Deck 14: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Question 1

A volume variance is computed for:

A)both variable and fixed manufacturing overhead.
B)variable manufacturing overhead only.
C)fixed manufacturing overhead only.
D)direct labor costs as well as overhead costs.

Answer 1

fixed manufacturing overhead only.

Question 2

The fixed manufacturing overhead volume variance is more meaningful than the budget variance for cost control purposes.

Answer 2

False

Question 3

A favorable volume variance means that the company operated at an activity level greater than that planned for the period.

Answer 3

True

Question 4

Sulema, Inc. repairs and refinishes antique furniture. Manufacturing overhead at Sulema is applied to production on the basis of standard direct labor-hours. Which overhead variance(s) at Sulema would be unfavorably affected if the cost of solvents used to strip the old paint from the furniture unexpectedly doubles in price?

A)variable overhead rate variance
B)variable overhead efficiency variance
C)fixed manufacturing overhead budget variance
D)fixed manufacturing overhead volume variance

Question 5

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. The company's choice of the denominator level of activity affects the fixed manufacturing overhead budget variance.

Question 6

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. A fixed manufacturing overhead volume variance will NOT necessarily occur in a month in which production volume differs from sales volume.

Question 7

In a standard costing system, if the actual fixed manufacturing overhead cost exceeds the budgeted fixed manufacturing overhead cost for the period, then fixed manufacturing overhead cost would be overapplied for the period.

Question 8

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. A fixed manufacturing overhead volume variance will NOT necessarily occur in a month in which the fixed manufacturing overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed manufacturing overhead.

Question 9

When computing standard cost variances, the difference between actual and standard price multiplied by actual quantity yields a(n):

A)combined price and quantity variance.
B)efficiency variance.
C)price or rate variance.
D)quantity variance.

Question 10

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. A fixed manufacturing overhead volume variance will NOT necessarily occur in a month in which there is a fixed manufacturing overhead budget variance.

Question 11

Which of the following variances is generally the least significant from the standpoint of cost control?

A)Materials price variance.
B)Labor efficiency variance.
C)Fixed manufacturing overhead volume variance.
D)Variable overhead rate variance.

Question 12

An unfavorable volume variance means that a firm operated at an activity level that was below the activity level planned for the period.

Question 13

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. The company's choice of the denominator level of activity has no effect on the variable portion of the predetermined overhead rate.

Question 14

The higher the denominator activity level used to compute the predetermined overhead rate, the lower the predetermined overhead rate.

Question 15

If all four of Argo Corporation's overhead variances are favorable, Argo's overhead will be underapplied.

Question 16

Traveller Corporation sells one product and uses a standard cost system. Last year the overhead volume variance was zero. Which of the following is correct?

A)Actual variable manufacturing overhead cost was equal to standard variable manufacturing overhead cost.
B)Total applied overhead was equal to total actual overhead.
C)The denominator activity was equal to actual activity.
D)The budgeted fixed costs were equal to the applied fixed costs.

Question 17

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. The company's choice of the denominator level of activity affects the fixed manufacturing overhead volume variance.

Question 18

In a standard costing system where the denominator activity for the predetermined overhead rate is labor-hours, overhead costs are applied to work in process on the basis of the standard labor-hours allowed for the actual output.

Question 19

A fixed manufacturing overhead volume variance occurs as the result of a difference between the denominator level of activity (in hours) and the standard hours allowed for the actual output of the period.

Question 20

The fixed manufacturing overhead budget variance is:

A)the difference between budgeted fixed manufacturing overhead cost and actual fixed manufacturing overhead cost.
B)the difference between actual fixed manufacturing overhead cost and applied fixed manufacturing overhead cost.
C)the difference between budgeted fixed manufacturing overhead cost and applied fixed manufacturing overhead cost.
D)the difference between fixed overhead at the planned level of activity and the flexible budget for actual activity.

Question 21

Tropiano Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company had budgeted its fixed manufacturing overhead cost at $62,100 for the month and its level of activity at 3,200 MHs. The actual total fixed manufacturing overhead was $61,600 for the month and the actual level of activity was 3,000 MHs. What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

A)$3,381 Unfavorable
B)$500 Favorable
C)$500 Unfavorable
D)$3,381 Favorable

Question 22

Masek Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month?

A)$2,360 Unfavorable
B)$1,000 Unfavorable
C)$2,360 Favorable
D)$1,000 Favorable

Question 23

Alex Corporation has a large underapplied overhead balance in the manufacturing overhead account. This could be explained by:

A)an unfavorable volume variance, assuming all other variances are zero.
B)a favorable volume variance, assuming all other variances are zero.
C)standard hours allowed for the period's output being greater than denominator hours for the period.
D)favorable total variance for overhead.

Question 24

Bakos Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $8.80 per machine-hour and fixed manufacturing overhead cost of $100,688 per period. If the denominator level of activity is 2,800 machine-hours, the variable component in the predetermined overhead rate would be:

A)$44.76
B)$35.96
C)$43.52
D)$8.80

Question 25

Denby Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: The company based its original budget on 6,400 machine-hours. The company actually worked 6,710 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,540 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

A)$3,286 Favorable
B)$1,484 Unfavorable
C)$3,286 Unfavorable
D)$1,484 Favorable

Question 26

Semaan Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the month appear below: The company based its original budget on 2,700 machine-hours. The company actually worked 2,960 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,030 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

A)$3,130 Unfavorable
B)$340 Unfavorable
C)$340 Favorable
D)$3,130 Favorable

Question 27

Steinhagen Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: The company based its original budget on 2,600 machine-hours. The company actually worked 2,790 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,960 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

A)$5,148 Favorable
B)$5,148 Unfavorable
C)$2,717 Favorable
D)$2,717 Unfavorable

Question 28

Pizzi, Inc. had the following fixed manufacturing overhead variances last year: Pizzi uses machine-hours as an activity base for overhead and used 48,000 machine-hours as the denominator activity level for the year. Total actual fixed manufacturing overhead was $150,000. The actual number of machine-hours incurred were 50,000. What were Pizzi's standard hours allowed for actual output?

A)40,000
B)42,000
C)50,400
D)52,500

Question 29

Dexter Corporation uses a standard cost system and applies manufacturing overhead cost to units of product on the basis of standard direct labor-hours (DLHs). Information on Dexter Corporation's manufacturing overhead costs for last period is given below: Given these data, the underapplied or overapplied overhead cost for the period would be:

A)$10,000 overapplied
B)$2,000 overapplied
C)$10,000 underapplied
D)$8,000 underapplied

Question 30

The Adlake Corporation makes and sells a single product and uses a standard cost system. During October, the company budgeted $300,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours. At standard, each unit of finished product requires 5 machine-hours. The following cost and activity were recorded during October: The amount of overhead cost that the company applied to work in process for October was:

A)$279,300
B)$291,330
C)$294,000
D)$285,000

Question 31

The Santos Corporation made an error when selecting a denominator level of activity and chose a much lower level than was realistic. This error would most likely result in a large:

A)favorable variable overhead efficiency variance.
B)favorable fixed manufacturing overhead budget variance.
C)favorable fixed manufacturing overhead volume variance.
D)unfavorable fixed manufacturing overhead budget variance.

Question 32

In a standard cost system, overhead is applied to production on the basis of:

A)the denominator hours chosen for the period.
B)the actual hours required to complete the actual output of the period.
C)the standard hours allowed to complete the actual output of the period.
D)the actual cost of fixed overhead during the period.

Question 33

Hairr Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.50 per machine-hour and fixed manufacturing overhead cost of $947,672 per period. If the denominator level of activity is 8,900 machine-hours, the predetermined overhead rate would be:

A)$9.50
B)$115.98
C)$106.48
D)$950.00

Question 34

Coblentz Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $6.20 per MH. The company had budgeted its fixed manufacturing overhead cost at $40,000 for the month. During the month, the actual total variable manufacturing overhead was $48,970 and the actual total fixed manufacturing overhead was $43,000. The actual level of activity for the period was 8,300 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

A)$2,490 Favorable
B)$510 Favorable
C)$510 Unfavorable
D)$2,490 Unfavorable

Question 35

Reidenbach Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The budgeted fixed manufacturing overhead cost for the most recent month was $17,100 and the actual fixed manufacturing overhead cost for the month was $17,450. The company based its original budget on 4,500 machine-hours. The standard hours allowed for the actual output of the month totaled 4,810 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

A)$1,178 Unfavorable
B)$350 Unfavorable
C)$350 Favorable
D)$1,178 Favorable

Question 36

At the beginning of last year, Tari Corporation budgeted $300,000 of fixed manufacturing overhead and chose a denominator level of activity of 600,000 machine-hours. At the end of the year, Tari's fixed manufacturing overhead budget variance was $9,000 favorable. Its fixed manufacturing overhead volume variance was $15,000 favorable. Actual direct labor-hours for the year were 625,000. What was Tari's total standard machine-hours allowed for last year's output?

A)570,000
B)630,000
C)648,000
D)656,250

Question 37

Dori Castings is a job order shop that uses a standard cost system. Manufacturing overhead costs are applied on the basis of standard direct labor-hours. A volume variance will exist for Dori in a month where:

A)production volume differs from sales volume.
B)actual direct labor-hours differ from standard hours allowed.
C)there is a budget variance in fixed manufacturing overhead costs.
D)the fixed manufacturing overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed manufacturing overhead.

