Question : MULTIPLE CHOICE. Choose the one alternative that best completes the statement : 1196276

MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers the question. 21) Effective planning of variable overhead costs means that a company performs those variable overhead costs that primarily add value 21) ______ A) for management. B) for major suppliers of component parts. C) for the customer using the products or services. D) for plant employees. E) for the current shareholders.

22) Which decisions are most likely to have been made by the start of the accounting period? 22) ______ A) decisions affecting variable overhead costs B) decisions affecting value-added costs C) decisions affecting fixed overhead costs D) decisions affecting both fixed and variable overhead costs E) decisions affecting non-value-added costs

23) Two of the primary ways to manage variable-overhead costs include 23) ______ A) increasing variable costs and eliminating non-value added costs. B) using more energy-efficient equipment and planning for appropriate capacity levels. C) eliminating non-value-added costs and increasing fixed overhead expenses. D) reducing the consumption of cost drivers and increasing variable costs. E) eliminating non-value-added costs and reducing the consumption of cost drivers.

24) Effective planning of fixed overhead costs includes all EXCEPT 24) ______ A) planning to be efficient. B) eliminating nonvalue-added costs. C) planning day-to-day operational decisions. D) choosing the appropriate level of capacity.

25) In order for the product costs to better reflect resource consumption, the allocation base used to develop a budgeted variable overhead rate must be 25) ______ A) either a single cost driver or multiple cost drivers. B) a non-value-added cost driver. C) a single cost driver. D) a value-added cost driver. E) multiple cost drivers.

26) If budgeted machine-hours allowed per actual output unit equals 1.0 hour, and budgeted variable manufacturing overhead per machine-hour is $200, what is the budgeted variable manufacturing overhead rate per output unit? 26) ______ A) $500 B) $300 C) $400 D) $100 E) $200

27) What is the variable manufacturing overhead static budget variance given the following information?

Actual output units produced28,000 units

Actual machine-hours used10,000 hours

Actual variable manufacturing overhead costs$300,000

Budgeted variable manufacturing overhead costs$250,000

Budgeted output units25,000 units 27) ______ A) $20,000 favourable B) $50,000 favourable C) $55,000 favourable D) $20,000 unfavourable E) $50,000 unfavourable

Use the information below to answer the following question(s).

Moeller Electric manufactures light fixtures. The following information pertains to the company’s manufacturing overhead data.

Budgeted output units30,000 fixtures

Budgeted machine-hours10,000 hours

Budgeted variable manufacturing

overhead costs for 30,000 fixtures$ 80,625

Actual output units produced44,000 fixtures

Actual machine-hours used10,000

Actual variable manufacturing overhead costs$121,000

28) What is Moeller Electric’s variable manufacturing overhead static budget variance? 28) ______ A) $2,750 favourable B) $2,750 unfavourable C) $40,375 favourable D) $44,000 unfavourable E) $40,375 unfavourable

29) What is Moeller Electric’s variable manufacturing overhead sales-volume variance? 29) ______ A) $2,750 favourable B) $40,375 unfavourable C) $37,625 favourable D) $40,325 favourable E) $37,625 unfavourable

30) What is the variable manufacturing overhead flexible-budget variance? 30) ______ A) $2,750 unfavourable B) $2,750 favourable C) $387 favourable D) $2,363 favourable E) $2,363 unfavourable

31) Assume that variable manufacturing overhead is allocated according to machine-hours. Aladdin Company expects to produce 400 cases of Product A using 400 machine-hours. Each machine hour is expected to take 10 KWH of electricity, which costs $6 per KWH. What is the maximum amount the company would be willing to pay for the new machine based solely on spending and efficiency variances if a new energy-efficient machine only used 8 KWH per machine-hour?