Question : 21) The flexible-budget variance measures A) what the costs and revenues : 1186328

 

21) The flexible-budget variance measures

A) what the costs and revenues should have been for the budgeted number of outputs.

B) the difference between budgeted expenditures and actual expenditures for the budgeted number of outputs.

C) the difference between budgeted and actual variable costs.

D) [expected expenditures for the actual number of outputs] + [ the actual expenditures for the actual number of outputs].

E) [actual cost for the actual level of the revenue or cost driver] – [budget unit amount × the actual level of the revenue or cost driver].

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

 

The following data for a pottery company pertain to the production of 2,000 clay pots during July.

 

Direct Materials (all materials purchased were used):

Standard cost: $6.00 per kilogram of clay

Total actual cost: $11,200

Standard cost allowed for units produced was $12,000

Materials efficiency variance was $240 unfavourable

Direct Manufacturing Labour:

Standard cost is 2 pots per hour at $24.00 per hour

Actual cost per hour was $24.50

Actual labour was 972 hours

 

22) What is the standard direct material amount per pot?

A) 1.00 kilogram

B) 1.88 kilograms

C) 2.12 kilograms

D) 3.00 kilograms

E) 4.00 kilograms

 

23) What is the direct manufacturing labour efficiency variance?

A) $672 unfavourable

B) $500 favourable

C) $672 favourable

D) $500 unfavourable

E) $28 favourable

 

24) What is the direct manufacturing labour price variance?

A) $186 favourable

B) $486 unfavourable

C) $486 favourable

D) $672 unfavourable

E) $672 favourable

25) What is the direct materials price variance for the clay pots?

A) $560 unfavourable

B) $560 favourable

C) $800 unfavourable

D) $800 favourable

E) $1,040 favourable

 

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

 

Tractor Corporation produces toy tractors. The company uses the following direct cost categories:

 

Category

Standard Inputs

for 1 output

Std. Cost

per input

Direct Materials

4.00

$12.50

Direct Labour

1.40

9.50

Direct Marketing

0.54

5.50

 

Actual performance and budgeted performance for the company is shown below:

 

Actual output: (in units)5,000

 

Direct Materials:

Materials costs

$299,000

Input purchased and used

23,000

Actual price per input

$13.00

Direct Manufacturing Labour:

Labour costs

$95,000

Labour-hours of input

9,500

Actual price per hour

$10.00

 

Direct Marketing Labour:

Labour costs

$40,000

Labour-hours of input

5,000

Actual price per hour

$8.00

 

26) What is the combined total of the flexible budget variances?

A) $102,650 unfavourable

B) $99,000 unfavourable

C) $78,500 unfavourable

D) $75,150 favourable

E) $75,150 unfavourable

 

27) What is the price variance of the direct materials?

A) $10,000 favourable

B) $11,500 unfavourable

C) $11,500 favourable

D) $10,000 unfavourable

E) $11,000 favourable

 

28) What is the efficiency variance for direct materials?

A) $47,350 favourable

B) $36,000 unfavourable

C) $36,000 favourable

D) $37,500 unfavourable

E) $23,750 unfavourable

 

29) What is the price variance of the direct manufacturing labour, and the direct marketing labour, respectively?

A) $4,750 favourable; $12,500 favourable

B) $8,000 favourable; $10,000 favourable

C) $3,500 unfavourable; $6,750 unfavourable

D) 3,500 favourable; $6,750 favourable

E) $4,750 unfavourable; $12,500 unfavourable

30) What are the efficiency variances for direct manufacturing labour and direct marketing labour, respectively?

A) $25,000 favourable; $18,400 favourable

B) $23,750 favourable; $12,650 unfavourable

C) $25,000 unfavourable; $18,400 unfavourable

D) $23,750 unfavourable; $12,650 unfavourable

E) $23,750 favourable; $12,650 favourable