Exam 8: Flexible Budgets and Variance Analysis

Yugo Company produces 2,500 units.Each unit was expected to require 2 labor hours at a cost of $10 per hour.Total labor cost was $52,250 for 4,750 hours worked.Direct labor is measured in labor hours.What is the flexible budget variance for direct labor?

The Petunia Company makes mugs for which the following standards have been developed: Production of 400 mugs was expected in August,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct labor price variance for August?

The variable overhead spending variance combines ________ and ________ effects.

Variable overhead efficiency variances are unfavorable when actual cost driver activity exceeds the ________.

Favorable flexible budget variances for costs may indicate that costs are well-managed.On the other hand,these same variances can indicate ________.

Flexible budget variances are more useful for evaluating ________ than static budget variances.

The flexible budget variance for direct labor equals the labor price variance plus the labor quantity variance.

Farmers Insurance Company had a static budgeted operating income of $8.6 million.Actual operating income was $6.4 million.What is the static-budget variance of operating income?

The following data for the Fragile Company pertain to the production of 1,000 clay bottles during July: What is the variable overhead flexible budget variance?

Divine Intervention Company uses activity-based costing.The company is trying to estimate the costs of the processing activity in the factory.The company has developed the following flexible budget formula: Y = $10.50X + $13,000 Where: Y = Total processing cost per quarter and X = Number of machine hours What are the expected total processing costs if 10,000 machine hours are expected next quarter?

A company that has an activity-based costing system with multiple cost drivers will prepare a(n)________ budget.

If the flexible budget variance was $6,000 Favorable and the sales activity variance was $3,000 Favorable,then the static budget variance was ________.

The static budget variance is the difference between actual results and the static budget.

Flat Company currently produces cardboard boxes in an automated process.Expected production per month is 40,000 units.The required direct materials cost $0.30 per unit.Manufacturing fixed overhead costs are $24,000 per month.The cost driver for manufacturing fixed overhead costs is units of production.In a static budget at 40,000 units,the total fixed cost is ________ per month and the total variable cost is ________ per month.

The quantity variance and efficiency variance for direct labor are different types of variances.

Red Company had the following information available: Expected Costs and Selling Price Based on 5,000 Units: In the flexible budget at 15,000 units,what is the total manufacturing cost?

Jeff Olson Company has the following information available: The cost driver of product costs is units of output.What is the flexible budget variance for direct material costs?

The following data are for Point Corporation: The flexible budget variance for operating income is ________.

Hut Company's variable selling and administrative expenses are $48,000 at a production level of 6,000 units.If the production level is 8,000 units,what are the variable selling administrative expenses?

Use the following data to prepare a flexible budget for possible production levels of 5,000,5,500 and 6,000 units.Assume all levels of production are in the same relevant range. Variable costs: Fixed costs(at 5,000 units):