Budgeted fixed manufacturing overhead
$
157,410
Budgeted production (a)
15,000
units
Standard hours per unit (b)
1.80
machine-hours
Budgeted hours (a) × (b)
27,000
machine-hours
Applying Overhead:
Actual production (a)
12,000
units
Standard hours per unit (b)
1.80
machine-hours
Standard hours allowed for the actual production (a) ×
(b)
21,600
machine-hours
Actual fixed manufacturing overhead
$
144,410
Actual hours
21,800
machine-hours
The fixed overhead volume variance is:
A) $18,482 U
B) $18,482 F
C) $31,482 U
D) $31,482 F
49) Maertz Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The budgeted fixed manufacturing overhead cost for the most recent month was
$10,890 and the actual fixed manufacturing overhead cost for the month was $10,540. The
company based its original budget on 3,300 machine-hours. The standard hours allowed for the
actual output of the month totaled 3,240 machine-hours. What was the overall fixed
manufacturing overhead budget variance for the month?
A) $198 Unfavorable
B) $350 Unfavorable
C) $198 Favorable
D) $350 Favorable
50) Kiker 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:
Budgeted (Planned) Overhead:
Budgeted variable manufacturing overhead
$
112,000
Budgeted fixed manufacturing overhead
311,920
Total budgeted manufacturing overhead
$
423,920
Budgeted production (a)
35,000
Standard hours per unit (b)
1.60
Budgeted hours (a) × (b)
56,000
–
The predetermined overhead rate is closest to:
A) $9.57 per machine-hour
B) $12.11 per machine-hour
C) $7.57 per machine-hour
D) $15.32 per machine-hour
51) Nemes 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
$
324,360
Budgeted production (a)
30,000
units
Standard hours per unit (b)
1.70
labor-hours
Budgeted hours (a) × (b)
51,000
labor-hours
–
The fixed component of the predetermined overhead rate is closest to:
A) $9.10 per labor-hour
B) $5.35 per labor-hour
C) $6.36 per labor-hour
D) $10.81 per labor-hour
52) Ferro Enterprises uses a standard cost system in which it applies manufacturing overhead to
units of product on the basis of standard direct labor-hours. During the month of September, the
company applied $52,000 in fixed manufacturing overhead cost to units of product. At the end of
the month, manufacturing overhead was overapplied by $3,000. If there was no volume variance
in September, then the budgeted fixed manufacturing overhead cost for the month was:
A) $49,000
B) $52,000
C) $55,000
D) $58,000
53) Songster 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
Fixed overhead costs:
Supervision
$
14,100
$
13,650
Utilities
5,300
5,060
Factory depreciation
7,200
7,470
Total overhead cost
$
26,600
$
26,180
The company based its original budget on 3,500 machine-hours. The company actually worked
3,700 machine-hours during the month. The standard hours allowed for the actual output of the
month totaled 3,820 machine-hours. What was the overall fixed manufacturing overhead budget
variance for the month?
A) $2,432 Favorable
B) $2,432 Unfavorable
C) $420 Favorable
D) $420 Unfavorable
54) At the beginning of last year, Monze Corporation budgeted $600,000 of fixed manufacturing
overhead and chose a denominator level of activity of 100,000 direct labor-hours. At the end of
the year, Monze’s fixed manufacturing overhead budget variance was $8,000 unfavorable. Its
fixed manufacturing overhead volume variance was $21,000 favorable. Actual direct labor-hours
for the year were 96,000. What was Monze’s actual fixed manufacturing overhead for last year?
A) $563,000
B) $579,000
C) $608,000
D) $592,000
55) Garrity Corporation bases its predetermined overhead rate on variable manufacturing
overhead cost of $6.80 per machine-hour and fixed manufacturing overhead cost of $503,272 per
period. If the denominator level of activity is 7,600 machine-hours, the variable element in the
predetermined overhead rate would be:
A) $6.80
B) $72.16
C) $66.22
D) $73.02
56) Mcgreal Incorporated has provided the following data concerning its overhead variances for
the most recent period:
Variable overhead rate variance
$
28,122
U
Variable overhead efficiency variance
$
3,036
U
Fixed overhead budget variance
$
16,000
F
Fixed overhead volume variance
$
9,196
F
The total of the overhead variances is:
A) $17,666 F
B) $5,962 U
C) $17,666 U
D) $5,962 F
Variable overhead rate variance
$
28,122
U
Variable overhead efficiency variance
$
3,036
U
Fixed overhead budget variance
$
16,000
Fixed overhead volume variance
$
9,196
Total
$
U
–
57) Bartoletti Fabrication Corporation has a standard cost system in which it applies
manufacturing overhead to products on the basis of standard machine-hours (MHs) at $4.60 per
MH. The company had budgeted its fixed manufacturing overhead cost at $65,000 for the month.
During the month, the actual total variable manufacturing overhead was $22,080 and the actual
total fixed manufacturing overhead was $63,000. The actual level of activity for the period was
4,600 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead
budget variances for the month?
A) $1,080 Unfavorable
B) $1,080 Favorable
C) $920 Unfavorable
D) $920 Favorable
58) Merone Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The company bases its predetermined overhead rate on 2,300 machine-hours.
The company’s total budgeted fixed manufacturing overhead is $5,060. In the most recent month,
the total actual fixed manufacturing overhead was $4,660. The company actually worked 2,200
machine-hours during the month. The standard hours allowed for the actual output of the month
totaled 2,320 machine-hours. What was the overall fixed manufacturing overhead volume
variance for the month?
A) $220 Unfavorable
B) $400 Favorable
C) $44 Favorable
D) $220 Favorable
59) Potestio 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 (Planned) Overhead:
Budgeted variable manufacturing overhead
$
49,530
Budgeted fixed manufacturing overhead
252,720
Total budgeted manufacturing overhead
$
302,250
Budgeted production (a)
30,000
units
Standard hours per unit (b)
1.30
machine-hours
Budgeted hours (a) × (b)
39,000
machine-hours
Applying Overhead:
Actual production (a)
31,000
units
Standard hours per unit (b)
1.30
machine-hours
Standard hours allowed for the actual production (a) ×
(b)
40,300
machine-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead
$
80,560
Actual fixed manufacturing overhead
266,720
Total actual manufacturing overhead
$
347,280
Actual hours
42,400
machine-hours
The total of the overhead variances is:
A) $34,955 U
B) $45,030 F
C) $34,955 F
D) $45,030 U
60) Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead
cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.
If the denominator level of activity is 4,700 machine-hours, the predetermined overhead rate
would be:
A) $11.70
B) $72.68
C) $84.38
D) $1,170.00
61) Leshem 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:
Budgeted variable manufacturing overhead
$
52,920
Budgeted production (a)
20,000
units
Standard hours per unit (b)
0.70
machine-hours
Budgeted hours (a) × (b)
14,000
machine-hours
Actual production (a)
16,000
units
Standard hours per unit (b)
0.70
machine-hours
Standard hours allowed for the actual production (a) × (b)
11,200
machine-hours
Actual variable manufacturing overhead
$
30,784
Actual hours
10,400
machine-hours
The variable overhead rate variance is:
A) $9,184 U
B) $8,528 F
C) $9,184 F
D) $8,528 U
62) Wineman 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:
Budgeted (Planned) Overhead:
Budgeted variable manufacturing overhead
$
153,425
Budgeted fixed manufacturing overhead
352,925
Total budgeted manufacturing overhead
$
506,350
Budgeted production (a)
25,000
units
Standard hours per unit (b)
1.90
machine-hours
Budgeted hours (a) × (b)
47,500
machine-hours
Applying Overhead:
Actual production (a)
23,000
units
Standard hours per unit (b)
1.90
machine-hours
Standard hours allowed for the actual production
(a) × (b)
43,700
machine-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead
$
107,000
Actual fixed manufacturing overhead
336,925
Total actual manufacturing overhead
$
443,925
Actual hours
42,800
machine-hours
–
The variable overhead rate variance is:
A) $31,901 U
B) $31,244 F
C) $31,901 F
D) $31,244 U
63) Wineman 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:
Budgeted (Planned) Overhead:
Budgeted variable manufacturing overhead
$
153,425
Budgeted fixed manufacturing overhead
352,925
Total budgeted manufacturing overhead
$
506,350
Budgeted production (a)
25,000
units
Standard hours per unit (b)
1.90
machine-hours
Budgeted hours (a) × (b)
47,500
machine-hours
Applying Overhead:
Actual production (a)
23,000
units
Standard hours per unit (b)
1.90
machine-hours
Standard hours allowed for the actual production (a) ×
(b)
43,700
machine-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead
$
107,000
Actual fixed manufacturing overhead
336,925
Total actual manufacturing overhead
$
443,925
Actual hours
42,800
machine-hours
–
The variable overhead efficiency variance is:
A) $2,907 U
B) $2,250 U
C) $2,907 F
D) $2,250 F