7) What are the actual variable costs (C)? A) $72,800B) $64,240C) $62,640 D) $54,080Answer:

BDiff: 2Terms: flexible budgetObjective: 3AACSB: Analytical skills8) What is the total flexible-budget variance (D)?

DDiff: 2Terms: flexible-budget varianceObjective: 3AACSB: Analytical skills

9) What is the total sales-volume variance (E)?

CDiff: 2Terms: sales-volume varianceObjective: 3AACSB: Analytical skills10) What is the total static-budget variance?

ADiff: 2Terms: static-budget varianceObjective: 3AACSB: Analytical skills11) The flexible-budget variance pertaining to revenues is often called a selling-price variance.

Diff: 1Terms: flexible-budget varianceObjective: 3AACSB: Reflective thinking12) Cost control is the focus of the sales-volume variance.

Diff: 2Terms: sales-volume varianceObjective: 3AACSB: Reflective thinking

13) Bach Table Company manufactures tables for schools. The 2011 operating budget is based on sales of 40,000 units at $50 per table. Operating income is anticipated to be $120,000. Budgeted variable costs are $32 per unit, while fixed costs total $600,000. Actual income for 2011 was a surprising $354,000 on actual sales of 42,000 units at $52 each. Actual variable costs were $30 per unit and fixed costs totaled $570,000. Required:Prepare a variance analysis report with both flexible-budget and sales-volume variances.

Diff: 2Terms: static budget, flexible-budget variance, sales-volume varianceObjective: 2, 3AACSB: Analytical skillsObjective 7.41) The flexible-budget variance for direct cost inputs can be further subdivided into a:

CDiff: 1Terms: flexible-budget varianceObjective: 4AACSB: Analytical skills