3 fixed overhead costs must be unitized for a financial reporting purposes b plannin 4309465

3) Fixed overhead costs must be unitized for:

A) financial reporting purposes

B) planning purposes

C) calculating the production-volume variance

D) Both A and C are correct.

4) Generally Accepted Accounting Principles require that unitized fixed manufacturing costs be used for:

A) pricing decisions

B) costing decisions

C) external reporting

D) All of these answers are correct.

5) A nonfinancial measure of performance evaluation is:

A) increased sales

B) reducing distribution costs

C) energy used per machine-hour

D) All of these answers are correct.

6) Variance information regarding nonmanufacturing costs can be used to:

A) plan capacity in the service sector

B) control distribution costs in the retail sector

C) determine the most profitable services offered by a bank

D) All of these answers are correct.

7) Marshall Company uses a standard cost system. In April, $266,000 of variable manufacturing overhead costs were incurred and the flexible-budget amount for the month was $300,000. Which of the following variable manufacturing overhead entries would have been recorded for March?

A) Accounts Payable Control and other accounts300,000

Work-in-Process Control300,000

B) Variable Manufacturing Overhead Allocated300,000

Accounts Payable and other accounts300,000

C) Work-in-Process Control266,000

Accounts Payable Control and other accounts266,000

D) Variable Manufacturing Overhead Control266,000

Accounts Payable Control and other accounts266,000

8) Sanchez Company made the following journal entry:

A) Sanchez overallocated variable manufacturing overhead.

B) A $10,000 favorable spending variance was recorded.

C) Work-in-Process is currently overstated.

D) This entry may be recorded yearly to provide timely feedback to managers.

9) Luke's Football Manufacturing Company reported:

Actual fixed overhead$400,000

Fixed manufacturing overhead spending variance$10,000 favorable

Fixed manufacturing production-volume variance$15,000 unfavorable

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

A) $390,000

B) $395,000

C) $400,000

D) $405,000

10) Andy's Basketball Manufacturing Company reported:

Actual fixed overhead$500,000

Fixed manufacturing overhead spending variance$30,000 unfavorable

Fixed manufacturing production-volume variance$20,000 unfavorable

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

A) debit Fixed Manufacturing Overhead Allocated for $500,000

B) debit Fixed Manufacturing Overhead Spending Variance for $30,000

C) credit Fixed Manufacturing Production-Volume Variance for $20,000

D) credit Fixed Manufacturing Control Allocated for $450,000

11) Teddy Company uses a standard cost system. In May, $234,000 of variable manufacturing overhead costs were incurred and the flexible-budget amount for the month was $240,000. Which of the following variable manufacturing overhead entries would have been recorded for May?

A) Accounts Payable Control and other accounts240,000

Work-in-Process Control240,000

B) Work-in-Process Control240,000

Variable Manufacturing Overhead Allocated240,000

C) Work-in-Process Control234,000

Accounts Payable Control and other accounts234,000

D) Accounts Payable Control and other accounts234,000

Variable Manufacturing Overhead Control234,000

12) Tara Company makes the following journal entry:

Variable Manufacturing Overhead Allocated200,000

Variable Manufacturing Overhead Efficiency Variance              5,000

Variable Manufacturing Overhead Control175,000

Variable Manufacturing Overhead Spending Variance30,000

A) Tara underallocated variable manufacturing overhead.

B) A $30,000 unfavorable spending variance was recorded.

C) Work-in-Process is currently understated.

D) A $25,000 favorable flexible-budget variance was recorded.