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:
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:
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:
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:
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:
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:
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:
87. 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 volume variance for February is:
88. Odonell Corporation estimates that its variable manufacturing overhead is $11.20 per
machine-hour and its fixed manufacturing overhead is $563,640 per period.
If the denominator level of activity is 6,000 machine-hours, the variable component in the
predetermined overhead rate would be:
89. Odonell Corporation estimates that its variable manufacturing overhead is $11.20 per
machine-hour and its fixed manufacturing overhead is $563,640 per period.
If the denominator level of activity is 6,000 machine-hours, the fixed component in the
predetermined overhead rate would be: