Question 1

Based on predicted production of 25,000 units,Marvel Mix Co.anticipates $175,000 of variable costs and $137,500 of fixed costs.What are the flexible budget amounts of total costs for 28,000 units?

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Question 2

A company's flexible budget for 60,000 units of production showed sales of $96,000,variable costs of $36,000,and fixed costs of $26,000.What operating income would be expected if the company produces and sells 70,000 units?

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Question 3

Zip-up Company provides the following data developed for its master budget:
  Required:
Prepare flexible budgets for sales of 20,000,22,000 and 24,000 units.Use a contribution margin format.

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Question 4

Jake Co.has prepared the following fixed budget for the year,assuming production and sales of 30,000 units.This level of production represents 80% of capacity.
 Calculate the following flexible budget amounts at the indicated levels of capacity:

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Question 5

Based on predicted production of 25,000 units,FreshCo.anticipates $175,000 of fixed costs and $137,500 of variable costs.What are the flexible budget amounts of total costs for 20,000 and 30,000 units?

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Question 6

When using a standard cost accounting system,how are unfavorable variances recorded? How are favorable variances recorded?

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Question 7

A company's flexible budget for 30,000 units of production showed sales of $90,000,variable costs of $36,000,and fixed costs of $23,000.Prepare a flexible budget for 25,000 units assuming it is within the same relevant range of production.

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Question 8

What is the overhead volume variance? What would be the cause of a favorable volume variance?

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Question 9

Anniston Co.planned to produce and sell 40,000 units.At that volume level,variable costs are determined to be $320,000 and fixed costs are $30,000.The planned selling price is $10 per unit.Anniston actually produced and sold 42,000 units.
Using a contribution margin format:
(a)Prepare a fixed budget income statement for the planned level of sales and production.
(b)Prepare a flexible budget income statement for the actual level of sales and production.

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The answer of Anniston Co.planned to produce and sell 40,000...

Question 10

Clevenger Co.planned to produce and sell 30,000 units with a selling price of $10 per unit.Variable costs are expected to be $4 per unit and fixed costs are expected to be $80,000.Clevenger actually produced and sold 37,000 units.
Using a contribution margin format:
Prepare a fixed budget income statement for the planned level of sales and production.

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Question 11

Engineworks Co.provides the following fixed budget data for the year:

Required:
Prepare a flexible budget performance report for the year using the contribution margin format.

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Question 12

Lavoie Company planned to use 18,500 pounds of material costing $2.50 per pound to make 4,000 units of its product.In actually making 4,000 units,the company used 18,800 pounds that cost $2.54 per pound.Calculate the direct materials quantity variance.

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Question 13

Clevenger Co.planned to produce and sell 30,000 units with a selling price of $10 per unit.Variable costs are expected to be $4 per unit and fixed costs are expected to be $80,000.Clevenger actually produced and sold 37,000 units.
Using a contribution margin format:
Prepare a flexible budget income statement for the actual level of sales and production.

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The answer of Clevenger Co.planned to produce and sell 30,000...

Question 14

Whidbey Co.fixed budget for the year is shown below:

Prepare a flexible budget for Whidbey Co.that shows a detailed budget for its actual sales volume of 42,000 units.Use the contribution margin format.

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Question 15

What are some causes of direct labor rate and efficiency variances?

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Question 16

Oxford Co.produces and sells two lines of t-shirts,Classic and Mod.Oxford provides the following data.Compute the sales price and the sales volume variances for each product.

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Question 17

Lavoie Company planned to use 18,500 pounds of material costing $2.50 per pound to make 4,000 units of its product.In actually making 4,000 units,the company used 18,800 pounds that cost $2.54 per pound.Calculate the direct materials price variance.

Accepted Answer

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Question 18

Joseph,Inc.,provides the following results of June's operations:
  Required:
(a)Determine the total overhead cost variance for June.
(b)Applying the management by exception approach,which of the variances shown are of greatest concern? Why?

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...

Question 19

Wren Company determined that in the production of their products last period; they had a favorable price variance and an unfavorable quantity variance for direct materials.What might be the cause(s)of this pattern of variances?

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Question 20

A product has a sales price of $20.Based on a 15,000-unit production level,the variable costs are $12 per unit and the fixed costs are $6 per unit.Using a flexible budget for an actual production and sales level of 18,000 units,what is the budgeted operating income?

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Quiz 21: Flexible Budgets and Standard Costs