A flexible budget is Appropriate for control of factory overhead but not for control of direct materials and direct labor. 7. а. Appropriate for control of direct materials and direct labor but not for control of factory overhead. Not appropriate when costs and expenses are affected by the fluctuations in volume limits. b. с. d. Appropriate for any level of activity.

A flexible budget is Appropriate for control of factory overhead but not for control of direct materials and direct labor. 7. а. Appropriate for control of direct materials and direct labor but not for control of factory overhead. Not appropriate when costs and expenses are affected by the fluctuations in volume limits. b. с. d. Appropriate for any level of activity.

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Description: A flexible budget isAppropriate for control of factory overhead but not for control ofdirect materials and direct labor.7.а.b. Appropriate for control of direct materials and direct labor but notfor control of factory overhead.Not appropriate when c

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

A flexible budget is
Appropriate for control of factory overhead but not for control of
direct materials and direct labor.
7.
а.
b. Appropriate for control of direct materials and direct labor but not
for control of factory overhead.
Not appropriate when costs and expenses are affected by the
fluctuations in volume limits.
с.
d.
Appropriate for any level of activity.

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The variable overhead spending variance is most effective in measuring: O how well overhead spending matches the targets set in the original budget at the beginning of the year. O the efficiency with which the activity base was utilized in production. O the excessive use of overhead resources. O the utilization of plant facilities.
A labor rate variance is due solely to the difference Between budgeted materials price and actual materials price Between budgeted direct labor hours and actual direct labor hours Between budgeted sales volume and actual sales volume Between budgeted labor price and actual labor price
Responsibility for the fixed overhead volume variance is not assigned because fixed overhead costs do not change with activity changes. usually assigned to the production department. usually assigned to top management. usually assigned to the planning department. None of these.
The Production Budget should be prepared before the Direct Materials and Direct Labor Budgets. TRUE FALSE
Management Accounting Question (Qualitative Short Answer) a. Why is the sales forecast the starting point in budgeting? b. What is a perpetual budget? c. Which is a better basis for evaluating actual results: budgeted performance or past performance? Why? d. The materials price variance can be computed at what two different points in time? Which point is better and why? e. What effect, if any, would you expect purchasing poor-quality materials to have on direct labor variances? f. Distinguish between ideal and practical standards. g. Costs associated with the quality of conformance can be broken down into four broad groups. What are these four groups and how do they differ? h. What is likely the most effective way to reduce a company's total quality costs? i. What are the three main uses of quality cost reports?
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Please answer with explaination and tell me why others are incorrect ___________________________ may be used to determine the impact of changing production on fixed and variable factory overhead costs. zero-based budget flexible budget continuous budget factory overhead budget