21
30) Dellarocco Incorporated makes a single product—a cooling coil used in commercial
refrigerators. The company has a standard cost system in which it applies overhead to this
product based on the standard labor-hours allowed for the actual output of the period. Data
concerning the most recent year appear below:
Budgeted fixed manufacturing overhead
$
355,740
Budgeted hours
49,000
labor-hours
Actual fixed manufacturing overhead
$
372,740
Actual hours
45,600
labor-hours
–
The fixed overhead budget variance is:
A) $37,328 U
B) $37,328 F
C) $17,000 F
D) $17,000 U
31) At the beginning of last year, Tarind Corporation budgeted $75,000 of fixed manufacturing
overhead and chose a denominator level of activity of 150,000 machine-hours. At the end of the
year, Tari’s fixed manufacturing overhead budget variance was $2,250 favorable. Its fixed
manufacturing overhead volume variance was $3,750 favorable. Actual direct labor-hours for the
year were 156,250. What was Tari’s total standard machine-hours allowed for last year’s output?
A) 157,500
B) 162,000
C) 164,000
D) 142,500
32) Carattini Incorporated makes a single product—an electrical motor used in many long-haul
trucks. The company has a standard cost system in which it applies overhead to this product
based on the standard labor-hours allowed for the actual output of the period. Data concerning
the most recent year appear below:
Total budgeted manufacturing overhead
$
360,000
Budgeted hours
36,000
labor-hours
Standard hours allowed for the actual production
34,200
labor-hours
Total actual manufacturing overhead
$
340,376
Actual hours
37,200
labor-hours
–
The total amount of manufacturing overhead applied is closest to:
A) $340,376
B) $342,000
C) $312,900
D) $372,000
Total budgeted manufacturing overhead cost
Predetermined overhead rate (a)
per labor-hour
Standard hours allowed for the actual production (b)
labor-hours
Manufacturing overhead applied (a) × (b)
–
33) Rodarta Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The company’s predetermined overhead rate for fixed manufacturing overhead is
$1.20 per machine-hour and the denominator level of activity is 6,600 machine-hours. In the
most recent month, the total actual fixed manufacturing overhead was $8,340 and the company
actually worked 6,400 machine-hours during the month. The standard hours allowed for the
actual output of the month totaled 6,480 machine-hours. What was the overall fixed
manufacturing overhead volume variance for the month?
A) $240 Favorable
B) $144 Unfavorable
C) $240 Unfavorable
D) $96 Favorable
34) Gregorich Incorporated makes a single product—a critical part used in commercial airline
seats. The company has a standard cost system in which it applies overhead to this product based
on the standard machine-hours allowed for the actual output of the period. Data concerning the
most recent year appear below:
Budgeted fixed manufacturing overhead
$
294,490
Budgeted production (a)
35,000
units
Standard hours per unit (b)
1.40
machine-hours
Budgeted hours (a) × (b)
49,000
machine-hours
Actual production (a)
30,000
units
Standard hours per unit (b)
1.40
machine-hours
Standard hours allowed for the actual production (a) × (b)
42,000
machine-hours
Actual fixed manufacturing overhead
$
314,490
Actual hours
40,600
machine-hours
–
The fixed overhead budget variance is:
A) $20,000 U
B) $20,000 F
C) $62,070 F
D) $62,070 U
35) Gallucci Incorporated makes a single product—a critical part used in commercial airline
seats. The company has a standard cost system in which it applies overhead to this product based
on the standard labor-hours allowed for the actual output of the period. Data concerning the most
recent year appear below:
Budgeted variable manufacturing overhead
$
87,780
Budgeted fixed manufacturing overhead
412,965
Total budgeted manufacturing overhead
$
500,745
Budgeted hours
66,500
labor-hours
The predetermined overhead rate is closest to:
A) $7.53 per labor-hour
B) $7.85 per labor-hour
C) $14.31 per labor-hour
D) $14.92 per labor-hour
36) Surma Incorporated makes a single product—a critical part used in commercial airline seats.
The company has a standard cost system in which it applies overhead to this product based on
the standard machine-hours allowed for the actual output of the period. Data concerning the most
recent year appear below:
Budgeted fixed manufacturing overhead
$
233,940
Budgeted production (a)
35,000
units
Standard hours per unit (b)
1.20
machine-hours
Budgeted hours (a) × (b)
42,000
machine-hours
Actual production (a)
33,000
units
Standard hours per unit (b)
1.20
machine-hours
Standard hours allowed for the actual production (a) ×
(b)
39,600
machine-hours
Actual fixed manufacturing overhead
$
214,940
Actual hours
40,000
machine-hours
The fixed component of the predetermined overhead rate is closest to:
A) $5.43 per machine-hour
B) $5.57 per machine-hour
C) $6.51 per machine-hour
D) $6.68 per machine-hour
37) Harris Corporation uses a standard cost system in which it applies manufacturing overhead to
units of product on the basis of standard direct labor-hours (DLHs). The company has provided
the following data:
Denominator activity
5,000
DLHs
Actual activity
5,600
DLHs
Standard hours allowed for the output
5,500
DLHs
Predetermined overhead rate ($2 variable + $3 fixed)
$
5
per DLH
–
The volume variance would be:
A) $2,500 F
B) $1,800 F
C) $1,800 U
D) $1,500 F
38) Lossing Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Original Budget
Actual Costs
Variable overhead costs:
Supplies
$
11,220
$
10,670
Indirect labor
8,670
8,030
Fixed overhead costs:
Supervision
5,610
5,940
Utilities
8,160
7,990
Factory depreciation
39,780
39,950
Total overhead cost
$
73,440
$
72,580
The company based its original budget on 5,100 machine-hours. The company actually worked
4,800 machine-hours during the month. The standard hours allowed for the actual output of the
month totaled 4,980 machine-hours. What was the overall fixed manufacturing overhead volume
variance for the month?
A) $3,150 Unfavorable
B) $3,150 Favorable
C) $1,260 Unfavorable
D) $1,260 Favorable
39) The Marlow Corporation uses a standard cost system and applies manufacturing overhead to
products on the basis of standard direct labor-hours. The denominator activity is set at 40,000
direct labor-hours per year. Budgeted fixed manufacturing overhead cost is $40,000 per year, and
0.5 direct labor-hours are required to manufacture one unit. The standard cost card would
indicate fixed manufacturing overhead cost per unit to be:
A) $1.00
B) $2.00
C) $1.50
D) $0.50
40) Ronda Manufacturing Corporation uses a standard cost system with machine-hours as the
activity base for overhead. Last year, Ronda incurred $840,000 of fixed manufacturing overhead
and generated a $42,000 favorable fixed manufacturing overhead budget variance. The following
data relate to last year’s operations:
Denominator activity level in machine-hours
21,000
Standard machine-hours allowed for actual output
20,000
Actual number of machine-hours incurred
22,050
What amount of total fixed manufacturing overhead cost did Ronda apply to production last
year?
A) $837,900
B) $840,000
C) $926,100
D) $972,405
41) Mclellan Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. Budgeted and actual overhead costs for the month appear below:
Original Budget
Actual Costs
Variable overhead costs:
Supplies
$
9,760
$
10,200
Indirect labor
42,090
43,720
Fixed overhead costs:
Supervision
14,500
14,350
Utilities
5,200
4,740
Factory depreciation
7,400
7,510
Total overhead cost
$
78,950
$
80,520
The company based its original budget on 6,100 machine-hours. The company actually worked
6,480 machine-hours during the month. The standard hours allowed for the actual output of the
month totaled 6,370 machine-hours. What was the overall fixed manufacturing overhead budget
variance for the month?
A) $500 Favorable
B) $500 Unfavorable
C) $1,570 Favorable
D) $1,570 Unfavorable
Fixed overhead costs:
Supervision
14,350
Utilities
4,740
Factory depreciation
7,510
Total fixed overhead cost
$
26,600
42) Brister Incorporated has provided the following data concerning its overhead variances for
the most recent period:
Variable overhead rate variance
$
9,600
U
Variable overhead efficiency variance
$
3,696
F
Fixed overhead budget variance
$
14,000
U
Fixed overhead volume variance
$
12,768
F
–
The total manufacturing overhead is underapplied or overapplied by how much?
A) $7,136 Overapplied
B) $7,136 Underapplied
C) $27,296 Overapplied
D) $27,296 Underapplied
Variable overhead rate variance
$
9,600
U
Variable overhead efficiency variance
$
3,696
F
Fixed overhead budget variance
$
14,000
U
Fixed overhead volume variance
$
12,768
F
Total
$
7,136
U
–
43) Gremminger Incorporated makes a single product—a critical part used in commercial airline
seats. The company has a standard cost system in which it applies overhead to this product based
on the standard labor-hours allowed for the actual output of the period. Data concerning the most
recent year appear below:
Budgeted variable manufacturing overhead
$
70,350
Budgeted hours
35,000
labor-hours
Actual variable manufacturing overhead
$
72,624
Actual hours
27,200
labor-hours
–
The variable overhead rate variance is:
A) $19,404 F
B) $17,952 F
C) $19,404 U
D) $17,952 U
44) Reade Incorporated makes a single product—an electrical motor used in many long-haul
trucks. The company has a standard cost system in which it applies overhead to this product
based on the standard machine-hours allowed for the actual output of the period. Data
concerning the most recent year appear below:
Total budgeted manufacturing overhead
$
289,520
Budgeted hours
28,000
machine-hours
Standard hours allowed for the actual production
25,200
machine-hours
Total actual manufacturing overhead
$
321,915
Actual hours
27,700
machine-hours
–
The total manufacturing overhead is underapplied or overapplied by how much?
A) $61,347 Underapplied
B) $32,395 Underapplied
C) $61,347 Overapplied
D) $32,395 Overapplied
Total budgeted hours
machine-hours
Predetermined overhead rate (a)
$
per machine-hour
production (b)
Manufacturing overhead applied (a) × (b)
$
Total actual manufacturing overhead
$
overapplied
45) Goolden Electronics Corporation has a standard cost system in which it applies
manufacturing overhead to products on the basis of standard machine-hours (MHs). The
company had budgeted its fixed manufacturing overhead cost at $58,000 for the month and its
level of activity at 2,500 MHs. The actual total fixed manufacturing overhead was $61,200 for
the month and the actual level of activity was 2,600 MHs. What was the fixed manufacturing
overhead budget variance for the month to the nearest dollar?
A) $880 Unfavorable
B) $880 Favorable
C) $3,200 Favorable
D) $3,200 Unfavorable
46) Nadelson Incorporated makes a single product—an electrical motor used in many long-haul
trucks. The company has a standard cost system in which it applies overhead to this product
based on the standard labor-hours allowed for the actual output of the period. Data concerning
the most recent year appear below:
Budgeted variable manufacturing overhead
$
54,000
Budgeted production (a)
25,000
units
Standard hours per unit (b)
1.80
labor-hours
Budgeted hours (a) × (b)
45,000
labor-hours
–
The variable component of the predetermined overhead rate is closest to:
A) $1.26 per labor-hour
B) $1.20 per labor-hour
C) $1.64 per labor-hour
D) $1.57 per labor-hour
40
47) Alapai 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
7,000
MHs
Actual level of activity
7,200
MHs
Standard variable manufacturing overhead rate
$
9.40
per MH
Budgeted fixed manufacturing overhead cost
$
40,000
Actual total variable manufacturing overhead
$
66,960
Actual total fixed manufacturing overhead
$
37,000
What was the total of the variable overhead rate and fixed manufacturing overhead budget
variances for the month?
A) $3,720 Favorable
B) $2,280 Unfavorable
C) $1,840 Favorable
D) $1,880 Unfavorable
48) Trumbauer Incorporated makes a single product—an electrical motor used in many long-haul
trucks. The company has a standard cost system in which it applies overhead to this product
based on the standard machine-hours allowed for the actual output of the period. Data
concerning the most recent year appear below: