Documente Academic
Documente Profesional
Documente Cultură
Flexible budgets
a.
b.
c.
d.
2. The following information is available for the XYZ Company for the month of July:
Static Budget
Units
5,000
Sales revenue
$60,000
Variable manufacturing costs
$15,000
Fixed manufacturing costs
$18,000
Variable marketing and administrative expense $10,000
Fixed marketing and administrative expense
$12,000
The total sales-volume variance for the month of July would be
a.
b.
c.
d.
$2,550U
$1,350U
$700F
$100F
Actual
5,100
$58,650
$16,320
$17,000
$10,500
$11,000
3. Bartholomew Corporations master budget calls for the production of 6,000 units of
product monthly. The master budget includes indirect labor of $396,000 annually;
Bartholomew considers indirect labor to be a variable cost. During the month of
September, 5,600 units of product were produced, and indirect labor costs of
$30,970 were incurred. A performance report utilizing flexible budgeting would
report a flexible budget variance for indirect labor of
a.
b.
c.
d.
$170U
$170F
$2,030U
$2,030F
4. Information on Pruitt Companys direct materials costs for the month of July 2003
was as follows:
Actual quantity purchased
Actual unit purchase price
Materials purchase-price variance
Unfavorable (based on purchases)
Standard quantity allowed for actual production
Actual quantity used
30,000 units
$2.75
$1,500
24,000 units
22,000 units
$7,950
$5,500
$5,400
$5,600
5. Information for Garner Companys direct labor costs for the month of September
2003 was as follows:
Actual direct-labor hours
Standard direct-labor hours
Total direct-labor payroll
Direct-labor efficiency variancefavorable
34,500 hours
35,000 hours
$241,500
$3,200
$21,000F
$21,000U
$17,250U
$20,700U
Chapter 8:
1.
Which of the following pertains primarily to the planning of fixed overhead costs?
a.
b.
c.
d.
225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.
$50,000 U
$350,000 U
$10,000 F
$60,000 F
$50,000 U
$350,000 U
$10,000 F
$60,000 F
$450,000 F
$400,000 F
$50,000 U
$775,000 F
$450,000 F
$400,000 F
$50,000 U
$775,000 F
$6,210,000
$5,800,000
$5,760,000
$5,700,000
8. Under the 2-variance method, the flexible budget variance for December was
a.
b.
c.
d.
$10,000 F
$40,000 U
$50,000 U
$100,000 U
9. Under the 3-variance method, the spending variance for December was
a.
b.
c.
d.
$10,000 F
$40,000 U
$50,000 U
$100,000 U
Chapter 9:
1. The main difference between variable costing and absorption costing is
a.
b.
c.
d.
$800,000
$600,000
$440,000
$200,000
$840,000
$800,000
$440,000
$200,000
6. The absolute minimum absorption-inventory cost that would be reported under the
best conceivable operating conditions is a description of which type of denominatorlevel concept cost?
a.
b.
c.
d.
Master-budget utilization
Practical capacity
Theoretical capacity
Normal utilization