126) An outdoor barbecue grill 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
4,600
MHs
Fixed overhead cost
$
50,140
–
The following data pertain to operations for the most recent period:
Actual hours
5,000
MHs
Standard hours allowed for the actual output
4,743
MHs
Actual total fixed manufacturing overhead cost
$
48,690
–
The fixed manufacturing overhead volume variance for the period is closest to:
A) $2,801 U
B) $1,559 F
C) $1,468 F
D) $4,360 F
127) Kisler 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 machine-hours allowed for the actual output of the period. Data
concerning the most recent year appear below:
$
70,035
15,000
units
0.70
machine-hours
10,500
machine-hours
14,000
units
0.70
machine-hours
9,800
machine-hours
$
97,489
–
The predetermined overhead rate is closest to:
A) $4.67 per machine-hour
B) $6.96 per machine-hour
C) $6.67 per machine-hour
D) $9.95 per machine-hour
128) Kisler 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 machine-hours allowed for the actual output of the period. Data
concerning the most recent year appear below:
$
70,035
15,000
units
0.70
machine-hours
10,500
machine-hours
14,000
units
0.70
machine-hours
9,800
machine-hours
$
97,489
–
The total amount of manufacturing overhead applied is closest to:
A) $91,900
B) $69,368
C) $97,489
D) $65,366
Total budgeted manufacturing overhead cost
$
70,035
Total budgeted hours
10,500
machine-hours
Predetermined overhead rate (a)
6.67
per machine-hour
production (b)
Manufacturing overhead applied (a) × (b)
65,366
129) Kisler 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 machine-hours allowed for the actual output of the period. Data
concerning the most recent year appear below:
$
70,035
15,000
units
0.70
machine-hours
10,500
machine-hours
14,000
units
0.70
machine-hours
9,800
machine-hours
$
97,489
The total manufacturing overhead is underapplied or overapplied by how much?
A) $32,123 Underapplied
B) $27,454 Overapplied
C) $27,454 Underapplied
D) $32,123 Overapplied
Total budgeted manufacturing overhead cost
$
70,035
Total budgeted hours
10,500
machine-hours
production (b)
Manufacturing overhead applied (a) × (b)
$
65,366
Total actual manufacturing overhead
$
97,489
overapplied
130) The Chuba Corporation uses a standard cost system in which manufacturing overhead is
applied on the basis of standard direct labor-hours (DLHs). During December, the company
actually used 7,200 direct labor-hours and made 1,900 units of finished product. The standard
cost card for one unit of product includes the following data concerning manufacturing overhead:
Variable overhead: 4 DLHs @ $5.25 per DLH
Fixed overhead: 4 DLHs @ $2.00 per DLH
For December, the company incurred $16,550 in fixed manufacturing overhead costs and
recorded an $800 unfavorable volume variance.
The denominator activity level in direct labor-hours used by Chuba in setting the predetermined
overhead rate was:
A) 7,600 hours
B) 7,800 hours
C) 8,000 hours
D) 7,200 hours
131) The Chuba Corporation uses a standard cost system in which manufacturing overhead is
applied on the basis of standard direct labor-hours (DLHs). During December, the company
actually used 7,200 direct labor-hours and made 1,900 units of finished product. The standard
cost card for one unit of product includes the following data concerning manufacturing overhead:
Variable overhead: 4 DLHs @ $5.25 per DLH
Fixed overhead: 4 DLHs @ $2.00 per DLH
For December, the company incurred $16,550 in fixed manufacturing overhead costs and
recorded an $800 unfavorable volume variance.
The budgeted fixed manufacturing overhead cost was:
A) $15,200
B) $16,000
C) $16,550
D) $13,700
E) $14,400
132) Weyers 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:
Total budgeted manufacturing overhead
$
258,300
Budgeted production (a)
25,000
units
Standard hours per unit (b)
1.40
machine-hours
Budgeted hours (a) × (b)
35,000
machine-hours
Actual production (a)
27,000
units
Standard hours per unit (b)
1.40
machine-hours
Standard hours allowed for the actual production (a) ×
(b)
37,800
machine-hours
Total actual manufacturing overhead
$
268,256
The total amount of manufacturing overhead applied is closest to:
A) $278,964
B) $289,296
C) $258,700
D) $268,256
Total budgeted manufacturing overhead
cost
Total budgeted hours
machine-hours
Predetermined overhead rate (a)
$
per machine-hour
Standard hours allowed for the actual
production (b)
machine-hours
Manufacturing overhead applied (a) × (b)
$
133) Weyers 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:
Total budgeted manufacturing overhead
$
258,300
Budgeted production (a)
25,000
units
Standard hours per unit (b)
1.40
machine-hours
Budgeted hours (a) × (b)
35,000
machine-hours
Actual production (a)
27,000
units
Standard hours per unit (b)
1.40
machine-hours
Standard hours allowed for the actual production (a) ×
(b)
37,800
machine-hours
Total actual manufacturing overhead
$
268,256
The total manufacturing overhead is underapplied or overapplied by how much?
A) $10,708 Overapplied
B) $9,956 Underapplied
C) $10,708 Underapplied
D) $9,956 Overapplied
Total budgeted manufacturing overhead
cost
Total budgeted hours
machine-hours
Predetermined overhead rate (a)
$
per machine-hours
Standard hours allowed for the actual
production (b)
machine-hours
Manufacturing overhead applied (a) × (b)
$
Total actual manufacturing overhead
$
Manufacturing overhead underapplied or
overapplied
Overapplied
134) Asper Corporation has provided the following data for February.
Denominator level of activity
7,700
machine-hours
Budgeted fixed manufacturing overhead costs
$
266,420
Fixed component of the predetermined overhead rate
$
34.60
per machine-hour
Actual level of activity
7,900
machine-hours
Standard machine-hours allowed for the actual output
8,200
machine-hours
Actual fixed manufacturing overhead costs
$
259,960
–
The budget variance for February is:
A) $6,460 F
B) $6,920 U
C) $6,460 U
D) $6,920 F
135) Asper Corporation has provided the following data for February.
Denominator level of activity
7,700
machine-hours
Budgeted fixed manufacturing overhead costs
$
266,420
Fixed component of the predetermined overhead rate
$
34.60
per machine-hour
Actual level of activity
7,900
machine-hours
Standard machine-hours allowed for the actual output
8,200
machine-hours
Actual fixed manufacturing overhead costs
$
259,960
–
The volume variance for February is:
A) $17,300 U
B) $17,300 F
C) $6,920 F
D) $6,920 U
136) Furtado 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:
Total budgeted manufacturing overhead
$
191,940
Budgeted hours
21,000
labor-hours
Actual production (a)
35,000
units
Standard hours per unit (b)
0.70
labor-hours
Standard hours allowed for the actual production (a) × (b)
24,500
labor-hours
Total actual manufacturing overhead
$
190,874
Actual hours
23,200
labor-hours
–
The predetermined overhead rate is closest to:
A) $6.40 per labor-hour
B) $7.79 per labor-hour
C) $5.45 per labor-hour
D) $9.14 per labor-hour
137) Furtado 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:
Total budgeted manufacturing overhead
$
191,940
Budgeted hours
21,000
labor-hours
Actual production (a)
35,000
units
Standard hours per unit (b)
0.70
labor-hours
Standard hours allowed for the actual production (a) × (b)
24,500
labor-hours
Total actual manufacturing overhead
$
190,874
Actual hours
23,200
labor-hours
–
The total amount of manufacturing overhead applied is closest to:
A) $201,600
B) $212,048
C) $190,874
D) $223,930
Total budgeted manufacturing overhead cost
$
191,940
Total budgeted hours
21,000
labor-hours
Predetermined overhead rate (a)
$
9.14
per labor-hours
production (b)
Manufacturing overhead applied (a) × (b)
$
223,930
138) Furtado 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:
Total budgeted manufacturing overhead
$
191,940
Budgeted hours
21,000
labor-hours
Actual production (a)
35,000
units
Standard hours per unit (b)
0.70
labor-hours
Standard hours allowed for the actual production (a) × (b)
24,500
labor-hours
Total actual manufacturing overhead
$
190,874
Actual hours
23,200
labor-hours
The total manufacturing overhead is underapplied or overapplied by how much?
