Answered: Jeffries Company’s only…

Name: Jeffries Company’s only variable-overhead cost is electricity. Does an
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Jeffries Company’s only variable-overhead cost is electricity. Does an unfavorable variable-overhead spending variance imply that the company paid more than the anticipated rate per kilowatt-hour?

Business

Accounting

Jeffries Company’s only variable-overhead cost is electricity. Does an unfavorable variable-overhead spending variance imply that the company paid more than the anticipated rate per kilowatt-hour?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...

See similar textbooks

Similar questions

Which of the following statements is true for a firm that uses variable costing? A. The cost of a unit of product changes because of changes in number of units manufactured.B. Profits fluctuate with sales.C. An idle facility variation is calculated.D. Product costs include variable administrative costs.
The conventional CVP (Cost-volume and profit) analysis has some underlying assumptions regarding costs and selling price. Which one of the following is NOT one of those assumptions: a. The selling price per unit will remain unchanged. b. Fixed costs per unit will decrease. c. The costs can be expressed as straight lines in a BEP (Break-even-point) graph. d. The actual variable costs per unit vary over the production range.
If there were no variances, how much was the company's absorption costing income?
Which of the following statements is true for a company that uses variable costing? Profit fluctuates with sales. Product costs include variable administration costs. Any underapplied overhead is included in the product cost. The unit product cost changes because of changes in the number of units manufactured.
Which of the following statements is true? 1. The variable overhead efficiency variance does not actually measure how efficiently variable manufacturing overhead resources were used. 2. The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the variable part of the predetermined overhead rate. 3. If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have a favorable labor rate variance and unfavorable variable overhead rate variance for the same period.
If variable manufacturing overhead is applied to production on the basis of direct labor-hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance be favorable or unfavorable, or could it be either?
Which of the following statements about margin of safety is false? O a. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. O b. Margin of safety measures the difference between budgeted revenues and breakeven revenues. none of the given answers is false. O d. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety increases. If only the fixed costs decrease but the number of units sold and unit selling price and all constant, the margin of safety decreases.
A break-even chart has been set up to show the current break-even point. Due to an increase in the price of raw materials, the variable cost per unit has increased. Assume all other costs and the selling price per unit remains constant. How does this change in the variable cost per unit affect the break-even chart?
If variable manufacturing overhead is applied to production on the basis of direct labor-hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance be favorable or unfavorable, or could it be either? Explain.
What are some possible reasons for a direct labor time variance? A. utility usage decrease B. less qualified workers C. office supplies spending D. sales decline
Which of the following statements is true for a company that uses variable costing? Multiple Choice paved The manufacturing cost per unit decreases when the volume of production increases. Net income is affected by fluctuations in production. Fixed manufacturing overhead is treated like a period cost. Fixed manufacturing overhead costs incurred in the current period may be recognized as expense in a later perioc
These are true/false questions ____ 26. Average rate of return equals estimated average annual income divided by average investment. ____ 27. If direct materials cost per unit increases, the break-even point will increase. ____ 28. A production supervisor's salary that does not vary with the number of units produced is an example of a fixed cost. ____ 29. The difference between the standard cost of a product and its actual cost is called a variance. ____ 30. Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers.