Question 1

Cabot Company collected the following data regarding production of one of its products.Compute the variable overhead cost variance.

Accepted Answer

A)  $18,000 favorable.
B)  $4,000 favorable.
C)  $18,000 unfavorable.
D)  $18,300 favorable.
E)  $14,300 unfavorable.F) B) and C)
G) B) and D)

Question 2

Identify and explain the primary differences between fixed and flexible budgets.

Accepted Answer

A fixed budget is prepared before an ope...

Question 3

Define standard costs.How do they assist management?

Accepted Answer

Variance analysis compares actual result...

Question 4

The following information describes a company's usage of direct labor in a recent period.The direct labor efficiency variance is:

Accepted Answer

A)  $28,000 unfavorable.
B)  $28,000 favorable.
C)  $45,000 unfavorable.
D)  $45,000 favorable.
E)  $17,000 unfavorable.F) A) and B)
G) D) and E)

Question 5

Based on predicted production of 12,000 units,a company anticipates $150,000 of fixed costs and $123,000 of variable costs.The flexible budget amounts of fixed and variable costs for 10,000 units are:

Accepted Answer

A)  $125,000 fixed and $102,500 variable.
B)  $125,000 fixed and $123,000 variable.
C)  $102,500 fixed and $150,000 variable.
D)  $150,000 fixed and $123,000 variable.
E)  $150,000 fixed and $102,500 variable.F) B) and C)
G) A) and D)

Question 6

Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.

Accepted Answer

^*$360,000/20,000 hou...

Question 7

Cabot Company collected the following data regarding production of one of its products.Compute the direct materials price variance.   Direct materials stardard (6lbs. @ $2/lb) $12per firished urit  Actual direct materials used 243,000lbs Actual firished urits produced 40,000units Actual cost of direct materials used $483,570\begin{array} { l l } 	ext { Direct materials stardard (6lbs. @ } \$ 2 / lb )  & \$ 12 \mathrm { per } 	ext { firished urit } \	ext { Actual direct materials used } & 243,000 \mathrm { lbs } \	ext { Actual firished urits produced } & 40,000 \mathrm { units } \	ext { Actual cost of direct materials used } & \$ 483,570\end{array} Direct materials stardard (6lbs. @ $2/lb)  Actual direct materials used  Actual firished urits produced  Actual cost of direct materials used ​$12per firished urit 243,000lbs40,000units$483,570​

Accepted Answer

A)  $2,430 unfavorable.
B)  $3,570 unfavorable.
C)  $2,430 favorable.
D)  $6,000 unfavorable.
E)  $3,570 favorable. F) B) and E)
G) D) and E)

Question 8

Cabot Company collected the following data regarding production of one of its products.Compute the variable overhead spending variance.

Accepted Answer

A)  $18,300 favorable.
B)  $18,000 favorable.
C)  $18,000 unfavorable.
D)  $18,300 unfavorable.
E)  $14,300 unfavorable.F) B) and D)
G) A) and E)

Exam 23: Flexible Budgets and Standard Costs

The following information describes a company's usage of direct labor in a recent period.The direct labor efficiency variance is:

Correct Answer
verified

Cabot Company collected the following data regarding production of one of its products.Compute the variable overhead cost variance.

Correct Answer
verified

Based on predicted production of 12,000 units,a company anticipates $150,000 of fixed costs and $123,000 of variable costs.The flexible budget amounts of fixed and variable costs for 10,000 units are:

Correct Answer
verified

Identify and explain the primary differences between fixed and flexible budgets.

Correct Answer
verified
A fixed budget is prepared before an ope...
View Answer

Correct Answer
verified

Define standard costs.How do they assist management?

Correct Answer
verified
Variance analysis compares actual result...
View Answer

Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.

Correct Answer
verified
^*$360,000/20,000 hou...
View Answer

Cabot Company collected the following data regarding production of one of its products.Compute the variable overhead spending variance.

Correct Answer
verified

Exam 23: Flexible Budgets and Standard Costs

The following information describes a company's usage of direct labor in a recent period.The direct labor efficiency variance is:

Correct AnswerverifiedShow Answer

Cabot Company collected the following data regarding production of one of its products.Compute the variable overhead cost variance.

Correct AnswerverifiedShow Answer

Based on predicted production of 12,000 units,a company anticipates $150,000 of fixed costs and $123,000 of variable costs.The flexible budget amounts of fixed and variable costs for 10,000 units are:

Correct AnswerverifiedShow Answer

Identify and explain the primary differences between fixed and flexible budgets.

Correct AnswerverifiedA fixed budget is prepared before an ope...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Define standard costs.How do they assist management?

Correct AnswerverifiedVariance analysis compares actual result...View AnswerShow Answer

Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.

Correct Answerverified * $360,000/20,000 hou...View AnswerShow Answer

Cabot Company collected the following data regarding production of one of its products.Compute the variable overhead spending variance.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A fixed budget is prepared before an ope...
View Answer

Correct Answer
verified

Correct Answer
verified
Variance analysis compares actual result...
View Answer

Correct Answer
verified
^*$360,000/20,000 hou...
View Answer

Correct Answer
verified