A predetermined overhead rate for fixed costs is

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Accounting
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Chapter 21 / Exercise EX21-7
Accounting
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11. A predetermined overhead rate for fixed costs is unlike a standard fixed cost per unit in that a predetermined overhead rate isA. based on an input factor like direct labor hours and a standard cost per unit is based on aunit of output.B. based on practical capacity and a standard fixed cost can be based on any level ofactivity.C. used with variable costing while a standard fixed cost is used with absorption costing.D. likely to be higher than a standard fixed cost per unit.
12. If a company wishes to establish factory overhead budget system in which estimated costscan be derived directly from estimates of activity levels, it should prepare a
13. Lanta Restaurant compares monthly operating results with a static budget. When actual salesare less than budget, would Lanta usually report favorable variances on variable food costsand fixed supervisory salaries.
D.
No
No14. The primary difference between a fixed (static) budget and a variable (flexible) budget is thata fixed budget:
15. Which of the following term is best identified with a system of standard cost?A. Contribution approach. C. Marginal costing.B. Management by exception. D. Standard accounting system.
16. Which department is typically responsible for a materials price variance?
17. Under a standard cost system, the materials efficiency variance are the responsibility of
18. Which of the following people is most likely responsible for an unfavorable variableoverhead efficiency variance?
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Accounting
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Chapter 21 / Exercise EX21-7
Accounting
Reeve/Warren
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