# ACCT 212 Learnsmart Assignment 8 Liberty University Solution

The flexible budget performance report directs management's attention to areas where corrective action can help control operations. Management uses the report to determine:

A company has an unfavorable direct materials quantity variance. A possible reason for this variance is that:

ABC Company has set the following standards for one unit of product: Direct materials: 0.5 pounds @ \$1.00 per pound; Direct labor: 1 hour @ \$10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of \$17,280; Direct labor: 36,000 hours at a total cost of \$374,000. Compute the total labor variance.

ABC Company has set the following standards for one unit of product; Direct materials: 0.5 pounds @ \$1.00 per pound; Direct labor; 1 Hour @ \$10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of \$17,280; Direct labor: 36,000 hours at a total cost of \$374,400. Compute the labor rate variance.

When compared to the budgeted amount, if the actual cost or revenue contributes to a lower income, then the variance

Because budgeted fixed costs remain the same regardless of production volume, a(n) _______________ variance occurs when there is a difference between actual volume of production and the standard volume of production.

A company has a budgeted fixed overhead of \$8,750 and applied fixed overhead of \$9,250. The volume variance is:

XYZ Company makes one product and has calculated the following amounts for direct materials: AQ x AP= \$150,000; AQ x SP = \$145,000; SQ x SP = \$152,000. Compute the materials quantity variance.

A manufacturing company has variable overhead costs of \$2.50 per unit and fixed costs of \$5,000 per month. Each unit requires 4 hours of direct labor and the company expects to produce 2,000 units each month. The standard overhead rate will be \$_______ per direct labor hour.

A company budgets administrative salaries at \$5,000 at a sales level of 1,000 units. As a sales level of 1,200 units, budgeted administrative salaries will be \$_________.

ABC Company has set the following standards for one unit of product; Direct materials: 0.5 pounds @ \$1.00 per pound; Direct labor; 1 Hour @ \$10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of \$17,280; Direct labor: 36,000 hours at a total cost of \$374,400. Compute the labor efficiency variance.

ABC Company has set the following standards for one unit of product: Direct materials: 0.5 pounds @ \$1.00 per pound; Direct labor: 1 hour @ \$10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of \$17,280; Direct labor: 36,000 hours at a total cost of \$374,000. Compute the total direct materials variance.

A company sells a product for \$3. The company prepares a flexible budget at two sales volumes. At a sales volume of 50 units, budgeted sales will be \$__________. At a sales volume of 60 units, budgeted sales will be \$________.

A flexible budget performance report indicates a direct materials variance of \$200 unfavorable. The variance may have been caused by: