Exam 10: Reporting and Analyzing Liabilities

Stone Industries uses flexible budgets.At normal capacity of 16,000 units, budgeted manufacturing overhead is: $48,000 variable and $270,000 fixed.If Stone had actual overhead costs of $321,000 for 18,000 units produced, what is the difference between actual and budgeted costs?

Shane Industries prepared a fixed budget of 60,000 direct labor hours, with estimated overhead costs of $300,000 for variable overhead and $90,000 for fixed overhead.Shane then prepared a flexible budget at 57,000 labor hours.How much is total overhead costs at this level of activity?

The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called

Which of the following is not a true statement?

Which of the following is not an indirect fixed cost?

Given below is an excerpt from a management performance report: Budget Actual Difference Contribution margin \ 600,000 \ 580,000 \ 20,000\cup Controllable fixed costs \ 200,000 \ 220,000 \ 20,000\cup The manager's overall performance

All of the following statements are correct about management by exception except it

Which of the following valuations of operating assets is not readily available from the accounting records?

A static budget is one that is geared to one level of activity.

A static budget is changed only when actual activity is different from the level of activity expected.

A distinction should be made between controllable and noncontrollable costs when reporting information under responsibility accounting.

Controllable costs for responsibility accounting purposes are those costs that are directly influenced by

Griffin Corp.is evaluating its Piquette division, an investment center.The division has a $60,000 controllable margin and $400,000 of sales.How much will Griffin's average operating assets be when its return on investment is 10%?

The purpose of the departmental overhead cost report is to

At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30,000.At 15,000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90,000.Fixed and variable costs may be expressed as:

A major element in budgetary control is

A static budget is most useful for evaluating a manager's performance in controlling variable costs.

A department has budgeted monthly manufacturing overhead cost of $540,000 plus $3 per direct labor hour.If a flexible budget report reflects $1,044,000 for total budgeted manufacturing cost for the month, the actual level of activity achieved during the month was

As one moves up to each higher level of managerial responsibility,

A cost center incurs costs and generates revenues and cost center managers are evaluated on the profitability of their centers.