App8A-167
Topic Area: Appendix 8A: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
72.
A manufacturer of playground equipment 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
3,000
MHs
Fixed overhead cost
$40,650
The following data pertain to operations for the most recent period:
Actual hours
3,400
MHs
Standard hours allowed for the
actual output
3,172
MHs
Actual total fixed manufacturing
overhead cost
$41,600
The predetermined fixed manufacturing overhead rate is closest to:
73.
A manufacturer of playground equipment 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
3,000
MHs
Fixed overhead cost
$40,650
The following data pertain to operations for the most recent period:
Actual hours
3,400
MHs
Standard hours allowed for the
actual output
3,172
MHs
Actual total fixed manufacturing
overhead cost
$41,600
The fixed manufacturing overhead applied to products during the period is closest to:
74.
A manufacturer of playground equipment 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
3,000
MHs
Fixed overhead cost
$40,650
The following data pertain to operations for the most recent period:
Actual hours
3,400
MHs
Standard hours allowed for the
actual output
3,172
MHs
Actual total fixed manufacturing
overhead cost
$41,600
The fixed manufacturing overhead budget variance for the period is closest to:
App8A-170
75.
A manufacturer of playground equipment 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
3,000
MHs
Fixed overhead cost
$40,650
The following data pertain to operations for the most recent period:
Actual hours
3,400
MHs
Standard hours allowed for the
actual output
3,172
MHs
Actual total fixed manufacturing
overhead cost
$41,600
The fixed manufacturing overhead volume variance for the period is closest to:
76.
The Murray Corporation uses a standard cost system in which it applies manufacturing
overhead on the basis of standard direct labor-hours (DLHs). The company recorded the
following activity and cost data for May:
Activity:
Number of units produced
40,100
units
Standard direct labor-hours per unit of product
1.5
DLHs per unit
Denominator activity
64,000
DLHS
Cost:
Actual fixed manufacturing overhead costs incurred
$56,000
Fixed component of the predetermined overhead rate
$0.90
per DLH
The amount of fixed manufacturing overhead cost that was used to compute the fixed
component of the predetermined overhead rate was:
77.
The Murray Corporation uses a standard cost system in which it applies manufacturing
overhead on the basis of standard direct labor-hours (DLHs). The company recorded the
following activity and cost data for May:
Activity:
Number of units produced
40,100
units
Standard direct labor-hours per unit of product
1.5
DLHs per unit
Denominator activity
64,000
DLHS
Cost:
Actual fixed manufacturing overhead costs incurred
$56,000
Fixed component of the predetermined overhead rate
$0.90
per DLH
The amount of fixed manufacturing overhead cost applied during May was:
78.
The Murray Corporation uses a standard cost system in which it applies manufacturing
overhead on the basis of standard direct labor-hours (DLHs). The company recorded the
following activity and cost data for May:
Activity:
Number of units produced
40,100
units
Standard direct labor-hours per unit of product
1.5
DLHs per unit
Denominator activity
64,000
DLHS
Cost:
Actual fixed manufacturing overhead costs incurred
$56,000
Fixed component of the predetermined overhead rate
$0.90
per DLH
The fixed manufacturing overhead budget variance for May was:
App8A-175
App8A-176
79.
An outdoor barbecue grill manufacturer has a standard costing system based on standard
direct labor-hours (DLHs) as the measure of activity. Data from the company’s flexible
budget for manufacturing overhead are given below:
Denominator level of activity
3,300
DLHs
Fixed overhead cost
$26,895
The following data pertain to operations for the most recent period:
Actual hours
3,400
DLHs
Standard hours allowed for the
actual output
3,420
DLHs
Actual total fixed manufacturing
overhead cost
$28,295
The fixed manufacturing overhead budget variance for the period is closest to:
App8A-177
80.
An outdoor barbecue grill manufacturer has a standard costing system based on standard
direct labor-hours (DLHs) as the measure of activity. Data from the company’s flexible
budget for manufacturing overhead are given below:
Denominator level of activity
3,300
DLHs
Fixed overhead cost
$26,895
The following data pertain to operations for the most recent period:
Actual hours
3,400
DLHs
Standard hours allowed for the
actual output
3,420
DLHs
Actual total fixed manufacturing
overhead cost
$28,295
The fixed manufacturing overhead volume variance for the period is closest to:
App8A-178
81.
The Forbes Corporation uses a standard cost system in which overhead costs are applied
to products on the basis of standard direct labor-hours (DLHs). The following data applied
to the company’s activities for June:
Actual fixed manufacturing overhead cost incurred
$161,450
Denominator activity
50,000
DLHs
Number of units completed
21,000
units
Fixed overhead budget variance
$11,450
Unfavorable
Standard direct labor-hours per unit
3
DLHs
The fixed component of the predetermined overhead rate for June is:
App8A-181
82.
The Forbes Corporation uses a standard cost system in which overhead costs are applied
to products on the basis of standard direct labor-hours (DLHs). The following data applied
to the company’s activities for June:
Actual fixed manufacturing overhead cost incurred
$161,450
Denominator activity
50,000
DLHs
Number of units completed
21,000
units
Fixed overhead budget variance
$11,450
Unfavorable
Standard direct labor-hours per unit
3
DLHs
The volume variance for June is:
App8A-182
83.
The Murray Corporation makes and sells a single product. The company recorded the
following activity and cost data for May:
Number of units completed
45,000
units
Standard direct labor-hours
allowed per unit of product
1.5
DLHs
Budgeted direct labor-hours
(denominator activity)
72,000
DLHs
Actual fixed manufacturing
overhead costs incurred
$66,000
Volume variance
$4,275
U
The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour.
The fixed manufacturing overhead used to calculate the predetermined overhead rate
was:
84.
The Murray Corporation makes and sells a single product. The company recorded the
following activity and cost data for May:
Number of units completed
45,000
units
Standard direct labor-hours
allowed per unit of product
1.5
DLHs
Budgeted direct labor-hours
(denominator activity)
72,000
DLHs
Actual fixed manufacturing
overhead costs incurred
$66,000
Volume variance
$4,275
U
The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour.
The amount of fixed manufacturing overhead cost applied to work in process during May
was:
85.
The Murray Corporation makes and sells a single product. The company recorded the
following activity and cost data for May:
Number of units completed
45,000
units
Standard direct labor-hours
allowed per unit of product
1.5
DLHs
Budgeted direct labor-hours
(denominator activity)
72,000
DLHs
Actual fixed manufacturing
overhead costs incurred
$66,000
Volume variance
$4,275
U
The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour.
The fixed manufacturing overhead budget variance for May was:
86.
The following data for February has been provided by Gillard Corporation.
Denominator level of activity
3,700
machine-hours
Budgeted fixed manufacturing overhead costs
$68,820
Actual level of activity
4,100
machine-hours
Standard machine-hours allowed for the actual output
4,000
machine-hours
Actual fixed manufacturing overhead costs
$69,960
The budget variance for February is: