App8A-147
App8A-148
60.
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 fixed manufacturing overhead budget variance (in total) for June was:
App8A-149
App8A-150
61.
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:
6,100
MHs
$35,075
$77,775
The following data pertain to operations for the most recent period:
6,300
MHs
5,994
MHs
$36,540
$76,875
The predetermined overhead rate per MH is closest to:
App8A-151
App8A-152
62.
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:
6,100
MHs
$35,075
$77,775
The following data pertain to operations for the most recent period:
6,300
MHs
5,994
MHs
$36,540
$76,875
The overhead applied to products during the period was closest to:
App8A-153
App8A-154
63.
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:
6,100
MHs
$35,075
$77,775
The following data pertain to operations for the most recent period:
6,300
MHs
5,994
MHs
$36,540
$76,875
The variable overhead rate variance for the period was closest to:
App8A-155
App8A-156
64.
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:
6,100
MHs
$35,075
$77,775
The following data pertain to operations for the most recent period:
6,300
MHs
5,994
MHs
$36,540
$76,875
The variable overhead efficiency variance for the period is closest to:
App8A-157
65.
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:
6,100
MHs
$35,075
$77,775
The following data pertain to operations for the most recent period:
6,300
MHs
5,994
MHs
$36,540
$76,875
The fixed manufacturing overhead budget variance for the period is closest to:
App8A-159
App8A-160
66.
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:
6,100
MHs
$35,075
$77,775
The following data pertain to operations for the most recent period:
6,300
MHs
5,994
MHs
$36,540
$76,875
The fixed manufacturing overhead volume variance for the period is closest to:
App8A-161
67.
Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs)
as the activity base for overhead. The following information relates to Cuda’s operations
last year:
Denominator activity level in machine-hours
50,000
MHs
Standard machine-hours allowed for actual output
55,000
MHs
Actual number of machine-hours incurred
52,000
MHs
Predetermined overhead rate for variable manufacturing overhead
$7.00
per MH
Predetermined overhead rate for fixed manufacturing overhead
$12.00
per MH
Total variable manufacturing overhead incurred
$370,000
Total fixed manufacturing overhead incurred
$615,000
What was Cuda’s variable overhead rate variance?
68.
Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs)
as the activity base for overhead. The following information relates to Cuda’s operations
last year:
Denominator activity level in machine-hours
50,000
MHs
Standard machine-hours allowed for actual output
55,000
MHs
Actual number of machine-hours incurred
52,000
MHs
Predetermined overhead rate for variable manufacturing overhead
$7.00
per MH
Predetermined overhead rate for fixed manufacturing overhead
$12.00
per MH
Total variable manufacturing overhead incurred
$370,000
Total fixed manufacturing overhead incurred
$615,000
What was Cuda’s fixed manufacturing overhead budget variance?
69.
Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs)
as the activity base for overhead. The following information relates to Cuda’s operations
last year:
Denominator activity level in machine-hours
50,000
MHs
Standard machine-hours allowed for actual output
55,000
MHs
Actual number of machine-hours incurred
52,000
MHs
Predetermined overhead rate for variable manufacturing overhead
$7.00
per MH
Predetermined overhead rate for fixed manufacturing overhead
$12.00
per MH
Total variable manufacturing overhead incurred
$370,000
Total fixed manufacturing overhead incurred
$615,000
What total amount of manufacturing overhead cost (variable and fixed) did Cuda apply to
production?
70.
The Claus Corporation makes and sells a single product and uses standard costing. During
January, the company actually used 8,700 direct labor-hours (DLHs) and produced 3,000
units of product. The standard cost card for one unit of product includes the following:
Variable factory overhead: 3.0 DLHs @ $4.00 per DLH.
Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH.
For January, the company incurred $22,000 of actual fixed manufacturing overhead costs
and recorded a $875 favorable volume variance.
The denominator level of activity in direct labor-hours (DLHs) used by Claus in setting the
predetermined overhead rate for January is:
71.
The Claus Corporation makes and sells a single product and uses standard costing. During
January, the company actually used 8,700 direct labor-hours (DLHs) and produced 3,000
units of product. The standard cost card for one unit of product includes the following:
Variable factory overhead: 3.0 DLHs @ $4.00 per DLH.
Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH.
For January, the company incurred $22,000 of actual fixed manufacturing overhead costs
and recorded a $875 favorable volume variance.
The fixed manufacturing overhead cost used to compute the predetermined overhead rate
was: