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:
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:
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?
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?
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?
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:
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:
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: