Supreme Catering At the end of January, Supreme Catering prepared the following budget for the upcoming month of February estimating that they would serve 3000 people: $\begin{array}{lr} \text { Sales revenue per guest } &\$20\\ \text { Variable costs per guest} &8\\ \text { Total fixed costs } &\$5000\\ \end{array}$ During February, there were 2700 guests actually served. Actual costs incurred were $27 000 for variable costs and $6500 for fixed costs. Each guest was charged $20. -Supreme Catering's flexible budget for February would show net income of:

A) $31 000 B) $20 500 C) $27 400 D) $19 000 A) $31 000 B) $20 500 C) $27 400 D) $19 000

Hathaway Inc.produces and sells golf umbrellas to local resorts.Hathaway anticipates April to be a busy month with the sale of 1000 umbrellas.The company has prepared the following static budget for April: $\begin{array}{lr} \text {Sales revenue (1000 units) } &\$5000\\ \text { Variable costs:} &\\ \text { Direct materials } &5000\\ \text { Direct labour} &6000\\ \text { Overhead } &1500\\ \text { Fixed costs} &\underline{4000}\\ \text { Net income}&\underline{\$23500} \end{array}$ During April,Hathaway actually produced and sold 1200 umbrellas.What should be Hathaway's net income in April based on a flexible budget?

A) $29 000 B) $28 200 C) $31 500 D) $29 300 A) $29 000 B) $28 200 C) $31 500 D) $29 300

Hayward Inc. Hayward Inc. produces a unique item. Hayward’s management team wishes to perform a variance analysis on its fixed overhead. Fixed overhead is applied to units produced using direct labour hours as its cost driver. The company’s managerial accountant has compiled the following information: $\begin{array}{l} \begin{array}{lr} \underline{\text { Projected data: }}\\ \text { Estimated direct labour hours } & 50000 \text { hours } \\ \text { Estimated fixed overhead } & \$ 75000 \end{array}\\\\ \underline{\text { Actual data:} }\\ \begin{array}{lr} \text { Actual production } & 104000 \text { units } \\ \text { Actual direct labour hours used } & 52000 \text { hours } \\ \text { Actual fixed overhead } & \$ 80000 \end{array} \end{array}$ -Hayward's fixed overhead spending variance is:

A) $2000 F B) $2000 U C) $5000 F D) $5000 U A) $2000 F B) $2000 U C) $5000 F D) $5000 U

Exam 13: Management Accounting for Cost Control and Performance Evaluation Flexible Budgets and Variance Analysis

Dorffman Inc.has a $12 000 favourable flexible budget variance for May.If May's actual net income was $68 000,which of the following statements is true?

(Multiple Choice)

4.9/5

(90)

Question 101

Supreme Catering At the end of January, Supreme Catering prepared the following budget for the upcoming month of February estimating that they would serve 3000 people: Sales revenue per guest \2 0 Variable costs per guest 8 Total fixed costs \5 000 During February, there were 2700 guests actually served. Actual costs incurred were $27 000 for variable costs and $6500 for fixed costs. Each guest was charged $20. -Supreme Catering's flexible budget for February would show net income of:

(Multiple Choice)

4.8/5

(77)

Question 102

Hathaway Inc.produces and sells golf umbrellas to local resorts.Hathaway anticipates April to be a busy month with the sale of 1000 umbrellas.The company has prepared the following static budget for April: Sales revenue (1000 units) \5 000 Variable costs: Direct materials 5000 Direct labour 6000 Overhead 1500 Fixed costs Net income During April,Hathaway actually produced and sold 1200 umbrellas.What should be Hathaway's net income in April based on a flexible budget?

(Multiple Choice)

4.9/5

(78)

Question 103

Which of the following statements is false regarding task analysis?

(Multiple Choice)

4.9/5

(83)

Question 104

Hayward Inc. Hayward Inc. produces a unique item. Hayward’s management team wishes to perform a variance analysis on its fixed overhead. Fixed overhead is applied to units produced using direct labour hours as its cost driver. The company’s managerial accountant has compiled the following information: Estimated direct labour hours 50000 hours Estimated fixed overhead \ 75000 Actual production 104000 units Actual direct labour hours used 52000 hours Actual fixed overhead \ 80000 -Hayward's fixed overhead spending variance is:

(Multiple Choice)

4.7/5

(83)

Question 105

Paw-Paw Products Paw-Paw Products produces and sells flannel covered dogbeds. In the current year, Paw-Paw had expected to sell 8000 beds but actually produced and sold 8500 beds. The following information is available regarding the standard cost to produc In the current year, 44 000 metres of material were purchased and used at a cost of $1.60 per metre and 365 500 direct labour minutes were incurred at a cost of $.23 per minute. -The company's direct material usage variance for the current year was:

(Multiple Choice)

4.9/5

(86)

Question 106

Mary’s Fine Fashions US company Mary’s Fine Fashions manufactures and sells various types of women’s clothing. At the end of 2008, Mary had estimated for the production and sale of 25 000 short-sleeve shirts. Each shirt has a standard calling for 2.5 yards of direct material at a standard cost of $1.25 per yard and 12 minutes of direct labour time at a standard cost of $.20 per minute. During 2009, the company actually produced and sold 23 000 shirts. These 23 000 shirts had an actual direct materials cost of $77 142 (59 340 yards at $1.30 per yard) and an actual direct labour cost of $63 250 (253 000 minutes at $.25 per minute). Each shirt sells for $20. -What is Mary's flexible budget variance?

(Multiple Choice)

4.9/5

(71)

Question 107

What is the difference between a static and a flexible budget? Which one is most often used in variance analysis and why?

(Essay)

4.9/5

(84)

Question 108

Showing 101 - 108 of 108

Dorffman Inc.has a $12 000 favourable flexible budget variance for May.If May's actual net income was $68 000,which of the following statements is true?

Which of the following statements is false regarding task analysis?

What is the difference between a static and a flexible budget? Which one is most often used in variance analysis and why?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, cost Terminology and Cost Flows

Cost Behaviour

Job Costing and Overhead Costing Systems

Process Costing Systems

Service and Operations Costing

Departmental Overhead Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investmentdecisions

Fixed and Rolling Budgets for Planning and Decision Making

Decentralisation and Modern Performance Management Systems the Balanced Scorecard

Accounting for Sustainability Social Reporting,environmental Reporting and Management Accounting

Filters