Solutions Manual For Managerial Accounting: Creating
Value in a Dynamic Business Environment, 13th Edition
by Ronald W. Hilton, David E. Platt, All Chapters 1 - 17,
Complete Newest Versi
A planning budget called for 500 units to be produced & total direct labor cost of
$7,500. Actual production was 600 units & actual direct labor cost was $9,300. The
spending variance is - ANSWER $7,500/500 = $15 standard rate per hour x 600 =
$9,000 flexible budget - $9,300 actual budget = $300 U
The calculation of the budget variance uses - ANSWER budgeted fixed overhead
& actual fixed overhead.
SP(AQ-SQ) is the formula for the materials ______ variance. - ANSWER quantity
A static budget is suitable for - ANSWER planning only
A budget that takes into account how costs are affected by changes in level of
activity is a _____ budget. - ANSWER flexible
When preparing a flexible budget, the level of activity - ANSWER affects variable
costs only
If the planned budget revenue for 5,000 units is $120,000, what is the flexible budget
revenue if the actual activity is 4,500 units? - ANSWER $120,000/5,000 = $24 per
unit x 4,5000 = $108,000
Estimates of what revenues & costs should have been based on the actual level of
activity are shown on the _____ budget. - ANSWER flexible
The planning budget calls for total variable costs for supplies to be $6,250 based on
1,000 units with planned revenue at $24,000. A total of 1,200 units were actually
produced & sold. What amounts should appear on the flexible budget? - ANSWER
$7,500 for supplies & $28,000 revenue.
Unfavorable variance - ANSWER Actual revenue is less than budgeted revenue
Favorable variance - ANSWER Actual revenue is more than budgeted revenue
Poor supervision is one possible cause of an unfavorable ______ variance. -
ANSWER labor efficiency
Value in a Dynamic Business Environment, 13th Edition
by Ronald W. Hilton, David E. Platt, All Chapters 1 - 17,
Complete Newest Versi
A planning budget called for 500 units to be produced & total direct labor cost of
$7,500. Actual production was 600 units & actual direct labor cost was $9,300. The
spending variance is - ANSWER $7,500/500 = $15 standard rate per hour x 600 =
$9,000 flexible budget - $9,300 actual budget = $300 U
The calculation of the budget variance uses - ANSWER budgeted fixed overhead
& actual fixed overhead.
SP(AQ-SQ) is the formula for the materials ______ variance. - ANSWER quantity
A static budget is suitable for - ANSWER planning only
A budget that takes into account how costs are affected by changes in level of
activity is a _____ budget. - ANSWER flexible
When preparing a flexible budget, the level of activity - ANSWER affects variable
costs only
If the planned budget revenue for 5,000 units is $120,000, what is the flexible budget
revenue if the actual activity is 4,500 units? - ANSWER $120,000/5,000 = $24 per
unit x 4,5000 = $108,000
Estimates of what revenues & costs should have been based on the actual level of
activity are shown on the _____ budget. - ANSWER flexible
The planning budget calls for total variable costs for supplies to be $6,250 based on
1,000 units with planned revenue at $24,000. A total of 1,200 units were actually
produced & sold. What amounts should appear on the flexible budget? - ANSWER
$7,500 for supplies & $28,000 revenue.
Unfavorable variance - ANSWER Actual revenue is less than budgeted revenue
Favorable variance - ANSWER Actual revenue is more than budgeted revenue
Poor supervision is one possible cause of an unfavorable ______ variance. -
ANSWER labor efficiency
