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Title: Question 1
QA_Ori:
Fixed budget performance reports have limited usefulness because they do not
Title: Question 2
QA_Ori:
The primary purpose of a flexible budget is to help managers better evaluate past
Title: Question 3
QA_Ori:
The proper title is:
Spalding Company
Flexible Budget Performance Report
For Year Ended December 31, 2013
The proper title communicates to the user the focus of the report. Although it may
Spalding Company
Flexible Budget Performance Report
For Year Ended December 31, 2013
Title: Question 4
QA_Ori:A flexible budget performance report is useful for an analysis of the
Title: Question 5
QA_Ori:
A variable cost implies a constant per unit cost for each unit produced or sold
within the relevant range.
Title: Question 6
QA_Ori:
The human resource department is usually responsible for a labor rate variance.
The production department is usually responsible for a labor efficiency variance.
Title: Question 7
QA_Ori:
A price variance is that portion of a cost variance caused by a difference between
Title: Question 8
QA_Ori:
Standard costs are used to establish a basis to assess the reasonableness of
Title: Question 9
QA_Ori:
An overhead volume variance is the difference between (a) the amount of (fixed)
Title: Question 10
QA_Ori:
A predetermined standard overhead rate is a measure computed and used in a
standard cost system to assign overhead costs to products. Before the period
Title: Question 11
QA_Ori:
Title: Question 12
QA_Ori:
A controllable variance is the difference between (a) the total overhead cost
Title: Question 13
QA_Ori:
Standard costs provide a basis for evaluating actual performance. Summary
information comparing actual costs to budgeted costs is captured and reported in a
Title: Question 14
QA_Ori:
Before a period starts, the manager can prepare flexible budgets for the various
types of snowmobiles. Then, she could estimate both the best and worst case
Title: Question 15
QA_Ori:
Apple schedules appointments with customers to service Apple computers,
Title: Question 16
QA_Ori:
The controllable variance should not be affected by achieving an actual operating
In contrast, the volume variance is affected when the percent of actual
Title: Quick Study 23-1
QA_Ori:
BEECH COMPANY
Flexible Budget Performance Report
For Month Ended May 31
Flexible Actual
Budget Results Variances
Sales $1,300,000 $1,275,000 $25,000 U
Title: Quick Study 23-2
QA_Ori:
A standard cost card for one bat would include:
Direct materials (1 kg. @$18 per kg.) $18
Title: Quick Study 23-3
QA_Ori:
Actual cost for one bat $40
QA_Edit:
Title: Quick Study 23-4
QA_Ori:
1. Management by exception involves managers focusing on the most significant
plan.
2. Management often uses standard costs to compute these variances. Since
standard costs are used by managers to focus on the areas in which actual results
Title: Quick Study 23-5
QA_Ori:
Standard direct materials cost $150,000
Title: Quick Study 23-6
QA_Ori:
Standard direct labor cost $400,000
Title: Quick Study 23-7
QA_Ori
Following information is given
Title: Quick Study 23-8
QA_Ori:
Title: Quick Study 23-9A
QA_Ori:
Goods in Process Inventory 225,000
Controllable Variance 60,400
Title: Quick Study 23-10
QA_Ori:
Actual variable overhead (4,700 x $4.15)* $19,505
*Actual machine hours x Actual variable overhead rate
**Standard machine hours x Standard variable overhead rate
Title: Quick Study 23-11A
QA_Ori:
QA_Edit:
Title: Quick Study 23-12
QA_Ori:
QA_Edit:
Title: Quick Study 23-13
QA_Ori:
Title: Quick Study 23-14
QA_Ori:
From the flexible budget at 20,000 units, compute the sales price and variable
costs per unit:
Sales price per unit = $400,000/20,000 units = $20.00 per unit
Title: Quick Study 23-15
QA_Ori:
BRODRICK COMPANY
Flexible Budget Performance Report
For Year Ended December 31
Flexible Actual
Budget Results Variances
Sales (13,000 units) $520,000 $480,000 $40,000 U
Title: Quick Study 23-16
QA_Ori:
Direct materials price variance:
Actual cost of direct materials used (given) $535,000
Title: Quick Study 23-17
QA_Ori:
Direct labor rate variance:
Direct labor efficiency variance:
Title: Quick Study 23-18
QA_Ori:
Actual overhead incurred $262,800
Title: Quick Study 23-19
QA_Ori:
Actual overhead incurred $ 28,175
Title: Quick Study 23-20
QA_Ori:
Budgeted fixed overhead (at 12,000 units) $12,000
Title: Quick Study 23-21
QA_Ori:
