When variances are immaterial which of the following

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College Accounting, Chapters 1-27
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Chapter 24 / Exercise 1
College Accounting, Chapters 1-27
Heintz/Parry
Expert Verified
43) When variances are immaterial, which of the following statements is true of the journal entry to write-off the variable overhead variance accounts?A) Cost of Goods Sold account will always be debited.B) Unfavorable efficiency variance will be credited.C) Favorable efficiency variance will be credited.D) Cost of Goods Sold account will always be credited.Answer:
BDiff: 2Objective: 3AACSB: Analytical thinking44) The flexible budget highlights the differences between budgeted costs and budgeted quantities versus actual costs and actual quantities for the budgeted output level.
Diff: 1Objective: 3AACSB: Analytical thinking
We have textbook solutions for you!
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College Accounting, Chapters 1-27
The document you are viewing contains questions related to this textbook.
Chapter 24 / Exercise 1
College Accounting, Chapters 1-27
Heintz/Parry
Expert Verified
45) Managers can always view a favorable variable overhead spending variance as desirable.
Diff: 2Objective: 3AACSB: Analytical thinking46) The variable overhead efficiency variance is the difference between actual quantity of thecost-allocation base used and budgeted quantity of the cost-allocation base allowed for actual output, multiplied by the budgeted variable overhead cost per unit of the cost-allocation base.
Diff: 1Objective: 3AACSB: Analytical thinking47) Tightly budgeted machine time standards can lead to unfavorable variable overhead efficiency variance.
Diff: 1Objective: 3AACSB: Analytical thinking48) If budgeted and actual machine hours are equal, spending variance will always be nil.
Diff: 2Objective: 3AACSB: Analytical thinking49) Unskilled work force can lead to unfavorable efficiency variance.
Diff: 1Objective: 3AACSB: Analytical thinking50) Causes of a favorable variable overhead efficiency variance might include using lower-skilled workers than expected.
Diff: 1Objective: 3AACSB: Analytical thinking
51) If the production planners set the budgeted machine hours standards too tight, one could anticipate there would be a favorable variable overhead efficiency variance.

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