39) Piper Corporation’s standards call for 1,000 direct labor-hours to produce 250 units of product.
During October the company worked 1,250 direct labor-hours and produced 300 units. The
standard hours allowed for October would be:
A) 1,250 hours
B) 1,000 hours
C) 1,200 hours
D) 1,300 hours
40) Krizun Industries makes heavy construction equipment. The standard for a particular crane
calls for 20 direct labor-hours at $24 per direct labor-hour. During a recent period 875 cranes were
made. The labor efficiency variance was $1,200 Unfavorable. How many actual direct labor-hours
were worked?
A) 17,600 direct labor-hours
B) 17,450 direct labor-hours
C) 17,500 direct labor-hours
D) 17,550 direct labor-hours
41) The following information relates to the direct labor at Padmaja Manufacturing, Inc. for
March:
Actual
Standard
Labor cost per hour
$
18.00
$
17.50
Labor hours per unit produced
1.5
1.4
During March, Padmaja produced 2,100 units. What is Padmaja’s labor efficiency variance for
March?
A) $1,575 Favorable
B) $2,625 Unfavorable
C) $3,675 Unfavorable
D) $3,780 Unfavorable
42) Information on Westcott Corporation’s direct labor costs for a recent month follows:
Standard direct labor rate
$
3.75
per hour
Actual direct labor rate
$
3.50
per hour
Total standard direct labor-hours
allowed for the actual production
10,000
hours
Labor efficiency variance
$
4,200
Unfavorable
–
What were the actual hours worked during the month, rounded to the nearest hour?
A) 10,714
B) 11,120
C) 11,200
D) 11,914
43) Elliott Corporation makes and sells a single product. Last period the company’s labor rate
variance was $14,400 U. During the period, the company worked 36,000 actual direct labor-hours
at an actual cost of $338,400. The standard labor rate for the product in dollars per hour is:
A) $9.40
B) $9.00
C) $8.50
D) $8.10
44) The following labor standards have been established for a particular product:
Standard labor-hours per unit of output
9.0
hours
Standard labor rate
$
15.10
per hour
–
The following data pertain to operations concerning the product for the last month:
Actual hours worked
8,100
hours
Actual total labor cost
$
119,880
Actual output
800
units
What is the labor rate variance for the month?
A) $11,160 F
B) $13,320 U
C) $11,160 U
D) $2,430 F
45) The direct labor standards for a particular product are 4 hours of direct labor at $12.00 per
direct labor-hour = $48.00. During October, 3,350 units of this product were made, which was 150
units less than budgeted. The labor cost incurred was $159,786 and 13,450 direct labor-hours were
worked. The direct labor variances for the month were:
Labor Rate Variance
Labor Efficiency Variance
A)
$
1,614
U
$
600
U
B)
$
1,614
U
$
600
F
C)
$
1,614
F
$
600
U
D)
$
1,614
F
$
600
F
A) Choice A
B) Choice B
C) Choice C
D) Choice D
46) Viger Corporation has a standard cost system in which it applies manufacturing overhead to
products on the basis of standard machine-hours (MHs). The company has provided the following
data for the most recent month:
Budgeted level of activity
9,700
MHs
Actual level of activity
9,900
MHs
Standard variable manufacturing overhead rate
$
6.30
per MH
Actual total variable manufacturing overhead
$
60,390
What was the variable overhead rate variance for the month?
A) $2,000 Favorable
B) $720 Favorable
C) $1,260 Unfavorable
D) $1,980 Favorable
47) Pleiss Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The company’s standard variable manufacturing overhead rate is $2.40 per
machine-hour. The actual variable manufacturing overhead cost for the month was $5,240. The
original budget for the month was based on 2,100 machine-hours. The company actually worked
2,270 machine-hours during the month. The standard hours allowed for the actual output of the
month totaled 2,280 machine-hours. What was the variable overhead efficiency variance for the
month?
A) $24 Favorable
B) $232 Favorable
C) $208 Favorable
D) $432 Unfavorable
48) The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
Standard hours per unit of output
3.5
hours
Standard variable overhead rate
$
15.20
per hour
The following data pertain to operations for the last month:
Actual hours
3,800
hours
Actual total variable manufacturing overhead cost
$
59,090
Actual output
800
units
What is the variable overhead efficiency variance for the month?
A) $15,550 U
B) $15,200 U
C) $16,530 U
D) $980 F
49) At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours.
The performance report for July showed that actual maintenance costs totaled $8,650 and that the
associated rate variance was $250 unfavorable. If 5,000 machine-hours were actually worked
during July, the standard maintenance cost per machine-hour was:
A) $1.73 per MH
B) $1.78 per MH
C) $1.68 per MH
D) $1.83 per MH
50) Amirault Manufacturing Corporation has a standard cost system in which it applies
manufacturing overhead to products on the basis of standard machine-hours (MHs) at $4.00 per
MH. During the month, the actual total variable manufacturing overhead was $18,040 and the
actual level of activity for the period was 4,100 MHs. What was the variable overhead rate
variance for the month?
A) $410 Favorable
B) $1,640 Unfavorable
C) $1,640 Favorable
D) $410 Unfavorable
51) Hermansen Corporation produces large commercial doors for warehouses and other facilities.
In the most recent month, the company budgeted production of 5,100 doors. Actual production
was 5,400 doors. According to standards, each door requires 3.8 machine-hours. The actual
machine-hours for the month were 20,880 machine-hours. The standard supplies cost is $7.90 per
machine-hour. The actual supplies cost for the month was $152,063. Supplies cost is an element of
variable manufacturing overhead. The variable overhead efficiency variance for supplies cost is:
A) $10,045 F
B) $10,045 U
C) $2,844 F
D) $2,844 U
52) The following data have been provided by Moretta Corporation, a company that produces
forklift trucks:
Budgeted production
3,400
trucks
Standard machine-hours per truck
2.9
machine-hours
Standard supplies cost
$
1.50
per machine-hour
Actual production
3,800
trucks
Actual machine-hours
10,930
machine-hours
Actual supplies cost (total)
$
17,496
Supplies cost is an element of variable manufacturing overhead. The variable overhead efficiency
variance for supplies cost is:
A) $135 U
B) $135 F
C) $966 U
D) $966 F
53) Wadding Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. For the most recent month, the company based its budget on 3,600 machine-hours.
Budgeted and actual overhead costs for the month appear below:
Original Budget Based on
3,600 Machine-Hours-
Actual Costs
Variable overhead costs:
Supplies
$
11,160
$
11,830
Indirect labor
26,280
27,970
Fixed overhead costs:
Supervision
19,700
19,340
Utilities
5,900
5,770
Factory depreciation
6,900
7,210
Total overhead cost
$
69,940
$
72,120
The company actually worked 3,900 machine-hours during the month. The standard hours allowed
for the actual output were 3,890 machine-hours for the month. What was the overall variable
overhead efficiency variance for the month?
A) $760 Favorable
B) $104 Unfavorable
C) $180 Favorable
D) $656 Favorable
54) Warp Manufacturing Corporation uses a standard cost system for the production of its ski lift
chairs. Warp uses machine-hours as an overhead base. The variable manufacturing overhead
standards for each chair are 1.2 machine-hours at a standard cost of $18 per hour.
During the month of September, Warp incurred 34,000 machine-hours in the production of 32,000
ski lift chairs. The total variable manufacturing overhead cost was $649,400. What is Warp’s
variable overhead rate variance for September?
A) $37,400 Unfavorable
B) $41,800 Favorable
C) $79,200 Favorable
D) $84,040 Favorable
55) The Haney Corporation has a standard costing system. Variable manufacturing overhead is
applied on the basis of direct labor-hours. The following data are available for January:
• Actual variable manufacturing overhead: $25,500
• Actual direct labor-hours worked: 5,800
• Variable overhead rate variance: $600 Favorable
• Variable overhead efficiency variance: $2,475 Unfavorable
The standard hours allowed for January production is:
A) 5,975 hours
B) 5,800 hours
C) 5,425 hours
D) 5,250 hours
56) The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
Standard hours per unit of output
1.2
hours
Standard variable overhead rate
$
19.80
per hour
–
The following data pertain to operations for the last month:
Actual hours
2,100
hours
Actual total variable manufacturing overhead cost
$
40,740
Actual output
1,600
units
–
What is the variable overhead rate variance for the month?
A) $2,724 U
B) $3,492 U
C) $840 F
D) $768 U
57) Pyrdum Corporation produces metal telephone poles. In the most recent month, the company
budgeted production of 3,500 poles. Actual production was 3,800 poles. According to standards,
each pole requires 4.6 machine-hours. The actual machine-hours for the month were 17,800
machine-hours. The standard variable manufacturing overhead rate is $5.40 per machine-hour.
The actual variable manufacturing overhead cost for the month was $96,712. The variable
overhead efficiency variance is:
A) $2,320 U
B) $1,728 F
C) $2,320 F
D) $1,728 U