ch 8 cost final exam

The variable overhead spending variance measures the difference between ________, multiplied by the actual quantity of variable overhead cost-allocation base used. Select one: 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

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

Which of the following is the correct mathematical expression to calculate the fixed overhead spending variance? Select one: 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

b. Actual costs incurred — Flexible-budget amount

The variable overhead efficiency variance measures the difference between the ________, multiplied by the budgeted variable overhead cost per unit of the cost-allocation base. Select one: 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

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

Effective planning of variable overhead costs means that managers must Select one: 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

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

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: Select one: 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

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

The variable overhead flexible-budget variance can be further explained by calculating the: Select one: 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

c. spending variance and the efficiency variance

Which of the following mathematical expression is used to calculate budgeted variable overhead cost rate per output unit? Select one: 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

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

Which of the following is the correct mathematical expression to calculate the fixed overhead production-volume variance? Select one: 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

d. budgeted fixed overhead − fixed overhead allocated for actual output