QUESTION 1 The difference between the actual fixed manufacturing
Subject: Business / Accounting
Question
QUESTION 1
The difference between the actual fixed manufacturing overhead cost and the budgeted fixed
manufacturing overhead cost is the
fixed overhead spending variance. fixed overhead volume variance. fixed overhead rate variance.
fixed overhead efficiency variance. 10 points
QUESTION 2
XYZ Co. has a material standard of 2 pounds per unit of output. Each pound has a standard price of $12
per pound. During February, XYZ Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400
units. What is the direct materials price variance?
$1,420 favorable $860 favorable $1,420 unfavorable
$860 unfavorable
10 points
QUESTION 3
Standard cost systems depend on which two types of standards?
A. Rate and Price B. Quantity and Price
C. Quantity and Efficiency
D. Rate and Spending
10 points
QUESTION 4
Albertville has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage
rate of $22.50 per hour. During July, Albertville paid $189,500 to employees for 8,890 hours worked.
4,700 units were produced during July. What is the direct labor rate variance? $11,475 favorable
$22,000 favorable $10,525 unfavorable
$10,525 favorable
10 points
QUESTION 5
A spending variance is made up of volume variance and quantity variance.
price variance and volume variance.
price variance and rate variance. price variance and quantity variance. 10 points
QUESTION 6
XYZ Corp prepared a master budget that included $17,800 for direct materials, $28,000 for direct labor,
$15,000 for variable overhead, and $38,700 for fixed overhead. Wadjase Corp planned to sell 4,000 units
during the period, but actually sold 4,300 units.
How much would direct labor cost be on a flexible budget for the period based on actual sales? A. $30,100
B. $12,040
C. $26,047
D. $28,000
10 points
QUESTION 7
W Co. has a material standard of 2 pounds per unit of output. Each pound has a standard price of $12
per pound. During February, W Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400
units. What is the direct materials quantity variance?
$480 favorable $1,420 unfavorable $9,980 favorable $9,120 favorable
10 points
QUESTION 8 Pulam, Inc. prepared the following master budget items for July.
Budgeted Production and Sales 30,000 units Variable Manufacturing Costs:
Direct Materials $45,000 Direct Labor $60,000 Variable Overhead
Fixed Overhead $75,000
$100,000 Total Manufacturing Costs $280,000 During July, Pulam actually sold 24,000 units. Prepare a flexible budget for Pulam based on actual sales.
Be sure to show total flexible budgeted costs for direct materials, direct labor, variable overhead, fixed
costs and total costs just like the original budget. Path: p
Words:0
10 points
QUESTION 9 Evaluate the following question and give a hypothetical example that will back up your answer.
When evaluating variances, is it best for managers and others to consider only one variance at a time?
If so why, if not why not? Path: p
Words:0
10 points
QUESTION 10
A master budget is an example of a
A. static budget
B. flexible budget
C. volume variance
D. standard cost card
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