Question 11

Comparing actual results to a budget based on the actual activity for the period is possible with the use of a:

		monthly budget.
		master budget.
		flexible budget.
		rolling budget.

1 points

Question 12

A flexible budget should not be used when making comparisons to actual results such as actual expenses.

True

False

1 points

Question 13

The revenue and spending variances are the differences between the flexible budget and the actual results for the period.

True

False

1 points

Question 14

Ortman Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for May is:

		$1,264 F
		$1,400 F
		$1,264 U
		$1,400 U

1 points

Question 15

Blue Corporation's standards call for 2,500 direct labor-hours to produce 1,000 units of product. During May 900 units were produced and the company worked 2,400 direct labor-hours. The standard hours allowed for May production would be:

		2,500 hours
		2,400 hours
		2,250 hours
		1,800 hours