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1) Cheshire, Inc. allocates fixed overhead at a rate of $18 per direct labor hour. This
amount is based on 90% of capacity or 3,600 direct labor hours for 6,000 units. During
May, Cheshire produced 5,500 units. Budgeted fixed overhead is $66,000, and
overhead incurred was $67,000.
Required:
Determine the volume variance for May.
2) Process manufacturing, also called process operations or process production, is the
___________ production of products in a _____________________ flow of steps.
3) Refer to the following information about the Dipping Department of the Indiana
Factory for the month of August. Indiana Factory uses the FIFO method of inventory
costing.
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of
labor and overhead is $22.00. Compute the cost that should be assigned to the
beginning units that were completed and transferred during August.
4) Sam and Dave's company is organized as a partnership. At the prior year-end, Sam's
equity balance was $258,000 and Dave's was $212,000. For the current year,
partnership net income is $125,000 ($75,000 allocated to Sam and $50,000 allocated to
Dave); withdrawals are $77,000 ($40,000 for Sam and $37,000 for Dave). Compute the
total partnership return on equity and the individual partner return on equity ratios.
5) An activity __________________ is a temporary account accumulating the costs a
company incurs to support an identified set of activities.
