Exam 8: Flexible Budgets, Variances, and Management Control: II

Use the information below to answer the following question(s). Moeller Electric manufactures light fixtures. The following information pertains to the company's manufacturing overhead data. -What is Moeller Electric's variable manufacturing overhead static-budget variance?

If Pope Inc. uses standard costing, the overhead allocated to work in process is recorded as a

In the journal entry that records overhead variances, the manufacturing overhead allocated accounts are closed.

Use the information below to answer the following question(s). Moeller Electric manufactures light fixtures. The following information pertains to the company's manufacturing overhead data. -Assume that variable manufacturing overhead is allocated according to machine-hours. Aladdin Company expects to produce 400 cases of Product A using 400 machine-hours. Each machine hour is expected to take 10 KWH of electricity, which costs $6 per KWH. What is the maximum amount the company would be willing to pay for the new machine based solely on rate and efficiency variances if a new energy-efficient machine only used 8 KWH per machine-hour?

All-Green Company has traditionally used only financial accounting for its decision making purposes. The president recently attended a seminar for small-business executives where the importance of managerial accounting was stressed as a way to improve operating decisions. The president was very interested in the use of managerial accounting as a way of planning the company's manufacturing overhead. It seems that the managers have always been at odds over how to best control the overhead accounts. Required: Explain how the planning of variable and fixed manufacturing overhead can improve the company's decision making process.

The variable overhead efficiency variance is computed in a different way than the efficiency variance for direct-cost items.

Two of the primary ways to manage variable-overhead costs include

Cirilla's Weathervane Company manufactures weathervanes. The 2012 operating budget is based on the production of 10,000 weathervanes with 1.25 machine-hour allowed per weathervane. Variable manufacturing overhead is anticipated to be $300,000. Actual production for 2012 was 11,000 weathervanes using 12,100 machine-hours. Actual variable costs were $23.75 per machine-hour. Required: Calculate the variable overhead rate and the efficiency variances.

Effective planning of variable overhead costs means that a company performs those variable overhead costs that primarily add value

How can a standard costing system be useful in negotiating new sales?

Answer the following question(s) using the information below. Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March: -What is the fixed overhead production-volume variance?

Delivering value to the customer requires executing activities important to the value proposition. Many of the activities cannot be evaluated by financial measures of performance. List five non-financial measures of performance applicable to the hospitality industry.

The variable overhead flexible-budget variance measures the difference between standard variable overhead costs and flexible-budget variable overhead costs.

A favourable variable manufacturing overhead efficiency variance may be interpreted as meaning which of the following?

Answer the following question(s) using the information below. Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March: -What is the flexible-budget amount for fixed-overhead?

The budgeted fixed overhead rate per output unit is computed by dividing budgeted fixed overhead costs by the level of input units.

A favourable production-volume variance indicates that the company

A favourable variable manufacturing overhead efficiency variance may be interpreted as meaning which of the following?

Different management levels in Bates Inc. require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows: Required: a. Compute a 4-variance analysis for the plant controller. b. Compute a 3-variance analysis for the plant manager. c. Compute a 2-variance analysis for the corporate controller. d. Compute the flexible-budget variance for the manufacturing vice-president.

The first step in developing variable overhead rates is