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11) Variable-manufacturing overhead costs were ________ for actual output. A) higher than expected B) the same as expected C) lower than expected D) indeterminable 12) The variable overhead flexible-budget variance can be further subdivided into the: A) price variance and the efficiency variance B) static-budget variance and sales-volume variance C).
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11) ________ is a method of inventory costing in which only variable manufacturing costs are included as inventoriable costs. A) Fixed costing B) Variable costing C) Absorption costing D) Mixed costing 12) Variable costing regards fixed manufacturing overhead as a(n): A) administrative cost B) inventoriable cost C) period cost D) product cost 13) The only.
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60) Galliart Company has two identical divisions, East and West. Their sales, production volume, and fixed manufacturing costs have been the same for the last five years. The amounts for each division were as follows: 20X120X220X320X420X5 Units produced50,00055,00055,00044,00044,000 Units sold45,00045,00050,00050,00050,000 Fixed manufacturing costs              $55,000              $55,000$55,000$55,000$55,000 East Division uses absorption costing and West Division uses variable.
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50) Briefly explain the meaning of the variable overhead efficiency variance and the variable overhead spending variance. 51) Briefly explain why a favorable variable overhead spending variance may not always be desireable. 52) Can the variable overhead efficiency variance a.be computed the same way as the efficiency variance for direct-cost items? b.be.
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35) Mayberry Company had the following journal entries recorded for the end of June. Unfortunately, the company's only accountant quit on July 10 and the president is at a loss as to the company's performance for the month of June. Materials Control300,000 Direct Materials Price Variance10,000 Accounts Payable Control290,000 Work-in-Process Control120,000 Direct Materials Efficiency Variance8,000 Materials.
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47) Give at least three good reasons why an unfavorable efficiency variance for direct manufacturing labor might be reported. 1) A purchasing manager's performance is best evaluated using the: A) direct materials price variance B) direct materials flexible-budget variance C) direct manufacturing labor flexible-budget variance D) affect the manager's action.
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Answer the following questions using the information below: Hector's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.   Flexible    Variances   BudgetPriceEfficiency Material A$20,000$1,000U$1,200F Material B30,000500F800U Material C40,0001,400U1,000F   31) The actual amount spent for Material A was:.
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22) All unfavorable overhead variances decrease operating income compared to the budget. 23) A favorable fixed overhead flexible-budget variance indicates that actual fixed costs exceeded the lump-sum amount budgeted. 24) Fixed costs for the period are by definition a lump sum of costs that remain unchanged and therefore the fixed.
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Answer the following questions using the information below: Munoz, Inc., produces a special line of plastic toy racing cars. Munoz, Inc., produces the cars in batches. To manufacture a batch of the cars, Munoz, Inc., must set up the machines and molds. Setup costs are batch-level costs because they are.
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21) September's direct labor price variance is: A) $210.00 unfavorable B) $210.00 favorable C) $70.00 unfavorable D) $70.00 favorable 22) September's direct labor efficiency variance is: A) $280.00 favorable B) $280.00 unfavorable C) $210.00 favorable D) $210.00 unfavorable Answer the following questions using the information below: These questions refer to.
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54) Johnson Realty bought a 2,000-acre island for $10,000,000 and divided it into 200 equal size lots. As the lots are sold, they are cleared at an average cost of $5,000. Storm drains and driveways are installed at an average cost of $8,000 per site. Sales commissions are 10% of selling price. Administrative costs.
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9) Critics of absorption costing suggest to evaluate management on their ability to: A) exceed production quotas B) increase operating income C) decrease inventory costs D) All of these answers are correct. 10) Differences between absorption costing and variable costing are much smaller when a: A) large part of the.
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19) Variances often affect each other. 20) If variance analysis is used for performance evaluation, managers are encouraged to meet targets using creativity and resourcefulness. 21) When using variance for performance evaluation, managers often focus on effectiveness and efficiency as two of the common attributes used in comparing expected results.
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1) The variable overhead flexible-budget variance measures the difference between: A) actual variable overhead costs and the static budget for variable overhead costs B) actual variable overhead costs and the flexible budget for variable overhead costs C) the static budget for variable overhead costs and the flexible budget for variable.
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45) Littrell Company produces chairs and has determined the following direct cost categories and budgeted amounts: Standard InputsStandard Cost Categoryfor 1 outputper input Direct Materials1.00$7.50 Direct Labor0.309.00 Direct Marketing0.503.00 Actual performance for the company is shown below: Actual output: (in units)4,000 Direct Materials: Materials costs$30,225 Input purchased and used3,900 Actual price per input$7.75 Direct Manufacturing Labor: Labor costs$11,470 Labor-hours of input1,240 Actual price.
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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.
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31) Everjoice Company makes clocks. The fixed overhead costs for 20X5 total $720,000. The company uses direct labor-hours for fixed overhead allocation and anticipates 240,000 hours during the year for 480,000 units. An equal number of units are budgeted for each month. During June, 42,000 clocks were produced and $63,000.
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40) In variable costing, all nonmanufacturing costs are subtracted from contribution margin. 41) Direct costing is a perfect way to describe the variable-costing inventory method. 42) When variable costing is used, an income statement will show contribution margin. 43) The income under variable costing will always be the same as.
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53) Jarvis Golf Company sells a special putter for $20 each. In March, it sold 28,000 putters while manufacturing 30,000. There was no beginning inventory on March 1. Production information for March was: Direct manufacturing labor per unit15 minutes Fixed selling and administrative costs$ 40,000 Fixed manufacturing overhead132,000 Direct materials cost per unit2 Direct.
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Answer the following questions using the information below: Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following fixed overhead data pertain to March: ActualStatic Budget Production10,000 units12,000 units Machine-hours5,100 hours6,000 hours Fixed overhead cost for March$244,000$240,000 12) What is the flexible-budget amount? A) $200,000 B).
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43) The following data for the Lewgrow Garden Supplies Company pertains to the production of 2,500 garden spades during March. The spade consists of a wooden handle and a metal forged tool that comes in contact with the ground. Direct Materials (all materials purchased were used): Standard cost: $1.00 per handle.
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3) Fixed overhead costs must be unitized for: A) financial reporting purposes B) planning purposes C) calculating the production-volume variance D) Both A and C are correct. 4) Generally Accepted Accounting Principles require that unitized fixed manufacturing costs be used for: A) pricing decisions B) costing decisions C) external reporting.
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20) Heston Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory$190,000 Fixed manufacturing overhead in production750,000 Ending fixed manufacturing overhead in inventory50,000 Beginning variable manufacturing overhead in inventory$20,000 Variable manufacturing overhead in production100,000 Ending variable manufacturing overhead in inventory30,000 What is the difference between operating incomes under absorption costing and.
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36) Abby Company has just implemented a new cost accounting system that provides two variances for fixed manufacturing overhead. While the company's managers are familiar with the concept of spending variances, they are unclear as to how to interpret the production-volume overhead variances. Currently, the company has a production capacity.
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10) What is operating income using variable costing? A) $52,500 B) $78,750 C) $65,750 D) $47,000 AACSB:  Analytical skills Answer the following questions using the information below: Barry's Hobbies produces and sells a luxury animal pillow for $80.00 per unit. In the first month of operation, 3,000 units were produced and.
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29) The goal of variance analysis is for managers to understand why variances arise, to learn, and to improve future performance. 30) Employees logging in to production floor terminals and other modern technologies greatly facilitate the use of a standard costing system. 31) Possible operational causes of an unfavorable direct materials.
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Answer the following questions using the information below: Sawyer Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2011, SII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.   Budgeted quantityBudgeted price Direct materials0.20 pounds$25 per pound Direct labor0.10 hours$15 per hour During.
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Answer the following questions using the information below: Tunney Corporation incurred fixed manufacturing costs of $7,200 during 2011. Other information for 2011 includes: The budgeted denominator level is 1,600 units. Units produced total 2,000 units. Units sold total 1,900 units. Beginning inventory was zero. The fixed manufacturing cost rate is based on the budgeted denominator.
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41) The variable overhead efficiency variance is computed in a different way than the efficiency variance for direct-cost items. 42) The variable overhead flexible-budget variance measures the difference between the actual variable overhead costs and the flexible-budget variable-overhead costs. 43) The variable overhead efficiency variance measures the efficiency with which the.
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27) a.Explain the difference between the variable and absorption costing methods. b.Which method(s) are required for external reporting? For internal reporting? 1) The contribution-margin format of the income statement: A) is used with absorption costing B) calculates gross margin C) distinguishes between manufacturing and nonmanufacturing costs D) is used with variable costing 2) The gross-margin format.
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1) Which of the following cost(s) are inventoried when using variable costing? A) direct manufacturing costs B) variable marketing costs C) fixed manufacturing costs D) Both A and B are correct. 2) Which of the following cost(s) are inventoried when using absorption costing? A) direct manufacturing costs B) variable marketing.
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21) Variable costing includes all variable costs?both manufacturing and nonmanufacturing?in inventory. 22) Under both variable and absorption costing, all variable manufacturing costs are inventoriable costs. 23) The main difference between variable costing and absorption costing is the way in which fixed manufacturing costs are accounted for. 24) Under absorption costing, all.
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41) Wilson's Winter Woolens manufactures jackets and other wool clothing. A certain designed ski parka requires the following: Direct materials standard2 square yards at $13.50 per yard Direct manufacturing labor standard1.5 hours at $20.00 per hour During the third quarter, the company made 1,500 parkas and used 3,150 square yards of fabric.
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6) An unfavorable production-volume variance of $20,000 indicates that the company has: A) unused fixed manufacturing overhead capacity B) overallocated $20,000 of fixed manufacturing overhead costs C) $20,000 more capacity than needed D) an economic loss of $20,000 from selling fewer products than planned 7) An unfavorable production-volume variance: A).
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Answer the following questions using the information below: Roberts Corporation manufactured 100,000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February: ActualBudgeted Production100,000 units100,000 units Machine-hours9,800 hours10,000 hours Variable overhead cost per machine-hour$5.25$5.00 21) What is the actual variable overhead cost? A) $49,000 B) $50,000.
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3) Which of the following is NOT a step in developing budgeted variable overhead rates? A) identifying the variable overhead costs associated with each cost-allocation base B) estimating the budgeted denominator level based on expected utilization of available capacity C) selecting the cost-allocation bases to use D) choosing the period.
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56) The following data are available for Ruggles Company for the year ended September 30, 2011. Sales:24,000 units at $50 each Expected and actual production:30,000 units Manufacturing costs incurred: Variable:$525,000 Fixed:$372,000 Nonmanufacturing costs incurred: Variable:$144,800 Fixed:$77,400 Beginning inventories:none Required: a.Determine operating income using the variable-costing approach. b.Determine operating income using the absorption-costing approach. c.Explain why operating income is not the same.
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31) What is the variable overhead spending variance? A) $4,500 unfavorable B) $3,937.50 unfavorable C) $4,500 favorable D) $3,937.50 favorable 32) What is the variable overhead efficiency variance? A) $3,937.50 favorable B) $3,937.50 unfavorable C) $4,500 favorable D) $4,500 unfavorable 33) What is the total variable overhead variance A) $7,875 unfavorable B) $3,937.50 f unfavorable C).
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11) Fixed and variable cost variances can ________ be applied to activity-based costing systems. A) always B) most times C) seldom D) never 12) Variance analysis of fixed overhead costs is also useful when a company uses activity-based costing. 13) A favorable fixed setup overhead spending variance could be due.
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