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Unformatted text preview: Managerial Accounting Practice Exam 4 Chapters 10.12.13 I. \\&en fixed manufactuting overhead cost is applied to work in process, it is treated as if it were a variable cost. (@ r'a'. 2. When using a flexible budget, a decrease in activity within the relevant range: A. decreases variable cost per unit. /E)decreases total costs. Yin...ures total fixed costs. D. increases variable cost per unit. iance equals: Applied fixed manufacturing overhead cost. Budgeted fixed manufacturing overhead cost. t - Applied fixed manufacturing overhead cost. D. Actual fixed manufacturing overhead cost - (Actual hours x Standard fixed overhead rate). 4. The manufacturing overhead variance that is a measure of capacity utilization is: A. the overhead spending variance. B. the overhead efficiency variance. C. the overhead budget variance. /fr .r-^ ^:.^-L^^ J -.^!-..--^ ..^-:^'^^^ (l/, rrrL ul9rllu4\l v\.riurrru y4l tdttu!. 5. Rodabaugh Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last rnonth. the budgeted level of activity was 15,900 skeins and the actual level of activity vvas 16,100 skeins. The company's o\\'ner budgets for dye costs, a variable overhead cost, at $0.87 per skein. The actual dye cost last month was $14.800. In the company's flexible budget performance report for last month, u,hat would hal,e been the variance for dye costs? A. $967 U B. $174 U c. $r84 u @sze: u 6. Hermansen Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, the company budgeted production of 5,100 doors. Actual production was 5,400 doors. According to standards, each door requires 3.8 machine-hours. The actual machine-hours for the month were 20,880 machine-hours. The budgeted supplies cost is $7.90 per machine-hour. The actual supplies cost for the month was $152,063. The variable overhead efficiency variance for supplies cost is: V6.rrc.utq Ove" Lr5t Fo-t-lY'\',...
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