Question 1

Westby Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for February was based on 3,900 meals, but the diner actually served 4,400 meals.The diner's director has provided the following cost data to use in the budget: groceries, $3.05 per meal; kitchen operations, $5,500 per month plus $1.40 per meal; administrative expenses, $3,300 per month plus $0.80 per meal; and fundraising expenses, $1,500 per month.
Required:
Prepare the diner's flexible budget for the actual number of meals served in February.The budget will only contain the costs listed above; no revenues will be on the budget.

Accepted Answer

The answer of Westby Urban Diner is a charity supported...

Question 2

Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours.For the most recent month, the company based its budget on 3,600 machine-hours.Budgeted and actual overhead costs for the month appear below:  The company actually worked 3,900 machine-hours during the month.The standard hours allowed for the actual output were 3,890 machine-hours for the month.What was the overall variable overhead efficiency variance for the month?

Accepted Answer

A)  $760 Favorable
B)  $104 Unfavorable
C)  $180 Favorable
D)  $656 FavorableE) A) and B)
F) A) and C)

Question 3

The raw materials price variance for the month is closest to:

Accepted Answer

A)  $46,200 U
B)  $50,400 F
C)  $46,200 F
D)  $50,400 UE) All of the above
F) B) and D)

Question 4

The net operating income in the flexible budget for December would be closest to:

Accepted Answer

A)  $13,990
B)  $14,762
C)  $11,898
D)  $12,188E) B) and D)
F) A) and B)

Question 5

The variable overhead rate variance is:

Accepted Answer

A)  $1,000 Favorable
B)  $1,000 Unfavorable
C)  $3,500 Unfavorable
D)  $3,500 FavorableE) C) and D)
F) A) and C)

Question 6

The standard hours allowed for the actual output is closest to:

Accepted Answer

A)  1,480 hours
B)  1,580 hours
C)  1,520 hours
D)  1,538 hoursE) A) and D)
F) A) and C)

Question 7

Faulks Corporation is a shipping container refurbishment  company that measures its output by the number of containers refurbished.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.  When the company prepared its planning budget at the beginning of August, it assumed that 23 containers would have been refurbished.However, 26 containers were actually refurbished during August. The amount shown for total expenses in the planning budget for August would have been closest to:

Accepted Answer

A)  $111,904
B)  $126,500
C)  $122,400
D)  $128,100E) All of the above
F) C) and D)

Question 8

The materials quantity variance for January is:

Accepted Answer

A)  $1,411 F
B)  $1,660 F
C)  $1,660 U
D)  $1,411 UE) B) and D)
F) A) and B)

Question 9

The labor efficiency variance is labeled favorable (F)if the actual hours used is less than the standard hours allowed for the actual output.

Accepted Answer

A) True 
 B)False

Question 10

Comparing a static planning budget to actual costs is a not good way to assess whether variable costs are under control.

Accepted Answer

A) True 
 B)False

Question 11

The net operating income in the planning budget for July would be closest to:

Accepted Answer

A)  $23,668
B)  $16,200
C)  $16,875
D)  $24,144E) A) and B)
F) B) and C)

Question 12

The variable overhead efficiency variance for June is:

Accepted Answer

A)  $760 F
B)  $760 U
C)  $741 F
D)  $741 UE) A) and B)
F) A) and C)

Question 13

The amount shown for revenue in the planning budget for November would have been closest to:

Accepted Answer

A)  $170,500
B)  $148,500
C)  $149,981
D)  $172,200E) B) and C)
F) A) and D)

Question 14

Shiigi Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for May is to be based on 3,300 meals.The diner's director has provided the following cost data to use in the budget: groceries, $3.80 per meal; kitchen operations, $4,600 per month plus $1.25 per meal; administrative expenses, $3,800 per month plus $0.40 per meal; and fundraising expenses, $1,700 per month.
Required:
Prepare the diner's budget for the month of May.The budget will only contain the costs listed above; no revenues will be on the budget.

Accepted Answer

The answer of Shiigi Urban Diner is a charity supported...

Question 15

The materials quantity variance for June is:

Accepted Answer

A)  $4,200 F
B)  $4,200 U
C)  $4,020 U
D)  $4,020 FE) A) and C)
F) All of the above

Question 16

Kropf Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours.  The company has reported the following actual results for the product for September:  Required:
a.Compute the materials price variance for September.
b.Compute the materials quantity variance for September.
c.Compute the labor rate variance for September.
d.Compute the labor efficiency variance for September.
e.Compute the variable overhead rate variance for September.
f.Compute the variable overhead efficiency variance for September.

Accepted Answer

a.Materials price variance = (AQ × AP)− ...

Question 17

What is ChocO's labor rate variance?

Accepted Answer

A)  $902 Favorable
B)  $2,880 Favorable
C)  $3,782 Favorable
D)  $14,432 FavorableE) All of the above
F) B) and C)

Question 18

The general model for calculating a quantity variance is:

Accepted Answer

A)  Actual quantity of inputs used × (Actual price - Standard price) .
B)  Standard price × (Actual quantity of inputs used - Standard quantity allowed for output) .
C)  (Actual quantity of inputs used × Actual price) - (Standard quantity allowed for output × Standard price) .
D)  Actual price × (Actual quantity of inputs used - Standard quantity allowed for output) .E) B) and D)
F) C) and D)

Question 19

The raw materials price variance for the month is closest to:

Accepted Answer

A)  $51,600 U
B)  $48,568 F
C)  $51,600 F
D)  $48,568 UE) A) and D)
F) C) and D)

Question 20

The spending variance for equipment depreciation for the month should be:

Accepted Answer

A)  $1,890 U
B)  $90 F
C)  $90 U
D)  $1,890 FE) A) and B)
F) None of the above

Exam 9: Flexible Budgets Standard Costs and Variance Analysis

Comparing a static planning budget to actual costs is a not good way to assess whether variable costs are under control.

Correct Answer
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What is ChocO's labor rate variance?

Correct Answer
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Correct Answer
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The raw materials price variance for the month is closest to:

Correct Answer
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The materials quantity variance for January is:

Correct Answer
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Correct Answer
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The materials quantity variance for June is:

Correct Answer
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Correct Answer
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a.Materials price variance = (AQ × AP)− ...
View Answer

The net operating income in the flexible budget for December would be closest to:

Correct Answer
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The variable overhead efficiency variance for June is:

Correct Answer
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The labor efficiency variance is labeled favorable (F)if the actual hours used is less than the standard hours allowed for the actual output.

Correct Answer
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The general model for calculating a quantity variance is:

Correct Answer
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The raw materials price variance for the month is closest to:

Correct Answer
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Correct Answer
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Correct Answer
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The standard hours allowed for the actual output is closest to:

Correct Answer
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The spending variance for equipment depreciation for the month should be:

Correct Answer
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The net operating income in the planning budget for July would be closest to:

Correct Answer
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The amount shown for revenue in the planning budget for November would have been closest to:

Correct Answer
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The variable overhead rate variance is:

Correct Answer
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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

Comparing a static planning budget to actual costs is a not good way to assess whether variable costs are under control.

Correct AnswerverifiedShow Answer

What is ChocO's labor rate variance?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The raw materials price variance for the month is closest to:

Correct AnswerverifiedShow Answer

The materials quantity variance for January is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The materials quantity variance for June is:

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Materials price variance = (AQ × AP)− ...View AnswerShow Answer

The net operating income in the flexible budget for December would be closest to:

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for June is:

Correct AnswerverifiedShow Answer

The labor efficiency variance is labeled favorable (F)if the actual hours used is less than the standard hours allowed for the actual output.

Correct AnswerverifiedShow Answer

The general model for calculating a quantity variance is:

Correct AnswerverifiedShow Answer

The raw materials price variance for the month is closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The standard hours allowed for the actual output is closest to:

Correct AnswerverifiedShow Answer

The spending variance for equipment depreciation for the month should be:

Correct AnswerverifiedShow Answer

The net operating income in the planning budget for July would be closest to:

Correct AnswerverifiedShow Answer

The amount shown for revenue in the planning budget for November would have been closest to:

Correct AnswerverifiedShow Answer

The variable overhead rate variance is:

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a.Materials price variance = (AQ × AP)− ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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