Deck 10: Compute and Interpret the Fixed Overhead Variances

Question 1

A decrease in denominator level of activity will:

A)decrease the fixed portion of the predetermined overhead rate.
B)increase the fixed portion of the predetermined overhead rate.
C)decrease the variable portion of the predetermined overhead rate.
D)increase the variable portion of the predetermined overhead rate.

Answer 1

B

Question 2

The volume variance represents the difference between actual fixed manufacturing overhead costs and budgeted fixed manufacturing overhead costs.

Answer 2

False

Question 3

If the denominator activity used to compute the predetermined overhead rate is equal to the standard activity allowed for the actual output of the period,then there is no volume variance.

Answer 3

True

Question 4

The economic impact of the inability to reach a target denominator level of activity would best be measured by:

A)the amount of the volume variance.
B)the contribution margin lost by failing to meet the target denominator level of activity.
C)the amount of the fixed manufacturing overhead budget variance.
D)the amount of the variable overhead efficiency variance.

Question 5

One cause of an unfavorable overhead volume variance would be increases in cost for fixed manufacturing overhead items.

Question 6

Which of the following is not correct?

A)If the denominator level of activity and the standard hours allowed for the output of the period are the same,then there is no volume variance.
B)If the denominator level of activity is greater than the standard hours allowed for the output of the period,then the volume variance is unfavorable.
C)If the denominator level of activity is greater than the standard hours allowed for the output of the period,then the volume variance is favorable.
D)The volume variance is the most appropriate measure of the utilization of plant facilities.

Question 7

The volume variance provides a measure of the utilization of plant facilities.

Question 8

The higher the denominator level of activity:

A)the higher the unit product cost.
B)the lower the unit product cost.
C)the less likely is the occurrence of a volume variance.
D)the more profitable operations likely will be.

Question 9

An unfavorable fixed manufacturing overhead volume variance would be caused by:

A)actual fixed manufacturing overhead costs being greater than budgeted fixed manufacturing overhead costs.
B)actual fixed manufacturing overhead costs being greater than applied fixed manufacturing overhead costs.
C)fixed manufacturing overhead cost being overapplied for the period.
D)the denominator hours exceeding the standard hours allowed for the output of a period.

Question 10

If the denominator activity (in hours)used to compute the predetermined overhead rate is equal to the actual activity (in hours)for the period,then there is no volume variance.

Question 11

Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items? $\quad$$\quad$$\begin{array}{llcc}\text { Variable overhead rate variance}&\text { Fixed overhead budget variance }\end{array}$
A. $\begin{array}{llcc} \quad\quad\quad\quad\quad\quad\text { No } &\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text { No }\end{array}$

B. $\begin{array}{llcc}\quad\quad\quad\quad\quad\quad\ \text { No } & \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Yes }\end{array}$

C. $\begin{array}{llcc}\quad\quad\quad\quad\quad\quad\text { Yes } & \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { No } \end{array}$

D. $\begin{array}{llcc}\quad\quad\quad\quad\quad\quad\text { Yes } & \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Yes }\end{array}$

A)Choice A
B)Choice B
C)Choice C
D)Choice D

Question 12

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

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 amount of overhead that the company would apply to finished production would ordinarily be the actual direct labor-hours times the predetermined overhead rate per direct labor-hour.

Question 14

The fixed portion of the predetermined overhead rate is used for product costing purposes and has no significance in terms of cost control.

Question 15

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

Question 16

If the standard hours allowed for the actual output of the period is greater than the denominator level of activity (in hours),then the overhead budget variance will be unfavorable.

Question 17

The fixed manufacturing overhead budget variance and the fixed manufacturing overhead volume variance taken together explain the difference between the actual fixed manufacturing overhead cost incurred and the fixed manufacturing overhead cost applied to production.

Question 18

The denominator activity represents the actual level of activity recorded for a period.

Question 19

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 fixed manufacturing overhead volume variance.

Question 20

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 actual direct labor-hours differ from standard hours allowed.

Question 21

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: $\begin{array}{llcc} \text {Denominator level of activity } &8,900\quad \text { \(\mathrm{MHs}\) }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$86,775\\ \text {Fixed overhead cost } &\$137,950\\ &\\ \text { } &\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{llcc} \text {Actual hours } &9,000\quad\text { MHs }\\ \text {Standard hours allowed for the actual output. } &8,977\quad\text { MHs }\\ \text {Actual total variable manufacturing overhead cost } &\$88,650\\ \text { Actual total fixed manufacturing overhead cost } &\$136,850\\\end{array}$


-What is the predetermined overhead rate to the nearest cent?

A)$25.25
B)$24.97
C)$25.34
D)$25.06

Question 22

Gayman Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company bases its predetermined overhead rate on 7,300 machine-hours.The company's total budgeted fixed manufacturing overhead is $28,470.In the most recent month,the total actual fixed manufacturing overhead was $28,940.The company actually worked 7,510 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 7,670 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

A)$819 favorable
B)$819 unfavorable
C)$470 unfavorable
D)$1,443 favorable

Question 23

Web Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours.During February,the company used a denominator activity of 80,000 machine-hours in computing its predetermined overhead rate.However,only 75,000 standard machine-hours were allowed for the month's actual production.If the fixed manufacturing overhead volume variance for February was $6,400 unfavorable,then the total budgeted fixed manufacturing overhead cost for the month was:

A)$96,000
B)$102,400
C)$100,000
D)$98,600

Question 24

Glasner Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $2.70 per machine-hour and fixed manufacturing overhead cost of $289,784 per period.If the denominator level of activity is 8,800 machine-hours,the variable element in the predetermined overhead rate would be:

A)$2.70
B)$35.63
C)$35.26
D)$32.93

Question 25

Hoops Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's predetermined overhead rate for fixed manufacturing overhead is $1.30 per machine-hour and the denominator level of activity is 3,700 machine-hours.In the most recent month,the total actual fixed manufacturing overhead was $4,450 and the company actually worked 4,000 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3,880 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

A)$390 favorable
B)$234 favorable
C)$156 unfavorable
D)$390 unfavorable

Question 26

Wiley Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $13.90 per machine-hour and fixed manufacturing overhead cost of $944,300 per period.If the denominator level of activity is 7,100 machine-hours,the predetermined overhead rate would be:

A)$1,390.00
B)$146.90
C)$13.90
D)$133.00

Question 27

Harris Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs).The company has provided the following data: $\begin{array}{c}\begin{array}{lll}\text { Denominator activity.....................................................}\\\text {Actual activity................................................................}\\\text {Standard hours allowed for the output............................}\\\text {Predetermined overhead rate \( \$(2 \) variable \( +\$ 3 \) fixed \( ) \)...}\end{array}\begin{array}{rr}5,000 & \text { DLHs } \\5,600 & \text { DLHs } \\5,500 & \text { DLHs } \\\$ 5 & \text { per DLH } \end{array}\end{array}$
The volume variance would be:

A)$2,500 F
B)$1,800 F
C)$1,800 U
D)$1,500 F

Question 28

Kuhlman 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: $\begin{array}{lcc}&\text { Original Budget }&\text { Actual Costs }\\\text { Variable overhead costs: }\\\text { Supplies.......................... } & \$ 4,480 & \$ 4,310 \\\text { Indirect labor.................. } & 3,360 & 3,630\\\text { Fixed overhead costs:} &\\ \text { Supervision..................... } &2,800&2,8100\\ \text { Utilities...........................} &7,840&7,820\\ \text { Factory depreciation....... } &\underline{14,280}&\underline{14,260}\\ \text { Total overhead cost......... } &\underline{\$32,760}&\underline{\$32,830}\end{array}$
The company based its original budget on 2,800 machine-hours.The company actually worked 2,730 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,860 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

A)$623 unfavorable
B)$534 unfavorable
C)$623 favorable
D)$534 favorable

Question 29

Mauve Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs).The following data pertain to last month: $\begin{array}{c}\begin{array}{lll}\text { Actual hours worked..........................................}\\\text { Budgeted fixed manufacturing overhead costs....}\\\text { Actual fixed manufacturing overhead costs........}\\\text { Standard hours allowed.....................................}\\\text { Predetermined overhead rate............................}\end{array}\begin{array}{lll}2,400 & \text { DLHs } \\\$ 10,000 & \\\$ 10,400 & \\2,500 & \text { DLHs } \\\$ 5 & \text { per DLH }\end{array}\end{array}$
The fixed manufacturing overhead budget variance is:

A)$400 U
B)$500 F
C)$300 F
D)$300 U

Question 30

Henley Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.For the month of January,the fixed manufacturing overhead volume variance was $2,220 favorable.The company uses a fixed manufacturing overhead rate of $1.85 per direct labor-hour.During January,the standard direct labor-hours allowed for the month's output:

A)exceeded denominator hours by 1,000.
B)fell short of denominator hours by 1,000.
C)exceeded denominator hours by 1,200.
D)fell short of denominator hour by 1,200.

Question 31

Guadalupe Manufacturing Company uses a standard cost system with direct labor-hours as the activity base for overhead.Last year,Guadalupe applied a total of $936,000 of fixed manufacturing overhead cost to the products it produced.The following data relate to production for the year: $\begin{array}{llcc} \text { Denominator activity level in direct labor-hours............... } &80,000 \\ \text { Standard direct labor-hours allowed for actual output...... } &75,000\\ \text { Actual number of direct labor-hours incurred................... } &78,000\\\end{array}$
What was Guadalupe's fixed manufacturing overhead volume variance?

