Exam 11: Flexible Budgeting and the Management of Overhead and Support Activity Costs

Which variance is commonly associated with measuring the cost of under- or over-utilization of plant capacity?

If Rowe prepared an overhead cost performance report,which of these overhead variances is likely to be excluded from the report?

Draco's variable-overhead efficiency variance is:

A flexible budget is appropriate for a:

The difference between budgeted fixed manufacturing overhead and the fixed overhead applied to production is the:

A fixed-overhead volume variance would normally arise when:

Which of the following is used in the computation of the fixed overhead budget variance?

Assume that the two separate pools are used.The flexible budget dollar amounts for the actual level of machine hours and actual number of setups are:

Which of the following variances would be useful to help control overhead spending?

The following selected information was extracted from the accounting records of Austin,Inc.: Planned manufacturing activity: 40,000 machine hours Standard variable-overhead rate per machine hour: $16 Budgeted fixed overhead: $100,000 Variable-overhead spending variance: $92,000U Variable-overhead efficiency variance: $102,000F Fixed-overhead budget variance: $25,000U Total actual overhead: $675,000 Required: Determine the following: actual fixed overhead,actual variable overhead,actual machine hours worked,standard machine hours allowed for actual production,and the fixed-overhead volume variance.

The difference between the total actual factory overhead and the total factory overhead applied to production is the:

Interspace Merchandising anticipated selling 29,000 units of a major product and paying sales commissions of $6 per unit.Actual sales and sales commissions totaled 31,500 units and $182,700,respectively.If the company used a static budget for performance evaluations,Interstate would report a cost variance of:

Abbott's variable-overhead efficiency variance is:

Darling Company,which applies overhead to production on the basis of machine hours,reported the following data for the period just ended: Actual units produced: 12,000 Actual fixed overhead incurred: $730,000 Actual machine hours worked: 60,000 Budgeted fixed overhead: $720,000 Planned level of machine-hour activity: 50,000 If Darling estimates four hours to manufacture a completed unit,the company's standard fixed overhead rate per machine hour would be:

Rich's fixed-overhead budget variance is:

Young's flexible-budget formula,where Y is defined as total cost and AH represents activity hours,is:

Draco's fixed-overhead budget variance is:

Draco's variable-overhead spending variance is:

A flexible budget for 15,000 hours revealed variable manufacturing overhead of $90,000 and fixed manufacturing overhead of $120,000.The budget for 25,000 hours would reveal total overhead costs of:

The company's sales-volume variance is: