# Acc3320-Final Exam

Topics: Direct material price variance, Variable cost, Cost accounting Pages: 9 (1653 words) Published: January 31, 2013
Instructor: xx. xxxxx ACC3320 Accounting for Decision Making Final Exam

1. Riggs Enterprise's flexible budget cost formula for indirect materials, a variable cost, is \$0.45 per unit of output. If the company's performance report for last month shows a \$90 favorable variance for indirect materials and if 8,700 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:  A. \$4,005

B. \$3,915
C. \$3,825
D. \$3,735

2. Chmielewski Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,560 patient-visits and the actual level of activity was 1,530 patient-visits. The clinic's director budgets for variable overhead costs of \$1.10 per patient-visit and fixed overhead costs of \$19,900 per month. The actual variable overhead cost last month was \$1,400 and the actual fixed overhead cost was \$21,720. In the clinic's flexible budget performance report for last month, what would have been the variance for the total overhead cost?  A. \$33 F

B. \$1,504 U
C. \$1,537 U
D. \$283 F

3. Rodriques Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,630 square feet and the actual level of activity was 1,720 square feet. The company's owner budgets for supply costs, a variable overhead cost, at \$3.40 per square foot. The actual supply cost last month was \$6,750. In the company's flexible budget performance report for last month, what would have been the variance for supply costs?  A. \$353 U

B. \$306 U
C. \$902 U
D. \$1,208 U

4. Rodabaugh Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 15,900 skeins and the actual level of activity was 16,100 skeins. The company's owner budgets for dye costs, a variable overhead cost, at \$0.87 per skein. The actual dye cost last month was \$14,800. In the company's flexible budget performance report for last month, what would have been the variance for dye costs?  A. \$967 U

B. \$174 U
C. \$184 U
D. \$793 U

5. Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:

What was the fixed overhead budget variance for the month?  A. \$4,000 unfavorable
B. \$4,000 favorable
C. \$570 favorable
D. \$570 unfavorable

6. Pyrdum Corporation produces metal telephone poles. In the most recent month, the company budgeted production of 3,500 poles. Actual production was 3,800 poles. According to standards, each pole requires 4.6 machine-hours. The actual machine-hours for the month were 17,800 machine-hours. The budgeted indirect labor is \$5.40 per machine-hour. The actual indirect labor cost for the month was \$96,712. The variable overhead efficiency variance for indirect labor is:  A. \$2,320 U

B. \$1,728 F
C. \$2,320 F
D. \$1,728 U

Keeran Corporation's flexible budget for two levels of activity appears below:

7. If the denominator level of activity is 6,200 machine-hours, the predetermined overhead rate would be:  A. \$520.00
B. \$5.20
C. \$44.24
D. \$39.04

Kasteron Corporation has a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. The company has provided the following data concerning its manufacturing overhead costs for last year:

8. The fixed overhead budget variance would be:
A. \$100 F
B. \$300 F
C. \$300 U
D. \$200 F

9. The volume variance would be:
A. \$180 F
B. \$240 F
C. \$150 U
D. \$200 U

The following data for May has been provided by Mccawley Corporation.

10. The volume variance for May is:
A. \$2,070 U
B. \$4,140 U
C. \$4,140 F
D. \$2,070 F

11. The budget variance for May is:
A. \$2,070 U...