A)$23,400 favorable
B)$62,400 unfavorable
C)$37,440 unfavorable
D)$58,500 favorable

Question 32

The fixed manufacturing overhead volume variance is due to:

A)inefficient or efficient use of whatever the denominator activity is.
B)inefficient or efficient use of overhead resources.
C)a difference between the denominator activity and the standard hours allowed for the actual output of the period.
D)a shift in the amount of hours required to produce the actual output.

Question 33

Hugh 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: $\begin{array}{c}\begin{array}{lll}\\\text {Fixed overhead costs:}\\\text {Supervision..........................}\\\text {Utilities...............................}\\\text {Factory depreciation...........}\\\text {Total fixed overhead cost....} \end{array}\begin{array}{c}\text { Original Budget }&\text { Actual Costs }\\\\\$ 12,800 & \$ 12,650 \\5,300 & 5,470 \\\underline{8,700} & \underline{9,050} \\ \underline{\$ 26,800} & \underline{\$ 27,170}\end{array}\end{array}$
The company based its original budget on 6,700 machine-hours.The company actually worked 6,810 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,940 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

A)$960 favorable
B)$370 unfavorable
C)$960 unfavorable
D)$370 favorable

Question 34

Mattern 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: $\begin{array}{llcc} &\text {Original Budget } & \text { Actual Costs }\\ \text {Fixed manufacturing overhead costs: } &\\ \text { Supervision } &\$16,470&\$16,930\\ \text {Utilities } &14,030&14,030\\ \text { Factory depreciation } &\underline{45,140}&\underline{45,520}\\ \text { Total fixed manufacturing overhead cost. } &\underline{\underline{\$75,640}}&\underline{\underline{\$76,480}}\\\end{array}$
The company based its original budget on 6,100 machine-hours.The company actually worked 5,710 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)$4,836 unfavorable
B)$4,836 favorable
C)$6,944 unfavorable
D)$6,944 favorable

Question 35

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

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

Question 36

Hart Company's labor standards call for 500 direct labor-hours to produce 250 units of product.During October the company worked 625 direct labor-hours and produced 300 units.The standard hours allowed for October would be:

A)625 hours
B)500 hours
C)600 hours
D)250 hours

Question 37

Sheeder Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $18.70 per machine-hour and fixed manufacturing overhead cost of $1,817,202 per period.If the denominator level of activity is 8,200 machine-hours,the fixed element in the predetermined overhead rate would be:

A)$18.70
B)$1,870.00
C)$240.31
D)$221.61

Question 38

Michetti Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below: $\begin{array}{c}\begin{array}{lll}\text { Variable overhead costs: }\\\text {Supplies}\\\text {Indirect labor}\\\text {Fixed overhead costs:}\\\text {Supervision}\\\text {Utilities.}\\\text {Factory depreciation.}\\\text {Total overhead cost.}\end{array}\begin{array}{lll}\text { Original Budget }&\text {Actual Costs }\\\\\$ 9,030 & \$ 8,520 \\24,510 & 23,510 \\\\13,000 & 13,420 \\5,100 & 5,520 \\\underline{7,700} &\underline{ 7,710} \\\underline{ \$ 59,340} &\underline{ \$ 58,680 } \end{array}\end{array}$


The company based its original budget on 4,300 machine-hours.The company actually worked 4,140 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 4,200 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

A)$660 favorable
B)$660 unfavorable
C)$850 unfavorable
D)$850 favorable

Question 39

Desormeaux 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 $21,600 and the actual fixed manufacturing overhead cost for the month was $21,120.The company based its original budget on 5,400 machine-hours.The standard hours allowed for the actual output of the month totaled 5,850 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

A)$1,800 favorable
B)$1,800 unfavorable
C)$480 favorable
D)$480 unfavorable

Question 40

The predetermined overhead rate (variable and fixed)is $7.50 per machine-hour and the denominator activity level is 135,000 machine-hours.If the variable portion of the predetermined overhead rate is $3.00 per machine-hour,then the budgeted fixed factory overhead for the year is:

A)$30,000
B)$607,500
C)$405,000
D)$1,012,500

Question 41

The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours.The standard cost card shows that 3 direct labor-hours are required per unit of product.For August,the company budgeted to work 90,000 direct labor-hours and to incur the following total manufacturing overhead costs: $\begin{array}{llcc} \text { Total variable manufacturing overhead costs......} &\$99,000\\ \text {Total fixed manufacturing overhead costs ........... } &\$118,800\\\end{array}$
During August,the company completed 28,000 units of product,worked 86,000 direct labor-hours,and incurred the following total manufacturing overhead costs: $\begin{array}{llcc} \text { Total variable manufacturing overhead costs......} &\$98,900\\ \text {Total fixed manufacturing overhead costs ........... } &\$115,300\\\end{array}$
The denominator activity in the predetermined overhead rate is 90,000 direct labor-hours.

-For August,the fixed manufacturing overhead volume variance is:

A)$4,300 U
B)$7,920 U
C)$4,980 F
D)$4,980 U

Question 42

Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. $\begin{array}{lc} &\text { Standard Cost} \\& \text { Per Sofa } \\ \text {Variable overhead } &\\ \text { (0.9 machine-hours \( @\$ 32.00 \) per machine-hour)..... } &\$28.80\\ \text { Fixed overhead } &\\ \text { (0.9 machine-hours \( @ \$ 58.00 \) per machine-hour).....} &\$52.20\\\end{array}$
Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours.The above standards were based on an expected annual volume of 20,000 sofas.The actual results last year were as follows: $\begin{array}{lr}\text { Number of sofas produced ........... } & 21,400 \\\text { Machine-hours incurred .............. } & 19,800 \\\text { Variable overhead cost ................. } & \$ 625,086 \\\text { Fixed overhead cost .................... } & \$ 1,105,000\end{array}$


-What was Mzimba's fixed manufacturing overhead volume variance?

A)$12,080 favorable
B)$42,920 unfavorable
C)$61,000 unfavorable
D)$73,080 favorable

Question 43

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: $\begin{array}{llcc} \text {Denominator level of activity } &8,900\quad \text { \(\mathrm{MHs}\) }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$86,775\\ \text {Fixed overhead cost } &\$137,950\\ &\\ \text { } &\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{llcc} \text {Actual hours } &9,000\quad\text { MHs }\\ \text {Standard hours allowed for the actual output. } &8,977\quad\text { MHs }\\ \text {Actual total variable manufacturing overhead cost } &\$88,650\\ \text { Actual total fixed manufacturing overhead cost } &\$136,850\\\end{array}$


-How much overhead was applied to products during the period to the nearest dollar?

A)$225,500
B)$227,250
C)$224,725
D)$226,669

Question 44

The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours.The standard cost card shows that 3 direct labor-hours are required per unit of product.For August,the company budgeted to work 90,000 direct labor-hours and to incur the following total manufacturing overhead costs: $\begin{array}{llcc} \text { Total variable manufacturing overhead costs......} &\$99,000\\ \text {Total fixed manufacturing overhead costs ........... } &\$118,800\\\end{array}$
During August,the company completed 28,000 units of product,worked 86,000 direct labor-hours,and incurred the following total manufacturing overhead costs: $\begin{array}{llcc} \text { Total variable manufacturing overhead costs......} &\$98,900\\ \text {Total fixed manufacturing overhead costs ........... } &\$115,300\\\end{array}$
The denominator activity in the predetermined overhead rate is 90,000 direct labor-hours.

-For August,the variable overhead rate variance is:

A)$4,300 F
B)$4,300 U
C)$6,500 F
D)$6,500 U

Question 45

The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours.The standard cost card shows that 3 direct labor-hours are required per unit of product.For August,the company budgeted to work 90,000 direct labor-hours and to incur the following total manufacturing overhead costs: $\begin{array}{llcc} \text { Total variable manufacturing overhead costs......} &\$99,000\\ \text {Total fixed manufacturing overhead costs ........... } &\$118,800\\\end{array}$
During August,the company completed 28,000 units of product,worked 86,000 direct labor-hours,and incurred the following total manufacturing overhead costs: $\begin{array}{llcc} \text { Total variable manufacturing overhead costs......} &\$98,900\\ \text {Total fixed manufacturing overhead costs ........... } &\$115,300\\\end{array}$
The denominator activity in the predetermined overhead rate is 90,000 direct labor-hours.

-For August,the variable overhead efficiency variance is:

A)$1,800 F
B)$0
C)$2,200 U
D)$2,200 F

Question 46

The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours.The standard cost card shows that 3 direct labor-hours are required per unit of product.For August,the company budgeted to work 90,000 direct labor-hours and to incur the following total manufacturing overhead costs: $\begin{array}{llcc} \text { Total variable manufacturing overhead costs......} &\$99,000\\ \text {Total fixed manufacturing overhead costs ........... } &\$118,800\\\end{array}$
During August,the company completed 28,000 units of product,worked 86,000 direct labor-hours,and incurred the following total manufacturing overhead costs: $\begin{array}{llcc} \text { Total variable manufacturing overhead costs......} &\$98,900\\ \text {Total fixed manufacturing overhead costs ........... } &\$115,300\\\end{array}$
The denominator activity in the predetermined overhead rate is 90,000 direct labor-hours.

-For August,the fixed manufacturing overhead budget variance is:

A)$3,500 F
B)$3,500 U
C)$3,200 F
D)$3,200 U

Question 47

Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. $\begin{array}{lc} &\text { Standard Cost} \\& \text { Per Sofa } \\ \text {Variable overhead } &\\ \text { (0.9 machine-hours \( @\$ 32.00 \) per machine-hour)..... } &\$28.80\\ \text { Fixed overhead } &\\ \text { (0.9 machine-hours \( @ \$ 58.00 \) per machine-hour).....} &\$52.20\\\end{array}$
Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours.The above standards were based on an expected annual volume of 20,000 sofas.The actual results last year were as follows: $\begin{array}{lr}\text { Number of sofas produced ........... } & 21,400 \\\text { Machine-hours incurred .............. } & 19,800 \\\text { Variable overhead cost ................. } & \$ 625,086 \\\text { Fixed overhead cost .................... } & \$ 1,105,000\end{array}$


-What was Mzimba's variable overhead efficiency variance?

A)$8,766 unfavorable
B)$15,552 unfavorable
C)$17,280 unfavorable
D)$51,200 favorable

Question 48

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: $\begin{array}{llcc} \text {Denominator level of activity } &8,900\quad \text { \(\mathrm{MHs}\) }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$86,775\\ \text {Fixed overhead cost } &\$137,950\\ &\\ \text { } &\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{llcc} \text {Actual hours } &9,000\quad\text { MHs }\\ \text {Standard hours allowed for the actual output. } &8,977\quad\text { MHs }\\ \text {Actual total variable manufacturing overhead cost } &\$88,650\\ \text { Actual total fixed manufacturing overhead cost } &\$136,850\\\end{array}$


-What was the variable overhead efficiency variance for the period to the nearest dollar?

A)$898 F
B)$1,875 U
C)$227 U
D)$224 U

Question 49

A furniture 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: $\begin{array}{llcc} \text {Denominator level of activity } &1,100\quad\text { DLHs }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$7,920\\ \text { Fixed overhead cost } &\$10,120\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 1,200& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } & 1,166 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 8,460 \\\text { Actual total fixed manufacturing overhead cost } & \$ 9.070\end{array}$


-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?

A)$1,050 F
B)$257 F
C)$1,657 U
D)$1,970 U

Question 50

Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: $\begin{array}{lcc}&\text { Standard Cost Per Hour } & \text { Standard Cost Per Vase }\\\text { Variable overhead ........ } & \$ 6.40 & \$ 5.76 \\\text { Fixed overhead .......... } & \$ 9.60 & \$ 8.64\end{array}$ The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: $\begin{array}{lr}\text { Number of vases produced........... } & 35,600 \\\text { Direct labor-hours incurred ........... } & 34,250 \\\text { Variable overhead cost ................ } & \$ 212,350 \\\text { Fixed overhead cost } \ldots \ldots \ldots \ldots \ldots \ldots \ldots . . . & \$ 338,000\end{array}$


-What was Wriphoff's variable overhead rate variance for last year?

A)$6,850 favorable
B)$7,294 unfavorable
C)$14,144 unfavorable
D)$15,070 unfavorable

Question 51

A furniture 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: $\begin{array}{llcc} \text {Denominator level of activity } &1,100\quad\text { DLHs }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$7,920\\ \text { Fixed overhead cost } &\$10,120\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 1,200& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } & 1,166 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 8,460 \\\text { Actual total fixed manufacturing overhead cost } & \$ 9.070\end{array}$


-How much overhead was applied to products during the period to the nearest dollar?

A)$19,680
B)$17,530
C)$18,040
D)$19,122

Question 52

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: $\begin{array}{llcc} \text {Denominator level of activity } &8,900\quad \text { \(\mathrm{MHs}\) }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$86,775\\ \text {Fixed overhead cost } &\$137,950\\ &\\ \text { } &\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{llcc} \text {Actual hours } &9,000\quad\text { MHs }\\ \text {Standard hours allowed for the actual output. } &8,977\quad\text { MHs }\\ \text {Actual total variable manufacturing overhead cost } &\$88,650\\ \text { Actual total fixed manufacturing overhead cost } &\$136,850\\\end{array}$


-What was the variable overhead rate variance for the period to the nearest dollar?

A)$1,875 U
B)$900 F
C)$900 U
D)$1,875 F

Question 53

A furniture 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: $\begin{array}{llcc} \text {Denominator level of activity } &1,100\quad\text { DLHs }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$7,920\\ \text { Fixed overhead cost } &\$10,120\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 1,200& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } & 1,166 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 8,460 \\\text { Actual total fixed manufacturing overhead cost } & \$ 9.070\end{array}$


-What was the fixed manufacturing overhead volume variance for the period to the nearest dollar?

