64) 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 fixed overhead budget variance is:
A) $16,000 F
B) $12,234 F
C) $12,234 U
D) $16,000 U
65) 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 fixed overhead volume variance is:
A) $12,234 U
B) $28,234 F
C) $28,234 U
D) $12,234 F
66) 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
MHs
Overhead costs at the denominator activity level:
Variable overhead cost
$
Fixed overhead cost
$
–
The following data pertain to operations for the most recent period:
Actual hours
1,300
MHs
Standard hours allowed for the actual output
1,440
MHs
Actual total variable manufacturing overhead cost
$
11,440
Actual total fixed manufacturing overhead cost
$
18,560
–
The predetermined overhead rate is closest to:
A) $21.00 per hour
B) $21.43 per hour
C) $23.08 per hour
D) $22.62 per hour
67) 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
MHs
Overhead costs at the denominator activity level:
Variable overhead cost
$
Fixed overhead cost
$
–
The following data pertain to operations for the most recent period:
Actual hours
1,300
MHs
Standard hours allowed for the actual output
1,440
MHs
Actual total variable manufacturing overhead cost
$
11,440
Actual total fixed manufacturing overhead cost
$
18,560
–
The overhead applied to products during the period was closest to:
A) $30,000
B) $30,240
C) $27,300
D) $29,400
68) 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
MHs
Overhead costs at the denominator activity level:
Variable overhead cost
$
Fixed overhead cost
$
–
The following data pertain to operations for the most recent period:
Actual hours
1,300
MHs
Standard hours allowed for the actual output
1,440
MHs
Actual total variable manufacturing overhead cost
$
11,440
Actual total fixed manufacturing overhead cost
$
18,560
–
The fixed manufacturing overhead budget variance for the period is closest to:
A) $2,440 F
B) $1,200 U
C) $1,999 U
D) $704 F
69) 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
MHs
Overhead costs at the denominator activity level:
Variable overhead cost
$
Fixed overhead cost
$
–
The following data pertain to operations for the most recent period:
Actual hours
1,300
MHs
Standard hours allowed for the actual output
1,440
MHs
Actual total variable manufacturing overhead cost
$
11,440
Actual total fixed manufacturing overhead cost
$
18,560
–
The fixed manufacturing overhead volume variance for the period is closest to:
A) $1,240 U
B) $496 F
C) $1,736 F
D) $516 F
70) Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-
hour and its fixed manufacturing overhead is $242,048 per period.
If the denominator level of activity is 6,100 machine-hours, the variable component in the
predetermined overhead rate would be:
A) $5.20 per machine-hour
B) $44.24 per machine-hour
C) $39.68 per machine-hour
D) $44.88 per machine-hour
71) Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-
hour and its fixed manufacturing overhead is $242,048 per period.
If the denominator level of activity is 6,100 machine-hours, the fixed component in the
predetermined overhead rate would be:
A) $520.00 per machine-hour
B) $39.68 per machine-hour
C) $5.20 per machine-hour
D) $44.88 per machine-hour
72) Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-
hour and its fixed manufacturing overhead is $242,048 per period.
