Question 1

When more hours of labor time are necessary to complete a job than the standard allows, the labor efficiency variance is unfavorable.

Accepted Answer

A) True 
 B)False

Question 2

The occupancy expenses in the flexible budget for September would be closest to:

Accepted Answer

A)  $13,215
B)  $12,808
C)  $13,583
D)  $12,880E) A) and D)
F) A) and C)

Question 3

Warp Manufacturing Corporation uses a standard cost system for the production of its ski lift chairs.Warp uses machine-hours as an overhead base.The variable manufacturing overhead standards for each chair are 1.2 machine-hours at a standard cost of $18 per hour. During the month of September, Warp incurred 34,000 machine-hours in the production of 32,000 ski lift chairs.The total variable manufacturing overhead cost was $649,400.What is Warp's variable overhead rate variance for September?

Accepted Answer

A)  $37,400 Unfavorable
B)  $41,800 Favorable
C)  $79,200 Favorable
D)  $84,040 FavorableE) A) and B)
F) All of the above

Question 4

Pittman Framing's cost formula for its supplies cost is $1,150 per month plus $11 per frame.For the month of November, the company planned for activity of 789 frames, but the actual level of activity was 792 frames.The actual supplies cost for the month was $9,480.The spending variance for supplies cost in November would be closest to:

Accepted Answer

A)  $349 F
B)  $382 U
C)  $382 F
D)  $349 UE) A) and D)
F) A) and C)

Question 5

Krizun Industries makes heavy construction equipment.The standard for a particular crane calls for 20 direct labor-hours at $24 per direct labor-hour.During a recent period 875 cranes were made.The labor efficiency variance was $1,200 Unfavorable.How many actual direct labor-hours were worked?

Accepted Answer

A)  17,600 direct labor-hours
B)  17,450 direct labor-hours
C)  17,500 direct labor-hours
D)  17,550 direct labor-hoursE) B) and C)
F) B) and D)

Question 6

The labor efficiency variance for July is:

Accepted Answer

A)  $2,090 F
B)  $2,166 U
C)  $2,090 U
D)  $2,166 FE) B) and D)
F) A) and D)

Question 7

The labor efficiency variance for May is:

Accepted Answer

A)  $3,978 F
B)  $4,320 F
C)  $4,320 U
D)  $3,978 UE) A) and B)
F) A) and C)

Question 8

The amount shown for revenue in the planning budget for March would have been closest to:

Accepted Answer

A)  $126,000
B)  $140,400
C)  $142,435
D)  $124,200E) B) and C)
F) B) and D)

Question 9

The materials quantity variance for September is:

Accepted Answer

A)  $2,170 U
B)  $2,232 U
C)  $2,170 F
D)  $2,232 FE) C) and D)
F) A) and C)

Question 10

The total fixed cost at the activity level of 5,500 guest-days per month should be:

Accepted Answer

A)  $139,700
B)  $190,920
C)  $244,200
D)  $109,220E) A) and B)
F) A) and C)

Question 11

The spending variance for laundry costs for the month is:

Accepted Answer

A)  $5,080 F
B)  $5,080 U
C)  $5,800 U
D)  $5,800 FE) None of the above
F) B) and D)

Question 12

The spending variance for "Employee salaries and wages" for March would have been closest to:

Accepted Answer

A)  $3,300 U
B)  $3,300 F
C)  $300 U
D)  $300 FE) None of the above
F) A) and B)

Question 13

The labor efficiency variance for March is:

Accepted Answer

A)  $3,040 U
B)  $3,685 U
C)  $3,685 F
D)  $3,040 FE) A) and C)
F) C) and D)

Question 14

The materials price variance for July is:

Accepted Answer

A)  $2,100 U
B)  $2,420 F
C)  $2,100 F
D)  $2,420 UE) B) and D)
F) C) and D)

Question 15

The total variable cost at the activity level of 9,300 patient-visits per month should be:

Accepted Answer

A)  $114,390
B)  $149,730
C)  $102,090
D)  $133,630E) All of the above
F) C) and D)

Question 16

What is ChocO's variable overhead efficiency variance?

Accepted Answer

A)  $7,260 Unfavorable
B)  $10,560 Favorable
C)  $31,240 Unfavorable
D)  $39,050 UnfavorableE) A) and B)
F) C) and D)

Question 17

The following standards for variable manufacturing overhead have been established for a company that makes only one product:  The following data pertain to operations for the last month:  What is the variable overhead efficiency variance for the month?

