Accounting MCQ’S With Solutions !!

1.  Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets? 

     A-  Direct materials cost

     B-  Direct labor cost

     C-  Variable manufacturing overhead

     D- Fixed manufacturing overhead

 

2.  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? 

       $2.78

       $2.86

       $3.10

       $3.38

 

3.  Southern Company’s budgeted and actual sales for 2009 were:

  

Product:

 X Y

    

 

Budgeted Sales

 X-20,000 Units at $5.00 per unit

 Y-35,000 Units at $9.00 per unit

      

Actual Sales:

X-17,500 Units at $5.30 per unit

Y-17,300 Units at $8.30 per unit

  

What is the total sales variance for the two products? 

    A-   $2,210 Favorable

    B-   $5,990 Favorable

    C-   $6,990 Favorable

    D-   $8,200 Favorable

 

4.  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 were $3.50 per piece).  What is the material price variance? 

    A-   $7,500 Favorable

    B-   $10,000 Favorable

    C-   $7,500 Unfavorable

    D-   $10,000 Unfavorable