Question 1

An unfavorable volume variance means that the company operated at an activity level greater than that planned for the period.

Accepted Answer

A) True 
 B)False

Question 2

The fixed manufacturing overhead applied to products during the period is closest to:

Accepted Answer

A) $58,870 
B) $61,083 
C) $61,915 
D) $58,320 
A) $58,870 
B) $61,083 
C) $61,915 
D) $58,320

Question 3

The denominator activity level in direct labor-hours used by Chuba in setting the predetermined overhead rate was:

Accepted Answer

A) 7,600 hours 
B) 7,800 hours 
C) 8,000 hours 
D) 7,200 hours 
A) 7,600 hours 
B) 7,800 hours 
C) 8,000 hours 
D) 7,200 hours

Question 4

Wangerin Corporation applies overhead to products based on machine-hours.The denominator level of activity is 6,900 machine-hours.The budgeted fixed manufacturing overhead costs are $240,810.In April, the actual fixed manufacturing overhead costs were $245,640 and the standard machine-hours allowed for the actual output were 7,200 machine-hours.
Required:
a.Compute the budget variance for April.Show your work!
b.Compute the volume variance for April.Show your work!

Accepted Answer

a.Budget variance = Actual fixed manufac

Question 5

The variable overhead rate variance is:

Accepted Answer

A) $14,280 F 
B) $13,314 U 
C) $14,280 U 
D) $13,314 F 
A) $14,280 F 
B) $13,314 U 
C) $14,280 U 
D) $13,314 F

Question 6

The budgeted fixed manufacturing overhead cost was:

Accepted Answer

A) $24,000 
B) $38,900 
C) $40,200 
D) $37,600 
A) $24,000 
B) $38,900 
C) $40,200 
D) $37,600

Question 7

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

Accepted Answer

A) $2.68 per labor-hour 
B) $3.02 per labor-hour 
C) $2.93 per labor-hour 
D) $2.41 per labor-hour 
A) $2.68 per labor-hour 
B) $3.02 per labor-hour 
C) $2.93 per labor-hour 
D) $2.41 per labor-hour

Question 8

The fixed overhead budget variance is:

Accepted Answer

A) $57,675 U 
B) $15,000 F 
C) $15,000 U 
D) $57,675 F 
A) $57,675 U 
B) $15,000 F 
C) $15,000 U 
D) $57,675 F

Question 9

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 10

Gaters 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 company incurred a total of $240,080 in manufacturing overhead cost during the year.
Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.

Accepted Answer

Predetermined overhe

Question 11

If the denominator level of activity is 7,500 machine-hours, the variable component in the predetermined overhead rate would be:

Accepted Answer

A) $208.75 per machine-hour 
B) $192.28 per machine-hour 
C) $211.28 per machine-hour 
D) $19.00 per machine-hour 
A) $208.75 per machine-hour 
B) $192.28 per machine-hour 
C) $211.28 per machine-hour 
D) $19.00 per machine-hour

Question 12

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 portion of the predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Question 13

Nemes 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 fixed component of the predetermined overhead rate is closest to:

Accepted Answer

A) $9.10 per labor-hour 
B) $5.35 per labor-hour 
C) $6.36 per labor-hour 
D) $10.81 per labor-hour 
A) $9.10 per labor-hour 
B) $5.35 per labor-hour 
C) $6.36 per labor-hour 
D) $10.81 per labor-hour

Question 14

You have just been hired as the controller of the Eastern Division of Global Manufacturing.Performance records for last year are incomplete, with only the following data available:   Required:
Prepare a complete analysis of manufacturing overhead for the past year.Indicate actual, standard, and denominator activity levels; variable overhead rate and efficiency variances; and fixed manufacturing overhead budget and volume variances.

Accepted Answer

Budgeted fixed overhead rate = Fixed ove

Question 15

Gremminger 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 variable overhead rate variance is:

Accepted Answer

A) $19,404 F 
B) $17,952 F 
C) $19,404 U 
D) $17,952 U 
A) $19,404 F 
B) $17,952 F 
C) $19,404 U 
D) $17,952 U

Question 16

Likes 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 total amount of manufacturing overhead applied is closest to:

Accepted Answer

A) $488,400 
B) $424,320 
C) $432,640 
D) $498,000 
A) $488,400 
B) $424,320 
C) $432,640 
D) $498,000

Question 17

The volume variance for May is:

Accepted Answer

A) $2,070 U 
B) $4,140 U 
C) $4,140 F 
D) $2,070 F 
A) $2,070 U 
B) $4,140 U 
C) $4,140 F 
D) $2,070 F

Question 18

Trumbauer 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 fixed overhead volume variance is:

Accepted Answer

A) $18,482 U 
B) $18,482 F 
C) $31,482 U 
D) $31,482 F 
A) $18,482 U 
B) $18,482 F 
C) $31,482 U 
D) $31,482 F

Question 19

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 20

The standard direct labor-hours allowed for the output was:

Accepted Answer

A) 14,167 DLHs 
B) 19,600 DLHs 
C) 20,000 DLHs 
D) 20,400 DLHs 
A) 14,167 DLHs 
B) 19,600 DLHs 
C) 20,000 DLHs 
D) 20,400 DLHs

An unfavorable volume variance means that the company operated at an activity level greater than that planned for the period.

The fixed manufacturing overhead applied to products during the period is closest to:

The denominator activity level in direct labor-hours used by Chuba in setting the predetermined overhead rate was:

The variable overhead rate variance is:

The budgeted fixed manufacturing overhead cost was:

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

The fixed overhead budget variance is:

The variable overhead rate variance is:

If the denominator level of activity is 7,500 machine-hours, the variable component in the predetermined overhead rate would be:

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 portion of the predetermined overhead rate.

The volume variance for May is:

The standard direct labor-hours allowed for the output was:

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

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

An unfavorable volume variance means that the company operated at an activity level greater than that planned for the period.

The fixed manufacturing overhead applied to products during the period is closest to:

The denominator activity level in direct labor-hours used by Chuba in setting the predetermined overhead rate was:

The variable overhead rate variance is:

The budgeted fixed manufacturing overhead cost was:

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

The fixed overhead budget variance is:

The variable overhead rate variance is:

If the denominator level of activity is 7,500 machine-hours, the variable component in the predetermined overhead rate would be:

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 portion of the predetermined overhead rate.

The volume variance for May is:

The standard direct labor-hours allowed for the output was:

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