PakQuizHub

1.What could be the reason for a budget overrun if the machine time standards are set unrealistically low?

2.Given that the actual variable quantity is 70, with actual overhead costs of $8,650 and budgeted overhead costs of $3,500, what is the variable overhead spending variance?

$660,500$560,500$460,500$360,500

3.What is the initial step in establishing the cost rate for budgeted variable overhead?

Determine the budgeting timeframePick the basis for allocationRecognize the variable overhead expensesCalculate the rate per unit

4.Given that the fixed overhead assigned to actual units produced amounts to $25,000 and the production volume variance is $9,000, what is the budgeted fixed overhead?

$34,000$24,000$16,000$18,000

5.Allocating additional resources to establish core standards is known as which type of response?

6.To determine which value do you add the flexible budget amount to the fixed overhead flexible budget variance?

manufacturing costs incurredproduction expenses incurredactual costs incurredlabor costs incurred

7.Given a flexible budget value of $26,000 and a fixed overhead flexible budget variance of $12,500, what is the actual cost incurred?

8.Given a budgeted fixed overhead cost of $385,000 and a planned total quantity of 6,730 units, what is the budgeted fixed overhead cost allocated per unit?

$57.21 for each unit$67.21 for each unit$77.21 for each unit$87.21 for each unit

9.To determine the actual cost incurred, what must be added to the flexible budget amount in relation to variable overhead?

the actual cost incurredthe fixed costs recordedthe variable costs recordedthe total manufacturing expenses

10.Given a fixed setup cost of $32,000 and a variable setup cost of $12,000, what is the total setup cost?

$20,000$34,000$44,000$35,000

11.Given that the fixed overhead assigned to actual output units amounts to $36,000 and the production volume variance is $7,000, what is the budgeted fixed overhead?

$43,000$42,000$29,000$19,000

12.What term describes the difference between the actual and budgeted quantities of the cost allocation base?

Efficiency variance for fixed overheadEfficiency variance for variable overheadManufacturing variance for variable overheadManufacturing variance for fixed overheadNone of the above

13.What term describes a total cost amount that stays constant regardless of fluctuations in production volume?

14.What is the third stage in preparing an operating budget?

Determine the timeframe for the budgetDecide on the bases for cost allocationRecognize variable overhead expensesCalculate the rate per unit

15.Given that the fixed overhead assigned to the actual number of units produced is $9,800 and the planned fixed overhead is $22,000, what is the production volume variance?

$31,800$12,300$12,200$41,800

16.Given a budgeted fixed overhead total cost of $465,200 and a budgeted total quantity of 8,750 units, what is the budgeted fixed overhead cost per unit?

17.What is the fourth step in preparing an operating budget?

Determine the variable overhead expensesCalculate the rate per unitDecide on the time frame for budgetingPick the bases for cost allocation

18.Given that the variable overhead flexible budget variance is $37,000 and the flexible budget amount is $10,000, what is the actual cost incurred?

19.Which of the following is NOT considered part of variable overhead in overhead cost variance analysis?

20.Which category includes indirect setup labor expenses, costs related to setup and equipment upkeep, and indirect material costs?

Costs that vary with each batchBatch costs that remain constantSetup costs that fluctuate based on activitySetup costs that stay fixedNone of the above

Flexible Budget Overhead Cost Variance – MCQs