COST ACCOUNTING REVISION

[From 1 To 6]
El-Feky Inc. developed standard costs for direct material and direct labor. In 2022, El-Feky
estimated the following standard costs for one of their major products.

Budgeted quantity Budgeted price

Direct materials 0.40 pounds $50 per pound
Direct labor 0.20 hours $30 per pound

During October, El-Feky produced and sold 20,000 containers using 4.400 pounds of direct
materials at an average cost per pound of $48 and 2,100 direct manufacturing labor hours at
an average wage of $29.5 per hour.

1) October's direct material flexible-budget variance is:

a) $ 188,800 favorable. c) $ 8,800 favorable.
b) $ 188,800 unfavorable. d) $ 8,800 unfavorable.
2) October's direct material price variance is:
a) $ 188,800 favorable. c) $ 8,800 favorable.
b) $ 188,800 unfavorable. d) $ 8,800 unfavorable.
3) October's direct material efficiency variance is:
a) $ 8,800 favorable. c) $ 180,000 favorable.
b) $ 8,800 unfavorable. d) $ 180,000 unfavorable.
4) October's direct manufacturing labor flexible-budget variance is:
a) $ 180,000 favorable. c) $ 58,050 favorable.
b) $ 180,000 unfavorable. d) $ 58,050 unfavorable.
5) October's direct manufacturing labor price variance is:
a) $ 58,050 favorable. c) $ 1,050 favorable.
b) $ 58,050 unfavorable. d) $ 1,050 unfavorable.
6) October's direct manufacturing labor efficiency variance is:
a) $ 1.050 favorable. c) $ 57,000 favorable.
b) $ 1,050 unfavorable. d) $ 57,000 unfavorable.

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COST ACCOUNTING REVISION

[From 7 To 12]
El-Feky Co. manufactures colonial style desks. Some of the company's data was misplaced.
Use the following information to replace the lost data:

Flexible
Actual Flexible Sales-Volume Static
Budget
Results Budget Variances Budget
Variances
Units sold 245,000 245,000 224,175
Revenues $93,625 $2,500 F (A) $3,130 U (B)
Variable costs (C) $445 U $35,630 $5,400 F $41,030
Fixed costs $18,335 $1,870 F $20,205 0 $20,205
Operating income $39,215 (D) $35,290 (E) $33,020

7) What amounts are reported for revenues in the flexible-budget (A)?

a) 91,125. b) $96,125. c) $93,525. d) $90,495.
8) What amounts are reported for revenues in the static-budget (B)?
a) $94,255. b) $87,995. c) $92,995. d) $94,255.
9) What are the actual variable costs (C)?
a) $35,185. b) $35,610. c) $36,075. d) $41,235.
10) What is the total flexible-budget variance (D)?
a) $3,925 favorable c) $1,920 favorable.
b) $3,925 unfavorable d) $0.
11) What is the total sales-volume variance (3)?
a) $2,270 favorable. c) $3,645 unfavorable
b) $2,270 unfavorable. d) $5,765 favorable.
12) What is the total static-budget variance?
a) $6,195 favorable. c) $2,220 unfavorable.
b) $6,195 unfavorable. d) $2,220 favorable.

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COST ACCOUNTING REVISION

[From 13 To 20]
El-Feky Co. manufactured 30,000 ice chests during September. The overhead cost allocation
base is $22.5 per machine-hour. The following overhead data pertain to September.

