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1  HELEEN Manufacturing Company prepares master budget

Accounting

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1 

HELEEN Manufacturing Company prepares master budget. The Company had a static budgeted operating income of $9.6 million. Actual operating income was $6.4 million. The flexible budget operating income at the actual level of output is $7,000,000. What is the static-budget variance of operating income?

Select one:
a. $1.6 million Unfavorable
b. $1.6 million Favorable
c. $3.2 million Unfavorable
d. $3.2 million Favorable

2 

When preparing flexible budget, MAYAR Corporation has the following information available for variable overhead costs. Direct labor hours are the cost driver for variable overhead costs.

 

 

Actual variable overhead costs $5,120

 

Standard variable overhead costs $3.00 per hour

 

Actual direct labor hours 2,000 hours

 

Standard direct labor hours per unit 3 hours

 

Units produced 1,000

 

 

What is the variable overhead spending variance?

 

 

Select one:

a. $1,000 Unfavorable

b. $3,880 Favorable

c. $3,880 Unfavorable

d. $880 Favorable