Accepted Answer

A)  $15,550 U
B)  $15,200 U
C)  $16,530 U
D)  $980 FE) B) and C)
F) C) and D)

Question 18

The total standard cost per unit is closest to:

Accepted Answer

A)  $55.03 per unit
B)  $43.45 per unit
C)  $56.52 per unit
D)  $44.97 per unitE) A) and B)
F) A) and C)

Question 19

If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have a favorable labor rate variance and unfavorable variable overhead rate variance for the same period.

Accepted Answer

A) True 
 B)False

Question 20

The labor efficiency variance for July is:

Accepted Answer

A)  $450 U
B)  $423 F
C)  $423 U
D)  $450 FE) B) and C)
F) None of the above

Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The amount shown for revenue in the planning budget for March would have been closest to:

Correct Answer
verified

The materials price variance for July is:

Correct Answer
verified

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month?

Correct Answer
verified

The total standard cost per unit is closest to:

Correct Answer
verified

What is ChocO's variable overhead efficiency variance?

Correct Answer
verified

The total fixed cost at the activity level of 5,500 guest-days per month should be:

Correct Answer
verified

The total variable cost at the activity level of 9,300 patient-visits per month should be:

Correct Answer
verified

If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have a favorable labor rate variance and unfavorable variable overhead rate variance for the same period.

Correct Answer
verified

Krizun Industries makes heavy construction equipment.The standard for a particular crane calls for 20 direct labor-hours at $24 per direct labor-hour.During a recent period 875 cranes were made.The labor efficiency variance was $1,200 Unfavorable.How many actual direct labor-hours were worked?

Correct Answer
verified

The occupancy expenses in the flexible budget for September would be closest to:

Correct Answer
verified

When more hours of labor time are necessary to complete a job than the standard allows, the labor efficiency variance is unfavorable.

Correct Answer
verified

The labor efficiency variance for March is:

Correct Answer
verified

The labor efficiency variance for July is:

Correct Answer
verified

The labor efficiency variance for May is:

Correct Answer
verified

Correct Answer
verified

The spending variance for laundry costs for the month is:

Correct Answer
verified

Correct Answer
verified

The spending variance for "Employee salaries and wages" for March would have been closest to:

Correct Answer
verified

The materials quantity variance for September is:

Correct Answer
verified

The labor efficiency variance for July is:

Correct Answer
verified

Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The amount shown for revenue in the planning budget for March would have been closest to:

Correct AnswerverifiedShow Answer

The materials price variance for July is:

Correct AnswerverifiedShow Answer

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month?

Correct AnswerverifiedShow Answer

The total standard cost per unit is closest to:

Correct AnswerverifiedShow Answer

What is ChocO's variable overhead efficiency variance?

Correct AnswerverifiedShow Answer

The total fixed cost at the activity level of 5,500 guest-days per month should be:

Correct AnswerverifiedShow Answer

The total variable cost at the activity level of 9,300 patient-visits per month should be:

Correct AnswerverifiedShow Answer

If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have a favorable labor rate variance and unfavorable variable overhead rate variance for the same period.

Correct AnswerverifiedShow Answer

Krizun Industries makes heavy construction equipment.The standard for a particular crane calls for 20 direct labor-hours at $24 per direct labor-hour.During a recent period 875 cranes were made.The labor efficiency variance was $1,200 Unfavorable.How many actual direct labor-hours were worked?

Correct AnswerverifiedShow Answer

The occupancy expenses in the flexible budget for September would be closest to:

Correct AnswerverifiedShow Answer

When more hours of labor time are necessary to complete a job than the standard allows, the labor efficiency variance is unfavorable.

Correct AnswerverifiedShow Answer

The labor efficiency variance for March is:

Correct AnswerverifiedShow Answer

The labor efficiency variance for July is:

Correct AnswerverifiedShow Answer

The labor efficiency variance for May is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The spending variance for laundry costs for the month is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The spending variance for "Employee salaries and wages" for March would have been closest to:

Correct AnswerverifiedShow Answer

The materials quantity variance for September is:

Correct AnswerverifiedShow Answer

The labor efficiency variance for July is:

Correct AnswerverifiedShow Answer

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