overhead efficiency variance. d. Calculate the fixed manufacturing overhead budget variance. e. Calculate the fixed manufacturing overhead volume variance.

A variance that appears whenever actual production deviates from the expected volume of production used in computing the fixed-overhead rate.

When actual volume is less than expected volume, fixed overhead is overapplied.

The following data pertain to June operations for the Harley Company: Actual output was 750 units. The Company's per unit standards call for 9 yards of direct material at $9.00 per yard and 3 hours of direct labour at $10.50 per hour. Required: Compute the price and usage variances for direct material and direct labour.