Practice Quiz 11 - Practice Quiz 11 1. A budget that is...

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Practice Quiz 11 1. A budget that is based on the actual activity of a period is known as a: A) continuous budget. B) flexible budget. C) static budget. D) master budget. 2. When using a flexible budget, a decrease in activity within the relevant range: A) decreases variable cost per unit. B) decreases total costs. C) increases total fixed costs. D) increases variable cost per unit. 3. The activity base that is used for a flexible budget for an overhead cost should be: A) direct labor-hours. B) units of output. C) expressed in dollars, if possible. D) the cause of the overhead cost. 4. If the denominator activity is less than the standard hours allowed for the actual output, one would expect that: A) the variable overhead efficiency variance would be unfavorable. B) the fixed overhead volume variance would be favorable. C) the fixed overhead budget variance would be unfavorable. D) the variable overhead efficiency variance would be favorable. 5. Riggs Enterprise's flexible budget cost formula for indirect materials, a variable cost, is $0.45 per unit of output. If the company's performance report for last month shows a $90 favorable variance for indirect materials and if 8,700 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been: A) $4,005 B) $3,915 C) $3,825 D) $3,735 1
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6. Which of the following standard cost variances would usually be least controllable by a production supervisor? A) Fixed overhead volume variance. B) Variable overhead efficiency variance. C) Direct labor efficiency variance. D) Materials usage (quantity) variance. 7. The following costs appear in Malgorzata Company's flexible budget at an activity level of 15,000 machine-hours: Total Cost Indirect materials. .............. $7,800 Factory rent. ....................... $18,000 What would be the flexible budget amounts at an activity level of 12,000 machine-hours if indirect materials is a variable cost and factory rent is a fixed cost? Indirect Materials Factory Rent A) $7,800 $14,400 B) $7,800 $18,000 C) $6,240 $14,400 D) $6,240 $18,000 8. Chmielewski Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,560 patient-visits and the actual level of activity was 1,530 patient-visits. The clinic's director budgets for variable overhead costs of $1.10 per patient-visit and fixed overhead costs of $19,900 per month. The actual variable overhead cost last month was
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This note was uploaded on 12/05/2009 for the course ACC ACC 502 taught by Professor Prof.l.liu during the Spring '09 term at CSU Dominguez Hills.

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Practice Quiz 11 - Practice Quiz 11 1. A budget that is...

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