Question 1

The Haney Corporation has a standard costing system.Variable manufacturing overhead is applied on the basis of direct labor-hours.The following data are available for January: 
• Actual variable manufacturing overhead: $25,500
• Actual direct labor-hours worked: 5,800
• Variable overhead rate variance: $600 Favorable
• Variable overhead efficiency variance: $2,475 Unfavorable
The standard hours allowed for January production is:

Accepted Answer

A)  5,975 hours
B)  5,800 hours
C)  5,425 hours
D)  5,250 hoursE) A) and B)
F) None of the above

Question 2

The "Employee salaries and wages" in the flexible budget for October would have been closest to:

Accepted Answer

A)  $85,800
B)  $84,000
C)  $74,000
D)  $80,800E) C) and D)
F) All of the above

Question 3

Amirault Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $4.00 per MH.During the month, the actual total variable manufacturing overhead was $18,040 and the actual level of activity for the period was 4,100 MHs.What was the variable overhead rate variance for the month?

Accepted Answer

A)  $410 Favorable
B)  $1,640 Unfavorable
C)  $1,640 Favorable
D)  $410 UnfavorableE) B) and D)
F) All of the above

Question 4

The variable overhead efficiency variance for July is:

Accepted Answer

A)  $600 U
B)  $540 U
C)  $540 F
D)  $600 FE) A) and B)
F) B) and D)

Question 5

Actual costs are determined by plugging the actual level of activity for the period into the cost formulas used in flexible budgets.

Accepted Answer

A) True 
 B)False

Question 6

The raw materials quantity variance for the month is closest to:

Accepted Answer

A)  $77 U
B)  $85 F
C)  $85 U
D)  $77 FE) All of the above
F) A) and D)

Question 7

The personnel expenses in the planning budget for January would be closest to:

Accepted Answer

A)  $73,100
B)  $72,200
C)  $69,720
D)  $71,341E) C) and D)
F) A) and B)

Question 8

Difabio Tech is a for-profit vocational school.The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course.The school uses the following data in its budgeting:   In June, the school budgeted for 1,070 students and 90 courses.The actual activity for the month was 1,370 students and 95 courses.
Required:
Prepare the school's flexible budget for the actual level of activity in June.

Accepted Answer

The answer of Difabio Tech is a for-profit vocational school.The...

Question 9

The spending variance for occupancy costs for the month is:

Accepted Answer

A)  $2,110 U
B)  $2,990 U
C)  $2,990 F
D)  $2,110 FE) None of the above
F) All of the above

Question 10

Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below:  The original budget was based on 4,200 machine-hours.The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours.What was the overall variable overhead efficiency variance for the month?

Accepted Answer

A)  $130 Unfavorable
B)  $950 Favorable
C)  $1,310 Favorable
D)  $1,440 UnfavorableE) B) and C)
F) None of the above

Question 11

The manufacturing overhead in the flexible budget for December would be closest to:

Accepted Answer

A)  $41,350
B)  $40,733
C)  $41,250
D)  $41,310E) A) and C)
F) All of the above

Question 12

Ruiz Clinic bases its budgets on the activity measure patient-visits.During July, the clinic planned for an activity level of 3,700 patient-visits, but the activity level was actually 3,600 patient-visits.The clinic has provided the following data concerning the formulas it uses in its budgeting:  Required: 
Prepare the clinic's flexible budget for July based on the actual level of activity for the month.

Accepted Answer

The answer of Ruiz Clinic bases its budgets on the...

Question 13

The net operating income in the flexible budget for June would be closest to:

Accepted Answer

A)  $8,957
B)  $11,152
C)  $11,780
D)  $8,748E) C) and D)
F) None of the above

Question 14

The labor efficiency variance for the month is closest to:

Accepted Answer

A)  $5,425 U
B)  $5,425 F
C)  $5,325 U
D)  $5,325 FE) B) and D)
F) All of the above

Question 15

Bonavita Corporation is a service company that measures its output by the number of customers served.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 July, it assumed that 33 customers would have been served. The amount shown for net operating income in the planning budget for July would have been closest to:

Accepted Answer

A)  ($4,300) 
B)  ($1,414) 
C)  ($1,200) 
D)  $8,200E) B) and C)
F) A) and D)

Question 16

The standard hours allowed for the actual output is closest to:

Accepted Answer

A)  3,510 hours
B)  3,092 hours
C)  3,780 hours
D)  3,330 hoursE) B) and C)
F) A) and D)

Question 17

The labor rate variance is:

Accepted Answer

A)  $625 U
B)  $500 F
C)  $500 U
D)  $625 FE) A) and B)
F) All of the above

Question 18

The standard cost card for one unit of a finished product shows the following:  If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

Accepted Answer

A)  $2
B)  $3
C)  $4
D)  $5E) B) and C)
F) A) and D)

Question 19

The variable overhead rate variance for June is:

Accepted Answer

A)  $210 U
B)  $229 F
C)  $229 U
D)  $210 FE) A) and B)
F) A) and C)

Question 20

The food and supplies in the flexible budget for December would be closest to:

Accepted Answer

A)  $30,000
B)  $30,348
C)  $29,791
D)  $30,510E) A) and B)
F) B) and C)

Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The personnel expenses in the planning budget for January would be closest to:

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The food and supplies in the flexible budget for December would be closest to:

Correct Answer
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The manufacturing overhead in the flexible budget for December would be closest to:

Correct Answer
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The "Employee salaries and wages" in the flexible budget for October would have been closest to:

Correct Answer
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The labor rate variance is:

Correct Answer
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The standard cost card for one unit of a finished product shows the following: If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

Correct Answer
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Actual costs are determined by plugging the actual level of activity for the period into the cost formulas used in flexible budgets.

Correct Answer
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The spending variance for occupancy costs for the month is:

Correct Answer
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The raw materials quantity variance for the month is closest to:

Correct Answer
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The variable overhead efficiency variance for July is:

Correct Answer
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The labor efficiency variance for the month is closest to:

Correct Answer
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The net operating income in the flexible budget for June would be closest to:

Correct Answer
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The variable overhead rate variance for June is:

Correct Answer
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The standard hours allowed for the actual output is closest to:

Correct Answer
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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The personnel expenses in the planning budget for January would be closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The food and supplies in the flexible budget for December would be closest to:

Correct AnswerverifiedShow Answer

The manufacturing overhead in the flexible budget for December would be closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The "Employee salaries and wages" in the flexible budget for October would have been closest to:

Correct AnswerverifiedShow Answer

The labor rate variance is:

Correct AnswerverifiedShow Answer

The standard cost card for one unit of a finished product shows the following: If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

Correct AnswerverifiedShow Answer

Actual costs are determined by plugging the actual level of activity for the period into the cost formulas used in flexible budgets.

Correct AnswerverifiedShow Answer

The spending variance for occupancy costs for the month is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The raw materials quantity variance for the month is closest to:

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for July is:

Correct AnswerverifiedShow Answer

The labor efficiency variance for the month is closest to:

Correct AnswerverifiedShow Answer

The net operating income in the flexible budget for June would be closest to:

Correct AnswerverifiedShow Answer

The variable overhead rate variance for June is:

Correct AnswerverifiedShow Answer

The standard hours allowed for the actual output is closest to:

Correct AnswerverifiedShow Answer

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