ACCT349 Week 1 Quiz Latest 2017 March

ACCT349 Week 1 Quiz Latest 2017 March

Subject: Business / Accounting
Question
1. Question : (TCO 10) Which of the following statements is true about overhead cost variance analysis using activity-based costing?

Overhead cost variances are calculated for output-unit level costs only.

Overhead cost variances are calculated for variable manufacturing overhead costs only.

A 4-variance analysis can be conducted.

Activity-based costing uses input measures for all activities, resulting in the inability to do flexible budgets needed for variance analysis.

.

Question 2. Question : (TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:

Variable overhead (5 hours at $12 per direct manufacturing labor hour) $ 60

Fixed overhead (5 hours at $15 per direct manufacturing labor hour,

based on capacity of 200,000 direct manufacturing labor hours per month) 75

Total overhead per switch $ 135

The following information is available for the month of December:

• 46,000 switches were produced, although 40,000 switches were scheduled to be produced.

• 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.

• Variable manufacturing overhead costs were $2,750,000.

• Fixed manufacturing overhead costs were $3,050,000.

The variable overhead spending variance for December was

$50,000 U

$350,000 U

$10,000 F

$60,000 F

Question 3. Question : (TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:

Variable overhead (5 hours at $12 per direct manufacturing labor hour) $ 60

Fixed overhead (5 hours at $15 per direct manufacturing labor hour,

based on capacity of 200,000 direct manufacturing labor hours per month) 75

Total overhead per switch $ 135

The following information is available for the month of December:

• 46,000 switches were produced, although 40,000 switches were scheduled to be produced.

• 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.

• Variable manufacturing overhead costs were $2,750,000.

• Fixed manufacturing overhead costs were $3,050,000.

The fixed overhead production volume variance for December was

$450,000 F

$400,000 F

$50,000 U

$775,000 F

Question 4. Question : (TCO 10) The following information is for Pappillon Corporation’s variable manufacturing overhead costs last month: favorable flexible-budget variance of $3,000, unfavorable efficiency variance of $2,500. The spending variance is

$500 favorable.

$5,500 unfavorable.

$5,500 favorable.

None of the above

Question 5. Question : (TCO 10) Budgeted overhead costs rates can be expressed as an amount per unit of output or per unit of input.

True

False