Question 1

The variable component of the predetermined overhead rate is closest to:

Accepted Answer

A) $1.76 per labor-hour 
B) $2.36 per labor-hour 
C) $2.20 per labor-hour 
D) $1.94 per labor-hour 
A) $1.76 per labor-hour 
B) $2.36 per labor-hour 
C) $2.20 per labor-hour 
D) $1.94 per labor-hour

Question 2

The budgeted fixed manufacturing overhead cost was:

Accepted Answer

A) $15,200 
B) $16,000 
C) $16,550 
D) $13,700 
E) $14,400 
A) $15,200 
B) $16,000 
C) $16,550 
D) $13,700 
E) $14,400

Question 3

Khat 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:   Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.

Accepted Answer

Predetermined overhe

Question 4

The fixed overhead volume variance is:

Accepted Answer

A) $400 F 
B) $19,600 F 
C) $400 U 
D) $19,600 U 
A) $400 F 
B) $19,600 F 
C) $400 U 
D) $19,600 U

Question 5

Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs).The denominator activity level is 60,000 direct labor-hours, or 300,000 units.
• A standard cost card for the company's product follows:   • Actual data for the year follow:   Required:
a.Compute the variable overhead rate and efficiency variances.
b.Compute the fixed manufacturing overhead budget and volume variances.

Accepted Answer

a.Variable overhead variances:

Variable

Question 6

If the denominator level of activity is 6,100 machine-hours, the variable component in the predetermined overhead rate would be:

Accepted Answer

A) $5.20 per machine-hour 
B) $44.24 per machine-hour 
C) $39.68 per machine-hour 
D) $44.88 per machine-hour 
A) $5.20 per machine-hour 
B) $44.24 per machine-hour 
C) $39.68 per machine-hour 
D) $44.88 per machine-hour

Question 7

The variable overhead efficiency variance is:

Accepted Answer

A) $2,907 U 
B) $2,250 U 
C) $2,907 F 
D) $2,250 F 
A) $2,907 U 
B) $2,250 U 
C) $2,907 F 
D) $2,250 F

Question 8

The predetermined overhead rate is closest to:

Accepted Answer

A) $19.39 per labor-hour 
B) $16.34 per labor-hour 
C) $11.41 per labor-hour 
D) $9.61 per labor-hour 
A) $19.39 per labor-hour 
B) $16.34 per labor-hour 
C) $11.41 per labor-hour 
D) $9.61 per labor-hour

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Kiker 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 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) $9.57 per machine-hour 
B) $12.11 per machine-hour 
C) $7.57 per machine-hour 
D) $15.32 per machine-hour 
A) $9.57 per machine-hour 
B) $12.11 per machine-hour 
C) $7.57 per machine-hour 
D) $15.32 per machine-hour

Question 11

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 12

The variable overhead efficiency variance for April was:

Accepted Answer

A) $15,000 Unfavorable 
B) $23,000 Unfavorable 
C) $38,000 Favorable 
D) $38,000 Unfavorable 
A) $15,000 Unfavorable 
B) $23,000 Unfavorable 
C) $38,000 Favorable 
D) $38,000 Unfavorable

Question 13

The fixed overhead budget variance is:

Accepted Answer

A) $13,000 F 
B) $13,000 U 
C) $52,195 F 
D) $52,195 U 
A) $13,000 F 
B) $13,000 U 
C) $52,195 F 
D) $52,195 U

Question 14

The fixed overhead budget variance is:

Accepted Answer

A) $16,000 F 
B) $12,234 F 
C) $12,234 U 
D) $16,000 U 
A) $16,000 F 
B) $12,234 F 
C) $12,234 U 
D) $16,000 U

Question 15

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

Accepted Answer

A) $3,595 U 
B) $550 F 
C) $2,763 U 
D) $784 F 
A) $3,595 U 
B) $550 F 
C) $2,763 U 
D) $784 F

Question 16

Alapai 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?

Accepted Answer

A) $3,720 Favorable 
B) $2,280 Unfavorable 
C) $1,840 Favorable 
D) $1,880 Unfavorable 
A) $3,720 Favorable 
B) $2,280 Unfavorable 
C) $1,840 Favorable 
D) $1,880 Unfavorable

Question 17

The fixed overhead volume variance is:

Accepted Answer

A) $43,560 U 
B) $43,560 F 
C) $29,560 F 
D) $29,560 U 
A) $43,560 U 
B) $43,560 F 
C) $29,560 F 
D) $29,560 U

Question 18

If the denominator level of activity is 6,100 machine-hours, the fixed component in the predetermined overhead rate would be:

Accepted Answer

A) $520.00 per machine-hour 
B) $39.68 per machine-hour 
C) $5.20 per machine-hour 
D) $44.88 per machine-hour 
A) $520.00 per machine-hour 
B) $39.68 per machine-hour 
C) $5.20 per machine-hour 
D) $44.88 per machine-hour

Question 19

The total of the overhead variances is:

Accepted Answer

A) $13,888 F 
B) $13,888 U 
C) $38,462 F 
D) $38,462 U 
A) $13,888 F 
B) $13,888 U 
C) $38,462 F 
D) $38,462 U

Question 20

Nadelson 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:   The variable component of the predetermined overhead rate is closest to:

Accepted Answer

A) $1.26 per labor-hour 
B) $1.20 per labor-hour 
C) $1.64 per labor-hour 
D) $1.57 per labor-hour 
A) $1.26 per labor-hour 
B) $1.20 per labor-hour 
C) $1.64 per labor-hour 
D) $1.57 per labor-hour

The variable component of the predetermined overhead rate is closest to:

The budgeted fixed manufacturing overhead cost was:

The fixed overhead volume variance is:

If the denominator level of activity is 6,100 machine-hours, the variable component in the predetermined overhead rate would be:

The variable overhead efficiency variance is:

The predetermined overhead rate is closest to:

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

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?

The variable overhead efficiency variance for April was:

The fixed overhead budget variance is:

The fixed overhead budget variance is:

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

The fixed overhead volume variance is:

If the denominator level of activity is 6,100 machine-hours, the fixed component in the predetermined overhead rate would be:

The total of the overhead variances is:

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Cost-Volume-Profit Relationships

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Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

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Statement of Cash Flows

Financial Statement Analysis

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Cost-Volume-Profit Relationships

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A Capital Budgeting Decisions

A Statement of Cash Flows

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

The variable component of the predetermined overhead rate is closest to:

The budgeted fixed manufacturing overhead cost was:

The fixed overhead volume variance is:

If the denominator level of activity is 6,100 machine-hours, the variable component in the predetermined overhead rate would be:

The variable overhead efficiency variance is:

The predetermined overhead rate is closest to:

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

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?

The variable overhead efficiency variance for April was:

The fixed overhead budget variance is:

The fixed overhead budget variance is:

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

The fixed overhead volume variance is:

If the denominator level of activity is 6,100 machine-hours, the fixed component in the predetermined overhead rate would be:

The total of the overhead variances is:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters