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:
App8A-188
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:
90.
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 6,100 machine-hours, the predetermined overhead
rate would be:
App8A-191
91.
Tillinghast Corporation estimates that its variable manufacturing overhead is $9.60 per
machine-hour and its fixed manufacturing overhead is $14,630 per period.
If the denominator level of activity is 1,000 machine-hours, the variable component in the
predetermined overhead rate would be:
App8A-192
92.
Tillinghast Corporation estimates that its variable manufacturing overhead is $9.60 per
machine-hour and its fixed manufacturing overhead is $14,630 per period.
If the denominator level of activity is 1,000 machine-hours, the fixed component in the
predetermined overhead rate would be:
App8A-193
93.
Tillinghast Corporation estimates that its variable manufacturing overhead is $9.60 per
machine-hour and its fixed manufacturing overhead is $14,630 per period.
If the denominator level of activity is 1,100 machine-hours, the predetermined overhead
rate would be:
94.
Saffold Corporation has provided the following data for December.
Denominator level of activity
8,400
machine-hours
Budgeted fixed manufacturing overhead costs
$274,680
Fixed component of the predetermined overhead rate
$32.70
per machine-hour
Actual level of activity
8,600
machine-hours
Standard machine-hours allowed for the actual output
8,900
machine-hours
Actual fixed manufacturing overhead costs
$284,730
The budget variance for December is:
95.
Saffold Corporation has provided the following data for December.
Denominator level of activity
8,400
machine-hours
Budgeted fixed manufacturing overhead costs
$274,680
Fixed component of the predetermined overhead rate
$32.70
per machine-hour
Actual level of activity
8,600
machine-hours
Standard machine-hours allowed for the actual output
8,900
machine-hours
Actual fixed manufacturing overhead costs
$284,730
The volume variance for December is:
96.
A furniture manufacturer 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
3,300
MHs
Overhead costs at the denominator
activity level:
Variable overhead cost
$31,845
Fixed overhead cost
$40,425
The following data pertain to operations for the most recent period:
Actual hours
3,400
MHs
Standard hours allowed for the
actual output
3,078
MHs
Actual total variable manufacturing
overhead cost
$32,980
Actual total fixed manufacturing
overhead cost
$38,975
The predetermined overhead rate is closest to:
App8A-197
App8A-198
97.
A furniture manufacturer 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
3,300
MHs
Overhead costs at the denominator
activity level:
Variable overhead cost
$31,845
Fixed overhead cost
$40,425
The following data pertain to operations for the most recent period:
Actual hours
3,400
MHs
Standard hours allowed for the
actual output
3,078
MHs
Actual total variable manufacturing
overhead cost
$32,980
Actual total fixed manufacturing
overhead cost
$38,975
The overhead applied to products during the period was closest to:
App8A-199
App8A-200
98.
A furniture manufacturer 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
3,300
MHs
Overhead costs at the denominator
activity level:
Variable overhead cost
$31,845
Fixed overhead cost
$40,425
The following data pertain to operations for the most recent period:
Actual hours
3,400
MHs
Standard hours allowed for the
actual output
3,078
MHs
Actual total variable manufacturing
overhead cost
$32,980
Actual total fixed manufacturing
overhead cost
$38,975
The fixed manufacturing overhead budget variance for the period is closest to:
App8A-201
App8A-202
99.
A furniture manufacturer 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
3,300
MHs
Overhead costs at the denominator
activity level:
Variable overhead cost
$31,845
Fixed overhead cost
$40,425
The following data pertain to operations for the most recent period:
Actual hours
3,400
MHs
Standard hours allowed for the
actual output
3,078
MHs
Actual total variable manufacturing
overhead cost
$32,980
Actual total fixed manufacturing
overhead cost
$38,975
The fixed manufacturing overhead volume variance for the period is closest to:
App8A-203
100.
Homer Corporation has a standard cost system in which manufacturing overhead is
applied on the basis of standard machine-hours. The company has provided the following
data concerning its manufacturing overhead costs for last year:
Actual machine-hours
840
hours
Standard machine-hours allowed
for the actual output
900
hours
Denominator activity
1,000
hours
Actual fixed manufacturing
overhead costs
$3,800
Budgeted fixed manufacturing
overhead costs
$4,000
The fixed manufacturing overhead budget variance was:
101.
Homer Corporation has a standard cost system in which manufacturing overhead is
applied on the basis of standard machine-hours. The company has provided the following
data concerning its manufacturing overhead costs for last year:
Actual machine-hours
840
hours
Standard machine-hours allowed
for the actual output
900
hours
Denominator activity
1,000
hours
Actual fixed manufacturing
overhead costs
$3,800
Budgeted fixed manufacturing
overhead costs
$4,000
The volume variance was:
App8A-206
Essay Questions