ACCT 2302 Exam 3 with answers |\ |\ |\ |\ |\
When actual cost is higher than budgeted cost it is........ -
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CORRECT ANSWERS ✔✔unfavorable variance |\ |\ |\
Based on Predicted production of 10,000 units a company
|\ |\ |\ |\ |\ |\ |\ |\
expects $100,000 of variable cost and $110,000 of fixed
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
cost. The flexible budget amounts for variable and fixed
|\ |\ |\ |\ |\ |\ |\ |\ |\
costs at 8,000 units of production is..... - CORRECT
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ANSWERS ✔✔Fixed cost = $110,000 Variable cost = |\ |\ |\ |\ |\ |\ |\ |\
$80,000 |\
VC : ( (100,000/1,000)*8,000= $80,000)
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A company makes concrete blocks. Each block requires
|\ |\ |\ |\ |\ |\ |\ |\
10 pounds of concrete at $5 per pounds and 0.5 direct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
labor hours at $40 per hour. Overhead is assigned at a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
rate of $100 per labor hour. What is the standard cost to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
make one unit? - CORRECT ANSWERS ✔✔= $120
|\ |\ |\ |\ |\ |\ |\
|\ ( (10*5)+(0.5 **40)+(0.5*100) = $120 )
|\ |\ |\ |\ |\
A company makes concrete blocks. Each block requires
|\ |\ |\ |\ |\ |\ |\ |\
10 pounds of concrete at $5 per pounds and 0.5 direct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
, labor hours at $40 per hour. Overhead is assigned at a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
rate of $100 per labor hour. Assume the actual cost to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
manufacture one statue was $100. What is the cost |\ |\ |\ |\ |\ |\ |\ |\ |\
variance? - CORRECT ANSWERS ✔✔= $20 FAVORABLE |\ |\ |\ |\ |\ |\ |\
( $120-$100 = $20)
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Actual cost is 5,000 pounds at $4 per pound. Standard
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
cost is 4,000 pounds at $5 per pound. What is the direct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
material price variance? - CORRECT ANSWERS ✔✔= |\ |\ |\ |\ |\ |\ |\
$5,000 FAVORABLE |\
|\ ( ($5-4) * 5,000 = $5,000 F.)
|\ |\ |\ |\ |\ |\
Actual cost is 5,000 pounds at $4 per pound. Standard
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
cost is 4,000 pounds at $5 per pound. What is the direct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
material quantity variance? - CORRECT ANSWERS ✔✔=
|\ |\ |\ |\ |\ |\ |\
$5,000 UNFAVORABLE |\ |\
( $5 * 1,000 = $5,000 U.)
|\ |\ |\ |\ |\ |\
Who is responsible for the unfavorable material quantity
|\ |\ |\ |\ |\ |\ |\ |\
variance? - CORRECT ANSWERS ✔✔ |\ |\ |\ |\
When actual cost is higher than budgeted cost it is........ -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔unfavorable variance |\ |\ |\
Based on Predicted production of 10,000 units a company
|\ |\ |\ |\ |\ |\ |\ |\
expects $100,000 of variable cost and $110,000 of fixed
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
cost. The flexible budget amounts for variable and fixed
|\ |\ |\ |\ |\ |\ |\ |\ |\
costs at 8,000 units of production is..... - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Fixed cost = $110,000 Variable cost = |\ |\ |\ |\ |\ |\ |\ |\
$80,000 |\
VC : ( (100,000/1,000)*8,000= $80,000)
|\ |\ |\ |\
A company makes concrete blocks. Each block requires
|\ |\ |\ |\ |\ |\ |\ |\
10 pounds of concrete at $5 per pounds and 0.5 direct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
labor hours at $40 per hour. Overhead is assigned at a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
rate of $100 per labor hour. What is the standard cost to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
make one unit? - CORRECT ANSWERS ✔✔= $120
|\ |\ |\ |\ |\ |\ |\
|\ ( (10*5)+(0.5 **40)+(0.5*100) = $120 )
|\ |\ |\ |\ |\
A company makes concrete blocks. Each block requires
|\ |\ |\ |\ |\ |\ |\ |\
10 pounds of concrete at $5 per pounds and 0.5 direct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
, labor hours at $40 per hour. Overhead is assigned at a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
rate of $100 per labor hour. Assume the actual cost to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
manufacture one statue was $100. What is the cost |\ |\ |\ |\ |\ |\ |\ |\ |\
variance? - CORRECT ANSWERS ✔✔= $20 FAVORABLE |\ |\ |\ |\ |\ |\ |\
( $120-$100 = $20)
|\ |\ |\
Actual cost is 5,000 pounds at $4 per pound. Standard
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
cost is 4,000 pounds at $5 per pound. What is the direct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
material price variance? - CORRECT ANSWERS ✔✔= |\ |\ |\ |\ |\ |\ |\
$5,000 FAVORABLE |\
|\ ( ($5-4) * 5,000 = $5,000 F.)
|\ |\ |\ |\ |\ |\
Actual cost is 5,000 pounds at $4 per pound. Standard
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
cost is 4,000 pounds at $5 per pound. What is the direct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
material quantity variance? - CORRECT ANSWERS ✔✔=
|\ |\ |\ |\ |\ |\ |\
$5,000 UNFAVORABLE |\ |\
( $5 * 1,000 = $5,000 U.)
|\ |\ |\ |\ |\ |\
Who is responsible for the unfavorable material quantity
|\ |\ |\ |\ |\ |\ |\ |\
variance? - CORRECT ANSWERS ✔✔ |\ |\ |\ |\
