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.What was Carvelle's variable overhead spending variance?

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 is Security Door's flexible budget for variable overhead costs for the actual output?

Why is the budget variance the real control variance,for fixed overhead?

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 overhead cost applied to work in process inventory.

Framlingham 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 variable overhead spending variance.

Which of the following is not a limitation of standard costing system?

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 fixed overhead volume variance.

The volume variance calculated for fixed overheads is a way of reconciling the two purposes of costing systems: product costing and cost control.

Use the following data to determine the company's variable overhead spending variance for March.

An overhead cost performance report is composed of the:

The predetermined fixed overhead rate is found by:

Which of the following criticisms of standard costing systems is false?

A three-way overhead variance analysis refers to:

Which of the following statements about activity-based budgeting (ABB)is incorrect?

An unfavourable fixed overhead budget is likely to the result of:

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 spending variance.

When using activity-based costing,we recognise four types of activity costs: unit level,batch level,product level and facility level.Under activity-based budgeting,which of the following types of cost would be 'flexed'?

Which of the following is used in the computation of the variable overhead spending variance? A. No Yes No B. No No No C. Yes No Yes D. Yes Yes Yes

Which of the following best describes the cost of underutilising productive capacity?

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.What was the total amount of under/overapplied overhead for the firm?