46.
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:
Actual
Budgeted
Units produced
33,900
30,800
Direct labor-hours
161,800
154,000
Variable overhead costs
$140,500
$123,200
Fixed overhead costs
$80,000
$77,000
The variable overhead rate variance for March is:
App8A-128
47.
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:
Actual
Budgeted
Units produced
33,900
30,800
Direct labor-hours
161,800
154,000
Variable overhead costs
$140,500
$123,200
Fixed overhead costs
$80,000
$77,000
The variable overhead efficiency variance for March is:
48.
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:
Actual
Budgeted
Units produced
33,900
30,800
Direct labor-hours
161,800
154,000
Variable overhead costs
$140,500
$123,200
Fixed overhead costs
$80,000
$77,000
The fixed manufacturing overhead budget variance for March is:
49.
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:
Actual
Budgeted
Units produced
33,900
30,800
Direct labor-hours
161,800
154,000
Variable overhead costs
$140,500
$123,200
Fixed overhead costs
$80,000
$77,000
The fixed manufacturing overhead volume variance for March is:
50.
Derf Corporation uses a standard cost system in which it applies manufacturing overhead
on the basis of standard direct labor-hours. Two direct labor-hours are required for each
unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead
was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200
hours worked during the period resulted in production of 8,500 units. Variable
manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead
cost was $28,000.
The variable overhead rate variance for the period was:
51.
Derf Corporation uses a standard cost system in which it applies manufacturing overhead
on the basis of standard direct labor-hours. Two direct labor-hours are required for each
unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead
was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200
hours worked during the period resulted in production of 8,500 units. Variable
manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead
cost was $28,000.
The variable overhead efficiency variance for the period was:
52.
Derf Corporation uses a standard cost system in which it applies manufacturing overhead
on the basis of standard direct labor-hours. Two direct labor-hours are required for each
unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead
was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200
hours worked during the period resulted in production of 8,500 units. Variable
manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead
cost was $28,000.
The fixed manufacturing overhead budget variance for the period was:
53.
Derf Corporation uses a standard cost system in which it applies manufacturing overhead
on the basis of standard direct labor-hours. Two direct labor-hours are required for each
unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead
was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200
hours worked during the period resulted in production of 8,500 units. Variable
manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead
cost was $28,000.
The fixed manufacturing overhead volume variance for the period was:
App8A-136
54.
Vette Tie Corporation has developed the following manufacturing overhead standards to
use in applying overhead to the production of its hand-painted silk ties. Manufacturing
overhead at Vette is applied to production on the basis of standard direct labor-hours
(DLHs).
Standard Cost Per Tie:
Variable overhead (1.1 DLHs × $14.00
per DLH)
$15.40
Fixed overhead (1.1 DLHs × $8.00 per
DLH)
$8.80
The above standards were based on an expected annual volume of 60,000 ties. The actual
results for last year were as follows:
Number of ties produced
58,000
Direct labor-hours worked
64,000
Variable overhead cost
$880,000
Fixed overhead cost
$525,000
What was Vette’s variable overhead rate variance?
App8A-137
55.
Vette Tie Corporation has developed the following manufacturing overhead standards to
use in applying overhead to the production of its hand-painted silk ties. Manufacturing
overhead at Vette is applied to production on the basis of standard direct labor-hours
(DLHs).
Standard Cost Per Tie:
Variable overhead (1.1 DLHs × $14.00
per DLH)
$15.40
Fixed overhead (1.1 DLHs × $8.00 per
DLH)
$8.80
The above standards were based on an expected annual volume of 60,000 ties. The actual
results for last year were as follows:
Number of ties produced
58,000
Direct labor-hours worked
64,000
Variable overhead cost
$880,000
Fixed overhead cost
$525,000
What was Vette’s fixed manufacturing overhead budget variance?
App8A-139
56.
Vette Tie Corporation has developed the following manufacturing overhead standards to
use in applying overhead to the production of its hand-painted silk ties. Manufacturing
overhead at Vette is applied to production on the basis of standard direct labor-hours
(DLHs).
Standard Cost Per Tie:
Variable overhead (1.1 DLHs × $14.00
per DLH)
$15.40
Fixed overhead (1.1 DLHs × $8.00 per
DLH)
$8.80
The above standards were based on an expected annual volume of 60,000 ties. The actual
results for last year were as follows:
Number of ties produced
58,000
Direct labor-hours worked
64,000
Variable overhead cost
$880,000
Fixed overhead cost
$525,000
What total amount of manufacturing overhead cost (variable and fixed) did Vette apply to
the 58,000 ties produced during the year?
App8A-141
App8A-142
57.
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:
Variable overhead costs (total):
Maintenance
$16,000
Utilities
$10,000
Fixed overhead costs (total):
Supervision
$20,500
Depreciation
$9,500
During June, 17,000 machine-hours were used to complete 13,000 units of product, and
the following actual total overhead costs were incurred:
Variable overhead costs (total):
Maintenance
$14,620
Utilities
$10,710
Fixed overhead costs (total):
Supervision
$19,320
Depreciation
$9,500
At standard, each unit of finished product requires 1.4 hours of machine time.
The total predetermined overhead rate per machine-hour for June was:
App8A-144
58.
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:
Variable overhead costs (total):
Maintenance
$16,000
Utilities
$10,000
Fixed overhead costs (total):
Supervision
$20,500
Depreciation
$9,500
During June, 17,000 machine-hours were used to complete 13,000 units of product, and
the following actual total overhead costs were incurred:
Variable overhead costs (total):
Maintenance
$14,620
Utilities
$10,710
Fixed overhead costs (total):
Supervision
$19,320
Depreciation
$9,500
At standard, each unit of finished product requires 1.4 hours of machine time.
The variable overhead rate variance for maintenance cost for June was:
App8A-146
59.
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:
Variable overhead costs (total):
Maintenance
$16,000
Utilities
$10,000
Fixed overhead costs (total):
Supervision
$20,500
Depreciation
$9,500
During June, 17,000 machine-hours were used to complete 13,000 units of product, and
the following actual total overhead costs were incurred:
Variable overhead costs (total):
Maintenance
$14,620
Utilities
$10,710
Fixed overhead costs (total):
Supervision
$19,320
Depreciation
$9,500
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: