Question : 4) Which of the following elements used in calculating revenue : 1212144

 

4) Which of the following elements are used in calculating revenue in a flexible budget?

A) budgeted selling price and actual quantity of output

B) actual selling price and budgeted quantity of output

C) budgeted selling price and budgeted quantity of output

D) actual selling price and actual quantity of output

 

5) An unfavorable flexible-budget variance for variable costs may be the result of ________.

A) using more input quantities than were budgeted

B) paying lower prices for inputs than were budgeted

C) selling output at a higher selling price than budgeted

D) selling less quantity compared to the budgeted

 

6) In a flexible budget ________.

A) variable costs are calculated proportionately for the budgeted level of sales

B) fixed costs are calculated proportionately for the actual level of sales

C) fixed costs are kept at the same level of static budget

D) variable costs are kept at the same level of static budget

 

7) Which of the following information is needed to prepare a flexible budget?

A) actual units sold

B) actual variable cost

C) actual selling price per unit

D) actual fixed cost

 

8) Which of the following is true of flexible budget?

A) It calculates total variable cost by multiplying actual units by budgeted variable cost per unit.

B) It calculates total fixed cost by multiplying actual units by budgeted fixed cost per unit.

C) It calculates revenues by multiplying budgeted units by actual selling price per unit.

D) It calculates contribution margin by multiplying budgeted units by actual contribution margin per unit.

9) A flexible-budget variance is $600 favorable for unit-related costs. This indicates that costs were ________.

A) $600 more than the master budget

B) $600 less than for the planned level of activity

C) $600 more than standard for the achieved level of activity

D) $600 less than standard for the achieved level of activity

 

Answer the following questions using the information below:

 

Domose Inc. planned to use $150 of material per unit but actually used $147 of material per unit, and planned to make 1,100 units but actually made 900 units.

 

10) The flexible-budget amount for materials is ________.

A) $165,000

B)  $135,000

C) $161,700

D) $132,300

 

11) The flexible-budget variance for materials is ________.

A) $2,700 favorable

B) $2,700 unfavorable

C) $3,300 unfavorable

D) $3,300 favorable

 

12) The sales-volume variance for materials is ________.

A) $2,700 favorable

B) $29,400 unfavorable

C) $30,000 unfavorable

D) $2,700 unfavorable

13) Dynozz Corporation currently produces cardboard boxes in an automated process. Expected production per month is 15,000 units, direct material costs are $0.50 per unit, and manufacturing overhead costs are $15,000 per month. Manufacturing overhead is all fixed costs. What are the flexible budget for 10,000 and 15,000 units, respectively?

A) $15,000; $22,500

B) $15,000; $17,500

C) $20,000; $22,500

D) $20,000; $17,500

 

 

 

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