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ACCT 349 Week 1 Quiz Latest

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ACCT 349 Week 1 Quiz Latest

ACCT 349 Week 1 Quiz Latest

ACCT349

ACCT 349 Week 1 Quiz Latest

Question :(TCO 10)

Which of the following statements is true about overhead cost variance analysis using activity-based costing?

Overhead cost variances are calculated for output-unit level costs only.

Overhead cost variances are calculated for variable manufacturing overhead costs only.

A 4-variance analysis can be conducted.

Activity-based costing uses input measures for all activities, resulting in the inability to do flexible budgets needed for variance analysis.

Question 2.(TCO 10)

Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:

Variable overhead (5 hours at $12 per direct manufacturing labor hour)  $ 60

Fixed overhead (5 hours at $15 per direct manufacturing labor hour, based on capacity of 200,000 direct manufacturing labor hours per month)  75

Total overhead per switch $ 135

The following information is available for the month of December:

  • 46,000 switches were produced, although 40,000 switches were scheduled to be produced.
  • 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.
  • Variable manufacturing overhead costs were $2,750,000.
  • Fixed manufacturing overhead costs were $3,050,000.

The variable overhead spending variance for December was

$50,000 U

$350,000 U

$10,000 F

$60,000 F

Question 3. (TCO 10)

Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:

Variable overhead (5 hours at $12 per direct manufacturing labor hour)  $ 60

Fixed overhead (5 hours at $15 per direct manufacturing labor hour, based on capacity of 200,000 direct manufacturing labor hours per month)  75

Total overhead per switch  $ 135

The following information is available for the month of December:

  • 46,000 switches were produced, although 40,000 switches were scheduled to be produced.
  • 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.
  • Variable manufacturing overhead costs were $2,750,000.
  • Fixed manufacturing overhead costs were $3,050,000.

The fixed overhead production volume variance for December was

$450,000 F

$400,000 F

$50,000 U

$775,000 F

Question 4. (TCO 10)

The following information is for Pappillon Corporation’s variable manufacturing overhead costs last month: favorable flexible-budget variance of $3,000, unfavorable efficiency variance of $2,500. The spending variance is

$500 favorable.

$5,500 unfavorable.

$5,500 favorable.

None of the above

Question 5. (TCO 10)

Budgeted overhead costs rates can be expressed as an amount per unit of output or per unit of input.

True

False