Questions from Managerial Accounting


Q: Explain why the variable overhead spending variance is not a pure price

Explain why the variable overhead spending variance is not a pure price variance.

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Q: The variable overhead efficiency variance has nothing to do with efficient use

The variable overhead efficiency variance has nothing to do with efficient use of variable overhead. Do you agree or disagree? Why?

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Q: Describe the difference between the variable overhead efficiency variance and the labor

Describe the difference between the variable overhead efficiency variance and the labor efficiency variance.

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Q: At the beginning of the year, Debion Company estimated the following

At the beginning of the year, Debion Company estimated the following: Overhead ……………………………………… $522,900 Direct labor hours …………………………….. 83,000 Debion uses normal costing and applies overhead on the...

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Q: For each of the following independent situations, give the source document

For each of the following independent situations, give the source document that would be referred to for the necessary information. Required: 1. Direct materials costing $460 are requisitioned for us...

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Q: The following six situations at Diviney Manufacturing Inc. are independent.

The following six situations at Diviney Manufacturing Inc. are independent. a. A manual insertion process takes 30 minutes and 8 pounds of material to produce a product. Automating the insertion proce...

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Q: Gorman Nurseries Inc. grows poinsettias and fruit trees in a greenhouse

Gorman Nurseries Inc. grows poinsettias and fruit trees in a greenhouse/nursery operation. The following information was provided for the coming year. A sales commission of 4% of sales is paid for e...

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Q: The following six situations at Diviney Manufacturing Inc. are independent.

The following six situations at Diviney Manufacturing Inc. are independent. a. A manual insertion process takes 30 minutes and 8 pounds of material to produce a product. Automating the insertion proce...

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Q: Assume that a company has the following accounts receivable collection pattern:

Assume that a company has the following accounts receivable collection pattern: Month of sale ………………………………. 40% Month following sale ……………………. 60% All sales are on credit. If credit sales for Januar...

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Q: The percentage of accounts receivable that are uncollectible can be ignored for

The percentage of accounts receivable that are uncollectible can be ignored for cash budgeting because a. no cash is received from an account that defaults. b. it is included in cash sales. c. it app...

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