Kuczenski Corporation's cost formula for its manufacturing overhead is $45,700 per month plus $53 per machine-hour. For the month of March, the company planned for activity of 6,200 machine-hours, but the actual level of activity was 6,150 machine-hours. The actual manufacturing overhead for the month was $373,630.

Kuczenski Corporation's cost formula for its manufacturing overhead is $45,700 per month   plus

$53 per machine-hour. For the month of March, the company planned for activity of 6,200 machine-hours, but the actual level of activity was 6,150 machine-hours. The actual manufacturing overhead for the month was $373,630.

1.        The manufacturing overhead in the planning budget for March would be closest to: A. $373,630

B. $371,650 C. $376,668 D. $374,300

2.        The manufacturing overhead in the flexible budget for March would be closest to:

A. $371,650 B. $371,281 C. $373,630 D. $374,300

3.        The activity variance for manufacturing overhead in March would be closest to: A. $670 U

B. $670 F C. $2,650 F D. $2,650 U

4.        The spending variance for manufacturing overhead in March would be closest to: A. $670 F

B. $1,980 U C. $1,980 F D. $670 U

Reference 11-3

Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle. For the month of April, the company planned for activity of 95 vehicles, but the actual level of activity was 135 vehicles. The actual materials and supplies for the month was $4,850.

5.        The materials and supplies in the planning budget for April would be closest to: A. $4,850

B. $5,045 C. $3,413 D. $4,365

6.        The materials and supplies in the flexible budget for April would be closest to: A. $6,203

B. $4,850 C. $4,365 D. $5,045

7.        The activity variance for materials and supplies in April would be closest to:

A. $680 U B. $485 F C. $680 F D. $485 U

8.        The spending variance for materials and supplies in April would be closest to:

A. $195 F B. $485 F C. $195 U D. $485 U

9.         When using a flexible budget, what will occur to fixed costs as the activity level increases within the relevant range?

A. fixed costs per unit will decrease.

B.   fixed costs per unit will remain unchanged.

C.   fixed costs per unit will increase.

D.   fixed costs are not considered in flexible budgeting.

10.   A major disadvantage of static budgets is:

A.     the difficulty in developing such budgets due to the high cost of gathering the necessary information.

B.   the cost behavior pattern of manufacturing overhead, which is primarily fixed.

C. that the variances between actual and budget on a static budget result from comparing actual costs at one level of activity to budgeted costs at a different level of activity.

D. their length and complexity.

11.   Comparing actual results to a budget based on actual activity for the period is possible with the use of a:

A.   monthly budget.

B.   master budget.

C. flexible budget.

D. rolling budget.

12.   A static budget is:

A. a budget for a single level of activity.

B.   a budget that ignores inflation.

C.   used only for fixed costs.

D.   used when the mix of products does not change.