Question 1

Saffold Corporation has provided the following data for December.   The budget variance for December is:

Accepted Answer

A) $10,050 U 
B) $6,540 U 
C) $6,540 F 
D) $10,050 F 
A) $10,050 U 
B) $6,540 U 
C) $6,540 F 
D) $10,050 F

Question 2

Coblentz Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs)at $6.20 per MH.The company had budgeted its fixed manufacturing overhead cost at $40,000 for the month.During the month,the actual total variable manufacturing overhead was $48,970 and the actual total fixed manufacturing overhead was $43,000.The actual level of activity for the period was 8,300 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

Accepted Answer

A) $2,490 Favorable 
B) $510 Favorable 
C) $510 Unfavorable 
D) $2,490 Unfavorable 
A) $2,490 Favorable 
B) $510 Favorable 
C) $510 Unfavorable 
D) $2,490 Unfavorable

Question 3

A manufacturer of playground equipment uses a standard costing system in which standard machine-hours (MHs)is 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) $2,256 F 
B) $2,331 F 
C) $3,089 U 
D) $5,420 F 
A) $2,256 F 
B) $2,331 F 
C) $3,089 U 
D) $5,420 F

Question 4

The following data for February has been provided by Gillard Corporation.   The budget variance for February is:

Accepted Answer

A) $7,440 F 
B) $7,440 U 
C) $1,140 F 
D) $1,140 U 
A) $7,440 F 
B) $7,440 U 
C) $1,140 F 
D) $1,140 U

Question 5

Omary 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) $1,520 Unfavorable 
B) $3,180 Favorable 
C) $4,820 Unfavorable 
D) $6,340 Unfavorable 
A) $1,520 Unfavorable 
B) $3,180 Favorable 
C) $4,820 Unfavorable 
D) $6,340 Unfavorable

Question 6

A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs)is 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 budget variance for the period is closest to:

Accepted Answer

A) $2,675 U 
B) $1,450 F 
C) $3,691 F 
D) $1,270 F 
A) $2,675 U 
B) $1,450 F 
C) $3,691 F 
D) $1,270 F

Question 7

The Dillon Corporation makes and sells a single product.Overhead costs are applied on the basis of standard direct labor-hours.The standard cost card shows that 5 direct labor-hours are required per unit.The Dillon Corporation had the following budgeted and actual data for March:   The fixed manufacturing overhead volume variance for March is:

Accepted Answer

A) $7,750 F 
B) $7,750 U 
C) $1,550 F 
D) $3,900 U 
A) $7,750 F 
B) $7,750 U 
C) $1,550 F 
D) $3,900 U

Question 8

Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours.For June,the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours:   During June,17,000 machine-hours were used to complete 13,000 units of product,and the following actual total overhead costs were incurred:   At standard,each unit of finished product requires 1.4 hours of machine time. The variable overhead efficiency variance for utilities cost for June was:

Accepted Answer

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

Question 9

Hairr Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.50 per machine-hour and fixed manufacturing overhead cost of $947,672 per period.If the denominator level of activity is 8,900 machine-hours,the predetermined overhead rate would be:

Accepted Answer

A) $9.50 
B) $115.98 
C) $106.48 
D) $950.00 
A) $9.50 
B) $115.98 
C) $106.48 
D) $950.00

Question 10

A volume variance is computed for:

Accepted Answer

A) both variable and fixed manufacturing overhead. 
B) variable manufacturing overhead only. 
C) fixed manufacturing overhead only. 
D) direct labor costs as well as overhead costs. 
A) both variable and fixed manufacturing overhead. 
B) variable manufacturing overhead only. 
C) fixed manufacturing overhead only. 
D) direct labor costs as well as overhead costs.

Question 11

A manufacturing company uses a standard costing system in which standard machine-hours (MHs)is 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 overhead applied to products during the period was closest to:

Accepted Answer

A) $112,850 
B) $113,415 
C) $116,550 
D) $110,889 
A) $112,850 
B) $113,415 
C) $116,550 
D) $110,889

Saffold Corporation has provided the following data for December. The budget variance for December is:

The following data for February has been provided by Gillard Corporation. The budget variance for February is:

Hairr Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.50 per machine-hour and fixed manufacturing overhead cost of $947,672 per period.If the denominator level of activity is 8,900 machine-hours,the predetermined overhead rate would be:

A volume variance is computed for:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Journal Entries to Record Variance

The Concept of Present Value

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

Filters

Exam 15: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Saffold Corporation has provided the following data for December. The budget variance for December is:

The following data for February has been provided by Gillard Corporation. The budget variance for February is:

Hairr Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.50 per machine-hour and fixed manufacturing overhead cost of $947,672 per period.If the denominator level of activity is 8,900 machine-hours,the predetermined overhead rate would be:

A volume variance is computed for:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Journal Entries to Record Variance

The Concept of Present Value

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

Filters