final exam Study

Question 1

volume variance fomula

Answer 1

Static budget - Flexible budget

Question 2

budget variance

Answer 2

what is the difference between what we did and what we were supposed to

Question 3

flexible budget variance formula

Answer 3

= Actual results - flexible budget

Question 4

how do you know if its unfavourable or favourable variances chapter 9

Answer 4

you gotta make sure if its budget or volume

1. Budget Variances (Spending Variances)
   • Favorable (F): Actual costs are less than budgeted costs.
   • Unfavorable (U): Actual costs are more than budgeted costs.
   2. Volume Variances
   • Favorable (F): Actual volume (output) is higher than expected, which means fixed costs are spread across more units.
   • Unfavorable (U): Actual volume (output) is lower than expected, resulting in higher per-unit fixed costs.

Question 5

volume variance

Answer 5

what is the difference between what were supposed to and the static benchmark

Question 6

raw materials purchases budget

Answer 6

production budget in units

x material per unit

= production needs

+desired ending inventory

= total needs

-beg inv

= material to be purchased.

Question 7

to get the flexible budget from the actual and static budget

Answer 7

you have to calculate the activity first. so step 1. calculate the direct labor hour (or whatever the activity base) and see what are the values for the variable costs (labor, direct materials etc) 2. you multiply that activity base by the actual activity, that is the flexible budget

Question 8

sales dollars budget

Answer 8

budgeted sales in units
*
selling price
=
total budgeted sales

Question 9

production budget

Answer 9

budgeted sales
add desired ending inv
total needs
less beg inv
required production

Question 10

what to do with underapplied overhead journal entry

Answer 10

credit moh (under), debit COGS

Question 11

what to do with overapplied overhead journal entry

Answer 11

debit moh (over), debit COGS