Question :
11) The planning of fixed overhead costs differs from the : 1212163
11) The planning of fixed overhead costs differs from the planning of variable overhead costs in terms of timing.
12) The planning of fixed overhead costs does not differ from the planning of variable overhead costs.
Objective 8.2
1) Which of the following mathematical expression is used to calculate budgeted variable overhead cost rate per output unit?
A) Budgeted output allowed per input unit × Budgeted variable overhead cost rate per input unit
B) Budgeted input allowed per output unit ÷ Budgeted variable overhead cost rate per input unit
C) Budgeted output allowed per input unit ÷ Budgeted variable overhead cost rate per input unit
D) Budgeted input allowed per output unit × Budgeted variable overhead cost rate per input unit
2) While calculating the costs of products and services, a standard costing system ________.
A) allocates overhead costs on the basis of the actual overhead-cost rates
B) uses standard costs to determine the cost of products
C) does not keep track of overhead cost
D) traces direct costs to output by multiplying the standard prices or rates by the actual quantities
3) Which of the following is a step in developing budgeted variable overhead rates?
A) identifying the fixed costs associated with direct manufacturing labor
B) estimating the budgeted denominator level based on expected utilization of available capacity
C) selecting the cost-allocation base to use in allocating machine-handling costs
D) choosing the appropriate level of capacity or investment
4) Which of the following is the mathematical expression for the budgeted fixed overhead cost per unit of cost allocation base?
A) Budgeted fixed overhead cost per unit of cost allocation base = Actual total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base
B) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base
C) Budgeted fixed overhead cost per unit of cost allocation base = Actual total costs in fixed overhead cost pool ÷ Actual total quantity of cost allocation base
D) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Actual total quantity of cost allocation base
5) In flexible budgets, costs that remain the same regardless of the output levels within the relevant range are ________.
A) allocated costs
B) budgeted costs
C) fixed costs
D) variable costs
6) Alka Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company’s manufacturing overhead data:
Budgeted output units29,000 units
Budgeted machine-hours10,150 hours
Budgeted variable manufacturing overhead costs for 10,150 hours$324,800
Actual output units produced31,000 units
Actual machine-hours used14,400 hours
Actual variable manufacturing overhead costs$333,250
What is the budgeted variable overhead cost rate per output unit?
A) $11.70
B) $11.75
C) $11.20
D) $11.00
7) 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 15,000 hours$180,000
Actual output units produced9,000 units
Actual machine-hours used14,000 hours
Actual variable manufacturing overhead costs$171,000
What is the budgeted variable overhead cost rate per output unit?
A) $12.00
B) $12.21
C) $18.00
D) $19.00
8) Green Energy Inc. produces fertilizer and distributes the product by using his tanker trucks. Green Energy uses budgeted fleet hours to allocate variable manufacturing overhead. The following information relates to the company’s manufacturing overhead data:
Budgeted output units730 truckloads
Budgeted fleet hours511 hours
Budgeted pounds of fertilizer24,000,000 pounds
Budgeted variable manufacturing overhead costs for 730 loads$89,425
Actual output units produced and delivered720 truckloads
Actual fleet hours436 hours
Actual pounds of fertilizer produced and delivered25,200,000 pounds
Actual variable manufacturing overhead costs$87,120
What is the budgeted variable overhead cost rate per output unit?
A) $120.00
B) $122.50
C) $123.69
D) $121.00
