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:
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:
Denominator level of activity 6,100 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $35,075
Fixed overhead cost $77,775
The following data pertain to operations for the most recent period:
Actual hours 6,300 MHs
Standard hours allowed for the actual output 5,994 MHs
Actual total variable manufacturing overhead cost $36,540
Actual total fixed manufacturing overhead cost $76,875
The predetermined overhead rate per MH is closest to:
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:
Denominator level of activity 6,100 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $35,075
Fixed overhead cost $77,775
The following data pertain to operations for the most recent period:
Actual hours 6,300 MHs
Standard hours allowed for the actual output 5,994 MHs
Actual total variable manufacturing overhead cost $36,540
Actual total fixed manufacturing overhead cost $76,875
The overhead applied to products during the period was closest to:
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:
Denominator level of activity 6,100 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $35,075
Fixed overhead cost $77,775
The following data pertain to operations for the most recent period:
Actual hours 6,300 MHs
Standard hours allowed for the actual output 5,994 MHs
Actual total variable manufacturing overhead cost $36,540
Actual total fixed manufacturing overhead cost $76,875
The variable overhead rate variance for the period was closest to:
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:
Denominator level of activity 6,100 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $35,075
Fixed overhead cost $77,775
The following data pertain to operations for the most recent period:
Actual hours 6,300 MHs
Standard hours allowed for the actual output 5,994 MHs
Actual total variable manufacturing overhead cost $36,540
Actual total fixed manufacturing overhead cost $76,875
The variable overhead efficiency variance for the period is closest to:
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:
Denominator level of activity 6,100 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $35,075
Fixed overhead cost $77,775
The following data pertain to operations for the most recent period:
Actual hours 6,300 MHs
Standard hours allowed for the actual output 5,994 MHs
Actual total variable manufacturing overhead cost $36,540
Actual total fixed manufacturing overhead cost $76,875
The fixed manufacturing overhead budget variance for the period is closest to:
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:
Denominator level of activity 6,100 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $35,075
Fixed overhead cost $77,775
The following data pertain to operations for the most recent period:
Actual hours 6,300 MHs
Standard hours allowed for the actual output 5,994 MHs
Actual total variable manufacturing overhead cost $36,540
Actual total fixed manufacturing overhead cost $76,875
The fixed manufacturing overhead volume variance for the period is closest to:
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: