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A furniture manufacturer 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:A furniture manufacturer 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: -What is the predetermined overhead rate to the nearest cent? A) $13.40 B) $13.61 C) $13.81 D) $13.20 The following data pertain to operations for the most recent period: A furniture manufacturer 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: -What is the predetermined overhead rate to the nearest cent? A) $13.40 B) $13.61 C) $13.81 D) $13.20 -What is the predetermined overhead rate to the nearest cent?


A) $13.40
B) $13.61
C) $13.81
D) $13.20

E) B) and D)
F) All of the above

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A furniture manufacturer 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:A furniture manufacturer 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: -How much overhead was applied to products during the period to the nearest dollar? A) $86,394 B) $88,440 C) $89,760 D) $92,555 The following data pertain to operations for the most recent period: A furniture manufacturer 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: -How much overhead was applied to products during the period to the nearest dollar? A) $86,394 B) $88,440 C) $89,760 D) $92,555 -How much overhead was applied to products during the period to the nearest dollar?


A) $86,394
B) $88,440
C) $89,760
D) $92,555

E) C) and D)
F) A) and C)

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Buell Corporation has provided the following data for June. Buell Corporation has provided the following data for June. -The volume variance for June is: A) $10,830 F B) $10,830 U C) $3,610 U D) $3,610 F -The volume variance for June is:


A) $10,830 F
B) $10,830 U
C) $3,610 U
D) $3,610 F

E) None of the above
F) C) and D)

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Able Control Company, which manufactures electrical switches, uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours (DLHs) . The standard overhead costs are shown below: Able Control Company, which manufactures electrical switches, uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours (DLHs) . The standard overhead costs are shown below: *Based on 300,000 DLHs per month. The following information is available for the month of October: • Plans called for the production of 60,000 switches. • 56,000 switches were actually produced. • 275,000 direct labor-hours were worked at a total cost of $2,550,000. • Actual variable manufacturing overhead costs were $2,340,000. • Actual fixed manufacturing overhead costs were $3,750,000. -The fixed manufacturing overhead budget variance for October was: A) $48,000 Unfavorable B) $150,000 Unfavorable C) $300,000 Favorable D) $390,000 Unfavorable *Based on 300,000 DLHs per month. The following information is available for the month of October: • Plans called for the production of 60,000 switches. • 56,000 switches were actually produced. • 275,000 direct labor-hours were worked at a total cost of $2,550,000. • Actual variable manufacturing overhead costs were $2,340,000. • Actual fixed manufacturing overhead costs were $3,750,000. -The fixed manufacturing overhead budget variance for October was:


A) $48,000 Unfavorable
B) $150,000 Unfavorable
C) $300,000 Favorable
D) $390,000 Unfavorable

E) B) and C)
F) A) and B)

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Heersink Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $10.50 per machine-hour and fixed manufacturing overhead cost of $108,108 per period.If the denominator level of activity is 2,700 machine-hours,the fixed element in the predetermined overhead rate would be:


A) $1,050.00
B) $40.04
C) $10.50
D) $50.54

E) None of the above
F) B) and C)

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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: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: -What was the variable overhead efficiency variance for the period to the nearest dollar? A) $1,746 U B) $70 U C) $820 F D) $74 U The following data pertain to operations for the most recent period: 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: -What was the variable overhead efficiency variance for the period to the nearest dollar? A) $1,746 U B) $70 U C) $820 F D) $74 U -What was the variable overhead efficiency variance for the period to the nearest dollar?


A) $1,746 U
B) $70 U
C) $820 F
D) $74 U

E) B) and D)
F) B) and C)

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Jay Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The information below pertains to a recent month's activity: Jay Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The information below pertains to a recent month's activity: The volume variance would be: A) $300 F B) $300 U C) $150 F D) $180 F The volume variance would be:


A) $300 F
B) $300 U
C) $150 F
D) $180 F

E) A) and B)
F) All of the above

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Seroka Corporation estimates that its variable manufacturing overhead is $6.90 per machine-hour and its fixed manufacturing overhead is $745,290 per period. -If the denominator level of activity is 9,000 machine-hours,the variable element in the predetermined overhead rate would be:


A) $88.80
B) $82.81
C) $89.71
D) $6.90

E) A) and D)
F) None of the above

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The Dodge Company makes and sells a single product and uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. The Dodge Company had the following budgeted and actual data for the year: The Dodge Company makes and sells a single product and uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. The Dodge Company had the following budgeted and actual data for the year: The budgeted direct labor-hours is used as the denominator activity for the month. -The variable overhead rate variance was: A) $4,500 U B) $10,500 U C) $13,500 U D) $16,500 UThe budgeted direct labor-hours is used as the denominator activity for the month. -The variable overhead rate variance was:


A) $4,500 U
B) $10,500 U
C) $13,500 U
D) $16,500 U

E) All of the above
F) None of the above

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In a standard costing system where the denominator activity for the predetermined overhead rate is labor-hours,overhead costs are applied to work in process on the basis of actual hours worked.

