Question : 101. Regarding overhead costs, as volume increases:A.  Unit fixed cost : 1256692

101. Regarding overhead costs, as volume increases:
A.  Unit fixed cost increases, unit variable cost decreases.
B.  Unit fixed cost decreases, unit variable cost increases.
C.  Unit variable cost decreases, unit fixed cost remains constant.
D.  Unit fixed cost decreases, unit variable cost remains constant.
E.  Both unit fixed cost and unit variable cost remain constant.

102. Price Company’s flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2 per direct labor hour based on a budgeted operating level of 6,120 direct labor hours (90% of capacity). If overhead actually incurred was $11,183 during May, the controllable variance for the month was:
A.  $473 unfavorable
B.  $473 favorable
C.  $1,530 favorable
D.  $1,530 unfavorable
E.  $1,057 favorable

103. Rising, Inc., uses the following standard to produce a single unit of its product:
Overhead (2 hrs. @ $3/hr.) = $6
The flexible budget for overhead is $100,000 plus $1 per direct labor hour. Actual data for the month show overhead costs of $150,000 based on 24,000 units of production. The overhead volume variance is:
A.  $10,000 favorable
B.  $12,000 favorable
C.  $4,000 unfavorable
D.  $16,000 unfavorable
E.  $36,000 unfavorable

104. Actual fixed overhead for Kapok Company during March was $92,780. The flexible budget for fixed overhead this period is $89,000 based on a production level of 5,000 units. If the company actually produced 4,200 units what is the fixed overhead volume variance for March?
A.  $3,780 favorable
B.  $18,020 unfavorable
C.  $14,240 unfavorable
D.  $3,780 unfavorable
E.  $14,240 favorable

105. Actual fixed overhead for Kapok Company during March was $92,780. The flexible budget for fixed overhead this period is $89,000 based on a production level of 5,000 units. If the company actually produced 4,200 units, what is the fixed overhead spending variance for March?
A.  $3,780 favorable
B.  $800 unfavorable
C.  $14,240 unfavorable
D.  $3,780 unfavorable
E.  $14,240 favorable

106. Actual fixed overhead for a company during March was $97,612. The flexible budget for fixed overhead this period is $88,000 based on a production level of 5,500 units. If the company actually produced 4,300 units, what is the fixed overhead spending variance for March?
A.  $9,612 favorable
B.  $1,200 unfavorable
C.  $28,812 unfavorable
D.  $9,612 unfavorable
E.  $28,812 favorable

107. Actual fixed overhead for a company during March was $77,612. The flexible budget for fixed overhead this period is $78,000 based on a production level of 4,875 units. If the company actually produced 4,300 units, what is the fixed overhead volume variance for March?
A.  $388 favorable
B.  $9,200 unfavorable
C.  $8,812 unfavorable
D.  $388 unfavorable
E.  $9,200 favorable

108. When recording variances in a standard cost system:
A.  Only unfavorable material variances are debited.
B.  Only unfavorable material variances are credited.
C.  Both unfavorable material and labor variances are credited.
D.  All unfavorable variances are debited.
E.  All unfavorable variances are credited.

109. Landlubber Company established a standard direct materials cost of 1.5 gallons at $2 per gallon for one unit of its product. During the past month, actual production was 6,500 units. The material quantity variance was $700 favorable and the material price variance was $470 unfavorable. The entry to charge Goods in Process Inventory for the standard material costs during the month and to record the direct material variances in the accounts would include:
A.  A credit to Goods in Process for $19,270.
B.  A debit to Raw Materials for $19,500.
C.  A debit to Direct Material Price Variance for $470.
D.  A debit to Direct Material Quantity Variance for $700.

E.  A credit to Goods in Process for $19,500.

110. When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period, the cost variances should be:
A.  Carried forward to the next accounting period.
B.  Allocated between cost of goods sold, finished goods, and goods in process.
C.  Closed to cost of goods sold.
D.  Written off as a selling expense.
E.  Ignored.