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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

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Question 171

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What is ChocO's labor rate variance?

A) $902 Favorable
B) $2,880 Favorable
C) $3,782 Favorable
D) $14,432 Favorable

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Question 172

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Kropf Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for September: Required: a.Compute the materials price variance for September. b.Compute the materials quantity variance for September. c.Compute the labor rate variance for September. d.Compute the labor efficiency variance for September. e.Compute the variable overhead rate variance for September. f.Compute the variable overhead efficiency variance for September.

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a.Materials price variance = (AQ × AP)− ...

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Question 173

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Faulks Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of August, it assumed that 23 containers would have been refurbished.However, 26 containers were actually refurbished during August. The amount shown for total expenses in the planning budget for August would have been closest to:

The spending variance for equipment depreciation for the month should be:

The net operating income in the flexible budget for December would be closest to:

The labor efficiency variance is labeled favorable (F)if the actual hours used is less than the standard hours allowed for the actual output.

The variable overhead efficiency variance for June is:

Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours.For the most recent month, the company based its budget on 3,600 machine-hours.Budgeted and actual overhead costs for the month appear below: The company actually worked 3,900 machine-hours during the month.The standard hours allowed for the actual output were 3,890 machine-hours for the month.What was the overall variable overhead efficiency variance for the month?

The raw materials price variance for the month is closest to:

The amount shown for revenue in the planning budget for November would have been closest to:

The variable overhead rate variance is:

The net operating income in the planning budget for July would be closest to:

The general model for calculating a quantity variance is:

The raw materials price variance for the month is closest to:

The standard hours allowed for the actual output is closest to:

The materials quantity variance for January is:

Comparing a static planning budget to actual costs is a not good way to assess whether variable costs are under control.

The materials quantity variance for June is:

Shiigi Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for May is to be based on 3,300 meals.The diner's director has provided the following cost data to use in the budget: groceries, $3.80 per meal; kitchen operations, $4,600 per month plus $1.25 per meal; administrative expenses, $3,800 per month plus $0.40 per meal; and fundraising expenses, $1,700 per month. Required: Prepare the diner's budget for the month of May.The budget will only contain the costs listed above; no revenues will be on the budget.

Westby Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for February was based on 3,900 meals, but the diner actually served 4,400 meals.The diner's director has provided the following cost data to use in the budget: groceries, $3.05 per meal; kitchen operations, $5,500 per month plus $1.40 per meal; administrative expenses, $3,300 per month plus $0.80 per meal; and fundraising expenses, $1,500 per month. Required: Prepare the diner's flexible budget for the actual number of meals served in February.The budget will only contain the costs listed above; no revenues will be on the budget.