Exam 8: Flexible Budgets,variances,and Management Control: II

Answer the following question(s)using the information below. Kellar Corporation manufactured 1,500 chairs during June.The following variable overhead data pertain to June: -What is the variable overhead rate variance?

Use the information below to answer the following question(s). Michelle Inc.uses a level 4-variance analysis of its manufacturing overhead costs,and has the following results for April. A.Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead. Fixed overhead is allocated on a per unit basis. B.Budgeted amounts for April are: C.Actual amounts for April are: -What is the Michelle Inc.variable production-volume variance?

Answer the following question(s)using the information below. Lukehart Industries Inc.produces air purifiers in batches.To manufacture a batch of the purifiers Lukehart Inc.must setup the machines and assembly line tooling.Setup costs are batch-level costs because they are associated with batches rather than individual units of products.A separate Setup Department is responsible for setting up machines and tooling for different models of the air purifiers. Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup hours.The following information pertains to June 2012: -Calculate the flexible-budget variance for variable setup overhead costs.

How is a budgeted fixed overhead cost rate calculated?

Layer Corporation produces a special line of hockey sticks in batches.To manufacture a batch of the hockey sticks Layer Corporation must setup the machines and moulds.Setup costs are batch-level costs because they are associated with batches rather than individual units of products.A separate Setup Department is responsible for setting up machines and moulds for different styles of hockey sticks. Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup hours.The following information pertains to January. Required: a.Calculate the efficiency variance for variable setup overhead costs. b.Calculate the rate variance for variable setup overhead costs. c.Calculate the flexible-budget variance for variable setup overhead costs. d.Calculate the rate variance for fixed setup overhead costs. e.Calculate the production-volume variance for fixed setup overhead costs.

A company had the following information pertaining to two different cases: The total fixed overhead variance in Case Y was

Capacity refers to the quantity of outputs that can be produced from long-term resources available to the company.

Leek Company predicted that the fixed overhead would be $200,000 in April 2015.Production amounted to 60,000 actual and 50,000 budgeted decks of cards.Each deck takes approximately 0.20 machine hours to produce.The actual overhead costs per machine hour are $25.What is the production-volume variance?

In variance analysis,fixed manufacturing overhead will have

A leased factory building has a fixed monthly rental payment,and a variable overhead cost of energy and indirect labour.Which of the following is TRUE,assuming that all activity levels are within the relevant range?

Which of the following statements is TRUE?

Use the information below to answer the following question(s). Michelle Inc.uses a level 4-variance analysis of its manufacturing overhead costs,and has the following results for April. A.Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead. Fixed overhead is allocated on a per unit basis. B.Budgeted amounts for April are: C.Actual amounts for April are: -What are the fixed manufacturing overhead efficiency and production-volume variances,respectively?

Use the information below to answer the following question(s). Michelle Inc.uses a level 4-variance analysis of its manufacturing overhead costs,and has the following results for April. A.Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead. Fixed overhead is allocated on a per unit basis. B.Budgeted amounts for April are: C.Actual amounts for April are: -What is the Michelle Inc.variable manufacturing overhead rate variance?

The production-volume variance may also be referred to as the

Cirilla's Weathervane Company manufactures weathervanes.The current year operating budget is based on the production of 10,000 weathervanes with 1.25 machine-hour allowed per weathervane.Variable manufacturing overhead is anticipated to be $300,000. Actual production was 11,000 weathervanes using 12,100 machine-hours.Actual variable costs were $23.75 per machine-hour. Required: Calculate the variable overhead rate and the efficiency variances.

The Saskatchewan division of a Canadian farm machinery company uses a standard cost system for its machine-based production of grain drying equipment.Data regarding production for April are as follows: Required: 1.Prepare the necessary journal entries to account for the variable manufacturing overhead incurred and allocated to production. 2.Prepare the journal entry to close the variable overhead variance accounts under the assumption that the amount is immaterial.

The (production)denominator level is the quantity of the allocation base used to allocate fixed overhead costs to a cost object in developing a budgeted fixed overhead rate.

Batch-level costs are resources sacrificed on activities that are related to individual units of product(s)or service(s).

An unfavourable variable overhead rate variance indicates that

Answer the following question(s)using the information below. Kellar Corporation manufactured 1,500 chairs during June.The following variable overhead data pertain to June: -What is the variable overhead flexible-budget variance?