cost acct chapter 8

Calculate the variable overhead flexible-budget variance. A) $1,118 unfavorable B) $1,118 favorable C) $1,482 unfavorable D) $1,482 favorable

$1,482 unfavorable

What is the flexible-budget amount? A) $108,900 B) $110,040 C) $109,200 D) $52,400

$109,200

What is the budgeted variable overhead cost rate per output unit? A) $114.00 B) $117.00 C) $123.16 D) $120.00

$117.00

What is the flexible-budget amount? A) $90,000 B) $121,500 C) $318,600 D) $324,000

$121,500

What is the amount of fixed overhead allocated to production? A) $128,210.13 B) $117,000.00 C) $125,500.00 D) $123,000.00

$123,000.00

What is the flexible-budget amount? A) $170,379.31 B) $156,400.00 C) $165,600.00 D) $164,700.00

$156,400.00

What is the budgeted variable overhead cost rate per output unit? A) $6.26 B) $6.00 C) $17.00 D) $18.00

$17.00

What is the amount of fixed overhead allocated to production? A) $171,990 B) $170,220 C) $170,520 D) $58,500

$171,990

What is the variable overhead flexible-budget variance? A) $2,200 favorable B) $1,480 favorable C) $2,200 unfavorable D) $1,480 unfavorable

$2,200 unfavorable

What is the variable overhead efficiency variance? A) $2,650 unfavorable B) $2,675 favorable C) $2,650 favorable D) $2,675 unfavorable.

$2,650 unfavorable

What is the total variable overhead variance? A) $2,900.00 unfavorable B) $3,450.00 unfavorable C) $2,900.00 favorable D) $3,450.00 favorable

$2,900.00 favorable

What is the fixed overhead production-volume variance? A) $9,200.00 unfavorable B) $21,000.00 favorable C) $21,000.00 unfavorable D) $9,200.00 favorable

$21,000.00 favorable

What is the actual variable overhead cost? A) $156,600 B) $177,480 C) $212,800 D) $220,400

$212,800

What is the variable overhead spending variance? A) $3,040 favorable B) $25,658 unfavorable C) $22,618 unfavorable D) $59,180 unfavorable

$3,040 favorable

What is the variable overhead spending variance? A) $3,600.00 unfavorable B) $3,325.00 unfavorable C) $3,600.00 favorable D) $3,325.00 favorable

$3,325.00 favorable

What is the flexible-budget amount for variable manufacturing overhead? A) $250,000 B) $306,000 C) $288,000 D) $235,294

$306,000

What is the flexible-budget variance for variable manufacturing overhead? A) $35,309 unfavorable B) $52,909 unfavorable C) $35,309 favorable D) $52,909 favorable

$35,309 unfavorable

What is the flexible-budget amount? A) $441,394 B) $399,000 C) $396,000 D) $475,200

$399,000

What is the fixed overhead spending variance? A) $1,056 unfavorable B) $400 favorable C) $400 unfavorable D) $1,056 favorable

$400 favorable

What is the flexible-budget amount for variable manufacturing overhead? A) $358,785 B) $409,185 C) $384,060 D) $336,755

$409,185

To isolate these variances at the end of the accounting period, John would debit Fixed Manufacturing Overhead Allocated for ________. A) $411,000 B) $425,000 C) $430,000 D) $435,000

$425,000

What is the actual variable overhead cost? A) $439,450 B) $476,000 C) $449,144 D) $486,500

$439,450

What is the flexible-budget amount? A) $451,700 B) $472,321 C) $460,000 D) $448,000

$460,000

What is the flexible-budget variance for variable manufacturing overhead? A) $49,000 unfavorable B) $49,000 favorable C) $70,000 unfavorable D) $70,000 favorable

$49,000 unfavorable

What is the variable overhead spending variance? A) $5,110 favorable B) $5,900 favorable C) $5,900 unfavorable D) $5,110 unfavorable

$5,110 unfavorable

What is the flexible-budget amount? A) $54,000 B) $50,000 C) $50,500 D) $54,540

$50,000

What is the actual variable overhead cost? A) $472,500 B) $459,000 C) $51,450 D) $49,980

$51,450

What is the variable overhead efficiency variance? A) $6,212.50 favorable B) $6,212.50 unfavorable C) $4,750.00 favorable D) $4,750.00 unfavorable