A)$313 U
B)$607 F
C)$920 F
D)$513 F

Question 54

Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: $\begin{array}{lcc}&\text { Standard Cost Per Hour } & \text { Standard Cost Per Vase }\\\text { Variable overhead ........ } & \$ 6.40 & \$ 5.76 \\\text { Fixed overhead .......... } & \$ 9.60 & \$ 8.64\end{array}$ The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: $\begin{array}{lr}\text { Number of vases produced........... } & 35,600 \\\text { Direct labor-hours incurred ........... } & 34,250 \\\text { Variable overhead cost ................ } & \$ 212,350 \\\text { Fixed overhead cost } \ldots \ldots \ldots \ldots \ldots \ldots \ldots . . . & \$ 338,000\end{array}$


-What total amount of manufacturing overhead cost (variable and fixed)did Wriphoff apply to the 35,600 vases produced during last year?

A)$512,640
B)$548,000
C)$564,800
D)$569,600

Question 55

Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. $\begin{array}{lc} &\text { Standard Cost} \\& \text { Per Sofa } \\ \text {Variable overhead } &\\ \text { (0.9 machine-hours \( @\$ 32.00 \) per machine-hour)..... } &\$28.80\\ \text { Fixed overhead } &\\ \text { (0.9 machine-hours \( @ \$ 58.00 \) per machine-hour).....} &\$52.20\\\end{array}$
Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours.The above standards were based on an expected annual volume of 20,000 sofas.The actual results last year were as follows: $\begin{array}{lr}\text { Number of sofas produced ........... } & 21,400 \\\text { Machine-hours incurred .............. } & 19,800 \\\text { Variable overhead cost ................. } & \$ 625,086 \\\text { Fixed overhead cost .................... } & \$ 1,105,000\end{array}$


-What was Mzimba's variable overhead rate variance?

A)$8,514 favorable
B)$8,766 unfavorable
C)$17,280 unfavorable
D)$54,846 unfavorable

Question 56

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: $\begin{array}{llcc} \text {Denominator level of activity } &8,900\quad \text { \(\mathrm{MHs}\) }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$86,775\\ \text {Fixed overhead cost } &\$137,950\\ &\\ \text { } &\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{llcc} \text {Actual hours } &9,000\quad\text { MHs }\\ \text {Standard hours allowed for the actual output. } &8,977\quad\text { MHs }\\ \text {Actual total variable manufacturing overhead cost } &\$88,650\\ \text { Actual total fixed manufacturing overhead cost } &\$136,850\\\end{array}$


-What was the fixed manufacturing overhead volume variance for the period to the nearest dollar?

A)$1,174 F
B)$1,194 F
C)$1,550 F
D)$357 U

Question 57

A furniture 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: $\begin{array}{llcc} \text {Denominator level of activity } &1,100\quad\text { DLHs }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$7,920\\ \text { Fixed overhead cost } &\$10,120\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 1,200& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } & 1,166 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 8,460 \\\text { Actual total fixed manufacturing overhead cost } & \$ 9.070\end{array}$


-What is the predetermined overhead rate to the nearest cent?

A)$15.94
B)$16.40
C)$14.61
D)$15.03

Question 58

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: $\begin{array}{llcc} \text {Denominator level of activity } &8,900\quad \text { \(\mathrm{MHs}\) }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &\$86,775\\ \text {Fixed overhead cost } &\$137,950\\ &\\ \text { } &\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{llcc} \text {Actual hours } &9,000\quad\text { MHs }\\ \text {Standard hours allowed for the actual output. } &8,977\quad\text { MHs }\\ \text {Actual total variable manufacturing overhead cost } &\$88,650\\ \text { Actual total fixed manufacturing overhead cost } &\$136,850\\\end{array}$


-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?

A)$1,100 F
B)$350 F
C)$2,294 U
D)$2,650 U

Question 59

Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: $\begin{array}{lcc}&\text { Standard Cost Per Hour } & \text { Standard Cost Per Vase }\\\text { Variable overhead ........ } & \$ 6.40 & \$ 5.76 \\\text { Fixed overhead .......... } & \$ 9.60 & \$ 8.64\end{array}$ The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: $\begin{array}{lr}\text { Number of vases produced........... } & 35,600 \\\text { Direct labor-hours incurred ........... } & 34,250 \\\text { Variable overhead cost ................ } & \$ 212,350 \\\text { Fixed overhead cost } \ldots \ldots \ldots \ldots \ldots \ldots \ldots . . . & \$ 338,000\end{array}$


-What was Wriphoff's fixed manufacturing overhead budget variance for last year?

