Exam 11: Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Carvelle Cabinets set the following standard cost per unit for 2008.The standards were set based on a capacity of 20 000 machine hours.During the year,5100 units were produced.How many units had Carvelle budgeted to produce?

What can create the variable overhead efficiency variance?

Universal Pty Ltd used a standard cost system to prepare the following budget at normal operating capacity for the month of January 2007.Actual data for January 2007 were as follows: Using the two-way analysis of overhead variances,what is the total of the fixed budget variance and the variable overhead spending variance for January 2007?

Use the following data to determine the company's fixed overhead volume variance for March.

Adams Corporation has developed the following flexible budget formula for annual indirect labour cost: Total cost = $4800 + 50c per machine hour.Operating budgets for the current month are based on 20 000 hours of planned machine time.Calculate the amount of indirect labour costs included in this planning budget.

Which of the following is not an advantage of standard costing?

Bozo Pty Ltd uses a standard costing system for product costing.The company uses direct labour hours as the cost driver to apply overhead costs.The following amounts were budgeted for the year: Calculate the total standard overhead rate per direct labour hour (variable and fixed).

In the accounting recording system,unfavourable variances are recorded in a similar way to revenue and favourable variances are recorded in a similar way to expenses.

When is the predetermined fixed overhead rate used?

Z Company uses a variable costing system.There was no opening or closing stock.The following data is available: Use this data to determine Z's sales volume variance:

A flexible budget is appropriate for a: Sales commission budget Direct material budget Variable overhead budget

As overall productive activity changes,the following should move in the same direction,in roughly the same proportion:

DBC Company applies fixed overhead at $8 per machine hour.During the year actual fixed overhead amounted to $75 000 and the standard machine hours allowed for units produced was 11 000.Budgeted fixed overhead was $80 000.Which of the following is the best description of the items used to calculate the volume variance? A. $80 000 $88 000 ignore B. $88 000 $88 000 ignore C. $88 000 $75 000 ignore D. ignore $88 000 $75 000

DBC Company applies fixed overhead at $8 per machine hour.During the year actual fixed overhead amounted to $75 000 and the standard machine hours allowed for units produced was 11 000.Budgeted fixed overhead was $80 000.Which of the following is the best description of the items used to calculate the volume variance? Budgeted FOH Applied FOH Actual FOH

Security Doors has a standard variable overhead rate of $4 per direct labour hour.The standard quantity of direct labour per unit of production is 3 hours.The company's static budget was based on 50 000 units.Actual results for the year are as follows.What was Security Door's variable overhead efficiency variance?

Hamilton Pty Ltd uses a standard costing system for product costing.The company uses direct labour hours as the cost driver to apply overhead costs.The following amounts were budgeted for the year: The following were the actual results: Calculate the amount of variable overhead efficiency variance.

Which of the following statements is false?

Which of the following statements relating to standard costs is false?

Although it is assumed that fixed overheads remain constant regardless of the level of activity,the total applied fixed overhead decreases with activity

Which of the following statements is true?