Exam 18:Flexible Budgets, Standard Costs, and Variance Analysis

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 volume variance will be favorable.

The variable overhead rate variance for the period was closest to:

There can be no volume variance for variable manufacturing overhead.

Teall 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?

The budget variance for May is:

Modine Corporation has provided the following data for September. Required: a.Compute the budget variance for September.Show your work! b.Compute the volume variance for September.Show your work!

The overhead applied to products during the period was closest to:

The fixed manufacturing overhead volume variance for the period is closest to:

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.

The fixed manufacturing overhead cost applied to products was:

The fixed overhead volume variance is:

The fixed overhead volume variance is:

The fixed manufacturing overhead volume variance for the period is closest to:

Diehl Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.The company's total applied factory overhead was $315,000 last year when the company used 32,000 direct labor-hours as the denominator activity.If the variable factory overhead rate was $8 per direct labor-hour, and if 30,000 standard direct labor-hours were allowed for the output of the year, then the total budgeted fixed factory overhead for the year must have been:

The volume variance was:

The variable overhead rate variance for April was:

The variable overhead rate variance is:

Azzurra Corporation manufactures computer chips used in aircraft and automobiles.Manufacturing overhead at Azzurra is applied to production on the basis of standard machine-hours.Which overhead variance(s)at Azzurra would be affected in an unfavorable manner if fire and theft insurance rates increase by 25% unexpectedly during the period?

Ronda Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead.Last year, Ronda incurred $840,000 of fixed manufacturing overhead and generated a $42,000 favorable fixed manufacturing overhead budget variance.The following data relate to last year's operations: What amount of total fixed manufacturing overhead cost did Ronda apply to production last year?

The total manufacturing overhead is underapplied or overapplied by how much?