QUESTION 36 The variable overhead spending variance measures the aggregate effect of differences between the O the total variable overhead and the applied variable overhead the total variable overhead and total budgeted overhead costs the total variable overhead and the budgeted overhead for the expected activity the actual variable overhead rate and the standard variable overhead rate none of these QUESTION 37 Figure 11-6. Kendall Company uses forklifts to move materials from the stores area to the production floor. There are four forklifts. They are fully used 16 hours per day (making five moves per hour) The company works 300 days per year, running two eight hour shifts per day Forklift operators work 2,000 hours per year and are paid an annual salary of $45,000 Based on a recent study each forklift 025 gallons of fuel per move. The cost of fuel is $2.00 per gaton Refer to Figure 11-6. Prepare a flexible budget formula for the moving material activity 180,000 $0.50 x moves $450,000 - $2.00x moves S405,000+ $0.50 x moves $450,000 + 50.50 x moves $450,000+ $2.00 x moves QUESTION 34 In setting price standards for materials and labor, O purchasing department must consider discounts, freight, and quality O personnel must consider payroll taxes, fringe benefits, and qualifications O it is the joint responsibility of operations, purchasing personnel, and accounting All of these statements are true None of these statements are true QUESTION 35 Which of the folowing is not true concerning direct materiais variances? The sum of the price and usage variances will add up to the total materials variance only if the materials purchased is equal to the materials used The materials price variance uses the actual quantity of materials purchased rather than the actual quantity of materials used The materials price variance always uses the actual quantity of materials used rather than the actual quantity of materials purchased The materials usage variance uses the actual quantity of materials used. Separate materials variances can be computed for each type of material used QUESTION 31 Which of the following is true regarding historical experience in standard setting? It provides very rigorous guidelines, Operating personnel may not be able to achieve operating standards based on historical experience It should be used with caution because it can perpetuate inefficiencies Standards based on historical experience are better than standards based on engineering studies. None of these statements are true. QUESTION 32 Standard cost systems are adopted to improve planning and control to facilitate product conting O to improve planning and control, and to facilitate product costing to enhance the operational control of fimms that emphasize continuous improvement for all of these reasons