Standard Costing(Quick Test #2)

1. A budget that increases as volume increases is known as a __________ budget.

2. The variable overhead variances include the spending variance and the __________ variance.

3. The fixed overhead variances include the budget variance and the production __________ variance.

4. If manufacturing overhead is applied using the standard direct labor hours and the actual direct labor hours were more than standard, which overhead variance will occur?

5. If a company’s production has absorbed more manufacturing overhead than the actual manufacturing overhead incurred, the total overhead variance will be __________.

6. When the real estate taxes on the factory building are greater than the amount used in calculating the standard costs, which manufacturing overhead variance would you expect?

7. When the actual cost of each gallon of lubricants used for the production equipment is greater than the cost used in setting the standards, which manufacturing overhead variance would you expect?

8. A manufacturer assigns variable factory overhead on the basis of machine hours. Its variable factory overhead spending variance will be the difference between 1) the actual amount of variable factory overhead costs incurred, and 2) the budget amount based on the __________ machine hours.

9. The largest unfavorable volume variance is likely to occur when the standard overhead costs are established using the __________ capacity.

10. Which of the following could possibly cause an unfavorable variable manufacturing overhead efficiency variance?

11. Which of the variable manufacturing overhead variances will be affected by the electric utility increasing its rates per kilowatt hour?

12. The production volume variance pertains to the __________manufacturing overhead costs.

13. The 2-way and 3-way variance analysis pertains to __________.

14. The __________ variance will appear as the same amount in both the 2-way and the 3-way variance analysis of overhead.

15. The manufacturing overhead budget for __________ costs will not change under a flexible budget.

16. The spending variance is the difference between the __________ budget for variable manufacturing overhead and the actual amount of the variable manufacturing overhead costs incurred.

17. The __________ variance is the difference between 1) the fixed manufacturing overhead absorbed by (or assigned to) the products manufactured, and 2) the budgeted amount of fixed manufacturing overhead.

18. The standard variable manufacturing overhead cost assigned to each unit of product is $__________.

19. In the past year, the total amount of standard variable manufacturing overhead costs assigned to the units manufactured was $__________.

20. The total variance for the variable manufacturing overhead was $__________.

21. The total variance for variable manufacturing overhead is __________.

22. The variable manufacturing overhead efficiency variance is $__________.

23. The variable manufacturing overhead efficiency variance is __________.

24. The flexible budget for variable manufacturing overhead is $__________.

25. The variable manufacturing overhead spending variance is $__________.

26. The variable manufacturing overhead spending variance is __________.

27. The standard rate for applying the fixed manufacturing overhead to products was $__________ per direct labor hour.

28. The fixed manufacturing overhead absorbed by the products manufactured was $__________.

29. The flexible budget for fixed manufacturing overhead for the year was $__________.

30. The amount of the budget or spending variance was $__________.

31. The budget variance for the fixed manufacturing overhead was __________.

32. The manufacturing overhead volume variance was $__________.

33. The production volume variance was __________.

34. The total variance for fixed manufacturing overhead was $__________.

35. The total variance for fixed manufacturing overhead was __________.