189) Bressman Inc. has provided the following data concerning one of the products in its standard
cost system. Variable manufacturing overhead is applied to products on the basis of direct
labor-hours.
Inputs
Standard Quantity or Hours per Unit of
Output
Standard Price or
Rate
Variable manufacturing
overhead
0.20 hours
$6.70 per hour
The company has reported the following actual results for the product for May:
Actual output
9,300
units
Actual direct labor-hours
1,820
hours
Actual variable overhead cost
$
12,558
–
The variable overhead efficiency variance for the month is closest to:
A) $268 U
B) $268 F
C) $276 F
D) $276 U
190) Juhasz Corporation makes a product with the following standards for direct labor and
variable overhead:
Standard Price or Rate
Direct labor
0.5
hours
$
20.00
per hour
Variable overhead
0.5
hours
$
4.00
per hour
–
In August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable
overhead cost was $15,096. The company applies variable overhead on the basis of direct
labor-hours.
The variable overhead efficiency variance for August is:
A) $520 U
B) $481 U
C) $481 F
D) $520 F
191) Juhasz Corporation makes a product with the following standards for direct labor and
variable overhead:
Standard Price or Rate
Direct labor
0.5
hours
$
20.00
per hour
Variable overhead
0.5
hours
$
4.00
per hour
–
In August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable
overhead cost was $15,096. The company applies variable overhead on the basis of direct
labor-hours.
The variable overhead rate variance for August is:
A) $1,185 F
B) $1,224 U
C) $1,185 U
D) $1,224 F
192) The following data have been provided by Furr Corporation:
Budgeted production
7,000
motors
Standard machine-hours per motor
8.6
machine-hours
Standard indirect labor rate
$
7.10
per machine-hour
Standard power rate
$
1.40
per machine-hour
Actual production
7,300
motors
Actual machine-hours (total)
62,140
machine-hours
Actual indirect labor cost (total)
$
408,340
Actual power cost (total)
$
94,989
–
Indirect labor and power are both elements of variable manufacturing overhead.
The variable overhead rate variance for indirect labor is closest to:
A) $32,854 F
B) $32,854 U
C) $37,398 F
D) $4,544 F
193) The following data have been provided by Furr Corporation:
Budgeted production
7,000
motors
Standard machine-hours per motor
8.6
machine-hours
Standard indirect labor rate
$
7.10
per machine-hour
Standard power rate
$
1.40
per machine-hour
Actual production
7,300
motors
Actual machine-hours (total)
62,140
machine-hours
Actual indirect labor cost (total)
$
408,340
Actual power cost (total)
$
94,989
–
Indirect labor and power are both elements of variable manufacturing overhead.
The variable overhead rate variance for power is closest to:
A) $7,097 U
B) $7,097 F
C) $896 F
D) $7,993 U
194) Irving Corporation makes a product with the following standards for direct labor and variable
overhead:
Standard Quantity
or Hours
Standard Price or Rate
Standard Cost
Per Unit
Direct labor
0.3
hours
$
14.00
per hour
$
4.20
Variable overhead
0.3
hours
$
5.00
per hour
$
1.50
–
In November the company’s budgeted production was 5,300 units, but the actual production was
5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual variable
overhead cost was $7,590. The company applies variable overhead on the basis of direct
labor-hours.
The variable overhead efficiency variance for November is:
A) $552 U
B) $600 U
C) $600 F
D) $552 F
195) Irving Corporation makes a product with the following standards for direct labor and variable
overhead:
Standard Quantity
or Hours
Standard Price or Rate
Standard Cost
Per Unit
Direct labor
0.3
hours
$
14.00
per hour
$
4.20
Variable overhead
0.3
hours
$
5.00
per hour
$
1.50
–
In November the company’s budgeted production was 5,300 units, but the actual production was
5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual variable
overhead cost was $7,590. The company applies variable overhead on the basis of direct
labor-hours.
The variable overhead rate variance for November is:
A) $612 U
B) $660 U
C) $660 F
D) $612 F
196) Termeer Inc. has provided the following data concerning one of the products in its standard
cost system. Variable manufacturing overhead is applied to products on the basis of direct
labor-hours.
Inputs
Standard Quantity or Hours per Unit of
Output
Standard Price or
Rate
Variable manufacturing
overhead
0.30 hours
$2.30 per hour
The company has reported the following actual results for the product for August:
Actual output
8,000
units
Actual direct labor-hours
2,380
hours
Actual variable overhead rate
$
2.10
per hour
Actual variable overhead cost
$
4,998
The variable overhead rate variance for the month is closest to:
A) $480 F
B) $480 U
C) $476 U
D) $476 F
197) Termeer Inc. has provided the following data concerning one of the products in its standard
cost system. Variable manufacturing overhead is applied to products on the basis of direct
labor-hours.
