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129. Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the
year with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2014
26,000
Unit production for 2014
26,000
Budgeted fixed overhead for 2014:
Supervision
$ 800
Depreciation
2,000
Rent
100
Budgeted variable costs per unit:
Direct materials
$0.15
Direct labor
0.20
Supplies
0.02
Indirect labor
0.05
Power
0.02
The following actually occurred:
Actual unit sales for 2014
24,000
Actual unit production for 2014
28,000
Actual fixed overhead for 2014:
Supervision
$ 850
Depreciation
2,000
Rent
100
Actual variable costs:
Direct materials
$3,500
Direct labor
4,900
Supplies
530
Indirect labor
1,250
Power
470
Refer to Figure 8-8. The flexible budget for direct materials cost in 2014 is
130. Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the
year with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2014
26,000
Unit production for 2014
26,000
Budgeted fixed overhead for 2014:
Supervision
$ 800
Depreciation
2,000
Rent
100
Budgeted variable costs per unit:
Direct materials
$0.15
Direct labor
0.20
Supplies
0.02
Indirect labor
0.05
Power
0.02
The following actually occurred:
Actual unit sales for 2014
24,000
Actual unit production for 2014
28,000
Actual fixed overhead for 2014:
Supervision
$ 850
Depreciation
2,000
Rent
100
Actual variable costs:
Direct materials
$3,500
Direct labor
4,900
Supplies
530
Indirect labor
1,250
Power
470
Refer to Figure 8-8. The flexible budget variance for indirect labor for 2014 is
131. Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the
year with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2014
26,000
Unit production for 2014
26,000
Budgeted fixed overhead for 2014:
Supervision
$ 800
Depreciation
2,000
Rent
100
Budgeted variable costs per unit:
Direct materials
$0.15
Direct labor
0.20
Supplies
0.02
Indirect labor
0.05
Power
0.02
The following actually occurred:
Actual unit sales for 2014
24,000
Actual unit production for 2014
28,000
Actual fixed overhead for 2014:
Supervision
$ 850
Depreciation
2,000
Rent
100
Actual variable costs:
Direct materials
$3,500
Direct labor
4,900
Supplies
530
Indirect labor
1,250
Power
470
Refer to Figure 8-8. The flexible budget for rent in 2014 is
132. Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the
year with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2014
26,000
Unit production for 2014
26,000
Budgeted fixed overhead for 2014:
Supervision
$ 800
Depreciation
2,000
Rent
100
Budgeted variable costs per unit:
Direct materials
$0.15
Direct labor
0.20
Supplies
0.02
Indirect labor
0.05
Power
0.02
The following actually occurred:
Actual unit sales for 2014
24,000
Actual unit production for 2014
28,000
Actual fixed overhead for 2014:
Supervision
$ 850
Depreciation
2,000
Rent
100
Actual variable costs:
Direct materials
$3,500
Direct labor
4,900
Supplies
530
Indirect labor
1,250
Power
470
Refer to Figure 8-8. The flexible budget variance for supervision for 2014 is
133. Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the
year with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2014
26,000
Unit production for 2014
26,000
Budgeted fixed overhead for 2014:
Supervision
$ 800
Depreciation
2,000
Rent
100
Budgeted variable costs per unit:
Direct materials
$0.15
Direct labor
0.20
Supplies
0.02
Indirect labor
0.05
Power
0.02
The following actually occurred:
Actual unit sales for 2014
24,000
Actual unit production for 2014
28,000
Actual fixed overhead for 2014:
Supervision
$ 850
Depreciation
2,000
Rent
100
Actual variable costs:
Direct materials
$3,500
Direct labor
4,900
Supplies
530
Indirect labor
1,250
Power
470
Refer to Figure 8-8. The flexible budget variance for total cost for 2014 is
134. Refer to Figure 8-8. The total actual costs for 2014 were
135. Refer to Figure 8-8. The static budget variance for supervision is
136. Refer to Figure 8-8. The static budget variance for supplies is
137. The budget most appropriate for control purposes is the
138. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the
budget for several different volume levels.
Laramie had the following budgeted data:
Budgeted variable costs per unit:
Direct materials
$ 7.00
Direct labor
10.00
Supplies
1.00
Indirect labor
0.50
Power
0.05
Budgeted fixed overhead for 2014:
Supervision
$4,000
Depreciation
3,000
Rent
2,000
What are the budgeted costs for materials if 5,000 units were produced?
139. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the
budget for several different volume levels.
Laramie had the following budgeted data:
Budgeted variable costs per unit:
Direct materials
$ 7.00
Direct labor
10.00
Supplies
1.00
Indirect labor
0.50
Power
0.05
Budgeted fixed overhead for 2014:
Supervision
$4,000
Depreciation
3,000
Rent
2,000
What are the budgeted costs for rent if 5,000 units were produced?
140. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the
budget for several different volume levels.
Laramie had the following budgeted data:
Budgeted variable costs per unit:
Direct materials
$ 7.00
Direct labor
10.00
Supplies
1.00
Indirect labor
0.50
Power
0.05
Budgeted fixed overhead for 2014:
Supervision
$4,000
Depreciation
3,000
Rent
2,000
What are the total budgeted costs for 5,000 units?
141. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the
budget for several different volume levels.
Laramie had the following budgeted data:
Budgeted variable costs per unit:
Direct materials
$ 7.00
Direct labor
10.00
Supplies
1.00
Indirect labor
0.50
Power
0.05
Budgeted fixed overhead for 2014:
Supervision
$4,000
Depreciation
3,000
Rent
2,000
What is the difference in total budgeted costs between the volume range of 4,000 and 5,000 units?
142. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the
budget for several different volume levels.
Laramie had the following budgeted data:
Budgeted variable costs per unit:
Direct materials
$ 7.00
Direct labor
10.00
Supplies
1.00
Indirect labor
0.50
Power
0.05
Budgeted fixed overhead for 2014:
Supervision
$4,000
Depreciation
3,000
Rent
2,000
What are the total budgeted costs for 3,000 units?
143. If the static budget variance for materials is $250 F and the budgeted cost for materials is $52,000, then the
actual cost of materials is
144. The static budget variance for materials is $250 F and the budgeted cost for materials is $52,000. If the
budgeted volume is 13,000 and the actual volume is 13,500, then the flexible budget variance is
145. A budget that is developed around one particular level of activity is
146. If production was budgeted at 400 units and the actual production was 420 units, what would be the static
budget variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?
147. If production was budgeted at 400 units and the actual production was 420 units, what would be the
flexible budget variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is
$10?
148. Flexible budgets do NOT provide
149. If a static budget forecasted 100,000 units to be sold in the fiscal year and actual units sold amounted to
120,000, what assumption could be made under a flexible budget process?
150. Volume variances examine differences between
151. Activity-based budgets
152. Activity-based budgeting is most useful when
153. With an activity flexible budget, a budget variance is calculated
154. Which is NOT one of the four steps needed to build an activity-based budget?
155. Activity-based budgets compare costs for items based on activities such as
156. A flexible-based budgeting system
157. A functional-based approach to budgeting compares costs for functional line items such as
158. Walterboro, Inc., has done a cost analysis for its production of decals. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $0.11 per machine hour
Machining
$25,000 + $0.50 per machine hour
Setups
$50 per batch
Purchasing
$200 + $45 per purchase order
Following are the actual costs of producing 85,000 decals: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$11,500
Machining
28,300
Setups
550
Purchasing
1,000
What is the budgeted cost per decal? (Round to three decimal places.)
159. Walterboro, Inc., has done a cost analysis for its production of decals. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $0.11 per machine hour
Machining
$25,000 + $0.50 per machine hour
Setups
$50 per batch
Purchasing
$200 + $45 per purchase order
Following are the actual costs of producing 85,000 decals: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$11,500
Machining
28,300
Setups
550
Purchasing
1,000
What is the budget variance for setups in an activity-based performance report?
160. Walterboro, Inc., has done a cost analysis for its production of decals. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $0.11 per machine hour
Machining
$25,000 + $0.50 per machine hour
Setups
$50 per batch
Purchasing
$200 + $45 per purchase order
Following are the actual costs of producing 85,000 decals: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$11,500
Machining
28,300
Setups
550
Purchasing
1,000
What is the budget variance for maintenance in an activity-based performance report?
161. Walterboro, Inc., has done a cost analysis for its production of decals. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $0.11 per machine hour
Machining
$25,000 + $0.50 per machine hour
Setups
$50 per batch
Purchasing
$200 + $45 per purchase order
Following are the actual costs of producing 85,000 decals: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$11,500
Machining
28,300
Setups
550
Purchasing
1,000
What is the budget variance for machining in an activity-based performance report?
162. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$15,000 + $4 per machine hour
Machining
$35,000 + $1 per machine hour
Inspection
$60,000 + $750 per batch
Setups
$1,000 per batch
Purchasing
$50,000 + $10 per purchase order
What is the budgeted maintenance cost if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000
purchase orders?
163. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$15,000 + $4 per machine hour
Machining
$35,000 + $1 per machine hour
Inspection
$60,000 + $750 per batch
Setups
$1,000 per batch
Purchasing
$50,000 + $10 per purchase order
What is the budgeted inspection cost if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000
purchase orders?
164. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$15,000 + $4 per machine hour
Machining
$35,000 + $1 per machine hour
Inspection
$60,000 + $750 per batch
Setups
$1,000 per batch
Purchasing
$50,000 + $10 per purchase order
What is the budgeted setup costs if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase
orders?
165. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$15,000 + $4 per machine hour
Machining
$35,000 + $1 per machine hour
Inspection
$60,000 + $750 per batch
Setups
$1,000 per batch
Purchasing
$50,000 + $10 per purchase order
What is the budgeted purchasing cost if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000
purchase orders?
166. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$15,000 + $4 per machine hour
Machining
$35,000 + $1 per machine hour
Inspection
$60,000 + $750 per batch
Setups
$1,000 per batch
Purchasing
$50,000 + $10 per purchase order
What is the machining cost for production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?
167. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$15,000 + $4 per machine hour
Machining
$35,000 + $1 per machine hour
Inspection
$60,000 + $750 per batch
Setups
$1,000 per batch
Purchasing
$50,000 + $10 per purchase order
What is the total cost for production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?
168. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$15,000 + $4 per machine hour
Machining
$35,000 + $1 per machine hour
Inspection
$60,000 + $750 per batch
Setups
$1,000 per batch
Purchasing
$50,000 + $10 per purchase order
What is the budget for maintenance if 20,000 reflectors were made that required 3,500 machine hours, 12 batches, and 5,000 purchase orders?
169. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $2 per machine hour
Machining
$55,000 + $3 per machine hour
Inspection
$70,000 + $500 per batch
Setups
$2,000 per batch
Purchasing
$80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$20,000
Machining
73,000
Inspection
73,000
Setups
18,000
Purchasing
82,000
What is the budget variance for maintenance in an activity-based performance report?
170. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $2 per machine hour
Machining
$55,000 + $3 per machine hour
Inspection
$70,000 + $500 per batch
Setups
$2,000 per batch
Purchasing
$80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$20,000
Machining
73,000
Inspection
73,000
Setups
18,000
Purchasing
82,000
What is the budget variance for machining in an activity-based performance report?
171. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $2 per machine hour
Machining
$55,000 + $3 per machine hour
Inspection
$70,000 + $500 per batch
Setups
$2,000 per batch
Purchasing
$80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$20,000
Machining
73,000
Inspection
73,000
Setups
18,000
Purchasing
82,000
What is the budget variance for inspection in an activity-based performance report?
172. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $2 per machine hour
Machining
$55,000 + $3 per machine hour
Inspection
$70,000 + $500 per batch
Setups
$2,000 per batch
Purchasing
$80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$20,000
Machining
73,000
Inspection
73,000
Setups
18,000
Purchasing
82,000
What is the budget variance for setups in an activity-based performance report?
173. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $2 per machine hour
Machining
$55,000 + $3 per machine hour
Inspection
$70,000 + $500 per batch
Setups
$2,000 per batch
Purchasing
$80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$20,000
Machining
73,000
Inspection
73,000
Setups
18,000
Purchasing
82,000
What is the budget variance for purchasing in an activity-based performance report?
174. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost
drivers have been developed:
Activity
Cost Formula
Maintenance
$11,000 + $2 per machine hour
Machining
$55,000 + $3 per machine hour
Inspection
$70,000 + $500 per batch
Setups
$2,000 per batch
Purchasing
$80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance
$20,000
Machining
73,000
Inspection
73,000
Setups
18,000
Purchasing
82,000
What is the budget variance for total costs in an activity-based performance report?
175. Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and
cost drivers have been developed:
Activity
Cost Formula
Design
$5,000 + $0.05 per machine hour
Machining
$25,000 + $0.01 per machine hour
Setups
$35 per batch
Purchasing
$50 + $15 per purchase order
Following are the actual costs of producing 35,000 rubber stamps: 1,000 machine hours; 5 batches; 30 purchase orders
Design
$5,080
Machining
?
Setups
?
Purchasing
$600
The following variances were given in the activity performance report:
Design
?
Machining
$40 F
Setups
$15 F
Purchasing
?
What is the actual cost of machining?
