GONZALES, ADOLPH CHRISTIAN C.

2017131436
ACC103

COST ACCOUNTING AND COST MANAGEMENT-FINALS

MULTIPLE CHOICE QUESTIONS

1. Inventory holding costs typically include:

A. clerical costs of purchase-order preparation.
B. costs of deterioration, theft, or spoilage.
C. costs associated with lost sales to customers.
D. forgone interest on money tied up in inventory.
E. items "B" And "D" above.

2. Inventory holding costs would typically include all of the following except:
A. insurance.
B. theft.
C. transportation.
D. obsolescence.
E. warehouse rent.

3. At the economic order quantity:

A. total annual inventory costs, holding costs, and ordering costs are all minimized.
B. total annual inventory costs and holding costs are minimized.
C. total annual inventory costs are minimized, and holding costs equal ordering costs.
D. total annual inventory costs are minimized, and holding costs exceed ordering costs.
E. total annual inventory costs are minimized, and ordering costs exceed holding costs.

4. Chan uses an economic order quantity model and has determined an optimal order size of 600
units. Annual demand is 18,000 units, ordering costs are $15 per order, and holding costs are
$1.50 per unit. Chan's annual ordering and holding costs total:
A. $900.
B. $1,350.
C. $9,900.
D. $27,450.
E. some other amount.

Use the following to answer questions 5-6:

Cartwright Graphics uses a special purpose paper in 80% of its jobs. The paper is purchased in 100-sheet
packages at a cost of $100 per package. Management estimates that the cost of placing and receiving a
typical order is $15, and the annual cost of carrying a package in inventory is $1.50. Cartwright uses
2,600 packages each year. Production is constant, and the lead time to receive an order is 1 week.

5. The economic order quantity is approximately:

A. 203 packages.
B. 225 packages.
C. 228 packages.
 D. 565 packages.
E. 631 packages.

6. The reorder point is:

A. 25 packages.
B. 50 packages.
C. 100 packages.
D. 203 packages.
E. 225 packages.

7. When comparing EOQ and JIT inventory systems, which of the following statements is false?
A. The EOQ approach takes the viewpoint that some inventory is necessary.
B. The EOQ system assumes a constant order quantity.
C. JIT argues that inventory investments should be minimized.
D. The EOQ system focuses on acquisition and holding costs.
E. JIT argues that safety stocks are necessary to reduce the probability of a stock shortage.

8. Willingham uses a process-costing system for its single product, which is manufactured from
Material X and Material Y. X and Y are introduced to the product as follows:

Material X: Added at the beginning of manufacturing

Material Y: Added at the 75% stage of completion

The company started and completed 40,000 units during the period, and had an ending work-in-
process inventory amounting to 8,000 units, 20% complete. Which of the following choices
correctly expresses the total equivalent units of production with respect to Material X and
Material Y?
Material X Material Y
A. 46,000 41,600
B. 46,000 46,000
C. 48,000 40,000
D. 48,000 41,600
E. 48,000 46,000

Use the following to answer questions 22-23:

Hampton Textile Co., manufactures a variety of fabrics. All materials are introduced at the beginning of
production; conversion cost is incurred evenly through manufacturing. The Weaving Department had
2,000 units of work in process on April 1 that were 30% complete as to conversion costs. During April,
9,000 units were completed and on April 30, 4,000 units remained in production, 40% complete with
respect to conversion costs.

9.The equivalent units of direct materials for April total:

A. 9,000.
B. 13,000.
C. 13,600.
D. 14,400.
E. 15,000.
10.The equivalent units of conversion for April total:
A. 9,000.
B. 10,600.
C. 11,200.
D. 12,000.
E. 12,600.

11. Columbia Corporation adds all materials at the beginning of production and incurs conversion
cost evenly throughout manufacturing. The company completed 50,000 units during the year and had
15,000 units in process at December 31, 30% complete with respect to conversion cost. Equivalent units
for the year total:
A. materials, 50,000; conversion, 50,000.
B. materials, 50,000; conversion, 4,500.
C. materials, 54,500; conversion, 54,500.
D. materials, 65,000; conversion, 54,500.
E. materials, 65,000; conversion, 65,000.

12. Gregory, which uses a process-costing system, adds all material at the beginning of production
and incurs conversion cost evenly throughout manufacturing. The information that follows
relates to the period just ended:

Units started and completed: 75,000

Units in ending work-in-process inventory: 15,000, 60% complete

Which of the following choices correctly expresses the total equivalent units of production with
respect to material and conversion cost?
Material Conversion
A. 75,000 75,000
B. 84,000 84,000
C. 90,000 81,000
D. 90,000 84,000
E. 90,000 90,000

13. When calculating unit costs under the weighted-average process-costing method, the unit cost is
based on:
A. only the current period's manufacturing costs.
B. only costs in the period's beginning work-in-process inventory.
C. a summation of the costs in the beginning work-in-process inventory plus costs incurred in
the current period.
D. only costs incurred in previous accounting periods.
E. a summation of the costs in the beginning work-in-process inventory plus costs to be incurred
in the upcoming period.

14. When computing the conversion cost per equivalent unit under the weighted-average method of
process costing, all of the following information would be needed except:
A. the number of units completed during the current accounting period.
B. the conversion work performed during the current period on the ending work-in-process
inventory.
 C. the conversion work performed during the current period on the beginning work-in-process
inventory.
D. the conversion cost in the beginning work-in-process inventory.
E. the conversion cost incurred during the current accounting period.

15. Tulsa Corporation, which adds materials at the beginning of production, uses a weighted-average
process-costing system. Consider the data that follow.

Number of Units Cost of Materials

Beginning work in process 40,000 $ 80,600
Started in June 60,000 124,400
Production completed 75,000
Ending work in process 25,000

The company's cost per equivalent unit for materials is:

A. $1.24.
B. $1.66.
C. $1.67.
D. $2.05.
E. some other amount.

Use the following to answer questions 16-21:

South River Chemical manufactures a product called Zbek. Direct materials are added at the beginning of
the process, and conversion activity occurs uniformly throughout production. The beginning work-in-
process inventory is 60% complete with respect to conversion; the ending work-in-process inventory is
20% complete. The following data pertain to May:

Units
Work in process, May 1 15,000
Units started during May 60,000
Units completed and transferred out 68,000
Work in process, May 31 7,000

Direct Conversion
Total Materials Costs
Costs:
Work in process, May 1 $ 41,250 $16,500 $ 24,750
Costs incurred during May 234,630 72,000 162,630
Totals $275,880 $88,500 $187,380

16. Using the weighted-average method of process costing, the equivalent units of direct materials
total:
A. 68,000.
B. 69,400.
C. 74,000.
D. 75,000.
E. some other amount.

17. Using the weighted-average method of process costing, the equivalent units of conversion activity
total:
 A. 60,400.
B. 68,000.
C. 69,400.
D. 74,000.
E. some other amount.

18. Using the weighted-average method of process costing, the cost per unit of direct materials is:
A. $1.17.
B. $1.18.
C. $1.20.
D. $1.28.
E. some other amount.

19. Using the weighted-average method of process costing, the cost per unit of conversion activity is:
A. $2.50.
B. $2.53.
C. $2.70.
D. $2.76.
E. some other amount.

20. Using the weighted-average method of process costing, the cost of goods completed and
transferred during May is:
A. $249,560.
B. $250,240.
C. $258,400.
D. $263,840.
E. some other amount.

21. Using the weighted-average method of process costing, the total costs remaining in work in
process on May 31 are:
A. $0.
B. $12,040.
C. $17,480.
D. $25,640.
E. some other amount.

22. A standard cost:

A. is the "true" cost of a unit of production.
B. is a budget for the production of one unit of a product or service.
C. can be useful in calculating equivalent units.
D. is normally the average cost within an industry.
E. is almost always the actual cost from previous years.

23. Which of the following is a predetermined estimated cost that can be used in the calculation of a
variance?
A. Product cost.
B. Actual cost.
C. Standard cost.
D. Differential cost.
E. Marginal cost.
24. Variances are computed by taking the difference between which of the following?
A. Product cost and period cost.
B. Actual cost and differential cost.
C. Price factors and rate factors.
D. Actual cost and standard cost.
E. Product cost and standard cost.

25. The term "management by exception" is best defined as:

A. choosing exceptional managers.
B. controlling actions of subordinates through acceptance of management techniques.
C. investigating unfavorable variances.
D. devoting management time to investigate significant variances.
E. controlling costs so that non-zero variances are treated as "exceptional."

26. Which of the following are methods for setting standards?

A. Analysis of historical data.
B. Task analysis.
C. Task analysis and the analysis of historical data.
D. Matrix application forms.
E. Goal congruence.

27. Which of the following individuals is least likely to become involved in the setting of either
direct material standards or direct labor standards?
A. The purchasing manager.
B. A production supervisor.
C. An engineer.
D. A machine operator.
E. A company's president.

28. A perfection standard:

A. tends to motivate employees over a long period of time.
B. is attainable in an ideal operating environment.
C. would make allowances for normal amounts of scrap and waste.
D. is generally preferred by behavioral scientists.
E. will result in a number of favorable variances on a performance report.

29. Consider the following statements:

I. Behavioral scientists find that perfection standards often discourage employees and result
in low worker morale.
II. Practical standards are also known as attainable standards.
III. Practical standards incorporate a certain amount of inefficiency such as that caused by an
occasional machine breakdown.

Which of the above statements is (are) true?

A. I only.
B. II only.
C. III only.
D. II and III.
 E. I, II, and III.

30. Which of the following would be considered if a company desires to establish a series of practical
manufacturing standards?
A. The productivity loss associated with a short-term worker slowdown.
B. Normal defect rates in an assembly process.
C. Highly unusual spoilage rates with direct materials.
D. Quantity discounts associated with purchases of direct materials.
E. Both "B" and "D"

31. Which of the following would not be considered if a company desires to establish a series of
practical manufacturing standards?
A. Production time lost during unusual machinery breakdowns.
B. Normal worker fatigue.
C. Freight charges on incoming raw materials.
D. Production time lost during setup procedures for new manufacturing runs.
E. The historical 2% defect rate associated with raw material inputs.

32. If a company has an unfavorable direct-material quantity variance, then:

A. the direct-material price variance is favorable.
B. the total direct-material variance is unfavorable.
C. the total direct-material variance is favorable.
D. the direct-labor efficiency variance is unfavorable.
E. any of the above variances can occur.

33. A favorable labor efficiency variance is created when:

A. actual labor hours worked exceed standard hours allowed.
B. actual hours worked are less than the standard hours allowed.
C. actual wages paid are less than amounts that should have been paid.
D. actual units produced exceed budgeted production levels.
E. actual units produced exceed standard hours allowed.

34. Victoria, Inc., recently completed 52,000 units of a product that was expected to consume five
pounds of direct material per finished unit. The standard price of the direct material was $9 per
pound. If the firm purchased and consumed 268,000 pounds in manufacturing (cost =
$2,304,800), the direct-materials quantity variance would be figured as:
A. $72,000F.
B. $72,000U.
C. $107,200F.
D. $107,200U.
E. none of the above.

35. Solo Corporation recently purchased 25,000 gallons of direct material at $5.60 per gallon. Usage
by the end of the period amounted to 23,000 gallons. If the standard cost is $6.00 per gallon and
the company believes in computing variances at the earliest point possible, the direct-material
price variance would be calculated as:
A. $800F.
B. $9,200F.
C. $9,200U.
D. $10,000F.
E. $10,000U.
Use the following to answer questions 36-37:

The following data relate to product no. 89 of Des Moines Corporation:

Direct material standard: 3 square feet at $2.50 per square foot

Direct material purchases: 30,000 square feet at $2.60 per square foot
Direct material consumed: 29,200 square feet
Manufacturing activity, product no. 89: 9,600 units completed

36. The direct-material quantity variance is:

A. $1,000F.
B. $1,000U.
C. $1,040F.
D. $1,040U.
E. $2,000F.

37. The direct-material price variance is:

A. $2,880U.
B. $2,920F.
C. $2,920U.
D. $3,000F.
E. $3,000U.

38. If a company obtains two salable products from the refining of one ore, the refining
process should be accounted for as a(n)

a. mixed cost process.

b. joint process.
c. extractive process.
d. reduction process.

39. Joint costs are allocated to joint products to

a. obtain a cost per unit for financial statement purposes.

b. provide accurate management information on production costs of each type of
product.
c. compute variances from expected costs for each joint product.
d. allow the use of high-low analysis by the company.

40. Joint costs are allocated to which of the following products?

By-products Scrap
a. yes yes
b. yes no
c. no no
d. no yes
 41. Joint cost allocation is useful for

a. decision making.
b. product costing.
c. control.
d. evaluating managers’ performance.

Use the following information for questions 42–50.

P.O.P. Co. produces two products from a joint process: X and Z. Joint processing costs for this
production cycle are $8,000.

Disposal
Sales price cost per Further Final sale
per yard at yard at processing price per
Yards split-off split-off per yard yard
X 1,500 $6.00 $3.50 $1.00 $ 7.50
Z 2,200 9.00 5.00 3.00 11.25

If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by
the buyer.

42. Using a physical measure, what amount of joint processing cost is allocated to X (round
to the nearest dollar)?

a. $4,000
b. $4,757
c. $5,500
d. $3,243

43. Using a physical measure, what amount of joint processing cost is allocated to Z (round
to the nearest dollar)?

a. $4,000
b. $3,243
c. $5,500
d. $4,757

44. Using sales value at split-off, what amount of joint processing cost is allocated to X
(round to the nearest dollar)?

a. $5,500
b. $2,500
c. $4,000
 d. $3,243

45. Using sales value at split-off, what amount of joint processing cost is allocated to Z
(round to the nearest dollar)?

a. $5,500
b. $4,000
c. $2,500
d. $4,757

46. Using net realizable value at split-off, what amount of joint processing cost is allocated to
X (round to the nearest dollar)?

a. $4,000
b. $5,610
c. $2,390
d. $5,500

47. Using net realizable value at split-off, what amount of joint processing cost is allocated to
Z (round to the nearest dollar)?

a. $5,500
b. $4,000
c. $2,390
d. $5,610

48. Using approximated net realizable value at split-off, what amount of joint processing cost
is allocated to X (round to the nearest dollar)?

a. $3,090
b. $5,204
c. $4,000
d. $2,390

49. Using approximated net realizable value at split-off, what amount of joint processing cost
is allocated to Z (round to the nearest dollar)?

a. $2,796
b. $4,910
c. $4,000
d. $2,390

50. Which products would be processed further?

a. only X
b. only Z
 c. both X and Z
d. neither X or Z

Use the following information for questions 51–60.

Redd Co. uses a standard cost system for its production process and applies overhead based on
direct labor hours. The following information is available for August when Redd made 4,500
units:

Standard:
DLH per unit 2.50
Variable overhead per DLH $1.75
Fixed overhead per DLH $3.10
Budgeted variable overhead $21,875
Budgeted fixed overhead $38,750

Actual:
Direct labor hours 10,000
Variable overhead $26,250
Fixed overhead $38,000

51. Using the one-variance approach, what is the total overhead variance?

a. $6,062.50 U
b. $3,625.00 U
c. $9,687.50 U
d. $6,562.50 U

52. Using the two-variance approach, what is the controllable variance?

a. $5,812.50 U
b. $5,812.50 F
c. $4,375.00 U
d. $4,375.00 F

53. Using the two-variance approach, what is the noncontrollable variance?

a. $3,125.00 F
b. $3,875.00 U
c. $3,875.00 F
d. $6,062.50 U

54. Using the three-variance approach, what is the spending variance?

a. $4,375 U
b. $3,625 F
 c. $8,000 U
d. $15,750 U

55. Using the three-variance approach, what is the efficiency variance?

a. $9,937.50 F
b. $2,187.50 F
c. $2,187.50 U
d. $2,937.50 F

56. Using the three-variance approach, what is the volume variance?

a. $3,125.00 F
b. $3,875.00 F
c. $3,875.00 U
d. $6,062.50 U

57. Using the four-variance approach, what is the variable overhead spending variance?

a. $4,375.00 U
b. $4,375.00 F
c. $8,750.00 U
d. $6,562.50 U

58. Using the four-variance approach, what is the variable overhead efficiency variance?

a. $2,187.50 U
b. $9,937.50 F
c. $2,187.50 F
d. $2,937.50 F

59. Using the four-variance approach, what is the fixed overhead spending variance?

a. $7,000 U
b. $3,125 F
c. $750 U
d. $750 F

60. Using the four-variance approach, what is the volume variance?

a. $3,125 F
b. $3,875 F
c. $6,063 U
d. $3,875 U

61. A primary purpose of using a standard cost system is

 a. to make things easier for managers in the production facility.
b. to provide a distinct measure of cost control.
c. to minimize the cost per unit of production.
d. b and c are correct.

62. The standard cost card contains quantities and costs for

a. direct material only.

b. direct labor only.
c. direct material and direct labor only.
d. direct material, direct labor, and overhead.

63. Which of the following statements regarding standard cost systems is true?

a. Favorable variances are not necessarily good variances.

b. Managers will investigate all variances from standard.
c. The production supervisor is generally responsible for material price variances.
d. Standard costs cannot be used for planning purposes since costs normally change
in the future.

64. In a standard cost system, Work in Process Inventory is ordinarily debited with

a. actual costs of material and labor and a predetermined overhead cost for
overhead.
b. standard costs based on the level of input activity (such as direct labor hours
worked).
c. standard costs based on production output.
d. actual costs of material, labor, and overhead.

65. A standard cost system may be used in

a. job order costing, but not process costing.

b. process costing, but not job order costing.
c. either job order costing or process costing.
d. neither job order costing nor process costing.

66. Standard costs may be used for

a. product costing.
b. planning.
c. controlling.
d. all of the above.
 67. A purpose of standard costing is to

a. replace budgets and budgeting.

b. simplify costing procedures.
c. eliminate the need for actual costing for external reporting purposes.
d. eliminate the need to account for year-end underapplied or overapplied
manufacturing overhead.

68. Standard costs

a. are estimates of costs attainable only under the most ideal conditions.
b. are difficult to use with a process costing system.
c. can, if properly used, help motivate employees.
d. require that significant unfavorable variances be investigated, but do not require
that significant favorable variances be investigated.
69. A bill of material does not include

a. quantity of component inputs.

b. price of component inputs.
c. quality of component inputs.
d. type of product output.
70. An operations flow document

a. tracks the cost and quantity of material through an operation.

b. tracks the network of control points from receipt of a customer’s order through
the delivery of the finished product.
c. specifies tasks to make a unit and the times allowed for each task.
d. charts the shortest path by which to arrange machines for completing products.
71. A total variance is best defined as the difference between total

a. actual cost and total cost applied for the standard output of the period.
b. standard cost and total cost applied to production.
c. actual cost and total standard cost of the actual input of the period.
d. actual cost and total cost applied for the actual output of the period.
72. The term standard hours allowed measures

a. budgeted output at actual hours.

b. budgeted output at standard hours.
c. actual output at standard hours.
d. actual output at actual hours.

73. A large labor efficiency variance is prorated to which of the following at year-end?

WIP FG
Cost of Goods Sold Inventory Inventory
 a. no no no
b. no yes yes
c. yes no no
d. yes yes yes

74. Which of the following factors should not be considered when deciding whether to
investigate a variance?

a. magnitude of the variance

b. trend of the variances over time
c. likelihood that an investigation will reduce or eliminate future occurrences of the
variance
d. whether the variance is favorable or unfavorable
75. At the end of a period, a significant material quantity variance should be

a. closed to Cost of Goods Sold.

b. allocated among Raw Material, Work in Process, Finished Goods, and Cost of
Goods Sold.
c. allocated among Work in Process, Finished Goods, and Cost of Goods Sold.
d. carried forward as a balance sheet account to the next period.
76. When computing variances from standard costs, the difference between actual and
standard price multiplied by actual quantity used yields a

a. combined price-quantity variance.

b. price variance.
c. quantity variance.
d. mix variance.
77. A company wishing to isolate variances at the point closest to the point of responsibility
will determine its material price variance when

a. material is purchased.
b. material is issued to production.
c. material is used in production.
d. production is completed.
78. The material price variance (computed at point of purchase) is

a. the difference between the actual cost of material purchased and the standard cost
of material purchased.
b. the difference between the actual cost of material purchased and the standard cost
of material used.
c. primarily the responsibility of the production manager.
d. both a and c.
79. The sum of the material price variance (calculated at point of purchase) and material
quantity variance equals
 a. the total cost variance.
b. the material mix variance.
c. the material yield variance.
d. no meaningful number.

80. A company would most likely have an unfavorable labor rate variance and a favorable
labor efficiency variance if

a. the mix of workers used in the production process was more experienced than the
normal mix.
b. the mix of workers used in the production process was less experienced than the
normal mix.
c. workers from another part of the plant were used due to an extra heavy production
schedule.
d. the purchasing agent acquired very high quality material that resulted in less
spoilage.

81. If actual direct labor hours (DLHs) are less than standard direct labor hours allowed and
overhead is applied on a DLH basis, a(n)

a. favorable variable overhead spending variance exists.

b. favorable variable overhead efficiency variance exists.
c. favorable volume variance exists.
d. unfavorable volume variance exists.