Inputs
Standard Quantity or Hours per Unit of
Output
Standard Price or
Rate
Variable manufacturing
overhead
0.30 hours
$2.30 per hour
The company has reported the following actual results for the product for August:
Actual output
8,000
units
Actual direct labor-hours
2,380
hours
Actual variable overhead rate
$
2.10
per hour
Actual variable overhead cost
$
4,998
The variable overhead efficiency variance for the month is closest to:
A) $46 U
B) $42 F
C) $46 F
D) $42 U
198) The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
Standard hours per unit of output
8.1
hours
Standard variable overhead rate
$
14.85
per hour
–
The following data pertain to operations for the last month:
Actual hours
8,600
hours
Actual total variable manufacturing overhead cost
$
130,720
Actual output
1,000
units
–
What is the variable overhead rate variance for the month?
A) $3,010 F
B) $3,010 U
C) $10,435 U
D) $10,435 F
199) The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
Standard hours per unit of output
8.1
hours
Standard variable overhead rate
$
14.85
per hour
–
The following data pertain to operations for the last month:
Actual hours
8,600
hours
Actual total variable manufacturing overhead cost
$
130,720
Actual output
1,000
units
–
What is the variable overhead efficiency variance for the month?
A) $7,600 F
B) $2,835 F
C) $7,600 U
D) $7,425 U
200) The following data have been provided by Liggett Corporation:
Budgeted production
7,400
units
Standard machine-hours per unit
6.6
machine-hours
Standard lubricants rate
$
3.50
per machine-hour
Standard supplies rate
$
2.00
per machine-hour
Actual production
7,600
units
Actual machine-hours (total)
49,840
machine-hours
Actual lubricants cost (total)
$
179,821
Actual supplies cost (total)
$
98,933
Lubricants and supplies are both elements of variable manufacturing overhead.
The variable overhead rate variance for lubricants is closest to:
A) $1,120 F
B) $5,381 F
C) $4,261 U
D) $5,381 U
201) The following data have been provided by Liggett Corporation:
Budgeted production
7,400
units
Standard machine-hours per unit
6.6
machine-hours
Standard lubricants rate
$
3.50
per machine-hour
Standard supplies rate
$
2.00
per machine-hour
Actual production
7,600
units
Actual machine-hours (total)
49,840
machine-hours
Actual lubricants cost (total)
$
179,821
Actual supplies cost (total)
$
98,933
–
Lubricants and supplies are both elements of variable manufacturing overhead.
The variable overhead rate variance for supplies is closest to:
A) $640 F
B) $1,387 F
C) $1,387 U
D) $747 F
202) A manufacturing company that has only one product has established the following standards
for its variable manufacturing overhead. The company bases its variable manufacturing overhead
standards on direct labor-hours.
Standard hours per unit of output
7.2
DLHs
Standard variable overhead rate
$
14.20
per DLH
–
The following data pertain to operations for the last month:
Actual direct labor-hours
5,100
DLHs
Actual total variable manufacturing overhead cost
$
72,165
Actual output
600
units
–
What is the variable overhead rate variance for the month?
A) $10,821 U
B) $255 U
C) $10,821 F
D) $255 F
203) A manufacturing company that has only one product has established the following standards
for its variable manufacturing overhead. The company bases its variable manufacturing overhead
standards on direct labor-hours.
Standard hours per unit of output
7.2
DLHs
Standard variable overhead rate
$
14.20
per DLH
–
The following data pertain to operations for the last month:
Actual direct labor-hours
5,100
DLHs
Actual total variable manufacturing overhead cost
$
72,165
Actual output
600
units
–
What is the variable overhead efficiency variance for the month?
A) $11,076 U
B) $11,037 F
C) $11,037 U
D) $216 U
204) Brummer Corporation makes a product whose variable overhead standards are based on
direct labor-hours. The quantity standard is 0.1 hours per unit. The variable overhead rate standard
is $8.00 per hour. In January the company produced 8,700 units using 910 direct labor-hours. The
actual variable overhead rate was $7.90 per hour.
The variable overhead efficiency variance for January is:
A) $320 F
B) $316 U
C) $320 U
D) $316 F
205) Brummer Corporation makes a product whose variable overhead standards are based on
direct labor-hours. The quantity standard is 0.1 hours per unit. The variable overhead rate standard
is $8.00 per hour. In January the company produced 8,700 units using 910 direct labor-hours. The
actual variable overhead rate was $7.90 per hour.
The variable overhead rate variance for January is:
A) $91 F
B) $87 F
C) $91 U
D) $87 U
206) Vermeillen Corporation uses a standard costing system in which variable manufacturing
overhead is assigned to production on the basis of the number of machine setups. The following
data pertain to one month’s operations:
• Variable manufacturing overhead cost incurred: $70,000
• Total variable manufacturing overhead variance: $4,550 Favorable
• Standard machine setups allowed for actual production: 3,550
• Actual machine setups incurred: 3,500
The standard variable overhead rate per machine setup is:
A) $20.00
B) $21.30
C) $18.44
D) $21.00
207) Vermeillen Corporation uses a standard costing system in which variable manufacturing
overhead is assigned to production on the basis of the number of machine setups. The following
data pertain to one month’s operations:
• Variable manufacturing overhead cost incurred: $70,000
• Total variable manufacturing overhead variance: $4,550 Favorable
• Standard machine setups allowed for actual production: 3,550
• Actual machine setups incurred: 3,500
The variable overhead rate variance is:
A) $1,000 Favorable
B) $1,000 Unfavorable
C) $3,500 Unfavorable
D) $3,500 Favorable