FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: Flexible Budgets and Standard Costs

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

Essay

Review LaterAdd Note

Review Later

Beluga Corp.has developed standard costs based on a predicted operating level of 352,000 units of production,which is 80% of capacity.Variable overhead is $281,600 at this level of activity,or $0.80 per unit.Fixed overhead is $440,000.The standard costs per unit are: Beluga actually produced 330,000 units at 75% of capacity and actual costs for the period were: Calculate the following variances and indicate whether each variance is favorable or unfavorable:

Correct Answer

verified

Show Answer

Question 102

Multiple Choice

Review LaterAdd Note

Review Later

A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z.The company has just produced 1,000 units of this product,using 5,200 pounds of Material J that cost $9,880.The direct materials quantity variance is:

A) $400 unfavorable.
B) $120 favorable.
C) $400 favorable.
D) $520 favorable.
E) $520 unfavorable.

F) A) and D)
G) None of the above

Correct Answer

verified

Show Answer

Question 103

Multiple Choice

Review LaterAdd Note

A company uses the following standard costs to produce a single unit of output. During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. -Based on this information,the total direct materials cost variance for the month was:

The following information describes a company's usage of direct labor in a recent period.The direct labor efficiency variance is:

Within the same flexible budget performance report,it is impossible to have both favorable and unfavorable variances.

Hatter,Inc.allocates fixed overhead at a rate of $17 per direct labor hour.This amount is based on 90% of capacity or 3,600 direct labor hours for 6,000 units.During July,Hatter produced 5,500 units.Budgeted fixed overhead is $66,000,and overhead incurred was $67,000. Required: Determine the volume variance for July.

A standard that takes into account the reality that some loss usually occurs with any process under normal application of the process is known as a ________ standard.

All of the following are associated with the volume variance except:

Georgia,Inc.has collected the following data on one of its products.The actual cost of direct materials used is:

The difference between actual price per unit of input and the standard price per unit of input results in a:

Firenze Company's fixed budget for the first quarter of the calendar year appears below.Prepare flexible budgets that show variable costs per unit,fixed costs and two different flexible budgets for sales volumes of 22,000 and 24,000.

Regent,Inc.uses the following standard to produce a single unit of its product: overhead $6 (2 hrs.@ $3/hr.) .The flexible budget for overhead is $100,000 plus $1 per direct labor hour.Actual data for the month show overhead costs of $150,000,and 24,000 units produced.The overhead volume variance is:

Management by exception means that managers focus on the most significant differences between actual costs and standard costs.

A company provided the following direct materials cost information.Compute the total direct materials cost variance.

Fletcher Company collected the following data regarding production of one of its products. -Compute the variable overhead cost variance.

The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound.In manufacturing 8,000 units,47,000 pounds of material were used at a cost of $51 per pound.What is the direct materials price variance?

The difference between the total actual overhead cost incurred and the total standard overhead cost applied is the ________.

Job #411 was budgeted to require 3.5 hours of labor at $11.00 per hour.However,it was completed in 3 hours by a person who worked for $14.00 per hour.What is the total labor cost variance for Job #4115?

A company uses the following standard costs to produce a single unit of output. During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. -Based on this information,the direct labor efficiency variance for the month was:

During November,Glime Company allocated overhead to products at the rate of $26.00 per direct labor hour.This figure was based on 80% of capacity or 1,600 direct labor hours.However,Glime Company operated at only 70% of capacity,or 1,400 direct labor hours.Budgeted overhead at 70% of capacity is $38,900,and overhead actually incurred was $38,000.What is the company's volume variance for November? (Indicate whether the variance is favorable or unfavorable)