ACCT2301-002-Chap9-Additional-Solution-sp2009

ACCT2301-002-Chap9-Additional-Solution-sp2009 - ACCT 230]...

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Unformatted text preview: ACCT 230] Spring Semester 2009 March 21, 2009 Practice Problems — Flexible Budgets and Overhead Analysis 1. Overhead costs have been increasing due to all of the following EXCEPT A. increased automation. B. more complexity in distribution processes. © tracing more costs as direct costs with the help of technology. D. product proliferation. 2. Effective planning for variable overhead costs means that a company performs those variable overhead activities that primarily add value A. for the current shareholders. for the customer using the products or services. C. for plant employees. D. for major suppliers of component parts. 3. Variable overhead costs include the costs associated with leasing the plant and equipment. the plant manager's salary. straight-line depreciation on plant equipment. machine maintenance. @0570? 4. Fixed overhead costs include A. the cost of sales commissions. property taxes paid on plant facilities. C. energy costs. D. indirect materials. 5. Which of the following statements is FALSE regarding fixed costs in flexible budgeting and overhead analysis. A favorable fixed overhead volume variance arises when manufacturing capacity planned for is not used. B. The lump sum budgeted for fixed overhead will always be the same amount for the static budget and the flexible budget. C. The fixed overhead volume variance arises whenever the actual level of the denominator differs from the level used to calculate the budgeted fixed overhead rate. D. There is never an efficiency variance for fixed costs. 6. A $5,000 unfavorable flexible-budget variance indicates that A. the flexible-budget amount exceeded actual variable manufacturing overhead by $5,000. 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. standard variable manufacturing overhead exceeded the flexible-budget amount by $5,000. The following information pertains to Questions 7 through 10. Levelland Corporation manufactures an air-powered nailer and uses standard machine-hours to apply variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data. Budgeted output units 15,000 units Budgeted machine-hours for budgeted output _ 5,000 hours Budgeted variable manufacturing overhead costs for 15,000 units $161,250 Actual output units produced 22,000 units Actual machine-hours used 7,200 hours Actual variable manufacturing overhead costs $242,000 7. What is the budgeted variable overhead rate per output unit? 0 $10.75. #iG‘fZSD/‘Spm our; : /0.7§/U~,f B. $11.00. _ c. $32.25. D. $48.40. 8. What is the flexible-budget amount for variable manufacturing overhead? A. $165,000. 22 a» vMTs y. “mas/W“- -. e$236: £0.) (3‘) $236,500. ’ “‘"—-’ c. $242,000. D. None of the above. 9. What is the flexible-budget variance for variable manufacturing overhead? F60 : Acmtv (a? e M Macaw: “242‘ 0.20 - “5239‘ so) it it 5500 -2> 5500 ‘4 A. $5,500 favorable. @ $5,500 unfavorable. C. $4,300 favorable. D. none of the above. I! II 10. Variable manufacturing overhead costs were for actual output. @ higher than expected. B. the same as expected. C. lower than expected. D. unable to be determined. The following information pertains to Questions 11 and 12. Plainview Company manufactured 100,000 hammers during February. The standard variable overhead rate is $5.00 per machine-hour; each hammer uses 0.1 standard machine hours. Variable overhead data pertaining to February are: Actual Standard Production 100,000 units 100,000 units Machine-hours 9,800 hours 10,000 hours Variable overhead cost per machine-hour $5.25 $5.00 11. What is the variable overhead spending variance? Von QMNL‘ Vm , ACVM, Car — SWAN) Orrkr Aron»; “'le (10mm) e (014 $610 01361211414 x “5.15) - ($st x $5.02) 51350 — “44,000 1 iiwa 3» “23m? ” A. $1,000 favorable. B. $1,450 unfavorable. © $2,450 unfavorable. D. None of the above. ‘I I, ‘\ 12. What is the variable overhead efficiency variance? 001% any“, VMT $09er llama-ts - war $1 ,000 favorable. _ ’_ SH 3k 2 A“ , SM B. $1,450 unfavorable. ’ Q9“ 7‘ 5‘5 C K > 6’“ ) C. $2,450 unfavorable. : A5. (I'D/“H E9. 309"“ ’ 00900?" 0- maid] D. None of the above. ? fl Siva/Mu (Q3me — Ileana“) = (I’m) . . . . . : a / 090 F The followmg Information pertains to Questions 13 through I 6. .___ Slaton Company manufactured 25,000 fire extinguishers during March. The standard fixed overhead rate is $20.00 per machine-hour; each extinguisher uses 0.25 standard machine hours. The following fixed overhead data pertain to March. Actual Static Budget Production 25,000 units 24,000 units Machine-hours 6,100 hours 6,000 hours Fixed overhead costs for March $123,000 $120,000 13. What is the flexible-budget amount of fixed overhead? ‘L = X» 630065 a $120,000. SWOM‘“ F0“ E“ B. $122,000. = 173.22.) C. $123,000. " D. $125,000. 14. What is the amount of fixed overhead applied to production? AMA“) FM- 4‘ 25:02? VMTS 2: 0,7,: Mr; W“ )0 arm/M A. $120,000. B. $122,000. : @250 MM)“ #Za/M c. $123,000. ., a”; 3 $125,000. ____, 15. What is the fixed overhead spending variance? F0“ 9.50% UM: I46er F94“ Qua, and) FD“ A. $1,000 unfavorable. g A [20 B. $2,000 favorable. : 123033 " ( ac '1 $3,000 unfavorable. : 6' 3033 :J-7 “3.29.51 . $5,000 favorable. ' 16. What is the fixed overhead volume variance? A. $1,000 unfavorable. {FOL-é VOL—QM: UM: FDA — APR/LED B. $2,000 favorable. A a A 692:. C. $3,000 unfavorable. ’ .2010); C ' $5,000 favorable. : #:03th g) ggtooo F‘ ...
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ACCT2301-002-Chap9-Additional-Solution-sp2009 - ACCT 230]...

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