A)$7,600 favorable
B)$9,200 unfavorable
C)$30,416 unfavorable
D)$38,016 unfavorable

Question 60

Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: $\begin{array}{lcc}&\text { Standard Cost Per Hour } & \text { Standard Cost Per Vase }\\\text { Variable overhead ........ } & \$ 6.40 & \$ 5.76 \\\text { Fixed overhead .......... } & \$ 9.60 & \$ 8.64\end{array}$ The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: $\begin{array}{lr}\text { Number of vases produced........... } & 35,600 \\\text { Direct labor-hours incurred ........... } & 34,250 \\\text { Variable overhead cost ................ } & \$ 212,350 \\\text { Fixed overhead cost } \ldots \ldots \ldots \ldots \ldots \ldots \ldots . . . & \$ 338,000\end{array}$


-The amount of fixed manufacturing overhead cost contained in the company's flexible budget for manufacturing overhead for September was:

A)$61,400
B)$57,000
C)$60,000
D)$58,550

Question 61

The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 6,400& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } & 6,273 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 58,110 \\\end{array}$



-What is the predetermined fixed manufacturing overhead rate to the nearest cent?

A)$9.25
B)$9.55
C)$9.37
D)$9.08

Question 62

Labossiere Corporation has provided the following data for November. $\begin{array}{llcc} \text {Denominator level of activity........................... } &7,000& \text {machine-hours } \\ \text { Budgeted fixed manufacturing overhead costs } &\$204,400\\ \text { Fixed portion of the predetermined overhead } &\\ \text { rate................................................................. } &\$29.20& \text { per machine-hour } \\ \text {Actual level of activity..................................... } &7,100& \text { machine-hours } \\ \text { Standard machine-hours allowed for the actual } &\\ \text {output.............................................................. } &6,700& \text { machine-hours } \\ \text {Actual fixed manufacturing overhead costs...... } &\$209,990\\\end{array}$


-The budget variance for November is:

A)$5,590 U
B)$2,920 F
C)$5,590 F
D)$2,920 U

Question 63

A manufacturer of industrial 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: $\begin{array}{llcc} \text {Denominator level of activity................................... } &5,100&\text { MHs }\\ \text {Overhead costs at the denominator activity level: } &\\ \text {Variable overhead cost............................................. } &\$12,495\\ \text { Fixed overhead cost ................................................} &\$62,220\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } &5,300& \text { MHs } \\\text { Standard hours allowed for the actual output............... } &5,160 &\text { MHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 12,985 \\\text { Actual total fixed manufacturing overhead cost } & \$60,270\end{array}$

-What is the predetermined overhead rate to the nearest cent?

A)$14.10
B)$13.82
C)$14.65
D)$14.36

Question 64

The following data for August has been provided by Mirabelli Corporation. $\begin{array}{llcc} \text {Denominator level of activity........................... } &3,700& \text {machine-hours } \\ \text { Budgeted fixed manufacturing overhead costs } &\$85,840\\ \text {Actual level of activity..................................... } &4,00& \text { machine-hours } \\ \text { Standard machine-hours allowed for the actual } &\\ \text {output.............................................................. } &3,800& \text { machine-hours } \\ \text {Actual fixed manufacturing overhead costs...... } &\$88,080\\\end{array}$



-The volume variance for August is:

A)$6,960 F
B)$6,960 U
C)$2,320 F
D)$2,320 U

Question 65

The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 6,400& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } & 6,273 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 58,110 \\\end{array}$



-How much fixed manufacturing overhead was applied to products during the period to the nearest dollar?

A)$59,210
B)$59,907
C)$61,120
D)$58,110

Question 66

Wintersmith Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $278,124 per period.
If the denominator level of activity is 4,300 machine-hours,the predetermined overhead rate would be:

A)$76.28
B)$64.68
C)$1,160.00
D)$11.60

Question 67

Labossiere Corporation has provided the following data for November. $\begin{array}{llcc} \text {Denominator level of activity........................... } &7,000& \text {machine-hours } \\ \text { Budgeted fixed manufacturing overhead costs } &\$204,400\\ \text { Fixed portion of the predetermined overhead } &\\ \text { rate................................................................. } &\$29.20& \text { per machine-hour } \\ \text {Actual level of activity..................................... } &7,100& \text { machine-hours } \\ \text { Standard machine-hours allowed for the actual } &\\ \text {output.............................................................. } &6,700& \text { machine-hours } \\ \text {Actual fixed manufacturing overhead costs...... } &\$209,990\\\end{array}$


-The volume variance for November is:

A)$8,760 U
B)$2,920 F
C)$2,920 U
D)$8,760 F

Question 68

Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours.The company has provided the following data concerning its fixed manufacturing overhead costs in March: $\begin{array}{llcc} \text {Denominator hours.................................... } &15,000&\text { hours }\\ \text {Actual hours worked..........................} &14,000&\text { hours }\\ \text {Standard hours allowed for the output................... } &12,000&\text { hours }\\ \text { Flexible budget fixed manufacturing overhead cost.....} &\$45,000\\ \text { Actual fixed manufacturing overhead costs................}&\$48,000\end{array}$


-The fixed manufacturing overhead volume variance is:

A)$3,000 U
B)$3,000 F
C)$9,000 U
D)$6,000 U

Question 69

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: $\begin{array}{llcc} \text {Denominator level of activity................ } &3,900&\text {DLHs } \\ \text { Fixed overhead cost............................. } &\$49,530\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 3,800& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } &3,861 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 50,230\\\end{array}$


-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?

