Bender Day 21

Question 1

Equation: Budgeted Variable OH

Answer 1

Standard direct hours allowed × Standard variable OH rate

MCQ-03829

Question 2

Equation: Variable OH Efficiency Variance

Answer 2

Is calculated as the difference between:

Actual direct Labor hours used

VS.

Standard (budgeted) direct Labor hours allowed

×

Standard Variable OH Rate

MCQ-07750

Question 3

Equation: Variable OH Spending Variance

Answer 3

Budgeted Variable OH (DL × Variable OH Rate)

Less: Actual Variable OH

MCQ-03845

Question 4

Equation: sales volume variance on contribution margin

Answer 4

Variance in units sold (Actual - Budgeted)
×
Contribution Margin Per Unit (Contribution Margin$ / Budgeted units)
=
Variance sure to sales volume

MCQ-04142

Question 5

What project is most advantageous when the discount rate is 10% and there is a NPV?

Answer 5

IRR must be higher than the discount rate and the NPV must be positive

MCQ-14824

Question 6

Rule: The expansion of Working Capital

Answer 6

WC = CA - CL

MCQ-03704

Question 7

Equation: OH applied

Answer 7

Is the estimated OH rate applied to the actual cost driver

Estimated OH rate = OH$ / Machine hours

MCQ-12450