$6,212.50 favorable

What is the amount of fixed overhead allocated to production? A) $621,000 B) $634,500 C) $639,711 D) $612,779

$621,000

What is the variable overhead efficiency variance? A) $6,750 favorable B) $63,450 unfavorable C) $56,700 unfavorable D) $66,975 unfavorable

$63,450 unfavorable

What is the amount of the budgeted variable manufacturing overhead cost per unit? A) $2.40 per unit B) $6.98 per unit C) $7.20 per unit D) $25.51 per unit

$7.20 per unit

What is the budgeted variable overhead cost rate per output unit? A) $9.60 B) $12.40 C) $7.75 D) $31.00

$7.75

What is the fixed overhead spending variance? A) $2,635.00 unfavorable B) $8,260.00 favorable C) $8,260.00 unfavorable D) $2,635.00 favorable

$8,260.00 unfavorable

What is the amount of fixed overhead spending variance? A) $8,500 unfavorable B) $3,460 favorable C) $3,460 unfavorable D) $8,500 favorable

$8,500 favorable

What is the amount of the budgeted variable manufacturing overhead cost per unit? (Do not round any intermediary calculations. Round your final answer to the nearest cent.) A) $8.91 B) $8.06 C) $8.80 D) $8.16

$8.80

What is the flexible-budget amount for variable manufacturing overhead? (Round intermediary calculations two decimal places and your final answer to the nearest whole dollar.) A) $81,801 B) $94,392 C) $86,184 D) $89,592

$86,184

What is the fixed overhead spending variance? A) $24,800.00 favorable B) $9,100.00 favorable C) $9,100.00 unfavorable D) $24,800.00 unfavorable

$9,100.00 unfavorable

Which of the following is the correct mathematical expression is used to calculate variable overhead efficiency variance? A) (Actual rate − Budgeted rate) × Budgeted quantity B) (Actual quantity × Budgeted rate) - (Budgeted input quantity allowed for actual output × Budgeted rate) C) (Actual quantity ÷ Budgeted rate) − (Budgeted quantity ÷ Budgeted rate) D) (Actual quantity ÷ Budgeted rate) × Budgeted quantity allowed for actual output

(Actual quantity × Budgeted rate) - (Budgeted input quantity allowed for actual output × Budgeted rate)

Calculate the actual machine hours used by Stark during October. A) 623 hours B) 615 hours C) 607 hours D) 622 hours

623 hours

Which of the following statements is true of the given journal entry? A) Osium overallocated variable manufacturing overhead. B) A $30,000 unfavorable spending variance was recorded. C) Work-in-Process is currently overstated. D) A $80,000 unfavorable efficiency variance was recorded

A $80,000 unfavorable efficiency variance was recorded

Which of the following statements is true of the given journal entry? A) A variable manufacturing overhead cost of $179,000 is written-off. B) An unfavorable spending variance of $57,000 is recorded. C) A favorable efficiency variance of $7,000 is recorded. D) A favorable flexible-budget variance of $50,000 is recorded

A favorable flexible-budget variance of $50,000 is recorded

What is the variable overhead spending variance? A) $1,050 favorable B) $1,000 unfavorable C) $1,050 unfavorable D) $1,000 favorable

$1,050 unfavorable

Which of the following is the correct mathematical expression to calculate the fixed overhead spending variance? A) Static-budget amount — Flexible-budget amount B) Actual costs incurred — Flexible-budget amount C) Static-budget amount — Fixed overhead allocated for actual output D) Flexible-budget amount — Fixed overhead allocated for actual output

Actual costs incurred — Flexible-budget amount

All of the following are possible causes of actual machine hours exceeding budgeted machine hours except: A) Poor scheduling B) Actual leasing costs for the machine were higher than expected C) Machines were not maintained in good operating condition D) Budgeted standards were set to tight

Actual leasing costs for the machine were higher than expected

Which of the following is the mathematical expression for the budgeted fixed overhead cost per unit of cost allocation base? A) Budgeted fixed overhead cost per unit of cost allocation base = Actual total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base B) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base C) Budgeted fixed overhead cost per unit of cost allocation base = Actual total costs in fixed overhead cost pool ÷ Actual total quantity of cost allocation base D) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Actual total quantity of cost allocation base

Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base

Which of the following mathematical expression is used to calculate budgeted variable overhead cost rate per output unit? A) Budgeted output allowed per input unit × Budgeted variable overhead cost rate per input unit B) Budgeted input allowed per output unit ÷ Budgeted variable overhead cost rate per input unit C) Budgeted output allowed per input unit ÷ Budgeted variable overhead cost rate per input unit D) Budgeted input allowed per output unit × Budgeted variable overhead cost rate per input unit

Budgeted input allowed per output unit × Budgeted variable overhead cost rate per input unit

What is the budgeted variable manufacturing overhead cost per unit? A) $154.50 per unit B) $177.13 per unit C) $130.54 per unit D) $123.60 per unit

D) $123.60 per unit

What is the flexible-budget variance for variable manufacturing overhead? A) $4,800 favorable B) $4,800 unfavorable C) $2,139 favorable D) $2,139 unfavorable

D) $2,139 unfavorable

Which of the following is a true statement of energy costs? A) Energy costs are not controllable B) Strategies to reduce energy costs will not impact variable cost budgets. C) Energy costs are a fixed cost of doing business for a manufacturer. D) Energy costs are a growing component of variable overhead costs

Energy costs are a growing component of variable overhead costs

Fixed overhead costs for March for a factory were Salaries of $44,000, depreciation of $10,000, and property taxes of $4,000. Which of the following journal entries would be correct? A) Fixed Overhead Control $58,000 Accounts Payable $58,000 B) Depreciation Expense $10,000 Salaries Expense $44,000 Fixed Overhead Control $4,000 Accumulated Depreciation $10,000 Cash $44,000 Accounts Payable $4,000 C) Work-in-Process $58,000 Accounts Payable $4,000 Salaries Payable $44,000 Accumulated Depreciation $10,000 D) Fixed Overhead Control $58,000 Accounts Payable $4,000 Salaries Payable $44,000 Accumulated Depreciation $10,000

Fixed Overhead Control $58,000 Accounts Payable $4,000 Salaries Payable $44,000 Accumulated Depreciation $10,000

Which of the following best defines standard costing? A) It is the same as actual costing but done in real time. B) It is a system that traces direct cost to output by multiplying actual process or rates by actual quantities of inputs + allocates overhead by on the basis of actual quantities of the allocation base used. C) It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced. D) It is a system that allocates overhead costs on the basis of standard overhead cost rates times the actual quantities of the allocation based used.

It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced.

Fixed overhead costs include ________. A) the cost of sales commissions B) Leasing of machinery used in a factory C) energy costs D) indirect materials

Leasing of machinery used in a factory

) When variances are immaterial, which of the following statements is true of the journal entry to write-off the variable overhead variance accounts? A) Cost of Goods Sold account will always be debited. B) Unfavorable efficiency variance will be credited. C) Favorable efficiency variance will be credited. D) Cost of Goods Sold account will always be credited.

Unfavorable efficiency variance will be credited.

Marshall Company uses a standard cost system. In March, $270,000 of variable manufacturing overhead costs were incurred and the flexible-budget amount for the month was $310,000. Which of the following variable manufacturing overhead entries would have been recorded for March? A) Accounts Payable Control and other accounts 310,000 Work-in-Process Control 310,000 B) Variable Manufacturing Overhead Allocated 310,000 Accounts Payable and other accounts 310,000 C) Work-in-Process Control 270,000 Accounts Payable Control and other accounts 270,000 D) Variable Manufacturing Overhead Control 270,000 Accounts Payable Control and other accounts 270,000

Variable Manufacturing Overhead Control 270,000 Accounts Payable Control and other accounts 270,000

The balances in the variable overhead control account and the variable overhead control account are $120,000 and $125,000 respectively. The variable overhead spending variance is $6,000 and the variable overhead efficiency variance is $11,000. Which of the following entries would be required to record the variances in a standard costing system? A) Cost of Goods Sold $5,000 Variable Overhead Spending $6,000 Variable Overhead Efficiency Variance $11,000 B) Work-in-Process $5,000 Variable Overhead Spending $6,000 Variable Overhead Efficiency Variance $11,000 C) Variable Overhead Allocated $120,000 Variable Overhead Spending Variance $11,000 Variable Overhead Efficiency Variance $6,000 Variable Overhead Control $125,000 D) Variable Overhead Control $120,000 Variable Overhead Spending Variance $11,000 Variable Overhead Efficiency Variance $6,000 Variable Overhead Allocated $125,000

Variable Overhead Allocated $120,000 Variable Overhead Spending Variance $11,000 Variable Overhead Efficiency Variance $6,000 Variable Overhead Control $125,000

Which of the following journal entries is used to record actual variable overhead costs incurred? A) Accounts Payable Variable Overhead Control B) Variable Overhead Control Accounts Receivable C) Work-in-Process Control Variable Overhead Control D) Variable Overhead Control Accounts Payable and various other accounts

Variable Overhead Control Accounts Payable and various other accounts

A company is using a standard cost system and receives its electricity bill. Electricity is considered a variable cost of operations for this company. The bill is for $15,000 and will be paid next month. Which of the following entries would be the correct recording of the electricity bill? A) Work-in-Process Control $15,000 Variable Overhead Allocated $15,000 B) Variable Overhead Control $15,000 Accounts payable $15,000 C) Work-in-Process Control $15,000 Accounts Payable $15,000 D) Variable Overhead Control $15,000 Variable Overhead Allocated $15,000

Variable Overhead Control $15,000 Accounts payable $15,000

Which of the following journal entries is used to record fixed overhead costs allocated? A) Fixed Overhead Allocated Work-in-Process Control B) Work-in-Process Control Fixed Overhead Allocated C) Fixed Overhead Control Work-in-Process Control D) Fixed Overhead Allocated Fixed Overhead Control

Work-in-Process Control Fixed Overhead

Teddy Company uses a standard cost system. In May, $234,000 of variable manufacturing overhead costs were incurred and the flexible-budget amount for the month was $240,000. Which of the following variable manufacturing overhead entries would have been recorded for May? A) Accounts Payable Control and other accounts 240,000 Work-in-Process Control 240,000 B) Work-in-Process Control 240,000 Variable Manufacturing Overhead Allocated 240,000 C) Work-in-Process Control 234,000 Accounts Payable Control and other accounts 234,000 D) Accounts Payable Control and other accounts 234,000 Variable Manufacturing Overhead Control 234,000

Work-in-Process Control 240,000 Variable Manufacturing Overhead Allocated 240,000

When machine-hours are used as an overhead cost-allocation base, the most likely cause of a favorable variable overhead spending variance is ________. A) excessive machine breakdowns B) the production scheduler efficiently scheduled jobs C) a decline in the cost of energy D) strengthened demand for the product

a decline in the cost of energy

The variable overhead efficiency variance measures the difference between the ________, multiplied by the budgeted variable overhead cost per unit of the cost-allocation base. A) budgeted quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output B) actual quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output C) actual cost incurred and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output D) budgeted cost and the actual cost used to produce the actual output

actual quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output

When variable overhead efficiency variance is favorable, it can be safely assumed that the ________. A) actual rate per unit of the cost-allocation base is higher than the budgeted rate B) actual quantity of the cost-allocation base used is higher than the budgeted quantity C) actual rate per unit of the cost-allocation base is lower than the budgeted rate D) actual quantity of the cost-allocation base used is lower than the budgeted quantity

actual quantity of the cost-allocation base used is lower than the budgeted quantity

The amount reported for fixed overhead on the static budget is also reported ________. A) as actual fixed costs B) as allocated fixed overhead costs C) as flexible budget costs D) as committed variable costs

as flexible budget costs

Most of the decisions determining the level of fixed overhead costs to be incurred will be made ________. A) by the end of a budget period B) by the middle of a budget period C) on a day-to-day ongoing basis D) at the start of a budget period

at the start of a budget period

Which of the following is the correct mathematical expression to calculate the fixed overhead production-volume variance? A) static-budget amount − flexible-budget amount B) flexible-budget amount − actual costs incurred C) actual costs incurred − fixed overhead allocated for actual output D) budgeted fixed overhead − fixed overhead allocated for actual output

budgeted fixed overhead − fixed overhead allocated for actual outpu

The major challenge when planning fixed overhead is ________. A) calculating total costs B) calculating the cost-allocation rate C) choosing the appropriate level of capacity D) choosing the appropriate planning period

choosing the appropriate level of capacity

Compared to variable overhead costs planning, fixed overhead cost planning has an additional strategic issue beyond undertaking only essential activities and efficient operations. That additional requirement is best described as: A) focusing on the highest possible quality B) increasing the linearity between total costs and volume of production C) choosing the appropriate level of capacity that will benefit the company in the long-run D) identifying essential value-adding activities

choosing the appropriate level of capacity that will benefit the company in the long-run

Effective planning of fixed overhead costs includes ________. A) planning day-to-day operational decisions B) eliminating value-added costs C) determining which products are to be produced D) choosing the appropriate level of investment in productive assets

choosing the appropriate level of investment in productive assets

Bismith Company reported: Actual fixed overhead $700,000 Fixed manufacturing overhead spending variance $40,000 unfavorable Fixed manufacturing production-volume variance $30,000 unfavorable To record the write-off of these variances at the end of the accounting period, Bismith would ________. A) credit Fixed Manufacturing Overhead Allocated for $700,000 B) debit Fixed Manufacturing Overhead Spending Variance for $40,000 C) credit Fixed Manufacturing Production-Volume Variance for $30,000 D) debit Fixed Manufacturing Control for $700,000

debit Fixed Manufacturing Overhead Spending Variance for $40,000

For fixed manufacturing overhead, there is no ________. A) spending variance B) efficiency variance C) flexible-budget variance D) production-volume variance

efficiency variance

In flexible budgets the costs that are not "flexed" because they remain the same within a relevant range of activity (such as sales or output) are called ________. A) total overhead costs B) total budgeted costs C) fixed costs D) variable costs

fixed costs

Effective planning of variable overhead costs means that managers must A) increase the expenditures in the variable overhead budgets B) focus on activities that add value for the customer and eliminate nonvalue-added activities C) increase the linearity between total costs and volume of production D) identify the product advertising requirements and factor those into the variable overhead budget

focus on activities that add value for the customer and eliminate nonvalue-added activities

Effective planning of variable overhead costs includes ________. A) choosing the appropriate level of investment B) eliminating value-added costs C) redesigning products or processes to use fewer resources D) reorganizing management structure

redesigning products or processes to use fewer resources

) The variable overhead flexible-budget variance can be further explained by calculating the: A) price variance and the efficiency variance B) static-budget variance and sales-volume variance C) spending variance and the efficiency variance D) sales-volume variance and the spending variance

spending variance and the efficiency variance

A $5,000 unfavorable flexible-budget variance indicates that ________. A) the flexible-budget amount exceeded actual variable manufacturing overhead by $5,000 B) the actual variable manufacturing overhead exceeded the flexible-budget amount by $5,000 C) the flexible-budget amount exceeded standard variable manufacturing overhead by $5,000 D) the standard variable manufacturing overhead exceeded the flexible-budget amount by $5,00

the actual variable manufacturing overhead exceeded the flexible-budget amount by $5,000

The variable overhead spending variance measures the difference between ________, multiplied by the actual quantity of variable overhead cost-allocation base used. A) the actual variable overhead cost per unit and the budgeted variable overhead cost per unit B) the standard variable overhead cost rate and the budgeted variable overhead cost rate C) the actual variable overhead cost per unit and the budgeted fixed overhead cost per unit D) the actual quantity per unit and the budgeted quantity per unit

the actual variable overhead cost per unit and the budgeted variable overhead cost per unit

An unfavorable fixed overhead spending variance indicates that ________. A) there was more excess capacity than planned B) the price of fixed overhead items cost more than budgeted C) the fixed overhead cost-allocation base was not used efficiently D) the denominator level was more than planned

the price of fixed overhead items cost more than budgeted

The variable overhead efficiency variance is computed ________ and interpreted ________ the direct-cost efficiency variance. A) the same as; the same as B) the same as; differently than C) differently than; the same as D) differently than; differently than

the same as; differently than

When machine-hours are used as an overhead cost-allocation base and annual leasing costs for equipment unexpectedly increase, the most likely result would be to report a(n) ________. A) unfavorable variable overhead spending variance B) favorable variable overhead efficiency variance C) unfavorable fixed overhead flexible-budget variance D) favorable production-volume variance

unfavorable fixed overhead flexible-budget variance

While calculating the costs of products and services, a standard costing system ________. A) allocates overhead costs on the basis of the actual overhead-cost rates B) uses standard costs to determine the cost of products C) does not keep track of overhead cost D) traces direct costs to output by multiplying the standard prices or rates by the actual quantities

uses standard costs to determine the cost of products