A)$806 U
B)$700 U
C)$1,970 F
D)$1,195 F

Question 70

The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 6,400& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } & 6,273 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 58,110 \\\end{array}$



-What was the fixed manufacturing overhead volume variance for the period to the nearest dollar?

A)$1,910 F
B)$697 F
C)$676 F
D)$1,213 U

Question 71

The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 6,400& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } & 6,273 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 58,110 \\\end{array}$



-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?

A)$1,100 F
B)$1,153 F
C)$1,797 U
D)$3,010 U

Question 72

Wolle Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $298,936 per period.
If the denominator level of activity is 4,300 machine-hours,the fixed element in the predetermined overhead rate would be:

A)$81.12
B)$11.60
C)$69.52
D)$1,160.00

Question 73

The following data for August has been provided by Mirabelli Corporation. $\begin{array}{llcc} \text {Denominator level of activity........................... } &3,700& \text {machine-hours } \\ \text { Budgeted fixed manufacturing overhead costs } &\$85,840\\ \text {Actual level of activity..................................... } &4,00& \text { machine-hours } \\ \text { Standard machine-hours allowed for the actual } &\\ \text {output.............................................................. } &3,800& \text { machine-hours } \\ \text {Actual fixed manufacturing overhead costs...... } &\$88,080\\\end{array}$



-The budget variance for August is:

A)$6,960 F
B)$2,240 U
C)$2,240 F
D)$6,960 U

Question 74

Wintersmith Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $278,124 per period.
If the denominator level of activity is 4,200 machine-hours,the variable element in the predetermined overhead rate would be:

A)$11.60
B)$66.22
C)$76.28
D)$77.82

Question 75

Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours.The company has provided the following data concerning its fixed manufacturing overhead costs in March: $\begin{array}{llcc} \text {Denominator hours.................................... } &15,000&\text { hours }\\ \text {Actual hours worked..........................} &14,000&\text { hours }\\ \text {Standard hours allowed for the output................... } &12,000&\text { hours }\\ \text { Flexible budget fixed manufacturing overhead cost.....} &\$45,000\\ \text { Actual fixed manufacturing overhead costs................}&\$48,000\end{array}$


-The fixed manufacturing overhead budget variance is:

A)$1,000 U
B)$3,000 U
C)$2,000 U
D)$2,000 F

Question 76

Wintersmith Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $278,124 per period.
If the denominator level of activity is 4,200 machine-hours,the fixed element in the predetermined overhead rate would be:

A)$11.60
B)$1,160.00
C)$66.22
D)$77.82

Question 77

A manufacturer of industrial 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: $\begin{array}{llcc} \text {Denominator level of activity................................... } &5,100&\text { MHs }\\ \text {Overhead costs at the denominator activity level: } &\\ \text {Variable overhead cost............................................. } &\$12,495\\ \text { Fixed overhead cost ................................................} &\$62,220\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } &5,300& \text { MHs } \\\text { Standard hours allowed for the actual output............... } &5,160 &\text { MHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 12,985 \\\text { Actual total fixed manufacturing overhead cost } & \$60,270\end{array}$

-How much overhead was applied to products during the period to the nearest dollar?

A)$77,645
B)$73,255
C)$74,715
D)$75,594

Question 78

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: $\begin{array}{llcc} \text {Denominator level of activity................ } &3,900&\text {DLHs } \\ \text { Fixed overhead cost............................. } &\$49,530\\\end{array}$
The following data pertain to operations for the most recent period: $\begin{array}{lrc}\text { Actual hours ................................................ } & 3,800& \text { DLHs } \\\text { Standard hours allowed for the actual output............... } &3,861 &\text { DLHs }\\\text { Actual total variable manufacturing overhead cost....... }&\$ 50,230\\\end{array}$


-What was the fixed manufacturing overhead volume variance for the period to the nearest dollar?

A)$507 U
B)$775 F
C)$495 U
D)$1,270 U

Question 79

Wolle Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $298,936 per period.
If the denominator level of activity is 4,400 machine-hours,the predetermined overhead rate would be:

A)$67.94
B)$79.54
C)$1,160.00
D)$11.60

Question 80

Wolle Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $298,936 per period.
If the denominator level of activity is 4,300 machine-hours,the variable element in the predetermined overhead rate would be:

A)$11.60
B)$79.54
C)$69.52
D)$81.12