6. -7., -8. When budgeted and actual results are not the same amount, there is a...

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6. -7., -8. When budgeted and actual results are not the same amount, there is a budget A) error B) difference C) anomaly D) by-product The master budget of Windy Co. shows that the planned activity level for next year is expected to be 50,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected Indirect labor Machine supplies Indirect materials Depreciation on factory building Total Manufacturing Overhead $720,000 180,000 210,000 150.000 $1,260,000 A flexible budget for a level of activity of 60,000 machine hours would show total manufacturing overhead costs of A) $1,482,000 B) $1,260,000 C) $1,512,000 D) $1,362,000 Boland Manufacturing prepared a 2013 budget for 120,000 units of product. Actual production in 2013 was 130,000 units. To be most useful, what amounts should a performance report for this company compare? A) The actual results for 130,000 units with the original budget for 120,000 units. B) The actual results for 130,000 units with a new budget for 130,000 units. C) The actual results for 130,000 units with last year's actual results for 134,000 units. D) It doesn't matter. All of these choices are equally useful. In developing a flexible budget within a relevant range of activity A) only fixed costs are included. B) it is necessary to relate variable cost data to the activity index chosen C) it is necessary to prepare a budget at 1,000 unit increments D) variable and fixed costs are combined and are reported as a total cost Management by exception A) causes managers to be buried under voluminous paperwork B) means that all differences will be investigated C) means that only unfavorable differences will be investigated D) means that material differences will be investigated 6. -7., -8. When budgeted and actual results are not the same amount, there is a budget A) error B) difference C) anomaly D) by-product The master budget of Windy Co. shows that the planned activity level for next year is expected to be 50,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected Indirect labor Machine supplies Indirect materials Depreciation on factory building Total Manufacturing Overhead $720,000 180,000 210,000 150.000 $1,260,000 A flexible budget for a level of activity of 60,000 machine hours would show total manufacturing overhead costs of A) $1,482,000 B) $1,260,000 C) $1,512,000 D) $1,362,000 Boland Manufacturing prepared a 2013 budget for 120,000 units of product. Actual production in 2013 was 130,000 units. To be most useful, what amounts should a performance report for this company compare? A) The actual results for 130,000 units with the original budget for 120,000 units. B) The actual results for 130,000 units with a new budget for 130,000 units. C) The actual results for 130,000 units with last year's actual results for 134,000 units. D) It doesn't matter. All of these choices are equally useful. In developing a flexible budget within a relevant range of activity A) only fixed costs are included. B) it is necessary to relate variable cost data to the activity index chosen C) it is necessary to prepare a budget at 1,000 unit increments D) variable and fixed costs are combined and are reported as a total cost Management by exception A) causes managers to be buried under voluminous paperwork B) means that all differences will be investigated C) means that only unfavorable differences will be investigated D) means that material differences will be investigated

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The detailed answer for the above question is provided below 4 Answer B difference Explanations A variance is the difference between a standard level ... View the full answer