Actual Budgeted
Production 30,000 units 24,000 units
Machine hours 15,000 hours 10,800 hours
Variable overhead cost per machine-hour: $22.00 $22.5
Fixed overhead costs for September $61,500 $60,000

13) What is the actual variable overhead cost?

a) $243,000. b) $75,938. c) $330,000. d) $84,375.
14) What is the variable overhead flexible-budget amount?
a) $303,750 b) $243,000 c) $84,375 d) $330,000
15) What is the variable overhead spending variance?
a) $7.500 favorable. c) $15,000 favorable.
b) $7,500 unfavorable. b) $15,000 unfavorable.
16). What is the variable overhead efficiency variance?
a) $33,750 favorable. c) $6,563 favorable.
b) $33,750 unfavorable. d) $6,563 unfavorable.
17) What is the fixed overhead flexible-budget amount?
a) $75,000. c) $61,500.
b) $60,000. d) $62,500.
18) What is the amount of fixed overhead allocated to production?
a) $75,000. c) $61,500.
b) $60,000. d) $330,000.
19) What is the fixed overhead spending variance?
a) $75,000. c) $61,500.
b) $60,000. d) $330,000.
20) What is the fixed overhead production-volume variance?
a) $15,000 unfavorable. c) $1,500 unfavorable.
b) $15,000 favorable. d) $1,500 unfavorable.

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COST ACCOUNTING REVISION

[From 3 To 11]

Youssef Co. manufactures two types of products X&Y. Budgeted and actual data for 2021 as
follows:

Static Budget X Y Total

Units sold 2,500 10,000 12,500
Contribution margin $750,000 $1,500,000 $2,250,000
Actual Results X Y Total
Units sold 2,000 14,000 16,000
Contribution margin $640,000 $1,960,000 $2,600,000

Prior to the beginning of the year, a consulting firm estimated the total volume for X&Y to be
125,000 units, but actual industry volume was 128,000 units.

3) What is the contribution margin for the flexible budget?

a) $600,000. c) $2,100,000.
b) $2,700,000. d) $2,600,000.
4) What is the total static-budget variance in terms of the contribution margin?
a) $350,000 F. c) $100,000 U.
b) $450,000 F. d) $180,000 U.

5) What is the total flexible-budget variance in terms of the contribution margin?

a) $100,000 U. c) $450,000 F.
b) $350,000 F. d) $180,000 U.

6) What is the total sales-volume variance in terms of the contribution margin?

a) $630,000 F. c) $100,000 U.
b) $450,000 F. d) $180,000 U.
7) What is the total sales-quantity variance in terms of the contribution margin?
a) $100,000 U. c) $630,000 F.
b) $450,000 F. d) $180,000 U.
8) What is the total sales-mix variance in terms of the contribution margin?
a) $100,000 U. c) $450,000 F.
b) $630,000 F. d) $180,000 U.

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COST ACCOUNTING REVISION

9) What is the budgeted contribution margin per composite unit of the budgeted mix?
a) $70. c) $104.
b) $90. d) $180.
10) What is the market-size variance?
a) $576,000 F c) $54,000 F.
b) $180,000 U. d) $630,000 F.
11) What is the market-share variance?
a) $180,000 U. c) $630,000 F.
b) $576,000 F. d) $54,000 F.
[From 12 To 17]

Variances Spending Efficiency Production-Volume

Variable manufacturing overhead $2,250 F $7,500 U (A)
Fixed manufacturing overhead $5,000 U (B) $20,000 U

12) Above is a:
a) 2-variance analysis. c) 4-variance analysis.
b) 1-variance analysis. d) 3-variance analysis.
13) In the above chart, the amounts for (A) and (B), respectively, are:
a) $15,000 U; $9,650 U. c) $15,000, Zero.
b) Zero; Zero d) Zero, $$9,650 U.
14) In a 3-variance analysis the spending variance should be:
a) $2,750 U. c) $5,500 U.
b) $2,750 F. d) $5,500 F.
15) In a 2-variance analysis flexible-budget variance and production-volume variance should
be:
a) $15,000 U; $9,650 U. c) $20,500 U; $20,000 U.
b)310,250 U; $20,000 U. d) $10,250 U; Zero.
16) In a 1-variance analysis the total overhead variance should be:
a) $20,000 U. c) $30,250 U.
b) $32,500 U. d) None of these.

17) What is the total variable flexible-budget overhead variance?

a) $5,250. c) $10,250.
b) $9,750. d) $20,000.