Unit Test with Solutions
5. One cause of a flexible-budget variance might be a difference between
expected and actual hourly wages for factory workers.
6. The difference between budgeted fixed overhead and allocated fixed
overhead for actual ou
QUESTION 1 (20 points 36 minutes)
Eschliman Manufacturing Company had the following account balances for the quarter ending
September 30, unless otherwise noted:
Amortization of manufacturing equipment
Amortization of office equipment
Multiple-Choice Questions (20 marks)
Section A consists of 20 multiple-choice questions, each worth 1 mark. Indicate the best
response for each of the following questions.
1. Honda Heaven produces and sells an auto part for $20.00 per uni
1. The process of constructing a mathematical model or function that can be used to predict or
determine one variable by another variable is called regression analysis.
Response: See section 14.1 Introduction to Simple Regression Analysis
SPOILAGE, REWORK, AND SCRAP
18-16 (510 min.) Normal and abnormal spoilage in units.
Total spoiled units
Normal spoilage in units, 5% 132,000
Abnormal spoilage in units
Abnormal spoilage, 5,400 $10
Normal spoilage, 6,600 $10
Direct material cost
Direct manufacturing labor time for first unit
Learning curve for manufacturing labor time per radar system
Direct manufacturing labor cost
Variable manufacturing overhead cost
Using the formula for a 90% learning curve,
FLEXIBLE BUDGETS, VARIANCES,
AND MANAGEMENT CONTROL: II
Effective planning of variable overhead costs involves:
1. Planning to undertake only those variable overhead activities that add value for
customers using the product or service, and
INVENTORY MANAGEMENT, JUST-IN-TIME, AND
Retailers generally have a high percentage of net income to revenues.
The simplest version of the