Answer the following questions using the information below: PlasticsRus Pty Ltd manufactured 100 000 buckets during February.The overhead cost-allocation base is $5.00 per machine-hour.The following variable overhead data pertain to February: \[\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\ \text { Production } & 100000 \text { units } & 100000 \text { units } \\ \text { Machine-hours } & 9800 \text { hours } & 10000 \text { hours } \\ \text { Variable overhead cost per machine-hour } & \$ 5.25 & \$ 5.00 \end{array}\] -What is the variable overhead spending variance?

A) $1000 favourable B) $1450 unfavourable C) $2450 unfavourable D) None of these answers are correct. A) $1000 favourable B) $1450 unfavourable C) $2450 unfavourable D) None of these answers are correct.

Different management levels in Echuca Pty Ltd require varying degrees of managerial accounting information.Because of the need to comply with the managers' requests,four different variances for manufacturing overhead are computed each month.The information for the September overhead expenditures is as follows: $\begin{array}{ll} \text { Bud geted output units } & 6400 \text { units } \\ \text { Bud geted fixed manufacturing overhead } & \$ 40000 \\ \text { Bud geted variable manufacturing overhead } & \$ 10 \text { per direct labour hour } \\ \text { Bud geted direct manufacturing labour hours } & 1 \text { hour per unit }\\ \text { Fixed manufacturing costs incurred } & \$ 52000 \\ \text { Direct manufacturing labour hours used } & 7200 \\ \text { Variable manufacturing costs incurred } & \$ 71200 \\ \text { Actual units manufactured } & 6800 \end{array}$ Required: a.Compute a 4-variance analysis for the plant controller. b.Compute a 3-variance analysis for the plant manager. c.Compute a 2-variance analysis for the corporate controller. d.Compute the flexible-budget variance for the manufacturing vice CEO. _____________________________________________________________________________________________ _____________________________________________________________________________________________

a.4-variance analysis: Variable overhead

Answer the following questions using the information below: $\begin{array}{lrcc} &&\text { Production- }\\ \text { Variances }&\text { Spending }&\text { Efficiency }&\text { Volume }\\ \text { Variable manufacturing overhead } & \$ 4500 \mathrm{~F} & \$ 15000 \mathrm{U} & \text { (B) } \\ \text { Fixed manufacturing overhead } & \$ 10000 \mathrm{U} & (\mathrm{A}) & \$ 40000 \mathrm{U} \end{array}$ -Above is a:

A) 4-variance analysis B) 3-variance analysis C) 2-variance analysis D) 1-variance analysis A) 4-variance analysis B) 3-variance analysis C) 2-variance analysis D) 1-variance analysis

Answer the following questions using the information below: Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data: \[\begin{array} { l r } \text { Budgeted output units } & 20000 \text { units } \\ \text { Budgeted machine-hours } & 6000 \text { hours } \\ \text { Budgeted variable manufacturing overhead costs for } 20000 \text { units } & \$ 161250 \\ & \\ \text { Actual output units produced } & 24000 \text { units } \\ \text { Actual machine-hours used } & 7200 \text { hours } \\ \text { Actual variable manufacturing overhead costs } & \$ 242000 \end{array}\] -What is the flexible-budget variance for variable manufacturing overhead?

A) $5500 favourable B) $5500 unfavourable C) $4300 favourable D) None of these answers are correct. A) $5500 favourable B) $5500 unfavourable C) $4300 favourable D) None of these answers are correct.

Answer the following questions using the information below: Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data: \[\begin{array} { l r } \text { Budgeted output units } & 20000 \text { units } \\ \text { Budgeted machine-hours } & 6000 \text { hours } \\ \text { Budgeted variable manufacturing overhead costs for } 20000 \text { units } & \$ 161250 \\ & \\ \text { Actual output units produced } & 24000 \text { units } \\ \text { Actual machine-hours used } & 7200 \text { hours } \\ \text { Actual variable manufacturing overhead costs } & \$ 242000 \end{array}\] -Once standards have been set,the costs of using _____________ costing are low relative to the costs of using actual costing or normal costing.

A) activity B) inventory C) standard D) budgeted A) activity B) inventory C) standard D) budgeted

Answer the following questions using the information below: Healesville Animal Products manufactured 32 000 horse grooming kits during 2018.The fixed-overhead cost-allocation rate is $20.00 per machine-hour.The following fixed overhead data pertain to 2018: \[\begin{array} { l r r } & \text { Actual } & \text { Static Budget } \\ \text { Production } & 32000 \text { units } & 30000 \text { units } \\ \text { Machine-hours } & 6100 \text { hours } & 6000 \text { hours } \\ \text { Fixed overhead costs for } 2018 & \$ 123000 & \$ 120000 \end{array}\] -What is the fixed overhead production-volume variance?

