Chapter 10 Q

1.A company's flexible budget for 5,320 units of production showed sales $117,537; variable costs $41,909; and fixed costs $27,886. The flexible budget operating income expected if the company produces and sells 4,793 units is:Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10).

2.Ironwood Corp. produces woodcarvings. It takes 8 hours of direct labor to produce a carving. Ironwoods standard labor cost is $22 per hour. During March, Ironwood produced 5,494 carvings and used 20,524 hours of direct labor at a total cost of $364,854. What is Ironwoods labor rate variance for March?

Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10). Indicate a favorable variance as a negative number and an unfavorable variance as a positive number.

3.Tecumseh Company budgeted 5,771 pounds of material costing $5.09 per pound to produce 2,205 units. The company actually used 4,866 pounds that cost $5.75 per pound to produce 2,205 units. What is the direct materials quantity variance?

Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10). Indicate a favorable variance as a negative number and an unfavorable variance as a positive number.

4.Tecumseh Company budgeted 1,903 pounds of material costing $30 per pound to produce 2,129 units. The company actually used 1,959 pounds that cost $29 per pound to produce 2,129 units. What is the direct materials price variance ?Answer to nearest whole dollarwithout any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000).Enter a negative number as -10 not (10). Indicate a favorable variance as a negative number and an unfavorable variance as apostive number.

5.Standard costs can serve as a basis for evaluating actual performance.

True

False

6.Standard material, labor, and overhead costs can be obtained from standard cost tables published by the Institute of Management Accountants.

True

False

7.Fixed overhead productionvolume variance=Standard fixed overheadcost per unit(Budgeted unitsproducedActual unitsproduced)

True

False

8.Within the same budget performance report, it is impossible to have both favorable and unfavorable variances.

True

False

9.A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased cheap materials.

True

False

10.A volume variance is the difference between overhead at maximum production volume and that at the budgeted production volume.

True

False

Note: "Would like a Microsoft Excel spreadsheet, to be used. To show how the questions were, worked to be answered."