193 if production remains within the relevant range for the period fixed costs are e 4310269

193) If production remains within the relevant range for the period, fixed costs are expected to remain fixed.

194) The fixed overhead budget variance measures the difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.

195) The cause of a fixed overhead variance, such as an unanticipated increase or decrease in property taxes for the factory, is always under the control of management.

196) If the actual number of units manufactured is less than the number of units anticipated to be manufactured, then the fixed overhead volume variance will always be unfavorable.

197) The two fixed overhead variances are the

A) budget and volume variances.

B) rate and efficiency variances.

C) price and usage variances.

D) rate and volume variances.

198) What type of variance results when the actual fixed overhead costs incurred are greater than the budgeted fixed overhead costs?

A) Favorable fixed overhead budget variance

B) Unfavorable fixed overhead budget variance

C) Favorable fixed overhead volume variance

D) Unfavorable fixed overhead volume variance

199) How is the fixed overhead budget variance calculated?

A) The difference between the standard fixed overhead rate and the actual fixed overhead rate multiplied by the actual hours used

B) The difference between the standard fixed overhead costs allocated and the budgeted fixed overhead costs

C) The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs

D) The difference between the actual fixed overhead costs incurred and the standard fixed overhead costs allocated

200) How is the fixed overhead volume variance calculated?

A) The difference between the standard fixed overhead rate and the actual fixed overhead rate multiplied by the actual hours used

B) The difference between the standard fixed overhead costs allocated and the budgeted fixed overhead costs

C) The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs

D) The difference between the actual fixed overhead costs incurred and the standard fixed overhead costs allocated

201) Which of the following examples would lead directly to a favorable fixed overhead volume variance?

A) A decrease in county property taxes for the factory

B) Producing more units than anticipated

C) A decrease in wages paid to factory maintenance workers

D) Receiving a volume discount on indirect materials purchased

202) What could cause a sales volume variance for fixed expenses?

A) Insurance costs on the factory rise unexpectedly during the year due to a crisis in the insurance industry.

B) The union calls for a strike of factory workers and temporary workers are hired to fill in for the striking employees.

C) The lease on the manufacturing facility is renegotiated and the lease payments increase during the year.

D) The number of units actually sold falls within a different relevant range than the static budget sales vo

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