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

Atrex Company determined that its variable overhead spending variance was $10 000 unfavourable for the year.Actual variable overhead was $100 000 for the year.Variable overhead is applied based on machine hours.The standard rate per machine hour was $9.The standard quantity of machine hours allowed for good output was 9000.What was the actual quantity of machine hours used?

The sales volume variance equals:

The difference between the actual manufacturing overhead and the manufacturing overhead applied to production is the:

Which of the following statements about variable overhead variances is correct?

The following table provides information about a company's production.If variable costs increased in 2005 by 10 per cent and fixed overheads increased in 2006 by 20 per cent,what was the variable cost per unit in 2004?

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 fixed overhead budget 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 total amount of underapplied or overapplied manufacturing overhead.

A favourable overhead efficiency variance is the result of:

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 fixed overhead volume variance?

Budgeted fixed overhead is the basis for controlling fixed overhead because:

The fixed overhead budget variance compares:

Felter Company reported that the total variance between actual and budgeted total contribution margin in April was $1000 favourable.The sales price variance was $5000 favourable.The fixed overhead budget variance was $1200 unfavourable.The sales volume variance was:

Dean Company used a standard cost system to prepare the following budget at normal capacity for the month of May.Actual data for May were as follows: Determine the fixed overhead budget and volume variances. Budget Volume

The budgeted costs per unit for a company are fixed costs $2 per unit;variable costs $3 per unit.What is the expected cost of producing 1005 units?

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 spending variance?

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 fixed overhead budget variance?

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 efficiency variance?

Which of the following statements is false?

Felter Company uses a standard costing system based on direct labour hours.Last month,Felter Company used more electricity and indirect materials than planned.This is likely to result in:

Which of the following statements is correct?