Busn 278 Week 6 100 All Answers 1 Question Tco 9 Which Of The

BUSN 278 Week 6 ***100% All correct answers***

1. Question : (TCO 9) Which of the following is a variable cost?

Direct materials


Lease charge

Property taxes

Points Received: 4 of 4

2. Question : (TCO 9) A flexible budget

is prepared when management cannot agree on objectives for the company.
projects budget data for various levels of activity.

is only useful in controlling fixed costs.

cannot be used for evaluation purposes because budgeted data are adjusted to reflect actual results.

Points Received: 4 of 4

3. Question : (TCO 9) The Chambers Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at 2,300 machine hours. The records also indicated that overhead of $9,730 was incurred at 2,600 machine hours. What is the variable cost per machine hour using the high-low method to estimate the cost equation?




Points Received: 4 of 4

4. Question : (TCO 8) Southern CompanyÂ’s budgeted and actual sales for 2009 were:

Product Budgeted Sales Actual Sales
X 20,000 units at $5.00 per unit 17,500 units at $5.30 per unit
Y 35,000 units at $9.00 per unit 37,300 units at $8.80 per unit

What is the sales price variance for the two products?

$1,000 Favorable

$2,210 Favorable

$1,000 Unfavorable

$2,210 Unfavorable

Points Received: 4 of 4

5. Question : (TCO 8) Southern Company manufactures Product X. The standard cost of one unit of output is $12.00 (four pieces at $3.00 per piece). During the first quarter, 5,000 units were made, at an actual cost of $10.50 per unit (three pieces at $3.50 per piece). What is the material quantity variance?

$15,000 Favorable

$17,500 Favorable

$15,000 Unfavorable

$17,500 Unfavorable

Points Received: 4 of 4

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