If the denominator level of activity is 6,200 machine-hours, the predetermined overhead rate
would be:
A) $520.00 per machine-hour
B) $5.20 per machine-hour
C) $44.24 per machine-hour
D) $39.04 per machine-hour
73) Fleming 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 fixed manufacturing overhead
$
190,485
Budgeted production (a)
15,000
units
Standard hours per unit (b)
1.70
labor-hours
Budgeted hours (a) × (b)
25,500
labor-hours
Actual production (a)
10,000
units
Standard hours per unit (b)
1.70
labor-hours
Standard hours allowed for the actual production (a) × (b)
17,000
labor-hours
Actual fixed manufacturing overhead
$
172,485
Actual hours
16,000
labor-hours
–
The fixed overhead budget variance is:
A) $18,000 U
B) $18,000 F
C) $45,495 U
D) $45,495 F
74) Fleming 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 fixed manufacturing overhead
$
190,485
Budgeted production (a)
15,000
units
Standard hours per unit (b)
1.70
labor-hours
Budgeted hours (a) × (b)
25,500
labor-hours
Actual production (a)
10,000
units
Standard hours per unit (b)
1.70
labor-hours
Standard hours allowed for the actual production (a) × (b)
17,000
labor-hours
Actual fixed manufacturing overhead
$
172,485
Actual hours
16,000
labor-hours
–
The fixed overhead volume variance is:
A) $63,495 U
B) $45,495 F
C) $45,495 U
D) $63,495 F
75) Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the
activity base for overhead. The following information relates to production for last year:
Variable
Fixed
Total budgeted overhead (at denominator level of activity)
$
432,000
$
684,000
Total applied overhead
$
410,400
$
649,800
Total actual overhead
$
456,000
$
655,500
–
The standard machine-hours allowed for actual output during the year were 7,600. The actual
machine-hours incurred were 7,500.
What did Tantanka use as a predetermined overhead rate for fixed manufacturing overhead?
A) $85.50 per machine-hour
B) $86.64 per machine-hour
C) $87.40 per machine-hour
D) $90.00 per machine-hour
76) Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the
activity base for overhead. The following information relates to production for last year:
Variable
Fixed
Total budgeted overhead (at denominator level of activity)
$
432,000
$
684,000
Total applied overhead
$
410,400
$
649,800
Total actual overhead
$
456,000
$
655,500
–
The standard machine-hours allowed for actual output during the year were 7,600. The actual
machine-hours incurred were 7,500.
What was Tantanka’s fixed manufacturing overhead volume variance?
A) $5,700 Unfavorable
B) $14,440 Unfavorable
C) $28,500 Favorable
D) $34,200 Unfavorable
77) Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the
activity base for overhead. The following information relates to production for last year:
Variable
Fixed
Total budgeted overhead (at denominator level of activity)
$
432,000
$
684,000
Total applied overhead
$
410,400
$
649,800
Total actual overhead
$
456,000
$
655,500
–
The standard machine-hours allowed for actual output during the year were 7,600. The actual
machine-hours incurred were 7,500.
What was Tantanka’s variable overhead efficiency variance?
A) $5,400 Favorable
B) $5,472 Unfavorable
C) $21,600 Unfavorable
D) $51,000 Unfavorable
78) Fredin 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 (Planned) Overhead:
Budgeted variable manufacturing overhead
$
80,400
Budgeted fixed manufacturing overhead
185,700
Total budgeted manufacturing overhead
$
266,100
Budgeted production (a)
15,000
units
Standard hours per unit (b)
2.00
labor-hours
Budgeted hours (a) × (b)
30,000
labor-hours
–
The predetermined overhead rate is closest to:
A) $22.76 per labor-hour
B) $11.38 per labor-hour
C) $17.74 per labor-hour
D) $8.87 per labor-hour
79) Fredin 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 (Planned) Overhead:
Budgeted variable manufacturing overhead
$
80,400
Budgeted fixed manufacturing overhead
185,700
Total budgeted manufacturing overhead
$
266,100
Budgeted production (a)
15,000
units
Standard hours per unit (b)
2.00
labor-hours
Budgeted hours (a) × (b)
30,000
labor-hours
–
The variable component of the predetermined overhead rate is closest to:
A) $2.68 per labor-hour
B) $3.02 per labor-hour
C) $2.93 per labor-hour
D) $2.41 per labor-hour
80) Fredin 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 (Planned) Overhead:
Budgeted variable manufacturing overhead
$
80,400
Budgeted fixed manufacturing overhead
185,700
Total budgeted manufacturing overhead
$
266,100
Budgeted production (a)
15,000
units
Standard hours per unit (b)
2.00
labor-hours
Budgeted hours (a) × (b)
30,000
labor-hours
–
The fixed component of the predetermined overhead rate is closest to:
A) $16.73 per labor-hour
B) $6.19 per labor-hour
C) $8.36 per labor-hour
D) $12.38 per labor-hour