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    M9

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    Kendrew Sujide
    This document contains information about variances calculated for setup overhead costs and revenues and costs in static budget analyses. It provides setup hours, variable overhead costs per hour, and total fixed setup overhead costs for two batches. It also provides data on actual and budgeted units sold, revenues, variable costs and fixed costs for two companies, Horngren Abernathy Corporation and Horngren Bates Corporation. Variances are calculated for revenues, variable costs, operating income, and setup overhead costs based on this data. Finally, it asks for the flexible budget for total manufacturing costs at 10,000 and 20,000 units of production for Aebi Corporation, which has direct material costs of $0.60 per unit and fixed monthly overhead costs

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    M9

    Uploaded by

    Kendrew Sujide
    58 views1 page
    This document contains information about variances calculated for setup overhead costs and revenues and costs in static budget analyses. It provides setup hours, variable overhead costs per hour, and total fixed setup overhead costs for two batches. It also provides data on actual and budgeted units sold, revenues, variable costs and fixed costs for two companies, Horngren Abernathy Corporation and Horngren Bates Corporation. Variances are calculated for revenues, variable costs, operating income, and setup overhead costs based on this data. Finally, it asks for the flexible budget for total manufacturing costs at 10,000 and 20,000 units of production for Aebi Corporation, which has direct material costs of $0.60 per unit and fixed monthly overhead costs

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    This document contains information about variances calculated for setup overhead costs and revenues and costs in static budget analyses. It provides setup hours, variable overhead costs per hour, and total fixed setup overhead costs for two batches. It also provides data on actual and budgeted units sold, revenues, variable costs and fixed costs for two companies, Horngren Abernathy Corporation and Horngren Bates Corporation. Variances are calculated for revenues, variable costs, operating income, and setup overhead costs based on this data. Finally, it asks for the flexible budget for total manufacturing costs at 10,000 and 20,000 units of production for Aebi Corporation, which has direct material costs of $0.60 per unit and fixed monthly overhead costs

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    58 views1 page

    M9

    Uploaded by

    Kendrew Sujide
    This document contains information about variances calculated for setup overhead costs and revenues and costs in static budget analyses. It provides setup hours, variable overhead costs per hour, and total fixed setup overhead costs for two batches. It also provides data on actual and budgeted units sold, revenues, variable costs and fixed costs for two companies, Horngren Abernathy Corporation and Horngren Bates Corporation. Variances are calculated for revenues, variable costs, operating income, and setup overhead costs based on this data. Finally, it asks for the flexible budget for total manufacturing costs at 10,000 and 20,000 units of production for Aebi Corporation, which has direct material costs of $0.60 per unit and fixed monthly overhead costs

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Setup-hours per batch 5 5.

    25 Variable overhead cost per setup-hour $40 $38 Total fixed setup overhead
    costs $14,400 $14,000 5 . Calculate the efficiency variance for variable setup overhead costs. (D) a.
    $1,500 unfavorable c. $975 unfavorable b. $525 favorable d. $1,500 favorable 6 . Calculate the spending
    variance for variable setup overhead costs. (D) a. $1,500 unfavorable c. $975 unfavorable b. $525
    favorable d. $1,500 favorable 7 . Calculate the flexible-budget variance for variable setup overhead
    costs. (M) a. $1,500 unfavorable c. $975 unfavorable b. $525 favorable d. $1,500 favorable 8 . Calculate
    the spending variance for fixed setup overhead costs. (E) a. $3,200 unfavorable c. $3,600 unfavorable b.
    $400 unfavorable d. $400 favorable 9 . Calculate the production-volume variance for fixed setup
    overhead costs.(M) a. $3,200 unfavorable c. $3,600 unfavorable b. $400 unfavorable d. $400 favorable
    STATIC BUDGET VARIANCE Questions 48 thru 50 are based on the following information. Horngren
    Abernathy Corporation used the following data to evaluate their current operating system. The
    company sells items for $10 each and used a budgeted selling price of $10 per unit. Actual Budgeted
    Units sold 92,000 units 90,000 units Variable costs $450,800 $432,000 Fixed costs $ 95,000 $100,000
    10 . What is the static-budget variance of revenues? a. $20,000 favorable c. $2,000 favorable b. $20,000
    unfavorable d. $2,000 unfavorable 11 . What is the static-budget variance of variable costs? (E) a. $1,200
    favorable c. $20,000 favorable b. $18,800 unfavorable d. $1,200 unfavorable 12 . What is the static-
    budget variance of operating income? (E) a. $3,800 favorable c. $6,200 favorable b. $3,800 unfavorable
    d. $6,200 unfavorable Questions 51 thru 53 are based on the following information. Horngren Bates
    Corporation used the following data to evaluate their current operating system. The company sells items
    for $10 each and used a budgeted selling price of $10 per unit. Actual Budgeted Units sold 495,000 units
    500,000 units Variable costs $1,250,000 $1,500,000 Fixed costs $ 925,000 $ 900,000 13 . What is the
    static-budget variance of revenues? a. $50,000 favorable c. $5,000 favorable b. $50,000 unfavorable d.
    $5,000 unfavorable 14 . What is the static-budget variance of variable costs? a. $200,000 favorable c.
    $250,000 favorable b. $50,000 unfavorable d. $250,000 unfavorable 15 . What is the static-budget
    variance of operating income? (E) a. $175,000 favorable c. $225,000 favorable b. $195,000 unfavorable
    d. $325,000 unfavorable FLEXIBLE BUDGET VARIANCE Total Manufacturing Cost Flexible Budget 16 .
    Aebi Corporation currently produces cardboard boxes in an automated process. Expected production
    per month is 20,000 units, direct-material costs are $0.60 per unit, and manufacturing overhead costs
    are $9,000 per month. Manufacturing overhead is allocated based on units of production. What is the
    flexible budget for 10,000 and 20,000 units, respectively? (E) a. $10,500; $16,500 c. $15,000; $21,00

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