Exam (elaborations)

Practice problems for final summer 2012 - Answer Key with Steps Baruch College, CUNY ACCT 3200

0 purchase

Course
ACCT 3200

Institution
ACCT 3200

[Show more]

Preview 2 out of 14 pages

View example

Uploaded on April 3, 2023
Number of pages 14
Written in 2022/2023
Type Exam (elaborations)
Contains Questions & answers

cuny acct 3200
practice problems for final summer 2012 answer key with steps baruch college
acc 3200 practice final – summer 2012 answer the following three questions using information regarding h

beckyfawcet

Member since 3 year 28 documents sold

$7.99

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

ACC 3200 Practice Final – Summer 2012

Answer the following three questions using information regarding Hoeper Clinic:
Hoeper Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,600 client-
visits, but its actual level of activity was 2,650 client-visits. The clinic has provided the following data concerning
the formulas used in its budgeting and its actual results for January:

1. Determine Hoeper’s revenue variance for the month (rounded):

A. $3,036 unfavorable
B. $5,571 unfavorable
C. $2,034 favorable
D. $3,034 favorable
E. None of the above.

Revenue Variance= Actual Revenue – FB Revenue = $131319 – 2650 Units x $50.70 = $3036 Unfavorable (Actual
price is lower than $50.7.)

FB – Flexible budget.

2. Calculate Hoeper’s (sales) activity variance for company profit (rounded):
A. $1,295 Unfavorable
B. $2,590 Favorable
C. $1,295 Favorable
D. $2,590 Unfavorable
E. None of the above

Sales Activity Variance = FB Profit – MB Profit = [ (P0 – UVC0)xQ1 – TFC0 ] - [ (P0 – UVC0)xQ0 – TFC0 ]
= (P0 – UVC0) x (Q1 – Q0) = ($50.7 - $24.8) x (2650 – 2600) = $1295 F (50 more units sold).

MB – Master budget.

1

, 3. The Hoeper’s total spending variance for all expenses is (rounded):
A. $2,824 Unfavorable
B. $3,204 Unfavorable
C. $3,584 Favorable
D. $4,824 Favorable
E. $1,104 Favorable

Spending variance = Actual Total Costs – FB Costs = - $3584 F (actual cost is lower)
Where:
Actual Costs = Personnel + Medical + Occupancy + Admin = $115336
FB Costs = $24.8 x 2650 + $53200 = $118920

4. Sen Company’s standard requires 3 direct labor hours for each unit produced and pays $10 per hour. During
the last month, the company produced 1000 units of product and paid a total $32,340 direct labor salary. The
labor efficiency variance was $600 favorable. What was direct labor rate variance?
A) $5,880 Unfavorable
B) $7,920 Unfavorable
C) $3,960 Unfavorable
D) $2,940 Unfavorable

Efficiency variance: (Q1I1 – 1000 x 3) x 10 = -$600, Solve and get Q1I1 = 2940 DLH
Thus, Price Variance = 2940 x ($ – $10) = $2940 U

5. Dan Corporation uses a standard costing system in which variable manufacturing overhead is assigned to
production on the basis of the number of machine hours. The following data pertain to one month's operations:
 Variable manufacturing overhead cost incurred: $70,000
 Total (flexible budget) variable overhead variance: $4,550 favorable
 Standard machine hours allowed for actual production: 3,550
 Actual machine hours incurred: 3,600
The variable overhead efficiency variance is:
A) $1,050 favorable
B) $1,050 unfavorable
C) $3,500 unfavorable
D) $2,100 favorable

Total FB Variance = Actual – FB = $70000 – Q1I0P0 = -$4550, Solve and get FB Q1I0P0=$74550
P0 = Q1I0P0 / Q1I0 = $ = $21
Efficiency Variance = (3600 – 3550) x $21 = $1050U

6. Samsong Company uses a standard costing system and applies its fixed manufacturing overhead (FMO) costs
to products based on the number of machine hours. Last year Samsung incurred a total actual FMO $48,000
when produced 12,500 units. The FMO was over-applied by $2000. When analyzing the cost variances, the
chief accountant determined that there was a favorable $3,600 FMO production volume variance. Determine
the budgeted production level in units for the past year.

A. 13,600 units
B. 11,600 units
C. 11,050 units
D. 10,600 units
E. Need more information.

2

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller beckyfawcet. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $7.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Exam (elaborations)

Practice problems for final summer 2012 - Answer Key with Steps Baruch College, CUNY ACCT 3200

Document information

Subjects

Written for

Seller

Reviews received

Content preview