Question : 11) Teddy Company uses a standard cost system. In May, : 1217262

 

11) Teddy Company uses a standard cost system. In May, $234,000 of variable manufacturing overhead costs were incurred and the flexible-budget amount for the month was $240,000. Which of the following variable manufacturing overhead entries would have been recorded for May?

A) Accounts Payable Control and other accounts240,000

Work-in-Process Control240,000

B) Work-in-Process Control240,000

Variable Manufacturing Overhead Allocated240,000

C) Work-in-Process Control234,000

Accounts Payable Control and other accounts234,000

D) Accounts Payable Control and other accounts234,000

Variable Manufacturing Overhead Control234,000

12) Tara Company makes the following journal entry:

 

Variable Manufacturing Overhead Allocated200,000

Variable Manufacturing Overhead Efficiency Variance              5,000

Variable Manufacturing Overhead Control175,000

Variable Manufacturing Overhead Spending Variance30,000

 

A) Tara underallocated variable manufacturing overhead.

B) A $30,000 unfavorable spending variance was recorded.

C) Work-in-Process is currently understated.

D) A $25,000 favorable flexible-budget variance was recorded.

 

13) Jeremy’s Football Manufacturing Company reported:

Actual fixed overhead$500,000

Fixed manufacturing overhead spending variance$30,000 favorable

Fixed manufacturing production-volume variance$20,000 unfavorable

 

To isolate these variances at the end of the accounting period, Jeremy would debit Fixed Manufacturing Overhead Allocated for:

A) $480,000

B) $490,000

C) $500,000

D) $510,000

14) Kristin’s Basketball Manufacturing Company reported:

Actual fixed overhead$800,000

Fixed manufacturing overhead spending variance$60,000 favorable

Fixed manufacturing production-volume variance$40,000 favorable

 

To isolate these variances at the end of the accounting period, Kristin would debit:

A) Fixed Manufacturing Overhead Allocated for $900,000

B) Fixed Manufacturing Overhead Spending Variance for $60,000

C) Fixed Manufacturing Production-Volume Variance for $40,000

D) All of these answers are correct.

 

Answer the following questions using the information below:

 

Production-

VariancesSpendingEfficiencyVolume

Variable manufacturing overhead$ 9,000 F$30,000 U(B)

Fixed manufacturing overhead$20,000 U(A)$80,000 U

 

15) Above is a:

A) 4-variance analysis

B) 3-variance analysis

C) 2-variance analysis

D) 1-variance analysis

 

16) In the above chart, the amounts for (A) and (B), respectively, are:

A) $21,000 U; $110,000 U

B) $21,000 U; Zero

C) Zero; $110,000 U

D) Zero; Zero

17) In a 3-variance analysis the spending variance should be:

A) $ 9,000 F

B) $20,000 U

C) $11,000 U

D) $21,000 U

 

18) In a 2-variance analysis the flexible-budget variance and the production-volume variance should be ________, respectively.

A) $11,000 U; $110,000 U

B) $41,000 U; $80,000 U

C) $21,000 U; $100,000 U

D) $121,000 U; Zero

 

19) In a 1-variance analysis the total overhead variance should be:

A) $41,000 U

B) $121,000 U

C) $242,000 U

D) None of these answers is correct.

 

20) Both financial and nonfinancial performance measures are key inputs when evaluating the performance of managers.