Question : Objective 8.3 1) The variable overhead spending variance measures the difference : 1212165

 

Objective 8.3

 

1) The variable overhead spending variance measures the difference between ________, multiplied by the actual quantity of variable overhead cost-allocation base used.

A) the actual variable overhead cost per unit and the budgeted variable overhead cost per unit

B) the standard variable overhead cost rate and the budgeted variable overhead cost rate

C) the actual variable overhead cost per unit and the budgeted fixed overhead cost per unit

D) the actual quantity per unit and the budgeted quantity per unit

 

2) A $5,000 unfavorable flexible-budget variance indicates that ________.

A) the flexible-budget amount exceeded actual variable manufacturing overhead by $5,000

B) the actual variable manufacturing overhead exceeded the flexible-budget amount by $5,000

C) the flexible-budget amount exceeded standard variable manufacturing overhead by $5,000

D) the standard variable manufacturing overhead exceeded the flexible-budget amount by $5,000

Use the following information to answer the following questions:

 

Autogas Corporation manufactures industrial-sized gas furnaces and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company’s manufacturing overhead data:

 

Budgeted output units31,000 units

Budgeted machine-hours16,585 hours

Budgeted variable manufacturing overhead costs for 16,585 hours$348,285

 

Actual output units produced33,000 units

Actual machine-hours used14,400 hours

Actual variable manufacturing overhead costs$384,000

 

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

A) $348,750

B) $370,755

C) $384,000

D) $360,727

 

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

A) $13,245 unfavorable

B) $35,715 unfavorable

C) $13,245 favorable

D) $35,715 favorable

5) What is the amount of the budgeted variable manufacturing overhead cost per unit?

A) $11.745

B) $10.570

C) $11.235

D) $11.636

 

Use the following information to answer the questions below:

 

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

 

Budgeted output units11,250 units

Budgeted machine-hours22,500 hours

Budgeted variable manufacturing overhead costs for 22,500 hours$213,750

 

Actual output units produced11,500 units

Actual machine-hours used22,000 hours

Actual variable manufacturing overhead costs$225,000

 

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

A) $225,000

B) $218,500

C) $213,750

D) $221,750

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

A) $6,500 unfavorable 

B) $6,500 favorable

C) $11,250 unfavorable

D) $11,250 favorable

 

8) What is the amount of the budgeted variable manufacturing overhead cost per unit?

A) $9.50 per unit

B) $18.58 per unit

C) $19.00 per unit

D) $19.56 per unit

Use the following information to answer the questions below:

 

Mynarc Corporation produces fertilizer and distributes the product by using his tanker trucks. Mynarc

uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company’s manufacturing overhead data:

 

Budgeted output units675 truckloads

Budgeted fleet hours540 hours

Budgeted variable manufacturing overhead costs for 675 loads$82,350

 

Actual output units produced and delivered630 truckloads

Actual fleet hours436 hours

Actual variable manufacturing overhead costs$77,490

 

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

A) $83,025

B) $82,350

C) $76,860

D) $77,490

 

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

A) $4,860 favorable

B) $4,860 unfavorable

C) $630 favorable

D) $630 unfavorable

 

 

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