Question 1

The manufacturing overhead variance that is a measure of capacity utilization is:

Accepted Answer

A)  the overhead rate variance. 
B)  the overhead efficiency variance. 
C)  the overhead budget variance. 
D)  the overhead volume variance. 
A)  the overhead rate variance. 
B)  the overhead efficiency variance. 
C)  the overhead budget variance. 
D)  the overhead volume variance.

Question 2

Brister Incorporated has provided the following data concerning its overhead variances for the most recent period:
  The total manufacturing overhead is underapplied or overapplied by how much?

Accepted Answer

A)  $7,136 Overapplied 
B)  $7,136 Underapplied 
C)  $27,296 Overapplied 
D)  $27,296 Underapplied 
A)  $7,136 Overapplied 
B)  $7,136 Underapplied 
C)  $27,296 Overapplied 
D)  $27,296 Underapplied

Question 3

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 a significant amount of glue is being wasted by inexperienced direct labor workers?

Accepted Answer

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

Question 4

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. The amount of fixed manufacturing overhead that Dori would apply to finished production would be:

Accepted Answer

A)  the actual direct labor-hours times the standard fixed manufacturing overhead rate per direct labor-hour. 
B)  the standard hours allowed for the actual units of finished output times the standard fixed manufacturing overhead rate per direct labor-hour. 
C)  the standard units of output for the actual direct labor-hours worked times the standard fixed manufacturing overhead rate per unit of output. 
D)  the actual fixed manufacturing overhead cost per direct labor-hour times the standard hours allowed. 
A)  the actual direct labor-hours times the standard fixed manufacturing overhead rate per direct labor-hour. 
B)  the standard hours allowed for the actual units of finished output times the standard fixed manufacturing overhead rate per direct labor-hour. 
C)  the standard units of output for the actual direct labor-hours worked times the standard fixed manufacturing overhead rate per unit of output. 
D)  the actual fixed manufacturing overhead cost per direct labor-hour times the standard hours allowed.

Question 5

Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs)at $4.60 per MH.The company had budgeted its fixed manufacturing overhead cost at $65,000 for the month.During the month,the actual total variable manufacturing overhead was $22,080 and the actual total fixed manufacturing overhead was $63,000.The actual level of activity for the period was 4,600 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

Accepted Answer

A)  $1,080 Unfavorable 
B)  $1,080 Favorable 
C)  $920 Unfavorable 
D)  $920 Favorable 
A)  $1,080 Unfavorable 
B)  $1,080 Favorable 
C)  $920 Unfavorable 
D)  $920 Favorable

Question 6

Stallbaumer Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
   Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.

Accepted Answer

Predetermined overhe

Question 7

Surma Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
  The fixed component of the predetermined overhead rate is closest to:

Accepted Answer

A)  $5.43 per machine-hour 
B)  $5.57 per machine-hour 
C)  $6.51 per machine-hour 
D)  $6.68 per machine-hour 
A)  $5.43 per machine-hour 
B)  $5.57 per machine-hour 
C)  $6.51 per machine-hour 
D)  $6.68 per machine-hour

Question 8

Goolden 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 $58,000 for the month and its level of activity at 2,500 MHs.The actual total fixed manufacturing overhead was $61,200 for the month and the actual level of activity was 2,600 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

Accepted Answer

A)  $880 Unfavorable 
B)  $880 Favorable 
C)  $3,200 Favorable 
D)  $3,200 Unfavorable 
A)  $880 Unfavorable 
B)  $880 Favorable 
C)  $3,200 Favorable 
D)  $3,200 Unfavorable

Question 9

The Marlow Corporation uses a standard cost system and applies manufacturing overhead to products on the basis of standard direct labor-hours.The denominator activity is set at 40,000 direct labor-hours per year.Budgeted fixed manufacturing overhead cost is $40,000 per year,and 0.5 direct labor-hours are required to manufacture one unit.The standard cost card would indicate fixed manufacturing overhead cost per unit to be:

Accepted Answer

A)  $1.00 
B)  $2.00 
C)  $1.50 
D)  $0.50 
A)  $1.00 
B)  $2.00 
C)  $1.50 
D)  $0.50

Question 10

(Appendix 10A) Arca Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
  
-The variable component of the predetermined overhead rate is closest to:

Accepted Answer

A)  $0.44 per machine-hour 
B)  $1.29 per machine-hour 
C)  $0.33 per machine-hour 
D)  $0 .44 per machine-hour 
A)  $0.44 per machine-hour 
B)  $1.29 per machine-hour 
C)  $0.33 per machine-hour 
D)  $0 .44 per machine-hour

Question 11

(Appendix 10A) Arca Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
  
-The variable overhead rate variance is:

Accepted Answer

A)  $18,955 F 
B)  $19,125 F 
C)  $19,125 U 
D)  $18,955 U 
A)  $18,955 F 
B)  $19,125 F 
C)  $19,125 U 
D)  $18,955 U

Question 12

(Appendix 10A) Arca Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
  
-The total manufacturing overhead is underapplied or overapplied by how much?

