App8A-107
29.
Semaan Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. Budgeted and actual overhead costs for the month appear below:
Original
Budget
Actual
Costs
Variable overhead
costs:
Supplies
$11,340
$12,850
Indirect labor
15,120
17,080
Fixed overhead
costs:
Supervision
14,900
14,640
Utilities
5,800
6,010
Factory
depreciation
9,700
9,410
Total overhead cost
$56,860
$59,990
The company based its original budget on 2,700 machine-hours. The company actually
worked 2,960 machine-hours during the month. The standard hours allowed for the actual
output of the month totaled 3,030 machine-hours. What was the overall fixed
manufacturing overhead budget variance for the month?
App8A-108
App8A-109
30.
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:
App8A-110
31.
The Adlake Corporation makes and sells a single product and uses a standard cost
system. During October, the company budgeted $300,000 in manufacturing overhead cost
at a denominator activity of 20,000 machine-hours. At standard, each unit of finished
product requires 5 machine-hours. The following cost and activity were recorded during
October:
Total actual manufacturing overhead
cost incurred
$294,000
Units of product completed
3,800
Actual machine-hours worked
19,422
The amount of overhead cost that the company applied to work in process for October
was:
32.
Reidenbach Corporation applies manufacturing overhead to products on the basis of
standard machine-hours. The budgeted fixed manufacturing overhead cost for the most
recent month was $17,100 and the actual fixed manufacturing overhead cost for the
month was $17,450. The company based its original budget on 4,500 machine-hours. The
standard hours allowed for the actual output of the month totaled 4,810 machine-hours.
What was the overall fixed manufacturing overhead budget variance for the month?
33.
Diseth Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The company bases its predetermined overhead rate on 5,300 machine-
hours. The company’s total budgeted fixed manufacturing overhead is $12,720. In the most
recent month, the total actual fixed manufacturing overhead was $12,370. The company
actually worked 5,350 machine-hours during the month. The standard hours allowed for
the actual output of the month totaled 5,540 machine-hours. What was the overall fixed
manufacturing overhead volume variance for the month?
34.
Masek 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:
Budgeted level of activity
2,000
MHs
Actual level of activity
2,400
MHs
Standard variable manufacturing
overhead rate
$5.90
per
MH
Budgeted fixed manufacturing
overhead cost
$50,000
Actual total variable
manufacturing overhead
$14,880
Actual total fixed manufacturing
overhead
$49,000
What was the fixed manufacturing overhead budget variance for the month?
App8A-114
App8A-115
35.
Pizzi, Inc. had the following fixed manufacturing overhead variances last year:
Fixed overhead budget
variance
$30,000
Unfavorable
Fixed overhead volume
variance
$6,000
Favorable
Pizzi uses machine-hours as an activity base for overhead and used 48,000 machine-
hours as the denominator activity level for the year. Total actual fixed manufacturing
overhead was $150,000. The actual number of machine-hours incurred were 50,000. What
were Pizzi’s standard hours allowed for actual output?
36.
Tropiano Electronics Corporation has a standard cost system in which it applies
manufacturing overhead to products on the basis of standard machine-hours (MHs). The
company had budgeted its fixed manufacturing overhead cost at $62,100 for the month
and its level of activity at 3,200 MHs. The actual total fixed manufacturing overhead was
$61,600 for the month and the actual level of activity was 3,000 MHs. What was the fixed
manufacturing overhead budget variance for the month to the nearest dollar?
37.
At the beginning of last year, Tari Corporation budgeted $300,000 of fixed manufacturing
overhead and chose a denominator level of activity of 600,000 machine-hours. At the end
of the year, Tari’s fixed manufacturing overhead budget variance was $9,000 favorable. Its
fixed manufacturing overhead volume variance was $15,000 favorable. Actual direct labor-
hours for the year were 625,000. What was Tari’s total standard machine-hours allowed
for last year’s output?
App8A-118
App8A-119
38.
Denby Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most
recent month appear below:
Original Budget
Actual Costs
Fixed overhead costs:
Supervision
$12,800
$13,190
Utilities
8,320
8,260
Factory depreciation
46,720
46,540
Total fixed manufacturing overhead cost
$67,840
$67,990
The company based its original budget on 6,400 machine-hours. The company actually
worked 6,710 machine-hours during the month. The standard hours allowed for the actual
output of the month totaled 6,540 machine-hours. What was the overall fixed
manufacturing overhead volume variance for the month?
39.
Bakos Corporation bases its predetermined overhead rate on variable manufacturing
overhead cost of $8.80 per machine-hour and fixed manufacturing overhead cost of
$100,688 per period. If the denominator level of activity is 2,800 machine-hours, the
variable component in the predetermined overhead rate would be:
40.
Acuff Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. Budgeted and actual overhead costs for the most recent month appear
below:
Original Budget
Actual Costs
Fixed overhead costs:
Supervision
$15,600
$15,950
Utilities
5,000
5,070
Factory depreciation
6,800
6,700
Total overhead cost
$27,400
$27,720
The company based its original budget on 6,200 machine-hours. The company actually
worked 6,560 machine-hours during the month. The standard hours allowed for the actual
output of the month totaled 6,420 machine-hours. What was the overall fixed
manufacturing overhead budget variance for the month?
App8A-122
41.
Oldham Corporation bases its predetermined overhead rate on variable manufacturing
overhead cost of $4.00 per machine-hour and fixed manufacturing overhead cost of
$87,822 per period. If the denominator level of activity is 4,100 machine-hours, the fixed
component in the predetermined overhead rate would be:
42.
Bruley Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The company’s predetermined overhead rate for fixed manufacturing
overhead is $3.30 per machine-hour and the denominator level of activity is 3,500
machine-hours. In the most recent month, the total actual fixed manufacturing overhead
was $11,570 and the company actually worked 3,430 machine-hours during the month.
The standard hours allowed for the actual output of the month totaled 3,450 machine-
hours. What was the overall fixed manufacturing overhead volume variance for the
month?
43.
Nitrol Corporation manufactures brass vases using a standard cost system with standard
machine-hours as the activity base for overhead. The following information relates to vase
production at Nitrol for last year:
Estimated for year
Actual results for year
Variable overhead
$50,000
$53,560
Fixed overhead
$250,000
$247,500
Machine-hours
100,000
103,000
The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases.
What was Nitrol’s variable overhead rate variance for last year?
44.
Nitrol Corporation manufactures brass vases using a standard cost system with standard
machine-hours as the activity base for overhead. The following information relates to vase
production at Nitrol for last year:
Estimated for year
Actual results for year
Variable overhead
$50,000
$53,560
Fixed overhead
$250,000
$247,500
Machine-hours
100,000
103,000
The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases.
What was Nitrol’s fixed manufacturing overhead volume variance for last year?
45.
Nitrol Corporation manufactures brass vases using a standard cost system with standard
machine-hours as the activity base for overhead. The following information relates to vase
production at Nitrol for last year:
Estimated for year
Actual results for year
Variable overhead
$50,000
$53,560
Fixed overhead
$250,000
$247,500
Machine-hours
100,000
103,000
The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases.
What was Nitrol’s total underapplied or overapplied overhead cost for last year?