ACCOUNTING CRASH COURSE EXAM V4
2026 FULL EXAM PREPARATION GUIDE WITH
CORE CONCEPT BREAKDOWN AND STUDY
NOTES
◉ An unfavorable materials cost volume variance indicates that the
production manager should be reprimanded. This statement is.
Answer: false
◉ At the beginning of the accounting period, Nutrition Incorporated
estimated that total fixed overhead cost would be $55,770 and that
sales volume would be 11,000 units. At the end of the accounting
period actual fixed overhead cost amounted to $61,770 and actual
sales volume was 11,500 units. Nutrition uses a predetermined
overhead rate and a cost plus pricing model to establish its sales
price. Based on this information the predetermined overhead rate is.
Answer: $5.07
($55,770/11,000 units)
◉ At the beginning of the accounting period, Nutrition Incorporated
estimated that total fixed overhead cost would be $55,770 and that
sales volume would be 11,000 units. At the end of the accounting
period actual fixed overhead was $61,770 and actual sales volume
,was 11,500 units. Nutrition uses a predetermined overhead rate and
a cost plus pricing model to establish its sales price. Based on this
information the fixed overhead spending variance is.
Answer: $6,000 unfavorable.
◉ Roses, Incorporated made a batch of flower arrangements that
were sold to grocery stores for Valentine's Day. The standard and
actual costs of the roses used in each arrangement are as follows:
Note: Do not round intermediate calculations.
Standard Actual
Number of roses per arrangement: 13 13.1
Price per rose: $ 1.30 $ 1.28
The company made and sold 650 of the Valentine's Day
arrangements. Based on this information the materials price
variance was.
Answer: $170.30 Favorable
(1.3-1.28)*(13.1*650)= 170.3
-Favorable if actual is more than standard
◉ Roses, Incorporated made a batch of flower arrangements that
were sold to grocery stores for Valentine's Day. The standard and
actual costs of the roses used in each arrangement are as follows:
Note: Do not round intermediate calculations.
, Standard Actual
Number of roses per arrangement 13 13.1
Price per rose $ 1.30 $1.28
The company made and sold 650 of the Valentine's Day
arrangements. Based on this information the materials usage
variance was.
Answer: $84.50 Unfavorable.
The standard number of roses necessary to make 650 baskets is
8,450 roses (650 baskets × 13 per basket). The actual number of
roses necessary to make the 650 baskets was 8,515 roses (650
baskets × 13.10 per basket).
Usage Variance =
(8,515 − 8,450) × $1.30
= $84.50 unfavorable
◉ The following information was drawn from the accounting
records of Smith Company
Static Budget Flexible Budget Actual Results
Sales $13,500$ 19,000$ 21,100
Cost of Goods Sold (6,700)(8,600)(7,250)
Gross Margin 6,80010,40013,850
Variable Cost (2,700)(3,450)(4,350)
2026 FULL EXAM PREPARATION GUIDE WITH
CORE CONCEPT BREAKDOWN AND STUDY
NOTES
◉ An unfavorable materials cost volume variance indicates that the
production manager should be reprimanded. This statement is.
Answer: false
◉ At the beginning of the accounting period, Nutrition Incorporated
estimated that total fixed overhead cost would be $55,770 and that
sales volume would be 11,000 units. At the end of the accounting
period actual fixed overhead cost amounted to $61,770 and actual
sales volume was 11,500 units. Nutrition uses a predetermined
overhead rate and a cost plus pricing model to establish its sales
price. Based on this information the predetermined overhead rate is.
Answer: $5.07
($55,770/11,000 units)
◉ At the beginning of the accounting period, Nutrition Incorporated
estimated that total fixed overhead cost would be $55,770 and that
sales volume would be 11,000 units. At the end of the accounting
period actual fixed overhead was $61,770 and actual sales volume
,was 11,500 units. Nutrition uses a predetermined overhead rate and
a cost plus pricing model to establish its sales price. Based on this
information the fixed overhead spending variance is.
Answer: $6,000 unfavorable.
◉ Roses, Incorporated made a batch of flower arrangements that
were sold to grocery stores for Valentine's Day. The standard and
actual costs of the roses used in each arrangement are as follows:
Note: Do not round intermediate calculations.
Standard Actual
Number of roses per arrangement: 13 13.1
Price per rose: $ 1.30 $ 1.28
The company made and sold 650 of the Valentine's Day
arrangements. Based on this information the materials price
variance was.
Answer: $170.30 Favorable
(1.3-1.28)*(13.1*650)= 170.3
-Favorable if actual is more than standard
◉ Roses, Incorporated made a batch of flower arrangements that
were sold to grocery stores for Valentine's Day. The standard and
actual costs of the roses used in each arrangement are as follows:
Note: Do not round intermediate calculations.
, Standard Actual
Number of roses per arrangement 13 13.1
Price per rose $ 1.30 $1.28
The company made and sold 650 of the Valentine's Day
arrangements. Based on this information the materials usage
variance was.
Answer: $84.50 Unfavorable.
The standard number of roses necessary to make 650 baskets is
8,450 roses (650 baskets × 13 per basket). The actual number of
roses necessary to make the 650 baskets was 8,515 roses (650
baskets × 13.10 per basket).
Usage Variance =
(8,515 − 8,450) × $1.30
= $84.50 unfavorable
◉ The following information was drawn from the accounting
records of Smith Company
Static Budget Flexible Budget Actual Results
Sales $13,500$ 19,000$ 21,100
Cost of Goods Sold (6,700)(8,600)(7,250)
Gross Margin 6,80010,40013,850
Variable Cost (2,700)(3,450)(4,350)
