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 the amount of total overhead (fixed and variable)applied to work in process inventory during 2008?

Overhead application refers to:

A static budget is always:

Which of the following statements is correct?

When a flexible budget is used,a decrease in the actual production level within a range of activity would:

Which of the following statements is incorrect?

In a standard costing system,the total manufacturing overhead variance is measured as:

Since variances are temporary accounts,how are they usually handled?

Felter Company uses a standard costing system based on direct labour hours.Last month,Felter Company used more direct labour hours than planned,while the production level was consistent with expectations.This is likely to result in:

To which ledger account are the standard costs of direct material,direct labour and manufacturing overhead charged?

Which of the following statements on flexible budgets is false?

Management uses flexible budgets for controlling manufacturing overhead costs.

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 price variance.

Which of the following cannot cause an unfavourable variable overhead efficiency variance?

A correct interpretation of an unfavourable variance is that it measures the cost of underutilising productive capacity.

Which of the following statements is true for a standard cost system?

Assume the number of machine hours is the cost driver for variable overhead.The difference between the actual variable overhead and the flexible budget for variable overhead (based on standard machine hours allowed for actual output)is the:

One of the shortcomings of ABC is that it is not easy to account for common costs shared by more than one activity.

Master Products has the following information at the end of the year: What is Master Product's sales price variance?

The fixed overhead volume variance: