gnbexam11 - GNB 11/e Practice Exam Chapter 11 Print these...

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GNB 11/e Practice Exam – Chapter 11 Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. What are the major weaknesses of static budgets? 2. The Firenze Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 6 direct labor-hours are required per unit of product. For August, the company budgeted to work 180,000 direct labor-hours and to incur the following total manufacturing overhead costs: Total variable overhead costs $198,000 Total fixed overhead costs $237,600 During August, the company completed 28,000 units of product, worked 172,000 direct labor-hours, and incurred the following total manufacturing overhead costs: Total variable overhead costs $197,800 Total fixed overhead costs $230,600 The denominator activity in the predetermined overhead rate is 180,000 direct labor- hours. Part (a) What is the variable overhead spending variance for August?
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Part (c) What is the fixed overhead budget variance for August?
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This note was uploaded on 10/13/2010 for the course ACCT 203 taught by Professor Schorg during the Spring '07 term at Loyola New Orleans.

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gnbexam11 - GNB 11/e Practice Exam Chapter 11 Print these...

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