Question : 41) ______ A) $28.17 per unit B) $56.56 per unit : 1196278

41) ______ A) $28.17 per unit B) $56.56 per unit C) $65.17 per unit D) $39.44 per unit E) $40.40 per unit

42) Which of the following statements is FALSE? 42) ______ A) The difference between the allocated and the budgeted overhead is the production volume variance. B) The amount allocated always equals the flexible budget amount. C) The production volume variance arises for variable costs. D) The production volume variance arises for both fixed and variable costs. E) The difference between the static budget and the flexible budget is the sales-volume variance.

43) Leek Company predicted that the fixed overhead would be $200,000 in April 20×1. Actual production included 50,000 decks of cards. Each deck takes approximately 0.20 machine hours to produce. The actual overhead costs per machine hour are $25. What is the production volume overhead variance? 43) ______ A) $200,000 favourable B) $150,000 unfavourable C) $50,000 unfavourable D) $150,000 favourable E) $50,000 favourable

44) Budgeted output for DuCane Small Engines, Inc. was 20,000 engines during February 2002, Budgeted fixed overhead per output unit was $2.50, and 30,000 engines were actually produced. Actual fixed overhead was allocated at $3.00 per engine. What is the production volume overhead variance? 44) ______ A) $33,500 unfavourable B) $25,000 unfavourable C) $30,000 favourable D) $30,000 unfavourable E) $25,000 favourable

45) In variance analysis, fixed manufacturing overhead will NEVER have 45) ______ A) a sales-volume variance. B) an efficiency variance. C) any variance, because it is fixed. D) a flexible-budget variance. E) a spending variance.

46) The difference between budgeted fixed manufacturing overhead and the fixed manufacturing overhead allocated to actual output units achieved is called 46) ______ A) a production volume overhead variance. B) a flexible-budget variance. C) an efficiency variance. D) a manufacturing overhead flexible-budget variance. E) an unallocated variable cost .

47) The production volume variance 47) ______ A) only pertains to fixed overhead costs. B) is not applicable in analysis of inventory costs. C) pertains to both fixed and variable overhead costs. D) only pertains to variable overhead costs. E) equals the spending variance minus the efficiency variance.

48) Fixed overhead costs must be unitized for 48) ______ A) financial reporting purposes. B) calculating the production-volume variance. C) planning purposes. D) both A and C

Use the information below to answer the following question(s).

Michelle Inc. uses a 4-variance analysis of its manufacturing overhead costs, and has the following results for April.

A.Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead.

Fixed overhead is allocated on a per unit basis.

B.Budgeted amounts for April 2002 are:

Direct labour-hours0.30 /Unit

Variable labour-hour overhead rate:$ 20.00 /DLH

Fixed manufacturing overhead:$600,000

Budgeted output (denominator level output):30,000 Units

C.Actual amounts for April 20×1 are:

Variable manufacturing overhead:$340,000

Fixed manufacturing overhead:$590,000

Direct labour-hours:16,000

Actual output:40,000

49) What is the variable production volume variance? 49) ______ A) $6,000 unfavourable B) $0 C) $6,000 favourable D) $13,500 unfavourable E) There is never a variable production volume variance.

50) The spending and efficiency variances are subcomponents of 50) ______ A) a manufacturing overhead flexible-budget variance. B) a variable overhead volume variance. C) a production volume variance. D) a flexible-budget variance. E) the fixed overhead variance.