Cost Accounting, 14e (Horngren/Datar/Rajan)
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.comCost Accounting, 14e (Horngren/Datar/Rajan)Chapter 8 Flexible Budgets, Overhead Cost Variances, and Management ControlObjective 8.11) Overhead costs have been increasing due to all of the following EXCEPT:A) increased automationB) more complexity in distribution processesC) tracing more costs as direct costs with the help of technologyD) product proliferationAnswer: CDiff: 3Terms: total-overhead varianceObjective: 1AACSB: Reflective thinking2) Effective planning of variable overhead costs means that a company performs those variable overheadcosts that primarily add value for:A) the current shareholdersB) the customer using the products or servicesC) plant employeesD) major suppliers of component partsAnswer: BDiff: 2Terms: total-overhead varianceObjective: 1AACSB: Reflective thinking3) Variable overhead costs include:A) plant-leasing costsB) the plant manager's salaryC) depreciation on plant equipmentD) machine maintenanceAnswer: DDiff: 1Terms: total-overhead varianceObjective: 1AACSB: Reflective thinking4) Fixed overhead costs include:A) the cost of sales commissionsB) property taxes paid on plant facilitiesC) energy costsD) indirect materialsAnswer: BDiff: 1Terms: total-overhead varianceObjective: 1AACSB: Reflective thinking1Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com5) Effective planning of fixed overhead costs includes all of the following EXCEPT:A) planning day-to-day operational decisionsB) eliminating nonvalue-added costsC) planning to be efficientD) choosing the appropriate level of capacityAnswer: ADiff: 3Terms: total-overhead varianceObjective: 1AACSB: Reflective thinking6) Effective planning of variable overhead includes all of the following EXCEPT:A) choosing the appropriate level of capacityB) eliminating nonvalue-adding costsC) redesigning products to use fewer resourcesD) redesigning the plant layout for more efficient processingAnswer: ADiff: 2Terms: total-overhead varianceObjective: 1AACSB: Reflective thinking7) Choosing the appropriate level of capacity:A) is a key strategic decisionB) may lead to loss of sales if overestimatedC) may lead to idle capacity if underestimatedD) All of these answers are correct.Answer: ADiff: 2Terms: production-volume varianceObjective: 1AACSB: Ethical reasoning8) The major challenge when planning fixed overhead is:A) calculating total costsB) calculating the cost-allocation rateC) choosing the appropriate level of capacityD) choosing the appropriate planning periodAnswer: CDiff: 3Terms: production-volume varianceObjective: 1AACSB: Reflective thinking2Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com9) Overhead costs are a major part of costs for most companies more than 50% of all costs for somecompanies.Answer: TRUEDiff: 1Terms: total-overhead varianceObjective: 1AACSB: Reflective thinking10) At the start of the budget period, management will have made most decisions regarding the level offixed overhead costs to be incurred.Answer: TRUEDiff: 1Terms: total-overhead varianceObjective: 1AACSB: Ethical reasoning11) One way to manage both variable and fixed overhead costs is to eliminate value-adding activities.Answer: FALSEExplanation: One way to manage both variable and fixed overhead costs is to eliminate non-valueadding activities.Diff: 1Terms: total-overhead varianceObjective: 1AACSB: Reflective thinking12) The planning of fixed overhead costs does NOT differ from the planning of variable overhead costs.Answer: FALSEExplanation: The planning of fixed overhead costs differs from the planning of variable overhead costsin one important respect, timing. The level of fixed costs to be incurred will have been mostly decidedupon at the start of the budget period, but the day-to-day ongoing operations decisions will be the maindeterminant in the level of variable overhead costs to be incurred in the period.Diff: 1Terms: total-overhead varianceObjective: 1AACSB: Reflective thinking3Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com13) Jael Equipment uses a flexible budget for its indirect manufacturing costs. For 20X5, the companyanticipated that it would produce 18,000 units with 3,500 machine-hours and 7,200 employee days. Thecosts and cost drivers were to be as follows:Product d 30,0008,0004001,000Variable 0.408.004.000.205.00Cost driverper unitper 100 unit batchper 100 unit batchper machine-hourper employee