A) True
B) False

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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: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: -How much overhead was applied to products during the period to the nearest dollar? A) $128,140 B) $130,601 C) $130,900 D) $127,160 The following data pertain to operations for the most recent period: 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: -How much overhead was applied to products during the period to the nearest dollar? A) $128,140 B) $130,601 C) $130,900 D) $127,160 -How much overhead was applied to products during the period to the nearest dollar?


A) $128,140
B) $130,601
C) $130,900
D) $127,160

E) B) and D)
F) None of the above

Correct Answer

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Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below: Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below: -Franklin's fixed manufacturing overhead budget variance for the year is: A) $19,000 favorable B) $25,000 favorable C) $25,000 unfavorable D) $19,000 unfavorable -Franklin's fixed manufacturing overhead budget variance for the year is:


A) $19,000 favorable
B) $25,000 favorable
C) $25,000 unfavorable
D) $19,000 unfavorable

E) C) and D)
F) A) and B)

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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: 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: -How much fixed manufacturing overhead was applied to products during the period to the nearest dollar? A) $85,571 B) $84,690 C) $86,190 D) $85,085 The following data pertain to operations for the most recent period: 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: -How much fixed manufacturing overhead was applied to products during the period to the nearest dollar? A) $85,571 B) $84,690 C) $86,190 D) $85,085 -How much fixed manufacturing overhead was applied to products during the period to the nearest dollar?


A) $85,571
B) $84,690
C) $86,190
D) $85,085

E) None of the above
F) B) and C)

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A volume variance and an efficiency variance are computed for fixed manufacturing overhead costs.

A) True
B) False

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The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: The budgeted direct labor-hours is used as the denominator activity for the month. -The fixed manufacturing overhead volume variance for March is: A) $1,000 favorable B) $5,000 favorable C) $2,500 unfavorable D) $5,000 unfavorable The budgeted direct labor-hours is used as the denominator activity for the month. -The fixed manufacturing overhead volume variance for March is:


A) $1,000 favorable
B) $5,000 favorable
C) $2,500 unfavorable
D) $5,000 unfavorable

E) A) and C)
F) A) and D)

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Overhead is applied to work in process in a standard costing system by:


A) multiplying actual hours times the predetermined rate.
B) multiplying standard hours allowed for the output of the period times the predetermined rate.
C) multiplying actual hours times the actual rate.
D) multiplying standard hours allowed for the output of the period times the actual rate.

E) None of the above
F) A) and D)

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The fixed manufacturing overhead volume variance will be unfavorable if production volume is less than sales volume.

A) True
B) False

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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: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: -What was the fixed manufacturing overhead budget variance for the period to the nearest dollar? A) $1,800 U B) $222 F C) $1,010 U D) $785 U The following data pertain to operations for the most recent period: 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: -What was the fixed manufacturing overhead budget variance for the period to the nearest dollar? A) $1,800 U B) $222 F C) $1,010 U D) $785 U -What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?


A) $1,800 U
B) $222 F
C) $1,010 U
D) $785 U

E) None of the above
F) All of the above

Correct Answer

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The higher the denominator level of activity:


A) the higher the cost per unit of product.
B) the lower the cost per unit of product.
C) the less likely is the occurrence of a volume variance.
D) the more profitable operations likely will be.

E) All of the above
F) C) and D)

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The Hawkins Company uses a standard costing system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) . During February, the company actually used 9,200 direct labor-hours and made 2,900 units of finished product. The standard cost card for one unit of product includes the following: Variable factory overhead: 3 DLHs $4.75 per DLH Fixed factory overhead: 3 DLHs $3.00 per DLH For February, the company incurred $28,450 in fixed manufacturing overhead costs and recorded a $900 favorable volume variance. -The denominator activity level in direct labor-hours used by Hawkins in setting the predetermined overhead rate for February is:


A) 9,300 hours
B) 8,400 hours
C) 9,000 hours
D) 8,700 hours

E) A) and D)
F) C) and D)

Correct Answer

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