Question 38

Omary Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

A)$1,520 Unfavorable
B)$3,180 Favorable
C)$4,820 Unfavorable
D)$6,340 Unfavorable

Question 39

Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: The company based its original budget on 6,200 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,420 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

A)$320 Favorable
B)$320 Unfavorable
C)$972 Favorable
D)$972 Unfavorable

Question 40

Diseth Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company bases its predetermined overhead rate on 5,300 machine-hours. The company's total budgeted fixed manufacturing overhead is $12,720. In the most recent month, the total actual fixed manufacturing overhead was $12,370. The company actually worked 5,350 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,540 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

A)$350 Favorable
B)$120 Favorable
C)$120 Unfavorable
D)$576 Favorable

Question 41

Oldham Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $4.00 per machine-hour and fixed manufacturing overhead cost of $87,822 per period. If the denominator level of activity is 4,100 machine-hours, the fixed component in the predetermined overhead rate would be:

A)$25.42
B)$4.00
C)$21.42
D)$400.00

Question 42

Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours. Two direct labor-hours are required for each unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The fixed manufacturing overhead budget variance for the period was:

A)$6,300 Unfavorable
B)$2,500 Unfavorable
C)$1,500 Unfavorable
D)$1,000 Unfavorable

Question 43

The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The variable overhead efficiency variance for March is:

A)$12,400 F
B)$6,160 U
C)$12,400 U
D)$6,160 F

Question 44

Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's total underapplied or overapplied overhead cost for last year?

A)$1,060 overapplied
B)$1,060 underapplied
C)$7,940 overapplied
D)$13,940 overapplied

Question 45

Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's fixed manufacturing overhead volume variance for last year?

A)$2,500 Favorable
B)$7,500 Favorable
C)$12,500 Favorable
D)$40,000 Unfavorable

Question 46

Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs). The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows: What was Vette's fixed manufacturing overhead budget variance?

A)$1,600 Unfavorable
B)$3,000 Favorable
C)$13,000 Unfavorable
D)$17,600 Unfavorable

Question 47

Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. The total predetermined overhead rate per machine-hour for June was:

A)$2.57 per machine-hour
B)$1.30 per machine-hour
C)$2.80 per machine-hour
D)$3.15 per machine-hour

Question 48

Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours. Two direct labor-hours are required for each unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The variable overhead rate variance for the period was:

A)$5,300 Unfavorable
B)$1,200 Unfavorable
C)$6,300 Unfavorable
D)$6,500 Unfavorable

Question 49

Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours. Two direct labor-hours are required for each unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The fixed manufacturing overhead volume variance for the period was:

A)$750 Unfavorable
B)$2,500 Unfavorable
C)$1,500 Unfavorable
D)$1,000 Unfavorable

Question 50

Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. The variable overhead efficiency variance for utilities cost for June was:

A)$400 F
B)$400 U
C)$600 F
D)$600 U

Question 51

Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs). The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows: What was Vette's variable overhead rate variance?

A)$2,800 Unfavorable
B)$13,200 Favorable
C)$16,000 Favorable
D)$68,000 Unfavorable

Question 52

Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours. Two direct labor-hours are required for each unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The variable overhead efficiency variance for the period was:

A)$5,300 Unfavorable
B)$1,200 Unfavorable
C)$1,500 Unfavorable
D)$6,500 Unfavorable

Question 53

Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. The variable overhead rate variance for maintenance cost for June was:

A)$1,020 F
B)$1,020 U
C)$3,230 F
D)$3,230 U

Question 54

The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The fixed manufacturing overhead volume variance for March is:

A)$7,750 F
B)$7,750 U
C)$1,550 F
D)$3,900 U

Question 55

Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. The fixed manufacturing overhead budget variance (in total) for June was:

A)$3,230 F
B)$3,230 U
C)$1,180 F
D)$1,180 U

Question 56

Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's variable overhead rate variance for last year?

A)$1,000 Favorable
B)$1,060 Unfavorable
C)$2,060 Unfavorable
D)$9,500 Unfavorable

Question 57

The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The fixed manufacturing overhead budget variance for March is:

A)$900 F
B)$3,900 F
C)$3,000 U
D)$7,750 F

Question 58

Bruley Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $3.30 per machine-hour and the denominator level of activity is 3,500 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $11,570 and the company actually worked 3,430 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,450 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

A)$66 Favorable
B)$231 Favorable
C)$231 Unfavorable
D)$165 Unfavorable

Question 59

The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The variable overhead rate variance for March is:

A)$4,900 U
B)$11,060 U
C)$14,700 U
D)$17,300 U

Question 60

Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs). The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows: What total amount of manufacturing overhead cost (variable and fixed) did Vette apply to the 58,000 ties produced during the year?