A) $3000 unfavourable B) $1000 unfavourable C) $2000 favourable D) $8000 favourable A) $3000 unfavourable B) $1000 unfavourable C) $2000 favourable D) $8000 favourable

Answer the following questions using the information below: Hobart Corporation manufactured 20 000 heaters during November.The overhead cost-allocation base is $15.75 per machine-hour.The following variable overhead data pertain to November: \[\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\ \text { Production } & 20000 \text { units } & 22000 \text { units } \\ \text { Machine-hours } & 7875 \text { hours } & 9000 \text { hours } \\ \text { Variable overhead cost per machine-hour: } & \$ 15.50 & \$ 15.75 \end{array}\] -What is the variable overhead spending variance?

A) $1968.75 unfavourable B) $2250 unfavourable C) $2250 favourable D) $1968.75 favourable A) $1968.75 unfavourable B) $2250 unfavourable C) $2250 favourable D) $1968.75 favourable

Exam 13: Flexible Budgets, Overhead Cost Variances and Management Control

Windup Time Company makes clocks.The fixed overhead costs for 2018 total $720 000.The company uses direct labour-hours for fixed overhead allocation and anticipates 240 000 hours during the year for 480 000 units.An equal number of units are budgeted for each month.During June,42 000 clocks were produced and $63 000 was spent on fixed overhead. Required: a.Determine the fixed overhead rate for 2018 based on units of input. b.Determine the fixed overhead static-budget variance for June. c.Determine the production-volume overhead variance for June. _ _

(Essay)

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(75)

Question 61

Answer the following questions using the information below: PlasticsRus Pty Ltd manufactured 100 000 buckets during February.The overhead cost-allocation base is $5.00 per machine-hour.The following variable overhead data pertain to February: Actual Budgeted Production 100000 units 100000 units Machine-hours 9800 hours 10000 hours Variable overhead cost per machine-hour \ 5.25 \ 5.00 -What is the variable overhead spending variance?

(Multiple Choice)

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(64)

Question 62

Explain why there is no production-volume variance for variable manufacturing overhead costs. _ _

(Essay)

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Question 63

A cost-allocation base links an indirect cost or group of ____________ costs to a cost object.

(Multiple Choice)

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(79)

Question 64

Different management levels in Echuca Pty Ltd require varying degrees of managerial accounting information.Because of the need to comply with the managers' requests,four different variances for manufacturing overhead are computed each month.The information for the September overhead expenditures is as follows: Bud geted output units 6400 units Bud geted fixed manufacturing overhead \ 40000 Bud geted variable manufacturing overhead \ 10 per direct labour hour Bud geted direct manufacturing labour hours 1 hour per unit Fixed manufacturing costs incurred \ 52000 Direct manufacturing labour hours used 7200 Variable manufacturing costs incurred \ 71200 Actual units manufactured 6800 Required: a.Compute a 4-variance analysis for the plant controller. b.Compute a 3-variance analysis for the plant manager. c.Compute a 2-variance analysis for the corporate controller. d.Compute the flexible-budget variance for the manufacturing vice CEO. _ _

(Essay)

5.0/5

(92)

Question 65

Answer the following questions using the information below: Production- Variances Spending Efficiency Volume Variable manufacturing overhead \ 4500 \ 15000 (B) Fixed manufacturing overhead \ 10000 () \ 40000 -Above is a:

(Multiple Choice)

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Question 66

The production-volume variance is a component of the sales-price variance.

(True/False)

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Question 67

What may the variable overhead flexible-budget variance be further subdivided into?

(Multiple Choice)

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Question 68

As with variable overhead costs,the budget period for fixed overhead costs is typically three months to help smooth out seasonal effects.

(True/False)

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Question 69

What does an unfavourable fixed overhead spending variance indicate?

(Multiple Choice)

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Question 70

Answer the following questions using the information below: Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data: Budgeted output units 20000 units Budgeted machine-hours 6000 hours Budgeted variable manufacturing overhead costs for 20000 units \ 161250 Actual output units produced 24000 units Actual machine-hours used 7200 hours Actual variable manufacturing overhead costs \ 242000 -What is the flexible-budget variance for variable manufacturing overhead?

(Multiple Choice)

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(83)

Question 71

Fixed costs are usually included in ________ budgets,but they remain the same total amount within the relevant range of activity regardless of the output level chosen to 'flex' the variable costs and revenues.

(Multiple Choice)

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(71)

Question 72

Answer the following questions using the information below: Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data: Budgeted output units 20000 units Budgeted machine-hours 6000 hours Budgeted variable manufacturing overhead costs for 20000 units \ 161250 Actual output units produced 24000 units Actual machine-hours used 7200 hours Actual variable manufacturing overhead costs \ 242000 -Once standards have been set,the costs of using _____________ costing are low relative to the costs of using actual costing or normal costing.

(Multiple Choice)

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(82)

Question 73

What type of systems may the basic principles and concepts for variable overhead costs and fixed overhead costs be applied to?

(Multiple Choice)

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(79)

Question 74

Leongatha Rustic Letterboxes Company manufactures rustic letterboxes.The 2018 operating budget is based on the production of 10 000 rustic letterboxes with 1.5 machine-hours allowed per weathervane.Variable manufacturing overhead is anticipated to be $300 000. Actual production for 2018 was 11 000 rustic letterboxes using 12 100 machine-hours.Actual variable costs were $18.50 per machine-hour. Required: Calculate the variable overhead spending and the efficiency variances.

(Essay)

4.9/5

(82)

Question 75

Answer the following questions using the information below: Healesville Animal Products manufactured 32 000 horse grooming kits during 2018.The fixed-overhead cost-allocation rate is $20.00 per machine-hour.The following fixed overhead data pertain to 2018: Actual Static Budget Production 32000 units 30000 units Machine-hours 6100 hours 6000 hours Fixed overhead costs for 2018 \ 123000 \ 120000 -What is the fixed overhead production-volume variance?

(Multiple Choice)

4.8/5

(90)

Question 76

Answer the following questions using the information below: Hobart Corporation manufactured 20 000 heaters during November.The overhead cost-allocation base is $15.75 per machine-hour.The following variable overhead data pertain to November: Actual Budgeted Production 20000 units 22000 units Machine-hours 7875 hours 9000 hours Variable overhead cost per machine-hour: \ 15.50 \ 15.75 -What is the variable overhead spending variance?

(Multiple Choice)

4.8/5

(73)

Question 77

The basic principles and concepts for variable overhead costs and fixed overhead costs can be applied to ABC systems.

(True/False)

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(76)

Question 78

______________ measures evaluate the overall effect of and the trade-offs between different non-financial performance measures.

(Multiple Choice)

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Question 79

For calculating the costs of products and services,a standard costing system:

(Multiple Choice)

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(83)

Question 80

Explain why there is no production-volume variance for variable manufacturing overhead costs. _ _

A cost-allocation base links an indirect cost or group of ____________ costs to a cost object.

Answer the following questions using the information below: Production- Variances Spending Efficiency Volume Variable manufacturing overhead \ 4500 \ 15000 (B) Fixed manufacturing overhead \ 10000 () \ 40000 -Above is a:

The production-volume variance is a component of the sales-price variance.

What may the variable overhead flexible-budget variance be further subdivided into?

As with variable overhead costs,the budget period for fixed overhead costs is typically three months to help smooth out seasonal effects.

What does an unfavourable fixed overhead spending variance indicate?

Fixed costs are usually included in ________ budgets,but they remain the same total amount within the relevant range of activity regardless of the output level chosen to 'flex' the variable costs and revenues.

What type of systems may the basic principles and concepts for variable overhead costs and fixed overhead costs be applied to?

The basic principles and concepts for variable overhead costs and fixed overhead costs can be applied to ABC systems.

______________ measures evaluate the overall effect of and the trade-offs between different non-financial performance measures.

For calculating the costs of products and services,a standard costing system:

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Exam 13: Flexible Budgets, Overhead Cost Variances and Management Control

Explain why there is no production-volume variance for variable manufacturing overhead costs. _____________________________________________________________________________________________ _____________________________________________________________________________________________

A cost-allocation base links an indirect cost or group of ____________ costs to a cost object.

Answer the following questions using the information below: Production- Variances Spending Efficiency Volume Variable manufacturing overhead \ 4500 \ 15000 (B) Fixed manufacturing overhead \ 10000 () \ 40000 -Above is a:

The production-volume variance is a component of the sales-price variance.

What may the variable overhead flexible-budget variance be further subdivided into?

As with variable overhead costs,the budget period for fixed overhead costs is typically three months to help smooth out seasonal effects.

What does an unfavourable fixed overhead spending variance indicate?

Fixed costs are usually included in ________ budgets,but they remain the same total amount within the relevant range of activity regardless of the output level chosen to 'flex' the variable costs and revenues.

What type of systems may the basic principles and concepts for variable overhead costs and fixed overhead costs be applied to?

The basic principles and concepts for variable overhead costs and fixed overhead costs can be applied to ABC systems.

______________ measures evaluate the overall effect of and the trade-offs between different non-financial performance measures.

For calculating the costs of products and services,a standard costing system:

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Explain why there is no production-volume variance for variable manufacturing overhead costs. _ _