Reference no: EM132893506

Problem 1: Favorable volume variances may be harmful when:

a. machine repairs cause work stoppages

b. supervisors fail to maintain an even flow of work

c. production in excess of normal capacity cannot be sold

d. there are insufficient sales orders to keep the factory operating at normal capacity

Problem 2: In analyzing manufacturing overhead variances, the volume variance is the difference between the

a. amount shown in the flexible budget and the amount shown in the debit side of the overhead control account.

b. predetermined overhead application rate and the flexible budget application rate times actual hours worked.

c. budget allowance based on standard hours allowed for actual production for the period and the amount budgeted to be applied during the period.

d. actual amount spent for overhead items during the period and the overhead amount applied to production during the period.

Problem 3: If at the end of the fiscal year the variances from standard are significant, the variances should be transferred to the:

a. work in process account

b. cost of goods sold account

c. finished goods account

d. work in process, cost of goods sold, and finished goods accounts