A)$1,276,000
B)$1,403,600
C)$1,421,200
D)$1,452,000

Question 61

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The fixed manufacturing overhead budget variance for the period is closest to:

A)$900 F
B)$452 F
C)$3,734 F
D)$3,450 U

Question 62

The Murray Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours (DLHs). The company recorded the following activity and cost data for May: The fixed manufacturing overhead budget variance for May was:

A)$8,000 F
B)$8,000 U
C)$1,600 F
D)$1,600 U

Question 63

Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs) as the activity base for overhead. The following information relates to Cuda's operations last year: What total amount of manufacturing overhead cost (variable and fixed) did Cuda apply to production?

A)$950,000
B)$985,000
C)$988,000
D)$1,045,000

Question 64

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The variable overhead efficiency variance for the period is closest to:

A)$300 F
B)$1,465 U
C)$1,760 U
D)$1,775 U

Question 65

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The overhead applied to products during the period was closest to:

A)$112,850
B)$113,415
C)$116,550
D)$110,889

Question 66

An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The fixed manufacturing overhead volume variance for the period is closest to:

A)$978 F
B)$993 F
C)$163 F
D)$815 F

Question 67

Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs) as the activity base for overhead. The following information relates to Cuda's operations last year: What was Cuda's variable overhead rate variance?

A)$6,000 Unfavorable
B)$15,000 Favorable
C)$20,000 Unfavorable
D)$21,000 Favorable

Question 68

A manufacturer of playground equipment uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The fixed manufacturing overhead applied to products during the period is closest to:

A)$40,650
B)$42,981
C)$41,600
D)$46,070

Question 69

The Murray Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours (DLHs). The company recorded the following activity and cost data for May: The amount of fixed manufacturing overhead cost that was used to compute the fixed component of the predetermined overhead rate was:

A)$54,135
B)$60,150
C)$59,465
D)$57,600

Question 70

An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The fixed manufacturing overhead budget variance for the period is closest to:

A)$166 U
B)$422 F
C)$585 F
D)$1,400 U

Question 71

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The fixed manufacturing overhead volume variance for the period is closest to:

A)$1,359 U
B)$2,550 F
C)$3,902 U
D)$1,352 U

Question 72

A manufacturer of playground equipment uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The fixed manufacturing overhead budget variance for the period is closest to:

A)$4,470 U
B)$950 U
C)$2,790 F
D)$1,381 U

Question 73

The Claus Corporation makes and sells a single product and uses standard costing. During January, the company actually used 8,700 direct labor-hours (DLHs) and produced 3,000 units of product. The standard cost card for one unit of product includes the following: Variable factory overhead: 3.0 DLHs @ $4.00 per DLH.
Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH.
For January, the company incurred $22,000 of actual fixed manufacturing overhead costs and recorded a $875 favorable volume variance.
The fixed manufacturing overhead cost used to compute the predetermined overhead rate was:

A)$31,500
B)$30,625
C)$32,375
D)$33,250

Question 74

The Claus Corporation makes and sells a single product and uses standard costing. During January, the company actually used 8,700 direct labor-hours (DLHs) and produced 3,000 units of product. The standard cost card for one unit of product includes the following: Variable factory overhead: 3.0 DLHs @ $4.00 per DLH.
Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH.
For January, the company incurred $22,000 of actual fixed manufacturing overhead costs and recorded a $875 favorable volume variance.
The denominator level of activity in direct labor-hours (DLHs) used by Claus in setting the predetermined overhead rate for January is:

A)9,500 DLHs
B)9,250 DLHs
C)8,750 DLHs
D)10,500 DLHs

Question 75

The Murray Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours (DLHs). The company recorded the following activity and cost data for May: The amount of fixed manufacturing overhead cost applied during May was:

A)$52,535
B)$54,135
C)$36,090
D)$50,400

Question 76

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The variable overhead rate variance for the period was closest to:

A)$315 U
B)$1,465 F
C)$1,465 U
D)$315 F

Question 77

Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs) as the activity base for overhead. The following information relates to Cuda's operations last year: What was Cuda's fixed manufacturing overhead budget variance?

A)$9,000 Favorable
B)$15,000 Unfavorable
C)$45,000 Favorable
D)$45,000 Unfavorable

Question 78

A manufacturer of playground equipment uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The fixed manufacturing overhead volume variance for the period is closest to:

A)$2,256 F
B)$2,331 F
C)$3,089 U
D)$5,420 F

Question 79

A manufacturer of playground equipment uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The predetermined fixed manufacturing overhead rate is closest to:

A)$12.24 per MH
B)$13.55 per MH
C)$13.87 per MH
D)$11.96 per MH

Question 80

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The predetermined overhead rate per MH is closest to:

A)$17.91 per MH
B)$18.59 per MH
C)$18.00 per MH
D)$18.50 per MH