Question : 5) Variable manufacturing overhead costs were ________ for actual output. A) : 1217269

 

5) Variable manufacturing overhead costs were ________ for actual output.

A) higher than expected

B) the same as expected

C) lower than expected

D) indeterminable

Answer the following questions using the information below:

 

Christine Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company’s manufacturing overhead data:

 

Budgeted output units10,000 units

Budgeted machine-hours15,000 hours

Budgeted variable manufacturing overhead costs for 20,000 units$180,000

 

Actual output units produced9,000 units

Actual machine-hours used14,000 hours

Actual variable manufacturing overhead costs$171,000

 

6) What is the flexible-budget amount for variable manufacturing overhead?

A) $162,000

B) $171,000

C) $190,000

D) None of these answers is correct.

 

7) What is the flexible-budget variance for variable manufacturing overhead?

A) $9,000 favorable

B) $9,000 unfavorable

C) zero

D) None of these answers is correct.

8) Variable-manufacturing overhead costs were ________ for actual output.

A) higher than expected

B) the same as expected

C) lower than expected

D) indeterminable

 

Answer 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 following information pertains to the company’s manufacturing overhead data:

 

Budgeted output units600 truckloads

Budgeted fleet hours450 hours

Budgeted pounds of fertilizer24,000,000 pounds

Budgeted variable manufacturing overhead costs for 600 loads$75,000

 

Actual output units produced and delivered630 truckloads

Actual fleet hours436 hours

Actual pounds of fertilizer produced and delivered25,200,000 pounds

Actual variable manufacturing overhead costs$76,500

 

9) What is the flexible-budget amount for variable manufacturing overhead?

A) $80,000

B) $78,750

C) $75,000

D) $76,500

10) What is the flexible-budget variance for variable manufacturing overhead?

A) $2,250 favorable

B) $2,250 unfavorable

C) zero

D) None of these answers are correct.

 

11) Variable-manufacturing overhead costs were ________ for actual output.

A) higher than expected

B) the same as expected

C) lower than expected

D) indeterminable

 

12) The variable overhead flexible-budget variance can be further subdivided into the:

A) price variance and the efficiency variance

B) static-budget variance and sales-volume variance

C) spending variance and the efficiency variance

D) sales-volume variance and the spending variance

 

13) An unfavorable variable overhead spending variance indicates that:

A) variable overhead items were not used efficiently

B) the price of variable overhead items was more than budgeted

C) the variable overhead cost-allocation base was not used efficiently

D) the denominator level was not accurately determined

14) When machine-hours are used as an overhead cost-allocation base, the most likely cause of a favorable variable overhead spending variance is:

A) excessive machine breakdowns

B) the production scheduler efficiently scheduled jobs

C) a decline in the cost of energy

D) strengthened demand for the product