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Flexible Budget Overhead Cost Variance
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Flexible Budget Overhead Cost Variance – MCQs
58 questions. Click to practice.
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1.
The variance arises exclusively from the difference between the budgeted quantity and which of the following?
adjusted hours
realized expense
actual quantity used
real price
planned cost
2.
Which term describes the difference between the actual variable overhead cost and the budgeted variable overhead cost, multiplied by the actual quantity of output?
Variable overhead spending variance
Fixed overhead spending variance
Steady spending variance
Possible spending variance
3.
Given that the actual amount of the cost allocation base is $48,000 and the budgeted amount is $28,000, what is the variable overhead efficiency variance?
$20,000
$76,000
$86,000
$96,000
4.
How are the salaries of supervisors and engineers, along with the equipment leasing expenses, categorized?
setup costs that vary with production
setup costs that remain constant
batch costs that fluctuate with volume
batch costs that are fixed
none of the above
5.
Given that the variable overhead flexible budget variance is $26,000 and the flexible budget amount is $15,000, what is the actual cost incurred?
$20,000
$10,000
$30,000
$41,000
$35,000
6.
Which type of measurement evaluates a manager's performance based solely on individual factors?
performance efficiency metric
aggregate score measure
non-financial metrics
monetary-based measures
none of the above
7.
Given that engineers earn $3,000, supervisors earn $4,000, and the cost to lease equipment is $3,000, what is the total fixed setup cost?
$10,000
$1,000
$7,000
$4,000
8.
Given a planned production volume of 450 units and a fixed overhead budget of $250, what is the budgeted fixed overhead cost per unit?
$142,500
$112,500
$122,500
$132,500
9.
Given that the actual overhead cost incurred is $387,500 and the flexible budget overhead is $168,750, what is the fixed overhead variance based on the flexible budget?
$518,750
$418,750
$218,750
$318,750
None of the above
10.
Given that the fixed overhead assigned to the actual units produced is $7,500 and the budgeted fixed overhead totals $21,000, what is the production volume variance?
$16,500 unfavorable
$15,500 unfavorable
$14,500 unfavorable
$13,500 unfavorable
$12,500 unfavorable
11.
What do you call a cost that includes both fixed and variable components related to machine setup hours?
setup cost
batch expense
facility charge
fixed lump sum cost
12.
What does an adverse volume-production variance specifically assess?
Fixed setup costs
Overall setup expenses
Variable setup expenses
Complete overhead expenditures
13.
Given that the actual overhead cost is $627,500 and the flexible budget amount is $358,750, what is the fixed overhead variance based on the flexible budget?
$218,750
$238,750
$258,750
$268,750
14.
What term describes the process of implementing preventive actions across all machines?
possible price adjustment
possible cost adjustment
possible budget adjustment
possible management intervention
possible operational adjustment
15.
Which type of response involves implementing a production scheduling process to enhance plant operations?
possible cost adjustment
possible budget modification
possible managerial action
possible pricing change
16.
If the actual amount of the cost allocation base is $56,000 and the budgeted amount is $17,000, what is the variable overhead efficiency variance?
$39,000
$49,000
$59,000
$73,000
17.
In calculating the budgeted fixed overhead rate, the machine hours are treated as which of the following?
denominator level
numerator level
fixed level
variable level
18.
What is another term for the production volume variance?
denominator level variance
numerator level variance
price level variance
cost level variance
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