ACTUAL PERFORMANCE AND BUDGETED PERFORMANCE BASED ON ACTUAL SALES VOLUME.

04 Jun ACTUAL PERFORMANCE AND BUDGETED PERFORMANCE BASED ON ACTUAL SALES VOLUME.

A flexible budget performance report compares the differences between:

Actual performance and budgeted performance based on actual sales volume.

Actual performance over several periods.

Budgeted performance over several periods.

Actual performance and budgeted performance based on budgeted sales volume.

Actual performance and standard costs at the budgeted sales volume.

 

The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. What is the total direct materials cost variance?

$48,000 unfavorable.

$51,000 favorable.

$51,000 unfavorable.

$3,000 favorable.

$3,000 unfavorable.

 

Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are:

$125,000 fixed and $102,500 variable.

$125,000 fixed and $123,000 variable.

$102,500 fixed and $150,000 variable.

$150,000 fixed and $123,000 variable.

$150,000 fixed and $102,500 variable.

 

A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is:

$520 unfavorable.

$400 unfavorable.

$120 favorable.

$520 favorable.

$400 favorable.

 

Based on a predicted level of production and sales of 30,000 units, a company anticipates total contribution margin of $105,000, fixed costs of $40,000, and operating income of $52,000. Based on this information, the budgeted operating income for 28,000 units would be:

$52,000.

$135,333.

$58,000.

$72,500.

$105,000.

 

ShipCo. produces storage crates that require 1.2 meters of material at $.85 per meter and 0.1 direct labor hours at $15.00 per hour. Overhead is assigned at the rate of $9 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?

$25.02.

$11.52.

$2.40.

$2.52.

$3.42.

 

Levelor Company’s flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.00 per direct labor hour based on a budgeted operating level of 6,120 direct labor hours (90% of capacity). If overhead actually incurred was $11,183 during May, the controllable variance for the month was:

$473 unfavorable.

$473 favorable.

$1,530 favorable.

$1,530 unfavorable.

$1,057 favorable.

 

Jefferson Co. uses the following standard to produce a single unit of its product: variable overhead $6 (2 hrs. per unit @ $3/hr.). Actual data for the month show variable overhead costs of $150,000, and 24,000 units produced. The total variable overhead variance is:

$6,000F.

$6,000U.

$78,000U.

$78,000F.

$0.

 

A flexible budget may be prepared:

Before the operating period only.

After the operating period only.

During the operating period only.

At any time in the planning period.

Only when the company encounters excessive costs.

 

 

 

 

 

 

A company provided the following direct materials cost information. Compute the cost variance.

Standard costs assigned:
Direct materials standard cost (405,000 units @ $2/unit)	$810,000
Actual costs:
Direct Materials costs incurred (403,750 units @ $2.20/unit)	$888,250

$2,500 Favorable.

$78,250 Favorable.

$78,250 Unfavorable.

$80,750 Favorable.

$80,750 Unfavorable.