281. If production was budgeted at 400 units and the actual production was 420 units, what would be the flexible budget
variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?
a. $50 F
b. $200 U
c. $100 F
d. $150 U
Actual $4,150
Budget 4,200
Variance $ 50 F
282. Flexible budgets do NOT provide
a. expected costs for a range of activity
b. budgeted costs for the actual level of activity
c. budgeted costs for a predetermined level of activity
d. expected costs for the actual performance level
283. If a static budget forecasted 100,000 units to be sold in the fiscal year and actual units sold amounted to 120,000, what assumption could be made under a flexible budget process?
a. Since the actual volume exceeds the budgeted volume, there is an unfavorable volume variance for output.
b. Fixed costs would increase in the flexible budget due to the volume change.
c. The effectiveness of the manager is in question.
d. Variable costs will be higher than projected in the static budget due to the volume variance.
284. Volume variances examine differences between
a. the static budget and actual costs
b. the flexible budget and static budget
c. the static budget and the rolling budget
d. none of these
285. Activity-based budgets
a. use the knowledge of cost behavior to split the functional-based line items into fixed and variable components
b. start with output and then determine the resources necessary to create that output
c. rely on the use of functional-based line items
d. work in environments where the products are homogenous and the production process is simple
286. Activity-based budgeting is most useful when
a. output is homogeneous
b. production processes are simple
c. diverse products are produced
d. volume levels are stable
287. With an activity flexible budget, a budget variance is calculated
a. based on a flexible budget based on cost for actual units produced
b. based on a flexible budget based on various activity drivers for actual units produced
c. based on a flexible budget based on flexible manufacturing
d. based on a flexible budget based on committed resources for actual units produced
288. Which is NOT one of the four steps needed to build an activity-based budget?
a. Determine output level
b. Determine the activities and their drivers needed to produce output
c. Estimate the demand for each activity to produce the output
d. Estimate the committed capacity
289. Activity-based budgets compare costs for items based on activities such as
a. direct material
b. direct labor
c. setups
d. power
290. A flexible-based budgeting system
a. uses functional-based line items
b. splits costs into variable and fixed components
c. prepares budgets for a range of activity levels
d. all of these
variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?
a. $50 F
b. $200 U
c. $100 F
d. $150 U
Actual $4,150
Budget 4,200
Variance $ 50 F
282. Flexible budgets do NOT provide
a. expected costs for a range of activity
b. budgeted costs for the actual level of activity
c. budgeted costs for a predetermined level of activity
d. expected costs for the actual performance level
283. If a static budget forecasted 100,000 units to be sold in the fiscal year and actual units sold amounted to 120,000, what assumption could be made under a flexible budget process?
a. Since the actual volume exceeds the budgeted volume, there is an unfavorable volume variance for output.
b. Fixed costs would increase in the flexible budget due to the volume change.
c. The effectiveness of the manager is in question.
d. Variable costs will be higher than projected in the static budget due to the volume variance.
284. Volume variances examine differences between
a. the static budget and actual costs
b. the flexible budget and static budget
c. the static budget and the rolling budget
d. none of these
285. Activity-based budgets
a. use the knowledge of cost behavior to split the functional-based line items into fixed and variable components
b. start with output and then determine the resources necessary to create that output
c. rely on the use of functional-based line items
d. work in environments where the products are homogenous and the production process is simple
286. Activity-based budgeting is most useful when
a. output is homogeneous
b. production processes are simple
c. diverse products are produced
d. volume levels are stable
287. With an activity flexible budget, a budget variance is calculated
a. based on a flexible budget based on cost for actual units produced
b. based on a flexible budget based on various activity drivers for actual units produced
c. based on a flexible budget based on flexible manufacturing
d. based on a flexible budget based on committed resources for actual units produced
288. Which is NOT one of the four steps needed to build an activity-based budget?
a. Determine output level
b. Determine the activities and their drivers needed to produce output
c. Estimate the demand for each activity to produce the output
d. Estimate the committed capacity
289. Activity-based budgets compare costs for items based on activities such as
a. direct material
b. direct labor
c. setups
d. power
290. A flexible-based budgeting system
a. uses functional-based line items
b. splits costs into variable and fixed components
c. prepares budgets for a range of activity levels
d. all of these
