# Which of the following is the correct mathematical

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4) Which of the following is the correct mathematical expression to calculate the fixedoverhead spending variance?A) Static-budget amount — Flexible-budget amountB) Actual costs incurred — Flexible-budget amountC) Static-budget amount — Fixed overhead allocated for actual outputD) Flexible-budget amount — Fixed overhead allocated for actual outputAnswer:BDiff: 1
Objective:4AACSB:Analytical thinking
5) For fixed manufacturing overhead, there is no ________.BDiff: 1
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Objective:4AACSB:Analytical thinking6) Advanced Manufacturing Company reported:Actual fixed overhead\$430,000Fixed manufacturing overhead spending variance\$19,000 favorableFixed manufacturing production-volume variance\$24,000 unfavorableTo isolate these variances at the end of the accounting period, John would debit FixedManufacturing Overhead Allocated for________.B
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Diff: 2Objective:4AACSB:Analytical thinking7) Castleton Corporation manufactured 36,000 units during March. The following fixedoverhead data relates to March:ActualStatic BudgetProduction36,000 units34,000 unitsMachine-hours6,960 hours6,800 hoursFixed overhead costs for March\$164,700\$156,400What is the flexible-budget amount?BDiff: 2
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Objective:4AACSB:Application of knowledge
8) Castleton Corporation manufactured 41,000 units during March. The following fixedoverhead data relates to March:ActualStatic BudgetProduction41,000 units39,000 unitsMachine-hours6,020 hours5,850 hoursFixed overhead costs for March\$125,500\$117,000What is the amount of fixed overhead allocated to production?A) \$128,210.13B) \$117,000.00C) \$125,500.00D) \$123,000.00Answer:Explanation:Fixed overhead cost per machine hour = \$117,000 ÷ 5,850 = \$20Machine hours per unit = 5,850 ÷ 39,000 = 0.15Fixed overhead cost per unit = \$20 × 0.15 = \$3.00Fixed overhead allocated = 41,000 × \$3.00 = \$123,000.00D
Diff: 3Objective:4AACSB:Application of knowledge9) Castleton Corporation manufactured 36,500 units during March. The following fixedoverhead data relates to March:ActualStatic BudgetProduction36,500 units35,000 unitsMachine-hours5,400 hours5,250 hoursFixed overhead costs for March\$139,510\$131,250What is the fixed overhead spending variance?CDiff: 2
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Objective:4AACSB:Application of knowledge

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