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Exam 24: Flexible Budgets and Standard Costs

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Question 61

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Cabot Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.

A) $18,300 favorable.
B) $18,000 favorable.
C) $18,000 unfavorable.
D) $18,300 unfavorable.
E) $14,300 unfavorablE.Actual variable overhead costs = $1,140,000

F) A) and D)
G) C) and D)

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Question 62

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Gates Company reports the following information regarding the production on one of its products for the month. Compute the direct labor cost variance, the direct labor rate variance, the direct labor efficiency variance and identify each as either favorable or unfavorable.

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Question 63

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Bok Company's output for the current period was assigned a $200,000 standard direct materials cost. The direct materials variances included a $5,000 favorable price variance and a $3,000 unfavorable quantity variance. What is the actual total direct materials cost for the current period?

A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total controllable cost variance is:

The difference between actual and standard cost caused by the difference between the actual price and the standard price is called the:

Stanton Co. produces and sells two lines of t-shirts, Deluxe and Mega. Stanton provides the following data. Compute the sales price and the sales volume variances for each product.

Bartels Corp. produces woodcarvings. It takes 2 hours of direct labor to produce a carving. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor rate variance for August?

Elroy Co. has prepared the following fixed budget for the year, assuming production and sales of 30,000 units. This level of production represents 80% of capacity. Calculate the following flexible budget amounts at the indicated levels of capacity:

Kyle, Inc. has collected the following data on one of its products. The direct materials quantity variance is:

______________________ are preset costs for delivering a product or service under normal conditions.

One possible explanation for direct labor rate and efficiency variances is the use of workers with different skill levels.

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.

Fixed budget performance reports compare actual results with the expected amounts in the fixed budget.

Cabot Company collected the following data regarding production of one of its products. Compute the direct labor efficiency variance.

An overhead cost variance is the difference between the actual overhead incurred for the period and the standard overhead applied.

A flexible budget expresses all costs on a per unit basis.

Falcon Company's output for a period was assigned the standard direct labor cost of $17,160. If the company had a favorable direct labor rate variance of $1,000 and an unfavorable direct labor efficiency variance of $275, what was the total actual cost of direct labor incurred during the period?

Standard costs are used in the calculation of:

The difference between the actual sales and the flexible budget sales is called the ______________________ variance.

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