Unformatted text preview: ActivityActual Cost Budgeted Cost Variance (F or U) Maintenance costs: [‘05 .-_. i‘ ”dull-“3 "~10! 1
Fixed ........................... $15000 $14,000 $1.000 u
Variable ...................... 42.000 45,000 31000 F Total ....................... 22.214.171.1240. iii—EL. 00 3L 000 F
Practice l . In an activity ﬂexible budget, the fixed cost component typically correspond to a. resources that vary with direct labor hours. b. resources that vary as the activity output changes.
Kb) resources acquired in advance of usage. d. resources acquired as needed. 6. none ofthese. 2. The total variable OH variance can be expressed as the sum of a. the under-applied variable 0H and the spending variance
bathe efﬁciency variance and the over-applied variable 0H
c.-'the spending and efficiency variances d. the spending, efﬁciency. and volume variances. e. none ofthe above. . 3. A performance rdport
a. compares actual costs with budgeted costs , b. always uses static budgets \c’.) usually uses ﬂexible budgets
d. both compares actual costs with budgeted costs and always uses static budget
c. both always uses static budgets and usually uses flexible budgets 4. The total variable overhead variance is the difference between
a. the actual overhead and the budgeted overhead.
b. the total actual variable overhead and the total budgeted variable overhead.
Kc.) the total actual variable overhead and the total applied variable overhead. d. the total actual variable overhead and the total applied overhead.
6. none of these. 5. To create a meaningful performance report. actual costs and expected costs should be compared a. at the budgeted level ofactivity
h. weekly Eat the actual level of activity d: at the average level of activity
c. hourly 6. For performance reporting, it is best to compare actual costs with budgeted costs using
. \ _
(a; flextblc begets
b. static budgets
. master budgets c
d. short-term budgets
e. none cfthe above ...
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- Spring '08