Exam 23: Flexible Budgets and Standard Costs

Anniston Co.planned to produce and sell 40,000 units.At that volume level,variable costs are determined to be $320,000 and fixed costs are $30,000.The planned selling price is $10 per unit.Anniston actually produced and sold 42,000 units. Using a contribution margin format: (a)Prepare a fixed budget income statement for the planned level of sales and production. (b)Prepare a flexible budget income statement for the actual level of sales and production.

The difference between actual quantity of input used and the standard quantity of input used results in a:

Overhead cost variance is:

The fixed overhead variance can be broken down into the _________________ variance and the _________________ variance. Answers can appear in any order.

A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per unit and fixed overhead costs of $72,000.The company incurred total overhead costs of $148,800 while operating at a volume of 40,000 units.The total controllable cost variance is:

Based on a predicted level of production and sales of 22,000 units,a company anticipates total variable costs of $99,000,fixed costs of $30,000,and operating income of $36,000.Based on this information,the budgeted amount of sales for 20,000 units would be:

Claremont Company specializes in selling refurbished copiers.During the month,the company sold 180 copiers at an average price of $3,000 each.The budget for the month was to sell 175 copiers at an average price of $3,200.The expected total sales for 180 copiers were.

Standard costs are:

Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units.The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units.What is the direct materials quantity variance?

Lionaire,Inc.has developed the following standard cost data based on 60,000 direct labor hours,which is 75% of capacity. During the last period,the company operated at 80% of capacity and produced 128,000 units.Actual costs were: Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances.Indicate whether each variance is favorable or unfavorable.

Claymore Corp.has the following information about its standards and production activity for September.The volume variance is:

During November,Gliem Company allocated overhead to products at the rate of $26.00 per direct labor hour.This figure was based on 80% of capacity or 1,600 direct labor hours.However,Gliem Company operated at only 70% of capacity,or 1,400 direct labor hours.Budgeted overhead at 70% of capacity is $38,900,and overhead actually incurred was $38,000.What is the company's volume variance for November? (Indicate whether the variance is favorable or unfavorable)

An overhead cost variance is the difference between the total overhead actually incurred for the period and the standard overhead applied to products.

The following information relating to a company's overhead costs is available. Based on this information,the total variable overhead variance is:

In this type of control system,the master budget is based on a single prediction for sales volume,and the budgeted amount for each cost essentially assumes that a specific amount of sales will occur:

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

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour.The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.What is the total labor cost variance?

The following company information is available for March.The direct materials price variance is:

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

A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z.The company has just produced 1,000 units of this product,using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is: