Flexible Budget Overhead Cost Variance MCQs

Option A: priced budget

Option B: exceeding budget

Option C: fixed budget

Option D: variable budget

Correct Answer: exceeding budget ✔

Option A: $660,500

Option B: $560,500

Option C: $460,500

Option D: $360,500

Correct Answer: $360,500 ✔

Option A: choose the budgeting period

Option B: select allocation bases

Option C: identify variable overhead cost

Option D: compute the per unit rate

Correct Answer: choose the budgeting period ✔

Option A: $34,000

Option B: $24,000

Option C: $16,000

Option D: $18,000

Correct Answer: $34,000 ✔

Option A: potential budget response

Option B: potential management response

Option C: potential price response

Option D: potential cost response

Correct Answer: potential management response ✔

Option A: incurred manufacturing

Option B: incurred production cost

Option C: actual incurred cost

Option D: incurred labor cost

Correct Answer: actual incurred cost ✔

Option A: $38,500

Option B: $48,500

Option C: $58,500

Option D: $13,500

Correct Answer: $38,500 ✔

Option A: $57.21 per unit

Option B: $67.21 per unit

Option C: $77.21 per unit

Option D: $87.21 per unit

Correct Answer: $57.21 per unit ✔

Option A: actual cost incurred

Option B: fixed cost incurred

Option C: variable cost incurred

Option D: manufacturing cost incurred

Correct Answer: actual cost incurred ✔

Option A: $20,000

Option B: $34,000

Option C: $44,000

Option D: $35,000

Correct Answer: $44,000 ✔

Option A: $43,000

Option B: $42,000

Option C: $29,000

Option D: $19,000

Correct Answer: $43,000 ✔

Option A: fixed overhead efficiency variance

Option B: variable overhead efficiency variance

Option C: variable overhead manufacturing variance

Option D: fixed overhead manufacturing variance

Correct Answer: variable overhead efficiency variance ✔

Option A: unchanged price

Option B: unchanged cost

Option C: fixed overhead cost

Option D: variable overhead cost

Correct Answer: fixed overhead cost ✔

Option A: choose the budgeting period

Option B: select allocation bases

Option C: identify variable overhead cost

Option D: compute the per unit rate

Correct Answer: identify variable overhead cost ✔

Option A: $31,800

Option B: $12,300

Option C: $12,200

Option D: $41,800

Correct Answer: $12,200 ✔

Option A: $83.17

Option B: $73.17

Option C: $53.17

Option D: $63.17

Correct Answer: $53.17 ✔

Option A: identify variable overhead cost

Option B: compute the per unit rate

Option C: choose the budgeting period

Option D: select allocation bases

Correct Answer: compute the per unit rate ✔

Option A: $27,000

Option B: $25,000

Option C: $47,000

Option D: $57,000

Correct Answer: $47,000 ✔

Option A: favorable volume variance

Option B: profit volume variance

Option C: cost volume variance

Option D: production volume variance

Correct Answer: production volume variance ✔

Option A: variable batch costs

Option B: fixed batch costs

Option C: variable setup costs

Option D: fixed setup costs

Correct Answer: variable setup costs ✔

Option A: activity based costing

Option B: non-financial costing

Option C: profit costing

Option D: lump sum costing

Correct Answer: activity based costing ✔

Option A: non-financial measures

Option B: financial measures

Option C: effective measure

Option D: lump sum measure

Correct Answer: financial measures ✔

Option A: favorable spending variance

Option B: unfavorable spending variance

Option C: favorable price variance

Option D: unfavorable price variance

Correct Answer: favorable spending variance ✔

Option A: favorable price variance

Option B: unfavorable price variance

Option C: favorable spending variance

Option D: unfavorable spending variance

Correct Answer: favorable spending variance ✔

Option A: cause for exceeding budget

Option B: cause of less employment

Option C: fixed cost variation

Option D: variable cost variation

Correct Answer: cause for exceeding budget ✔

Option A: $182,500

Option B: $152,500

Option C: $162,500

Option D: $172,500

Correct Answer: $152,500 ✔

Option A: $16,000

Option B: $54,000

Option C: $64,000

Option D: $74,000

Correct Answer: $16,000 ✔

Option A: efficiency variance

Option B: unfavorable variance

Option C: production volume variance

Option D: favorable variance

Correct Answer: efficiency variance ✔

Option A: flexible budget amount

Option B: constant amount

Option C: variable amount

Option D: production amount

Correct Answer: flexible budget amount ✔

Option A: $16,000

Option B: $12,000

Option C: $18,000

Option D: $21,000

Correct Answer: $12,000 ✔

Option A: budget variance

Option B: production volume variance

Option C: price volume variance

Option D: cost volume variance

Correct Answer: production volume variance ✔

Option A: identify variable overhead cost

Option B: compute the per unit rate

Option C: choose the budgeting period

Option D: select allocation bases

Correct Answer: select allocation bases ✔

Option A: fixed cost-variable budget amount

Option B: actual cost-flexible budget amount

Option C: variable cost-allocated amount

Option D: actual cost-variable amount

Correct Answer: actual cost-flexible budget amount ✔

Option A: $12,000

Option B: $15,000

Option C: $10,000

Option D: $32,000

Correct Answer: $32,000 ✔

Option A: lump sum price amount

Option B: lump sum fixed cost

Option C: lump sum variable cost

Option D: lump sum manufacturing cost

Correct Answer: lump sum fixed cost ✔

Option A: $59,000

Option B: $25,000

Option C: $15,000

Option D: $39,000

Correct Answer: $25,000 ✔

Option A: batch level

Option B: output unit level

Option C: facility and product sustaining

Option D: all of above

Correct Answer: all of above ✔

Option A: $61,500

Option B: $31,500

Option C: $41,500

Option D: $51,500

Correct Answer: $31,500 ✔

Option A: production numerator level

Option B: production denominator level

Option C: production cost level

Option D: production fixed level

Correct Answer: production denominator level ✔

Option A: $67,500

Option B: $57,500

Option C: $47,500

Option D: $37,500

Correct Answer: $37,500 ✔

Option A: flexible hours

Option B: actual cost

Option C: actual quantity

Option D: actual price

Correct Answer: actual quantity ✔

Option A: variable overhead spending variance

Option B: fixed overhead spending variance

Option C: constant spending variance

Option D: potential spending variance

Correct Answer: variable overhead spending variance ✔

Option A: $20,000

Option B: $76,000

Option C: $86,000

Option D: $96,000

Correct Answer: $20,000 ✔

Option A: variable setup costs

Option B: fixed setup costs

Option C: variable batch costs

Option D: fixed batch costs

Correct Answer: fixed setup costs ✔

Option A: $21,000

Option B: $11,000

Option C: $31,000

Option D: $41,000

Correct Answer: $41,000 ✔

Option A: effectively measure

Option B: lump sum measure

Option C: non-financial measures

Option D: financial measures

Correct Answer: non-financial measures ✔

Option A: $10,000

Option B: $1,000

Option C: $7,000

Option D: $4,000

Correct Answer: $10,000 ✔

Option A: $142,500

Option B: $112,500

Option C: $122,500

Option D: $132,500

Correct Answer: $112,500 ✔

Option A: $518,750

Option B: $418,750

Option C: $218,750

Option D: $318,750

Correct Answer: $218,750 ✔

Option A: $16,500

Option B: $15,500

Option C: $14,500

Option D: $13,500

Correct Answer: $13,500 ✔

Option A: setup cost

Option B: batch cost

Option C: facility cost

Option D: lump sum cost

Correct Answer: setup cost ✔

Option A: fixed setup cost

Option B: total setup cost

Option C: variable setup cost

Option D: total overhead cost

Correct Answer: fixed setup cost ✔

Option A: $218,750

Option B: $238,750

Option C: $258,750

Option D: $268,750

Correct Answer: $268,750 ✔

Option A: potential price response

Option B: potential cost response

Option C: potential budget response

Option D: potential management response

Correct Answer: potential management response ✔

Option A: potential cost response

Option B: potential budget response

Option C: potential management response

Option D: potential price response

Correct Answer: potential management response ✔

Option A: $39,000

Option B: $49,000

Option C: $59,000

Option D: $73,000

Correct Answer: $39,000 ✔

Option A: denominator level

Option B: numerator level

Option C: fixed level

Option D: variable level

Correct Answer: denominator level ✔

Option A: denominator level variance

Option B: numerator level variance

Option C: price level variance

Option D: cost level variance

Correct Answer: denominator level variance ✔