82. If all sub-variances are calculated for labor, which of the following cannot be
determined?

a. labor rate variance

b. actual hours of labor used
c. reason for the labor variances
d. efficiency of the labor force
83. (Appendix) The total labor variance can be subdivided into all of the following except

a. rate variance.
b. yield variance.
c. learning curve variance.
d. mix variance.

84. The standard predominantly used in Western cultures for motivational purposes is a(n)
_____________________ standard.

a. expected annual
b. ideal
c. practical
 d. theoretical

85. Which of the following standards can commonly be reached or slightly exceeded by
workers in a motivated work environment?

Ideal Practical Expected annual

a. no no no
b. no yes yes
c. yes yes no
d. no yes no

86. Management would generally expect unfavorable variances if standards were based on
which of the following capacity measures?

Ideal Practical Expected annual

a. yes no no
b. no no yes
c. no yes yes
d. no no no

87. Which of the following capacity levels has traditionally been used to compute the fixed
overhead application rate?

a. expected annual
b. normal
c. theoretical
d. prior year
88. A company has a favorable variable overhead spending variance, an unfavorable variable
overhead efficiency variance, and underapplied variable overhead at the end of a period.
The journal entry to record these variances and close the variable overhead control
account will show which of the following?

VOH spending VOH efficiency

variance variance VMOH
a. debit credit credit
b. credit debit credit
c. debit credit debit
d. credit debit debit

89. Ronald Corp. incurred 2,300 direct labor hours to produce 600 units of product. Each unit
should take 4 direct labor hours. Ronald applies variable overhead to production on a direct labor
hour basis. The variable overhead efficiency variance

a. will be unfavorable.
b. will be favorable.
c. will depend upon the capacity measure selected to assign overhead to production.
 d. is impossible to determine without additional information.
90. A variable overhead spending variance is caused by

a. using more or fewer actual hours than the standard hours allowed for the
production achieved.
b. paying a higher/lower average actual overhead price per unit of the activity base
than the standard price allowed per unit of the activity base.
c. larger/smaller waste and shrinkage associated with the resources involved than
expected.
d. both b and c are causes.
91. Which of the following are considered controllable variances?

VOH spending Total overhead budget Volume

a. yes yes yes
b. no no yes
c. no yes no
d. yes yes no
92. A company may set predetermined overhead rates based on normal, expected annual, or
theoretical capacity. At the end of a period, the fixed overhead spending variance would

a. be the same regardless of the capacity level selected.

b. be the largest if theoretical capacity had been selected.
c. be the smallest if theoretical capacity had been selected.
d. not occur if actual capacity were the same as the capacity level selected.

93. The variance least significant for purposes of controlling costs is the

a. material quantity variance.

b. variable overhead efficiency variance.
c. fixed overhead spending variance.
d. fixed overhead volume variance.

94. Fixed overhead costs are

a. best controlled on a unit-by-unit basis of products produced.

b. mostly incurred to provide the capacity to produce and are best controlled on a
total basis at the time they are originally negotiated.
c. constant on a per-unit basis at all different activity levels within the relevant
range.
d. best controlled as to spending during the production process.
95. The variance most useful in evaluating plant utilization is the

a. variable overhead spending variance.

b. fixed overhead spending variance.
c. variable overhead efficiency variance.
d. fixed overhead volume variance.
96. A favorable fixed overhead volume variance occurs if

a. there is a favorable labor efficiency variance.

b. there is a favorable labor rate variance.
c. production is less than planned.
d. production is greater than planned.

97. The fixed overhead application rate is a function of a predetermined activity level. If
standard hours allowed for good output equal the predetermined activity level for a given
period, the volume variance will be

a. zero.
b. favorable.
c. unfavorable.
d. either favorable or unfavorable, depending on the budgeted overhead

98. Actual fixed overhead minus budgeted fixed overhead equals the

a. fixed overhead volume variance.

b. fixed overhead spending variance.
c. noncontrollable variance.
d. controllable variance.
99. Total actual overhead minus total budgeted overhead at the actual input production level
equals the

a. variable overhead spending variance.

b. total overhead efficiency variance.
c. total overhead spending variance.
d. total overhead volume variance.

100. A favorable fixed overhead spending variance indicates that

a. budgeted fixed overhead is less than actual fixed overhead.

b. budgeted fixed overhead is greater than applied fixed overhead.
c. applied fixed overhead is greater than budgeted fixed overhead.
d. actual fixed overhead is less than budgeted fixed overhead.

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