Actual number of machine-hours: 1,200 Cost Actual Budget Formula Incurred for Based on (per 1,200 1,200 hours hours Variance Variable overhead (Supplies) $8.60 $10,290 $10,320 $30 F 75. The variance for power costs in the flexible budget performance report for the month should be: A) $2,060 F B) $2,060 U C) $300 F D) $300 U Ans: D Solution: Budgeted number of machine-hours: 1,000 Actual number of machine-hours: 1,200 Cost Actual Costs Budget Formula Incurred for Based on (per 1,200 1,200 hours hours Variance Variable overhead costs (Power) $8.80 $10,860 $10,560 $300 U 76. The variance for equipment depreciation in the flexible budget performance report for the month should be: A) $1,890 U B) $90 F C) $90 U D) $1,890 F Ans: C Solution: Budgeted number of machine-hours: 1,000 Actual number of machine-hours: 1,200
Actual number of machine-hours: 1,200 Cost Formula (per Actual Incurred for 1,200 Budget Based on 1,200 Variance Variable overhead (Supplies) $8.60 $10,290 $10,320 $30 F 75. The variance for power costs in the flexible budget performance report for the month should be: A) $2,060 F B) $2,060 U C) $300 F D) $300 U Ans: D Solution: Budgeted number of machine-hours: 1,000 Actual number of machine-hours: 1,200 Cost Formula (per Actual Costs Incurred for 1,200 Budget Based on 1,200 Variance Variable overhead costs (Power) $8.80 $10,860 $10,560 $300 U 76. The variance for equipment depreciation in the flexible budget performance report for the month should be: A) $1,890 U B) $90 F C) $90 U D) $1,890 F Ans: C Solution: Budgeted number of machine-hours: 1,000 Actual number of machine-hours: 1,200 hours hours hours hours
Ch11%20Flexible%20Budgets%20and%20Overhead%20Analysis.docx