dayDuring the year, the company processed 20,000 units, worked 7,500 employee days, and had 4,000machine-hours. The actual costs for 20X5 were:Product al costs 36,0009,0001,6001,20037,500Required:a.Prepare the static budget using the overhead items above and then compute the static-budgetvariances.b.Prepare the flexible budget using the overhead items above and then compute the flexible-budgetvariances.Answer:a.Product lJael EquipmentOverhead Static Budget with Variances20X5Actual 36,0009,0001,6001,20037,500 85,300StaticBudget 37,2009,4401,1201,70036,000 85,460Variances 1,200 F440 F480 U500 F1,500 U 160 F4Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.comb.Jael EquipmentOverhead Flexible Budget with Variances20X5FlexibleBudget 38,0009,6001,2001,80037,500 88,100ActualVariancesProduct handling 36,000 2,000 FInspection9,000600 FUtilities1,600400 UMaintenance1,200600 FSupplies37,5000Total 85,300 2,800 FDiff: 2Terms: fxd ovrhd flex-bud/spending, prod-vol, var ovrhd spending, var ovrhd efficiency varObjective: 1AACSB: Analytical skillsObjective 8.21) In a standard costing system, a cost-allocation base would most likely be:A) actual machine-hoursB) normal machine-hoursC) standard machine-hoursD) Any of these answers is correct.Answer: CDiff: 3Terms: standard costingObjective: 2AACSB: Reflective thinking2) For calculating the costs of products and services, a standard costing system:A) only requires a simple recording systemB) uses standard costs to determine the cost of productsC) does not have to keep track of actual costsD) All of these answers are correct.Answer: DDiff: 3Terms: standard costingObjective: 2AACSB: Reflective thinking5Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com3) Which of the following is NOT a step in developing budgeted variable overhead rates?A) identifying the variable overhead costs associated with each cost-allocation baseB) estimating the budgeted denominator level based on expected utilization of available capacityC) selecting the cost-allocation bases to useD) choosing the period to be used for the budgetAnswer: BDiff: 2Terms: variable overhead rateObjective: 2AACSB: Analytical skills4) Which of the following is NOT a step in developing budgeted fixed overhead rates?A) Choose the period to use for the budget.B) Select the cost-allocation bases to use in allocating fixed overhead costs to output produced.C) Identify the fixed overhead costs associated with each cost-allocation base.D) All of the above are steps in developing budgeted fixed overhead rates.Answer: DDiff: 2Terms: fixed overhead rateObjective: 2AACSB: Analytical skills5) In flexible budgets, costs that remain the same regardless of the output levels within the relevantrange are:A) allocated costsB) budgeted costsC) fixed costsD) variable costsAnswer: CDiff: 1Terms: total-overhead varianceObjective: 2AACSB: Reflective thinking6Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.comAnswer the following questions using the information below:Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours toallocate variable manufacturing overhead. The following information pertains to the company'smanufacturing overhead data:Budgeted output units30,000 unitsBudgeted machine-hours10,000 hoursBudgeted variable manufacturing overhead costs for 15,000 units 322,500Actual output units producedActual machine-hours usedActual variable manufacturing overhead costs44,000 units14,400 hours 484,0006) What is the budgeted variable overhead cost rate per output unit?A) 10.75B) 11.00C) 32.25D) 48.40Answer: AExplanation: A) 322,500/30,000 10.75Diff: 2Terms: total-overhead varianceObjective: 2AACSB: Analytical skills7Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.comAnswer the following questions using the information below:Christine Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocatevariable manufacturing overhead. The following information pertains to the company's manufacturingoverhead data:Budgeted output units10,000 unitsBudgeted machine-hours15,000 hoursBudgeted variable manufacturing overhead costs for 20,000 units 180,000Actual output units producedActual machine-hours usedActual variable manufacturing overhead costs9,000 units14,000 hours 171,0007) What is the budgeted variable overhead cost rate per output unit?A) 12.00B) 12.21C) 18.00D) 19.00Answer: CExplanation: C) 180,000/10,000 18.00Diff: 2Terms: total-overhead varianceObjective: 2AACSB: Analytical skills8Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.comAnswer the following questions using the information below:Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks.Frank's uses budgeted fleet hours to allocate variable manufacturing overhead. The followinginformation pertains to the company's manufacturing overhead data:Budgeted output units600 truckloadsBudgeted fleet hours450 hoursBudgeted pounds of fertilizer24,000,000 poundsBudgeted variable manufacturing overhead costs for 600 loads 75,000Actual output units produced and deliveredActual fleet hoursActual pounds of fertilizer produced and deliveredActual variable manufacturing overhead costs630 truckloads436 hours25,200,000 pounds 76,5008) What is the budgeted variable overhead cost rate per output unit?A) 120.00B) 125.00C) 166.67D) 175.00Answer: BExplanation: B) 75,000/600 125.00Diff: 2Terms: total-overhead varianceObjective: 2AACSB: Analytical skills9) Standard costing is a costing system that allocates overhead costs on the basis of the standardoverhead-cost rates times the standard quantities of the allocation bases allowed for the actual outputsproduced.Answer: TRUEDiff: 1Terms: standard costingObjective: 2AACSB: Reflective thinking10) For calculating the cost of products and services, a standard costing system must track actual costs.Answer: FALSEExplanation: For calculating the cost of products and services, a standard costing system does not haveto track actual costs.Diff: 3Terms: standard costingObjective: 2AACSB: Reflective thinking9Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com11) Standard costing is a cost system that allocates overhead costs on the basis of overhead cost ratesbased on actual overhead costs times the standard quantities of the allocation bases allowed for theactual outputs produced.Answer: FALSEExplanation: Standard costing is a costing system that traces direct costs to output produced bymultiplying the standard prices or rates by the standard quantities of inputs allowed for actual outputsproduced.Diff: 3Terms: standard costingObjective: 2AACSB: Reflective thinking12) The budget period for variable-overhead costs is typically less than 3 months.Answer: FALSEExplanation: The budget period for variable-overhead costs is typically 12 months.Diff: 1Terms: total-overhead varianceObjective: 2AACSB: Reflective thinkingObjective 8.31) The variable overhead flexible-budget variance measures the difference between:A) actual variable overhead costs and the static budget for variable overhead costsB) actual variable overhead costs and the flexible budget for variable overhead costsC) the static budget for variable overhead costs and the flexible budget for variable overhead costsD) None of these answers is correct.Answer: BDiff: 2Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Reflective thinking2) A 5,000 unfavorable flexible-budget variance indicates that:A) the flexible-budget amount exceeded actual variable manufacturing overhead by 5,000B) the actual variable manufacturing overhead exceeded the flexible-budget amount by 5,000C) the flexible-budget amount exceeded standard variable manufacturing overhead by 5,000D) the standard variable manufacturing overhead exceeded the flexible-budget amount by 5,000Answer: BDiff: 2Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills10Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.comAnswer the following questions using the information below:Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours toallocate variable manufacturing overhead. The following information pertains to the company'smanufacturing overhead data:Budgeted output units30,000 unitsBudgeted machine-hours10,000 hoursBudgeted variable manufacturing overhead costs for 15,000 units 322,500Actual output units producedActual machine-hours usedActual variable manufacturing overhead costs44,000 units14,400 hours 484,0003) What is the flexible-budget amount for variable manufacturing overhead?A) 330,000B) 473,000C) 484,000D) None of these answers is correct.Answer: BExplanation: B) 44,000 ( 322,500/30,000) 473,000Diff: 3Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills4) What is the flexible-budget variance for variable manufacturing overhead?A) 11,000 favorableB) 11,000 unfavorableC) 8,600 favorableD) None of these answers is correct.Answer: BExplanation: B) 484,000 - [44,000 ( 322,500/30,000)] 11,000 unfavorableDiff: 3Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills5) Variable manufacturing overhead costs were for actual output.A) higher than expectedB) the same as expectedC) lower than expectedD) indeterminableAnswer: ADiff: 2Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills11Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.comAnswer the following questions using the information below:Christine Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocatevariable manufacturing overhead. The following information pertains to the company's manufacturingoverhead data:Budgeted output units10,000 unitsBudgeted machine-hours15,000 hoursBudgeted variable manufacturing overhead costs for 20,000 units 180,000Actual output units producedActual machine-hours usedActual variable manufacturing overhead costs9,000 units14,000 hours 171,0006) What is the flexible-budget amount for variable manufacturing overhead?A) 162,000B) 171,000C) 190,000D) None of these answers is correct.Answer: AExplanation: A) 9,000 ( 180,000/10,000) 162,000Diff: 3Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills7) What is the flexible-budget variance for variable manufacturing overhead?A) 9,000 favorableB) 9,000 unfavorableC) zeroD) None of these answers is correct.Answer: BExplanation: B) 9,000 units x 1.5 hours allowed per unit 13,500 hours allowed13,500 hours x budgeted rate of 12 per hour 162,000Actual variable overhead was 171,000Flexible-budget variance 9,000 UDiff: 3Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills12Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com8) Variable-manufacturing overhead costs were for actual output.A) higher than expectedB) the same as expectedC) lower than expectedD) indeterminableAnswer: ADiff: 2Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skillsAnswer the following questions using the information below:Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks.Frank's uses budgeted fleet hours to allocate variable manufacturing overhead. The followinginformation pertains to the company's manufacturing overhead data:Budgeted output units600 truckloadsBudgeted fleet hours450 hoursBudgeted pounds of fertilizer24,000,000 poundsBudgeted variable manufacturing overhead costs for 600 loads 75,000Actual output units produced and deliveredActual fleet hoursActual pounds of fertilizer produced and deliveredActual variable manufacturing overhead costs630 truckloads436 hours25,200,000 pounds 76,5009) What is the flexible-budget amount for variable manufacturing overhead?A) 80,000B) 78,750C) 75,000D) 76,500Answer: BExplanation: B) 630 ( 75,000/600) 78,750Diff: 3Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills10) What is the flexible-budget variance for variable manufacturing overhead?A) 2,250 favorableB) 2,250 unfavorableC) zeroD) None of these answers are correct.Answer: AExplanation: A) 76,500 - 630 ( 75,000/600)] 2,250 favorableDiff: 3Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills13Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com11) Variable-manufacturing overhead costs were for actual output.A) higher than expectedB) the same as expectedC) lower than expectedD) indeterminableAnswer: CDiff: 2Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills12) The variable overhead flexible-budget variance can be further subdivided into the:A) price variance and the efficiency varianceB) static-budget variance and sales-volume varianceC) spending variance and the efficiency varianceD) sales-volume variance and the spending varianceAnswer: CDiff: 1Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Reflective thinking13) An unfavorable variable overhead spending variance indicates that:A) variable overhead items were not used efficientlyB) the price of variable overhead items was more than budgetedC) the variable overhead cost-allocation base was not used efficientlyD) the denominator level was not accurately determinedAnswer: BDiff: 2Terms: variable overhead spending varianceObjective: 3AACSB: Reflective thinking14) When machine-hours are used as an overhead cost-allocation base, the most likely cause of afavorable variable overhead spending variance is:A) excessive machine breakdownsB) the production scheduler efficiently scheduled jobsC) a decline in the cost of energyD) strengthened demand for the productAnswer: CDiff: 3Terms: fixed overhead spending varianceObjective: 3AACSB: Reflective thinking14Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com15) When machine-hours are used as an overhead cost-allocation base and the unexpected purchase of anew machine results in fewer expenditures for machine maintenance, the most likely result would be toreport a(n):A) favorable variable overhead spending varianceB) unfavorable variable overhead efficiency varianceC) favorable fixed overhead flexible-budget varianceD) unfavorable production-volume varianceAnswer: ADiff: 3Terms: variable overhead spending varianceObjective: 3AACSB: Analytical skills16) For variable manufacturing overhead, there is no:A) spending varianceB) efficiency varianceC) flexible-budget varianceD) production-volume varianceAnswer: DDiff: 2Terms: production-volume varianceObjective: 3AACSB: Reflective thinkingAnswer the following questions using the information below:Brown Corporation manufactured 3,000 chairs during June. The following variable overhead datapertain to June:Budgeted variable overhead cost per unitActual variable manufacturing overhead costFlexible-budget amount for variable manufacturing overheadVariable manufacturing overhead efficiency variance 12.00 33,600 36,000 720 unfavorable17) What is the variable overhead flexible-budget variance?A) 2,400 favorableB) 720 unfavorableC) 3,120 favorableD) 2,400 unfavorableAnswer: AExplanation: A) 33,600 - 36,000 2,400 (F)Diff: 2Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills15Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com18) What is the variable overhead spending variance?A) 1,680 unfavorableB) 2,400 favorableC) 2,400 unfavorableD) 3,120 favorableAnswer: DExplanation: D) 2,400 (F) 720 (U) 3,120 (F)Diff: 2Terms: variable overhead spending varianceObjective: 3AACSB: Analytical skillsAnswer the following questions using the information below:Patel Corporation manufactured 1,000 coolers during October. The following variable overhead datapertain to October:Budgeted variable overhead cost per unitActual variable manufacturing overhead costFlexible-budget amount for variable manufacturing overheadVariable manufacturing overhead efficiency variance 9.00 8,400 9,000 180 unfavorable19) What is the variable overhead flexible-budget variance?A) 600 favorableB) 420 unfavorableC) 780 favorableD) 600 unfavorableAnswer: AExplanation: A) 8,400 - 9,000 600 (F)Diff: 2Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills20) What is the variable overhead spending variance?A) 420 unfavorableB) 600 favorableC) 600 unfavorableD) 780 favorableAnswer: DExplanation: D) 600 (F) - 180 (U) 780 (F)Diff: 2Terms: variable overhead spending varianceObjective: 3AACSB: Analytical skills16Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.comAnswer the following questions using the information below:Roberts Corporation manufactured 100,000 buckets during February. The overhead cost-allocation baseis 5.00 per machine-hour. The following variable overhead data pertain to February:ActualProduction100,000 unitsMachine-hours9,800 hoursVariable overhead cost per machine-hour 5.25Budgeted100,000 units10,000 hours 5.0021) What is the actual variable overhead cost?A) 49,000B) 50,000C) 51,450D) None of these answers is correct.Answer: CExplanation: C) 9,800 mh 5.25 51,450Diff: 1Terms: total-overhead varianceObjective: 3AACSB: Analytical skills22) What is the flexible-budget amount?A) 49,000B) 50,000C) 51,450D) None of these answers is correct.Answer: BExplanation: B) 10,000 mh 5.00 50,000Diff: 2Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills23) What is the variable overhead spending variance?A) 1,000 favorableB) 1,450 unfavorableC) 2,450 unfavorableD) None of these answers is correct.Answer: CExplanation: C) ( 5.25 - 5.00) 9,800 mh 2,450 unfavorableDiff: 2Terms: variable overhead spending varianceObjective: 3AACSB: Analytical skills17Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com24) What is the variable overhead efficiency variance?A) 1,000 favorableB) 1,450 unfavorableC) 2,450 unfavorableD) None of these answers is correct.Answer: AExplanation: A) [9,800 - 10,000] 5.00 1,000 favorableDiff: 2Terms: variable overhead efficiency varianceObjective: 3AACSB: Analytical skillsAnswer the following questions using the information below:Roberson Corporation manufactured 30,000 ice chests during September. The overhead cost-allocationbase is 11.25 per machine-hour. The following variable overhead data pertain to September:ActualBudgetedProduction30,000 units 24,000 unitsMachine-hours15,000 hours 10,800 hoursVariable overhead cost per machine-hour: 11.00 11.2525) What is the actual variable overhead cost?A) 121,500B) 151,875C) 165,000D) 168,750Answer: CExplanation: C) 15,000 mh 11.00 165,000Diff: 1Terms: total-overhead varianceObjective: 3AACSB: Analytical skills26) What is the flexible-budget amount?A) 121,500B) 151,875C) 165,000D) 168,750Answer: BExplanation: B) 30,000 (10,800/24,000) 11.25 151,875Diff: 3Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills18Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com27) What is the variable overhead spending variance?A) 3,750 favorableB) 16,875 unfavorableC) 13,125 unfavorableD) 30,375 unfavorableAnswer: AExplanation: A) ( 11.00 - 11.25) 15,000 mh 3,750 favorableDiff: 3Terms: variable overhead spending varianceObjective: 3AACSB: Analytical skills28) What is the variable overhead efficiency variance?A) 3,750 favorableB) 16,875 unfavorableC) 13,125 unfavorableD) 30,375 unfavorableAnswer: BExplanation: B) [15,000 - (30,000 10,800/24,000) mh] 11.25 16,875 unfavorableDiff: 3Terms: variable overhead efficiency varianceObjective: 3AACSB: Analytical skillsAnswer the following questions using the information below:Russo Corporation manufactured 16,000 air conditioners during November. The overhead costallocation base is 31.50 per machine-hour. The following variable overhead data pertain to November:ActualProduction16,000 unitsMachine-hours7,875 hoursVariable overhead cost per machine-hour: 31.00Budgeted18,000 units9,000 hours 31.5029) What is the actual variable overhead cost?A) 244,125B) 279,000C) 248,063D) 250,000Answer: AExplanation: A) 7,875 mh 31.00 244,125Diff: 1Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills19Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com30) What is the flexible-budget amount?A) 248,033B) 252,000C) 248,000D) 279,000Answer: BExplanation: B) 16,000 (9,000/18,000) 31.00 252,000Diff: 3Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills31) What is the variable overhead spending variance?A) 4,500 unfavorableB) 3,937.50 unfavorableC) 4,500 favorableD) 3,937.50 favorableAnswer: DExplanation: D) ( 31.00- 31.50) 7,875 mh 3,937.50 favorableDiff: 3Terms: variable overhead spending varianceObjective: 3AACSB: Analytical skills32) What is the variable overhead efficiency variance?A) 3,937.50 favorableB) 3,937.50 unfavorableC) 4,500 favorableD) 4,500 unfavorableAnswer: AExplanation: A) [7,875 - (16,000 9,000/18,000) mh] 31.00 3,937.50 favorableDiff: 3Terms: variable overhead efficiency varianceObjective: 3AACSB: Analytical skills33) What is the total variable overhead varianceA) 7,875 unfavorableB) 3,937.50 f unfavorableC) 7,875 favorableD) 3,937.50 f favorableAnswer: CExplanation: C) Actual variable overhead - Flexible budgeted variable overhead(7,875 mh 31.00) - [16,000 (9,000/18,000) mh 31.50] 244,125 - 252,000 7,875 favorableDiff: 3Terms: variable overhead flexible-budget varianceObjective: 3AACSB: Analytical skills20Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com34) The variable overhead efficiency variance is computed and interpreted thedirect-cost efficiency variance.A) the same as; the same asB) the same as; differently thanC) differently than; the same asD) differently than; differently thanAnswer: BDiff: 2Terms: variable overhead efficiency varianceObjective: 3AACSB: Reflective thinking35) An unfavorable variable overhead efficiency variance indicates that:A) variable overhead items were not used efficientlyB) the price of variable overhead items was less than budgetedC) the variable overhead cost-allocation base was not used efficientlyD) the denominator level was not accurately determinedAnswer: CDiff: 2Terms: variable overhead efficiency varianceObjective: 3AACSB: Reflective thinking36) Variable overhead costs can be managed by:A) reducing the consumption of the cost-allocation baseB) eliminating nonvalue-adding variable costsC) planning for appropriate capacity levelsD) Both A and B are correct.Answer: DDiff: 2Terms: total-overhead varianceObjective: 3AACSB: Reflective thinking37) When machine-hours are used as a cost-allocation base, the item most likely to contribute to afavorable variable overhead efficiency variance is:A) excessive machine breakdownsB) the production scheduler's impressive scheduling of machinesC) a decline in the cost of energyD) strengthened demand for the productAnswer: BDiff: 3Terms: variable overhead efficiency varianceObjective: 3AACSB: Reflective thinking21Copyright 2012 Pearson Education, Inc.
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com38) When machine-hours are used as a cost-allocation base, the item most likely to contribute to anunfavorable variable overhead efficiency variance is:A) using more machine hours than budgetedB) workers wastefully using variable overhead itemsC) unused capacit
Cost Accounting, 14e (Horngren/Datar/Rajan) Chapter 8 Flexible Budgets, Overhead Cost Variances, and Management Control Objective 8.1 1) Overhead costs have been increasing due to all of the following EXCEPT: A) increased automation B) more complexity in distribution processes C) traci
35) Describe management accounting and financial accounting. Answer: Management accounting provides information to internal decision makers of the business such as top executives, managers, sales representatives, and production supervisors. Its purpose is to help managers predict and evaluate future results.
Horngren, Datar & Rajan. Cost Accounting: A Managerial Emphasis, 14th Ed. 2012 Reference Books Garison. Noreen and Brewer, Managerial Accounting, 13th Ed. 2010 Gray and Ricketts; “Cost and Managerial Accounting” Heltger and Matulich; “Managerial Accounting” Moore - Jaedicke- Anderson; “Managerial Accounting”
Pearson Education France 47 bis, rue des Vinaigriers 75010 Paris Tél. : 01 72 74 90 00 Fax : 01 42 05 22 17 www.pearson.fr ISBN : 978-2-7440-7954-2 7954 0909 Contrôle de gestion et gestion budgétaire - 4 e édition C. Horngren, A. Bhimani, S. Datar, G. Foster CORRIGÉS 4e édition Charles Horngren, Alnoor Bhimani, Srikant Datar, George .
Cost Accounting 1.2 Objectives and Functions of Cost Accounting 1.3 Cost Accounting and Financial Accounting — Comparison 1.3 Application of Cost Accounting 1.5 Advantages of Cost Accounting 1.6 Limitations or Objections Against cost Accounting 1.7 Installation of a costing system 1.7 Concept of Cost 1.9 Cost Centre 1.10 Cost Unit 1.11 Cost .File Size: 1MB
C) A direct cost of one cost object can be an indirect cost of another cost object. D) All fixed costs are direct costs. Answer: C Diff: 1 Objective: 2 AACSB: Application of knowledge 16) A cost may be direct for one cost object and indirect for another cost object. Answer: TRUE Diff: 1 Objective: 2 AACSB: Application of knowledge
Suggested Books Ronald W. Hilton, and David E. Platt Managerial Accounting, MCgraw Hill, Irwin. Charles T. Horngren, Srikant M. Datar and George foster, Cost Accounting , A managerial Emphasis, Pearson Education Colin Drury, Management and Cost Accounting, ELBS with Chapman and HallJerry J. Weygandt, Jawah
10) The contribution income statement: A) reports gross margin B) is allowed for external reporting to shareholders C) categorizes costs as either direct or indirect D) can be used to predict future profits at different levels of activity Answer: D Diff: 1 Terms: contribution income s
Staff in all services across health and care need support and training (ideally joint) to ensure they understand the processes and the information being shared. They need to be competent and understand how to deliver the care and support plan and provide care that meets individual’s personal needs and preferences. “Good communication and information sharing underpins safe and effective .
