Exam Simulation 10 MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question 1 The standard variable overhead cost rate for the Croskey Company is 12 per unit Budgeted cid 9 fixed overhead cost is 60 000 The Croskey Company budgeted 4 000 units for the current period and actually produced 3 860 finished units What is the production volume variance 1 9 Assume the allocation base for fixed overhead costs is the number of units expected to be produced i e s S A 3 780 favorable C 2 100 unfavorable B 2 100 favorable PD 3 780 unfavorable 38 L 77 5e 00 j C 7F 9J7 C 2 F 2 cid 9 4 14 unny Dayz sells bottles of sunscreen lotion for 8 00 each Variable costs are 4 50 per cid 9 bottle while fixed costs are 42 000 per month for volumes up to 20 000 bottles of lotion and 52 000 per month for volumes above 20 000 bottles of lotion The flexible budget would reflect monthly operating income for 18 000 bottles of lotion and 23 000 bottles of lotion of what dollar amounts 21 000 and 28 500 respectively cid 9 C 132 000 and 11 000 respectively cid 9 B 102 000 and 38 500 respectively D 144 000 and 184 000 respectively yson Industries has collected the following data for one of its products 3 4 Direct materials standard 4 pounds per unit 0 50 lb Direct materials flexible budget variance unfavorable Actual direct materials used Actual finished goods produced 2 per finished good 10 000 40 000 pounds 24 000 units What is the total actual cost of the direct materials used 000 cid 9 B 20 000 cid 9 C 38 000 D 48 000 cid 9 following information describes a company s 4 A lActual direct labor hours used lActual rate per hour Standard rate per hour Standard hours for units produced 32 500 18 00 16 50 32 000 How much is the direct labor efficiency variance OunforablD C 9 000 unfavorable B 8 250 favorable D 9 000 favorable 5 umYum Corporation makes brownies and fudge YumYum Corporation gathered the cid 9 following information for the current year regarding its use of sugar sugar is a direct material for brownies and powdered sugar is a direct material for fudge 5 cid 9 t3 Standard quantity of sugar per batch Standard price per pound of sugar Actual quantity of sugar used per batch pounds Actual price paid for sugar Price variance Efficiency variance Flexible budget variance Number of batches produced Sugar Direct Materials Brownies 3 lbs 2 00 lb 2 50 lb 200 U 400 F 200 Powered Sugar Direct Materials Fudge 4 lbs 3 lbs 5 00 lb 450 F 2 100 F 300 What is the actual direct material quantity used per batch for Brownies A 0 5 lbs cid 9 C 3 0 lbs cid 9 D 4 0 lb 6 Zany Brainy projected current year sales of 50 000 units at a unit sale price of 20 00 Actual cid 9 current year sales were 55 000 units at 22 00 per unit Actual variable costs budgeted at 15 00 per unit totaled 14 00 per unit Budgeted fixed costs totaled 400 000 while actual fixed costs amounted to 420 000 What is the sales volume variance for total revenue 6 A 110 000 unfavorable C 100 000 unfavorable cid 9 D 110 000 favorable cid 9 cid 9 Iich department listed below would most likely be responsible for a direct labor efficiency 7 variance A Production department cid 9 C Purchasing department cid 9 B Personnel department D Marketing department Which term below is best paired with the difference between the actual overhead cost incurred and the flexible budget amount of overhead cost for actual number of output 8 A Sales volume variance cid 9 C Flexible budget cid 9 B enchmarkinLy D Overhead flexible budget varianc Kid Adventures Company projected current year sales of 3 600 swing sets at a unit sale price of 225 00 Actual current year sales were 3 300 units at 215 00 per unit Actual variable costs budgeted at 166 00 per unit totaled 175 00 per unit Budgeted fixed costs totaled 122 000 while actual fixed costs amounted to 118 000 What is the sales volume variance for total revenue 9 13 A 64 500 unfavorable cid 9 C 67 500 favorable cid 9 n 67 500 unfavorable D 64 500 favorable Thomas Corporation produces stopwatches According to company standards it should take 1 10 A hour of direct labor to produce a stopwatch Thomas standard labor cost is 18 per hour During June Thomas produced 5 000 stopwatches and used 5 150 hours of direct labor at a total cost of 102 500 What is Thomas direct labor price variance for June A 9 800 unfavoncrb Corbett Company makes blenders The budgeted selling price is 35 per blender the variable cid 9 rate is 18 per blender and budgeted fixed costs are 32 000 per month What is the budgeted operating income for 2 000 blenders sold in a month 11 M A 2 000 cid 9 B 68 000 cid 9 C 34 000 cid 9 D 70 000 12 Wolanin Corporation which manufactures straw hats is developing direct labor standards cid 9 12 The basic direct labor rate is 20 00 per hour Payroll taxes are 15 of the basic direct labor rate while fringe benefits such as vacation and health care insurance are 5 00 per hour What is the standard rate per direct labor hour A 20 00 cid 9 B 23 00 cid 9 C 28 00 cid 9 D 25 00
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