Accepted Answer

A)  $38,462 Underapplied 
B)  $13,888 Underapplied 
C)  $38,462 Overapplied 
D)  $13,888 Overapplied 
A)  $38,462 Underapplied 
B)  $13,888 Underapplied 
C)  $38,462 Overapplied 
D)  $13,888 Overapplied

Question 13

Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.If the denominator level of activity is 4,700 machine-hours,the predetermined overhead rate would be:

Accepted Answer

A)  $11.70 
B)  $72.68 
C)  $84.38 
D)  $1,170.00 
A)  $11.70 
B)  $72.68 
C)  $84.38 
D)  $1,170.00

Question 14

(Appendix 10A) Vaden Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
  
-The fixed component of the predetermined overhead rate is closest to:

Accepted Answer

A)  $11.14 per labor-hour 
B)  $7.61 per labor-hour 
C)  $7.96 per labor-hour 
D)  $10.66 per labor-hour 
A)  $11.14 per labor-hour 
B)  $7.61 per labor-hour 
C)  $7.96 per labor-hour 
D)  $10.66 per labor-hour

Question 15

There can be no volume variance for variable manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 16

(Appendix 10A) A manufacturing company 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:

Accepted Answer

A)  $1,870 F 
B)  $1,928 F 
C)  $643 U 
D)  $2,570 F 
A)  $1,870 F 
B)  $1,928 F 
C)  $643 U 
D)  $2,570 F

Question 17

(Appendix 10A) Kisler Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
  
-The predetermined overhead rate is closest to:

Accepted Answer

A)  $4.67 per machine-hour 
B)  $6.96 per machine-hour 
C)  $6.67 per machine-hour 
D)  $9.95 per machine-hour 
A)  $4.67 per machine-hour 
B)  $6.96 per machine-hour 
C)  $6.67 per machine-hour 
D)  $9.95 per machine-hour

Question 18

Pickell Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
   Required:
a.Determine the variable overhead rate variance for the year.
b.Determine the variable overhead efficiency variance for the year.
c.Determine the fixed overhead budget variance for the year.
d.Determine the fixed overhead volume variance for the year.
e.Determine whether overhead was underapplied or overapplied for the year and by how much.

Accepted Answer

a.Variable component of the predetermine

Question 19

(Appendix 10A) Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows:
Standard overhead costs per unit:
Variable portion: 2 DLHs × $3 per DLH = $6
Fixed portion: 2 DLHs × $5 per DLH = $10
The following data pertain to operations in April:
  
-The fixed manufacturing overhead budget variance for April was:

Accepted Answer

A)  $40,000 Unfavorable 
B)  $40,000 Favorable 
C)  $60,000 Favorable 
D)  $60,000 Unfavorable 
A)  $40,000 Unfavorable 
B)  $40,000 Favorable 
C)  $60,000 Favorable 
D)  $60,000 Unfavorable

Question 20

(Appendix 10A) Stopyra Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
  
-The variable overhead rate variance is:

Accepted Answer

A)  $6,052 U 
B)  $6,052 F 
C)  $6,528 F 
D)  $6,528 U 
A)  $6,052 U 
B)  $6,052 F 
C)  $6,528 F 
D)  $6,528 U

The manufacturing overhead variance that is a measure of capacity utilization is:

Brister Incorporated has provided the following data concerning its overhead variances for the most recent period: The total manufacturing overhead is underapplied or overapplied by how much?

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. The amount of fixed manufacturing overhead that Dori would apply to finished production would be:

Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.If the denominator level of activity is 4,700 machine-hours,the predetermined overhead rate would be:

There can be no volume variance for variable manufacturing overhead.

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

Filters

Exam 24: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

The manufacturing overhead variance that is a measure of capacity utilization is:

Brister Incorporated has provided the following data concerning its overhead variances for the most recent period: The total manufacturing overhead is underapplied or overapplied by how much?

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. The amount of fixed manufacturing overhead that Dori would apply to finished production would be:

Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.If the denominator level of activity is 4,700 machine-hours,the predetermined overhead rate would be:

There can be no volume variance for variable manufacturing overhead.

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

Filters