1S. Ingrum Framing\'s cost formula for its supplies cost s S1,120 per mondh $11

Question

1S. Ingrum Framing's cost formula for its supplies cost s S1,120 per mondh $11 per plusa f l level of of 611 frames, aciviy was 607 frames. The actual supplies cost for the month was $8,150. The spending variance for supplies cost in June would be closest to: a. $309 unfavorable b. $309 favorable c. $353 favorable d. $353 unfavorable 19. Which of the following would not cause a material quantity variance? a. Poorly maintained machines b. Poor quality of materials c. Inexperienced workens d. High purchase costs 20. Superior Micro Company gathered the following actual results for the current month: Actual amounts: Units of products produced 6,000 $73,600 Direct labor cost (9,200 hours) Budgeted standard costs were: Direct labor 1.5 hrs /unit at $7.50/hr. What is the direct labor efficiency variance? a. $1,500 favorable b. $1,500 unfavorable c. $4,500 favorable d. $4,500 unfavorable 21. Which of the following is not a benefit of decentralization? Managers can react quickly to local information Lower-level managers become more involved in strategic planning Better use employees' expertise Sub-unit managers have incentives to perform well a. b. c. d. 22. In a responsibility accounting system, which of the following is true? a. Managers may neglect their own needs while working to achieve the objectives of the firm as a whole A firm is responsible for reporting to the public all activities that have a social impact, such as pollution control A manager should be given very little autonomy The manager should be involved in the development of the plan over which the manager has control and should be held accountable for the costs, revenues, or assets over which the manager has substantial control b. c. d.

Explanation / Answer

Ans:d. $353U

Explanation:

Actual results                                                     $ 8150

Flexible budget ($1120 + $11 × 607)                 $7797

Spending variance                                            $ 353

Note: The actual expense is greater than the flexible budget so the variance is unfavourable.

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