Ch. 8

Question 1

denominator level (production-denominator level)

Answer 1

the number of machine hours in the denominator, or whatever the allocation base is

Question 2

denominator-level variance (production volume variance)

Answer 2

budgeted fixed OH-fixed OH allocated for actual output units produced

Question 3

fixed OH Flex budget variance

Answer 3

actual costs incurred-felxible budget amount

Question 4

fixed OH spending variance

Answer 4

actual costs incurred-flexible budget amount

Question 5

operating income volume variance

Answer 5

static budget operating income - budgeted operating income

Question 6

standard costing

Answer 6

a costing system that (a) traces direct costs to output produced by multiplying the standard prices or rates bt the standard quantity of inputs allowed for actual outputs produced and (b) allocates OH costs to output costs on the basis of the standard OH cost rates times the standard Q of allocation bases allowed for the actual outputs produced

Question 7

total-OH variance

Answer 7

sum of the preceding variances

Question 8

variable OH efficiency variance

Answer 8

(actual Q of cost allocation base used for actual output - budgeted Q of variable OH cost allocation base allowed for actual output)(budgeted variable OH cost per unit of allocation base

Question 9

variable OH flexible-budget variance

Answer 9

actual costs incurred - flexible budget amount

Question 10

variably OH spending variance

Answer 10

(actual variable OH cost per unit of allocation base - budgeted variable OH cost per unit of cost allocation base)(actual Q go variable OH cost allocation base used for actual output