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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

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Question 111

Multiple Choice

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Information on Westcott Corporation's direct labor costs for a recent month follows: What were the actual hours worked during the month, rounded to the nearest hour?

A) 10,714
B) 11,120
C) 11,200
D) 11,914

E) A) and B)
F) A) and C)

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Question 112

Multiple Choice

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The materials quantity variance for November is:

A) $3,880 F
B) $3,686 U
C) $3,686 F
D) $3,880 U

E) B) and D)
F) A) and D)

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Question 113

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The spending variance for equipment depreciation for the month should be:

The labor efficiency variance for February is:

A favorable labor rate variance indicates that

The variable overhead efficiency variance for January is:

Laizure Clinic uses patient-visits as its measure of activity.The clinic bases its budgets on the following information: Revenue should be $55.90 per patient-visit.Personnel expenses should be $35,700 per month plus $15.80 per patient-visit.Medical supplies should be $2,000 per month plus $11.20 per patient-visit.Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit.Administrative expenses should be $3,900 per month plus $0.10 per patient-visit. The clinic reported the following actual results for November: Required: Prepare a report showing the clinic's revenue and spending variances for November.Label each variance as favorable (F)or unfavorable (U).

What is the variable overhead efficiency variance for the month?

The selling and administrative expenses in the planning budget for May would be closest to:

The production department should generally be responsible for materials price variances that resulted from:

The direct labor standards for a particular product are 4 hours of direct labor at $12.00 per direct labor-hour = $48.00.During October, 3,350 units of this product were made, which was 150 units less than budgeted.The labor cost incurred was $159,786 and 13,450 direct labor-hours were worked.The direct labor variances for the month were:

What is the materials price variance for the month?

The selling and administrative expenses in the planning budget for July would be closest to:

The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for March would have been closest to:

The following direct labor standards have been established for product O64L: The following data pertain to last month's operations: Required: a.What was the labor rate variance for the month? b.What was the labor efficiency variance for the month?

The labor rate variance for September is:

Pleiss Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's standard variable manufacturing overhead rate is $2.40 per machine-hour.The actual variable manufacturing overhead cost for the month was $5,240.The original budget for the month was based on 2,100 machine-hours.The company actually worked 2,270 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,280 machine-hours.What was the variable overhead efficiency variance for the month?

Flexible budgets can be used when there is more than one cost driver (i.e., measure of activity).

Herlocker Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of February, it assumed that 26 containers would have been refurbished. The amount shown for revenue in the planning budget for February would have been closest to:

A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920.The materials price variance was $1,370 favorable.The standard price per kilogram for the raw material must be: