Exam 8: Flexible Budgets, Overhead Cost Variances, and Management Control

Answer the following questions using the information below: Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks. Frank's uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: -What is the flexible-budget amount for variable manufacturing overhead?

The fixed overhead cost variance can be further subdivided into the:

Answer the following questions using the information below: Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks. Frank's uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: -Variable-manufacturing overhead costs were ________ for actual output.

The amount reported for fixed overhead on the static budget is also reported:

Answer the following questions using the information below: Christine Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: -Variable-manufacturing overhead costs were ________ for actual output.

Answer the following questions using the information below: Munoz, Inc., produces a special line of plastic toy racing cars. Munoz, Inc., produces the cars in batches. To manufacture a batch of the cars, Munoz, Inc., must set up the machines and molds. Setup costs are batch-level costs because they are associated with batches rather than individual units of products. A separate Setup Department is responsible for setting up machines and molds for different styles of car. Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup-hours. The following information pertains to June 2011: -Calculate the spending variance for fixed setup overhead costs.

Kristin's Basketball Manufacturing Company reported: To isolate these variances at the end of the accounting period, Kristin would debit:

Answer the following questions using the information below: Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following fixed overhead data pertain to March: -What is the fixed overhead production-volume variance?

Variance analysis of fixed overhead costs is also useful when a company uses activity-based costing.

Answer the following questions using the information below: Roberts Corporation manufactured 100,000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February: -What is the variable overhead efficiency variance?

Answer the following questions using the information below: Rutch Corporation manufactured 54,000 door jambs during September. The fixed-overhead cost-allocation rate is $50.00 per machine-hour. The following fixed overhead data pertain to September: -What is the amount of fixed overhead allocated to production?

Answer the following questions using the information below: Roberts Corporation manufactured 100,000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February: -What is the actual variable overhead cost?

Answer the following questions using the information below: -In a 1-variance analysis the total overhead variance should be:

At the end of the fiscal year, the fixed overhead spending variance is always prorated among work-in-process control, finished goods control, and cost of goods sold on the basis of the fixed overhead allocated to these accounts.

Answer the following questions using the information below: Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: -What is the flexible-budget variance for variable manufacturing overhead?

Answer the following questions using the information below: Rutch Corporation manufactured 54,000 door jambs during September. The fixed-overhead cost-allocation rate is $50.00 per machine-hour. The following fixed overhead data pertain to September: -What is the flexible-budget amount?

Under activity-based costing, the flexible-budget amount equals the static-budget amount for fixed overhead costs.

Effective planning of fixed overhead costs includes all of the following EXCEPT:

Answer the following questions using the information below: Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following fixed overhead data pertain to March: -The difference between budgeted fixed manufacturing overhead and the fixed manufacturing overhead allocated to actual output units achieved is called the fixed overhead:

Answer the following questions using the information below: Patel Corporation manufactured 1,000 coolers during October. The following variable overhead data pertain to October: -What is the variable overhead spending variance?