13 6 questions 1 an unfavorable production volume variance manufacturing costs on th 4308063

13 6 questions 1 an unfavorable production volume variance manufacturing costs on th 4308063

13.6   Questions

1) An unfavorable production volume variance ________ manufacturing costs on the ________ income statement.

A) decreases; variable costing

B) increases; variable costing

C) decreases; absorption costing

D) increases; absorption costing

2) The production volume variance is the difference between ________.

A) expected fixed overhead costs and actual fixed overhead costs

B) expected fixed overhead costs and budgeted fixed overhead costs

C) budgeted fixed overhead costs and actual fixed overhead costs

D) budgeted fixed overhead costs and applied fixed overhead costs

3) When the actual volume is less than the expected volume, the production volume variance is ________.

A) favorable

B) unfavorable

C) overapplied

D) overbudgeted

4) When the actual volume is less than the expected volume, the fixed overhead costs are ________.

A) favorable

B) overapplied

C) overbudgeted

D) underapplied

5) When the number of units sold exceeds the number of units produced, net income under variable costing ________ net income under absorption costing.

A) is less than

B) exceeds

C) equals

D) not enough information to determine

6) When finished goods inventories decrease over an operating period, net income under variable costing ________ net income under absorption costing.

A) exceeds

B) is less than

C) equals

D) not enough information to determine

7) There is no difference between variable-costing operating income and absorption-costing operating income if there is no ________.

A) beginning inventory of finished goods

B) ending inventory of finished goods

C) variable overhead costs

D) change in finished goods inventory during the period

8) The production volume variance is calculated by the difference between actual volume and applied volume.

9) The production volume variance measures the difference between applied and budgeted fixed overhead.

10) When the actual production volume exceeds the expected production volume, fixed overhead is underapplied.

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