13 jeremy 39 s football manufacturing company reported actual fixed overhead 500 000 4309466

13) Jeremy's Football Manufacturing Company reported:

Actual fixed overhead$500,000

Fixed manufacturing overhead spending variance$30,000 favorable

Fixed manufacturing production-volume variance$20,000 unfavorable

To isolate these variances at the end of the accounting period, Jeremy would debit Fixed Manufacturing Overhead Allocated for:

A) $480,000

B) $490,000

C) $500,000

D) $510,000

14) Kristin's Basketball Manufacturing Company reported:

Actual fixed overhead$800,000

Fixed manufacturing overhead spending variance$60,000 favorable

Fixed manufacturing production-volume variance$40,000 favorable

To isolate these variances at the end of the accounting period, Kristin would debit:

A) Fixed Manufacturing Overhead Allocated for $900,000

B) Fixed Manufacturing Overhead Spending Variance for $60,000

C) Fixed Manufacturing Production-Volume Variance for $40,000

D) All of these answers are correct.

Answer the following questions using the information below:

Production-

VariancesSpendingEfficiencyVolume

Variable manufacturing overhead$ 9,000 F$30,000 U(B)

Fixed manufacturing overhead$20,000 U(A)$80,000 U

15) Above is a:

A) 4-variance analysis

B) 3-variance analysis

C) 2-variance analysis

D) 1-variance analysis

16) In the above chart, the amounts for (A) and (B), respectively, are:

A) $21,000 U; $110,000 U

B) $21,000 U; Zero

C) Zero; $110,000 U

D) Zero; Zero

17) In a 3-variance analysis the spending variance should be:

A) $ 9,000 F

B) $20,000 U

C) $11,000 U

D) $21,000 U

18) In a 2-variance analysis the flexible-budget variance and the production-volume variance should be ________, respectively.

A) $11,000 U; $110,000 U

B) $41,000 U; $80,000 U

C) $21,000 U; $100,000 U

D) $121,000 U; Zero

19) In a 1-variance analysis the total overhead variance should be:

A) $41,000 U

B) $121,000 U

C) $242,000 U

D) None of these answers is correct.

20) Both financial and nonfinancial performance measures are key inputs when evaluating the performance of managers.

21) In the journal entry that records overhead variances, the manufacturing overhead allocated accounts are closed.

22) Variance analysis of fixed nonmanufacturing costs, such as distribution costs, can also be useful when planning for capacity.