Chapters 10-13 -16 Review Questions (1)

# Chapters 10-13 -16 Review Questions (1) - Review Questions...

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1. A flexible budget is a budget that: A. is updated with actual costs as they occur during the period. B. is updated to reflect the actual level of activity during the period. C. is prepared using a computer spreadsheet application. D. contains only variable production costs. 2. Barringer Manufacturing Corporation has prepared the following overhead budget for next month. The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 7,900 machine-hours rather than 7,800 machine-hours? A. \$110,710.00 B. \$109,620.00 C. \$110,868.00 D. \$111,025.38 Variable cost per machine-hour = (\$34,320 + \$50,700) 7,800 machine-hours = \$10.90 per machine-hour (\$10,200 + \$5,600 + \$8,800) + (\$10.90 x 7,900) = \$110,710.00

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3. Johannsen Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is \$310 per month plus \$103 per job plus \$23 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in February to be 28 jobs and 187 meals, but the actual activity was 26 jobs and 192 meals. The actual cost for catering supplies in February was \$7,620. The catering supplies in the flexible budget for February would be closest to: A.
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## This note was uploaded on 07/01/2011 for the course ACCT 52548 taught by Professor Charleslewis during the Spring '10 term at HCCS.

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Chapters 10-13 -16 Review Questions (1) - Review Questions...

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