- Which of the following statements is true?
- A revenue variance is calculated by comparing the:
- Which of the following statements is true?
- Assume that the amount of one of a company’s fixed expenses in its flexible budget is $46,000. The actual amount of the expense is $49,000 and the amount in the company’s planning budget is $46,000. The spending variance for this expense is:
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- Assume that a company has two cost drivers—number of courses and number of students. The planned number of courses and students were 5 and 100, respectively. The actual number of courses and students were 6 and 110, respectively. One of the company’s expenses is influenced by both cost drivers. Its cost formulas are $51 per course and $5 per student. The total cost included in the flexible budget for this expense would be:
- Assume that a company provided the following cost formulas for three of its expenses (where qrefers to the number of hours worked):
| Rent (fixed) | $ 3,000 |
| Supplies (variable) | $ 4.30q |
| Utilities (mixed) | $ 150 + $ 0.75q |
The company’s planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the flexible budget?
- Assume that a company provided the following information:
| Actual Results | Flexible Budget | Planning Budget | |
| Flights (q) | 55 | ?question mark | 50 |
| Revenue ($230.00q) | $ 11,550 | $ ?question mark | $ ?question mark |
What amount of revenue would appear in the company’s flexible budget?
- Assume the following:
- The standard price per pound is $2.15.
- The standard quantity of pounds allowed per unit of finished goods is 4 pounds.
- The actual quantity of materials purchased and used in production is 50,500 pounds.
- The actual purchase price per pound of materials was $2.25.
- The company produced 13,000 units of finished goods during the period.
What is the materials quantity variance?
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Assume the following:
- The standard labor rate per hour is $17.30.
- The standard labor-hours allowed per unit of finished goods is 3 hours.
- The actual quantity of labor hours worked during the period was 44,000 hours.
- The total actual direct labor cost for the period was $726,000.
- The company produced 15,000 units of finished goods during the period.
- What is the labor rate variance?
- Assume the following:
- The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour.
- The standard labor-hours allowed per unit of finished goods is 3 hours.
- The actual quantity of labor hours worked during the period was 43,900 hours.
- The total actual variable manufacturing overhead cost for the period was $63,000.
- The company produced 15,000 units of finished goods during the period.
What is the variable overhead rate variance?