Exam 8: Flexible Budgets, overhead Cost Variances, and Management Control

Answer the following questions using the information below: Neocomfort Corporation manufactured 3,000 chairs during June. The following variable overhead data relates to June: Budgeted variable overhead cost per unit \ 12.00 Actual variable manufacturing overhead cost \ 49,900 Flexible-budget amount for variable manufacturing overhead \ 47,800 Variable manufacturing overhead efficiency variance \ 720 unfavorable -What is the variable overhead flexible-budget variance?

Answer the following questions using the information below: Skizone Company's 4-Variance Analysis: Production-Volume Spending Variance Efficiency Variance Variance Variable overhead \ 6,500 \ 12,000 No variance Fixed overhead (a) No variance \ 46,000 -If Skizone's combined 4-Variance Analysis shows an unfavorable spending variance of $2,300,what is the fixed overhead spending variance (a)?

Standard costing can provide managers with reliable and timely information on variable distribution overhead ________.

Which of the following is the correct mathematical expression to calculate the fixed overhead production-volume variance?

Effective planning of variable overhead costs includes ________.

Use the below information to answer the following questions: Bekits Corporation manufactured 25,000 grooming kits for horses during March. The following fixed overhead data relates to March: Actual Static Budget Production 37,500 units 36,000 units Machine-hours 6,100 hours 5,940 hours Fixed overhead costs for March \ 133,000 \ 124,740 -What is the amount of fixed overhead allocated to production?

Under activity-based costing,the flexible-budget amount equals the static-budget amount for fixed overhead costs.

Abby Company has just implemented a new cost accounting system that provides two variances for fixed manufacturing overhead.While the company's managers are familiar with the concept of spending variances,they are unclear as to how to interpret the production-volume overhead variances.Currently,the company has a production capacity of 54,000 units a month,although it generally produces only 46,000 units.However,in any given month the actual production is probably something other than 46,000. Required: a.Does the production-volume overhead variance measure the difference between the 54,000 and 46,000,or the difference between the 46,000 and the actual monthly production? Explain. b.What advice can you provide the managers that will help them interpret the production-volume overhead variances?

What is a standard costing system?

Answer the following questions using the information below: Roberson Corporation manufactured 30,000 ice chests during September. The variable overhead cost-allocation base is $11.25 per machine-hour. The following variable overhead data pertain to September: Actual Budgeted Production 30,000 units 24,000 units Machine-hours 15,000 hours 10,800 hours Variable overhead cost per machine-hour: \ 11.00 \ 11.25 -What is the variable overhead spending variance?

One possible reason for unfavorable variable overhead efficiency variance for materials handling is ________.

What are the two components of sales-volume variance? Explain why sales-volume variance could be helpful to managers.

The variable overhead flexible-budget variance can be further subdivided into the ________.

An unfavorable production-volume variance always infers that management made a bad planning decision regarding the plant capacity.

The fixed overhead cost variance can be further subdivided into the ________.

Radon Corporation manufactured 25,000 grooming kits for horses during March.The following fixed overhead data pertain to March: Actual Static Budget Production 33,000 units 30,000 units Machine-hours 6,100 hours 6,000 hours Fixed overhead costs for March \ 153,000 \ 144,000 - What is the fixed overhead production-volume variance?

Christine Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data: Budgeted output units 10,000 units Budgeted machine-hours 15,000 hours Budgeted variable manufacturing overhead costs for 20,000 units \ 180,000 Actual output units produced 9,000 units Actual machine-hours used 14,000 hours Actual variable manufacturing overhead costs \ 171,000 What is the budgeted variable overhead cost rate per output unit?

Compared to variable overhead costs planning,fixed overhead costs planning have an additional strategic issue of ________.

When fixed overhead spending variance is unfavorable,it can be safely assumed that ________.

Which of the following statements is true of fixed overhead cost variances?