Exam 13: Overhead and Marketing Variances

Karpoff Kremes (KK)planned to sell 40,000 Kings at $20 each and 20,000 Kweens at $15 each.Actual sales of the former were 45,000 and 25,000 of the latter,at $19 and $16 respectively. Which is true of KK?

Humphrey Manufacturing has the following standards for its production department: Materials Direct labor Variable overhead Fixed overhead Total cost per lot 10 pounds at \ 2.40 / 1b 0.5 hour at\ 16.00 / hr 0.5 hour at \ 24.00 / hr 0.5 hour at\ 43.20 / hr Per finished lot of product \ 24.00 8.00 12.00 Overhead is assigned to products based on standard direct labor hours.Humphrey budgeted 10,000 finished lots for the period,9,810 were actually produced.Actual overhead was $340,000 and actual direct labor hours were 3,950.What is Humphrey's overhead efficiency variance?

Boris Bangles planned to sell 280,000 banjos at $400 each,but actually sold 250,000 at $425 each.Which is true of BB's price variances?

Karpoff Kremes (KK)planned to sell 40,000 Kings at $20 each and 20,000 Kweens at $15 each.Actual sales of the former were 45,000 and 25,000 of the latter,at $19 and $16 respectively. Which is true of KK's sales variance?

Which of these is true?

Wendy Wall (WW)makes wall units.For the year,the following details have been budgeted.Output,10,000 units;factory overhead $1,250,000,of which 60% is variable.Each wall unit should take 2.5 hours of direct labor to produce.WW produced 9,500 units with 24,000 DLH used and $1,175,000 actual overhead was incurred.Overhead is allocated based on direct labor hours (DLH). What is true of Wendy's overhead variances?

Wendy Wall (WW)makes wall units.For the year,the following details have been budgeted.Output,10,000 units;factory overhead $1,250,000,of which 60% is variable.Each wall unit should take 2.5 hours of direct labor to produce.WW produced 9,500 units with 24,000 DLH used and $1,175,000 actual overhead was incurred.Overhead is allocated based on direct labor hours (DLH). What is Wendy's total overhead variance?

Karpoff Kremes (KK)planned to sell 40,000 Kings at $20 each and 20,000 Kweens at $15 each.Actual sales of the former were 45,000 and 25,000 of the latter,at $19 and $16 respectively. Which is true of KK's mix variance? (Do not round your intermediate calculations. )

Wendy Wall (WW)makes wall units.For the year,the following details have been budgeted.Output,10,000 units;factory overhead $1,250,000,of which 60% is variable.Each wall unit should take 2.5 hours of direct labor to produce.WW produced 9,500 units with 24,000 DLH used and $1,175,000 actual overhead was incurred.Overhead is allocated based on direct labor hours (DLH). What is Wendy's total overhead absorbed?

The overhead volume variance:

Which of these is true?

Wendy Wall (WW)makes wall units.For the year,the following details have been budgeted.Output,10,000 units;factory overhead $1,250,000,of which 60% is variable.Each wall unit should take 2.5 hours of direct labor to produce.WW produced 9,500 units with 24,000 DLH used and $1,175,000 actual overhead was incurred.Overhead is allocated based on direct labor hours (DLH). What is the correct overhead absorption rate (to nearest cent)?

Boris Bangles planned to sell 280,000 banjos at $400 each,but actually sold 250,000 at $425 each.Which is true of BB's quantity variances?

Humphrey Manufacturing has the following standards for its production department: Materials Direct labor Variable overhead Fixed overhead Total cost per lot 10 pounds at \ 2.40 / 1b 0.5 hour at\ 16.00 / hr 0.5 hour at \ 24.00 / hr 0.5 hour at\ 43.20 / hr Per finished lot of product \ 24.00 8.00 12.00 Overhead is assigned to products based on standard direct labor hours.Humphrey budgeted 10,000 finished lots for the period,9,810 were actually produced.Actual overhead was $340,000 and actual direct labor hours were 3,950.What is Humphrey's overhead spending variance?