As per HOMEWORKLIB POLICY and guideline, the 1st –four MCQs are answered below:
2.
Answer: True
This is the budget of evaluating the scenarios if capacity increases – such as what should be the profit if 85% capacity of machine is utilized.
3.
Answer: True
Such as sales budget is monetary; but, production budget is non-monetary (units based).
4.
Answer: D
Sales budget should be prepared first, since it gives idea how much production and cash are required for that selling.
5.
Answer: False
There may be so many reasons of unfavorable variances – such as actual market price is higher than standard market price, actual labor rate is higher, etc. In those cases managers have nothing to do, since these are guided by the prevailing market and with demand supply movements.
A) As price increases, demand increases. B) As price increases, demand decreases. C) As demand increases,...
Planning to purchase materials in bulk amounts will affect the standard price for direct materials. True False Health insurance and other benefits are part of the calculation of the standard price for direct labor. True False Variable overhead is generally combined with fixed overhead in standard costing. True False The flexible budget variance is equal to the difference between actual costs incurred and budgeted costs. True False
The Thanksgiving Costume Factory used budgeted activity as its denominator level for 2018. The company measures its direct materials usage in pounds. The production cost variances for 2018 are as follows: Direct Material Price Variance: $12,000 U Variable Overhead Rate Variance: $8,000 F Direct Material Quantity Variance: $ 7.000 F Variable Overhead Efficiency Variance: $9,000 F Direct Labor Rate Variance: $ 4,000 F Fixed Overhead Budget Variance: $4.000U Direct Labor Efficiency Variance $13,000 U Fixed Overhead Volume Variance $6,000F For...
The Thanksgiving Costume Factory used budgeted activity as its denominator level for 2018. The company measures its direct materials usage in pounds. The production cost variances for 2018 are as follows: $8,000 F $9,000 F $4,000U $6,000F Variable Overrhead Rate Variance: Variable Overhead Efficiency Variance: Fixed Overhead Budget Variance: Fixed Overhead Volume Variance Direct Material Price Variance: Direct Material Quantity Variance: $ 7,000 F Direct Labor Rate Variance: Direct Labor Efficiency Variance $13,000 U $12,000 U $ 4,000 F For...
1. Other things equal, a decrease in the price level ________ the equilibrium interest rate and ________ equilibrium output. a. increases; increasesb. increases; decreasesc. decreases; increasesd. decreases; decreases
2. Variable Manufacturing Cost BRIEF EXERCISES Variances LO4. 5,6 Companies incur a variety of variable manufacturing costs, including those related to direct materials and direct labor. The following statements relate to vari- able manufacturing cost variances. a. Computing a price variance involves multiplying the difference in the actual quantity used and the standard quantity allowed by the actual price per unit. b. Usage, or efficiency, variances are appropriately calculated for direct materials, but not for direct labor. c. Traditional variance...
The exchange rate effect of a price increase is: if the US price level increases, then the Fed increases interest rate in order to stabilize the price level. As a result US dollar appreciates causing US exports to decreases. a. False b. True If the Fed increases money supply, then: a. the value of money decreases. b. the price level increases. c. Both of the above d. none of the above Which of the following will the Aggregate Demand curve...
The demand for money ________ when the ________. Select one: a. increases; supply of money decreases b. increases; price level increases c. decreases; price level increases d. remains constant; price level increases e. increases; nominal interest rate increases
17. Planning to purchase purchase materials in bulk amounts will affect the standard price for direct Select one: True X False di amount of direct materials purchased is usually equal to the amount of direct materials used in production that period. Select one: a True False 19. In what terms are standard variable overhead application rates (SR) stated? a. Per dollar b. Per direct labor hour c. Per unit of product d. Per month 20. The formula (Actual Price -...
Can anybody help me with this? I have a little direction to go on, but I'm not sure. TIA 1 The following information has been provided for Abbott Company. 3 Standard Costs 4 Direct Materials 6 pounds per unit $ 5 Direct Manufacturing Labor 0.9595 hours per unit $ 6 Variable Manufacturing Overhead $ 7 8 Budgeted Fixed Manufacturing Overhe $1,000,000 $ 11.50 per pound 25.00 per hour 10.00 per direct labor hour 20.00 per direct labor hour 9 $...
J L M N O P Q R B C D E F G H I 1 Part 2 Cost variance analysis 2 This part relates to Module 23. I have variance analysis support material in the Module 23 folder in course resources. 4 Gourmet, Inc. produces containers of frozen food. During October the company had the following actual production and costs. Actual Containers produced in October 720 Variable Overhead $5,700 Fixed Overhead $13,000 Direct Labor cost $80,000 Which is...