A) $33,056 Underapplied
B) $1,066 Underapplied
C) $33,056 Overapplied
D) $1,066 Overapplied
Total budgeted manufacturing overhead cost
$
191,940
Total budgeted hours
21,000
labor-hours
Predetermined overhead rate (a)
$
9.14
per labor-hour
production (b)
Manufacturing overhead applied (a) × (b)
$
223,930
Total actual manufacturing overhead
$
190,874
overapplied
139) Vaden 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 (Planned) Overhead:
Budgeted variable manufacturing overhead
$
61,740
Budgeted fixed manufacturing overhead
390,040
Total budgeted manufacturing overhead
$
451,780
Budgeted production (a)
35,000
units
Standard hours per unit (b)
1.40
labor-hours
Budgeted hours (a) × (b)
49,000
labor-hours
Applying Overhead:
Actual production (a)
38,000
units
Standard hours per unit (b)
1.40
labor-hours
Standard hours allowed for the actual production (a) × (b)
53,200
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead
$
94,680
Actual fixed manufacturing overhead
405,040
Total actual manufacturing overhead
$
499,720
Actual hours
52,600
labor-hours
The predetermined overhead rate is closest to:
A) $9.39 per labor-hour
B) $9.22 per labor-hour
C) $13.15 per labor-hour
D) $12.91 per labor-hour
140) Vaden 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 (Planned) Overhead:
Budgeted variable manufacturing overhead
$
61,740
Budgeted fixed manufacturing overhead
390,040
Total budgeted manufacturing overhead
$
451,780
Budgeted production (a)
35,000
units
Standard hours per unit (b)
1.40
labor-hours
Budgeted hours (a) × (b)
49,000
labor-hours
Applying Overhead:
Actual production (a)
38,000
units
Standard hours per unit (b)
1.40
labor-hours
Standard hours allowed for the actual production (a) × (b)
53,200
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead
$
94,680
Actual fixed manufacturing overhead
405,040
Total actual manufacturing overhead
$
499,720
Actual hours
52,600
labor-hours
The variable component of the predetermined overhead rate is closest to:
A) $1.93 per labor-hour
B) $1.80 per labor-hour
C) $1.78 per labor-hour
D) $1.26 per labor-hour
141) Vaden 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 (Planned) Overhead:
Budgeted variable manufacturing overhead
$
61,740
Budgeted fixed manufacturing overhead
390,040
Total budgeted manufacturing overhead
$
451,780
Budgeted production (a)
35,000
units
Standard hours per unit (b)
1.40
labor-hours
Budgeted hours (a) × (b)
49,000
labor-hours
Applying Overhead:
Actual production (a)
38,000
units
Standard hours per unit (b)
1.40
labor-hours
Standard hours allowed for the actual production (a) × (b)
53,200
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead
$
94,680
Actual fixed manufacturing overhead
405,040
Total actual manufacturing overhead
$
499,720
Actual hours
52,600
labor-hours
The fixed component of the predetermined overhead rate is closest to:
A) $11.14 per labor-hour
B) $7.61 per labor-hour
C) $7.96 per labor-hour
D) $10.66 per labor-hour
142) Vaden 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 (Planned) Overhead:
Budgeted variable manufacturing overhead
$
61,740
Budgeted fixed manufacturing overhead
390,040
Total budgeted manufacturing overhead
$
451,780
Budgeted production (a)
35,000
units
Standard hours per unit (b)
1.40
labor-hours
Budgeted hours (a) × (b)
49,000
labor-hours
Applying Overhead:
Actual production (a)
38,000
units
Standard hours per unit (b)
1.40
labor-hours
Standard hours allowed for the actual production (a) × (b)
53,200
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead
$
94,680
Actual fixed manufacturing overhead
405,040
Total actual manufacturing overhead
$
499,720
Actual hours
52,600
labor-hours
The total amount of manufacturing overhead applied is closest to:
A) $484,972
B) $490,504
C) $499,720
D) $505,400
143) Vaden 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 (Planned) Overhead:
Budgeted variable manufacturing overhead
$
61,740
Budgeted fixed manufacturing overhead
390,040
Total budgeted manufacturing overhead
$
451,780
Budgeted production (a)
35,000
units
Standard hours per unit (b)
1.40
labor-hours
Budgeted hours (a) × (b)
49,000
labor-hours
Applying Overhead:
Actual production (a)
38,000
units
Standard hours per unit (b)
1.40
labor-hours
Standard hours allowed for the actual production (a) × (b)
53,200
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead
$
94,680
Actual fixed manufacturing overhead
405,040
Total actual manufacturing overhead
$
499,720
Actual hours
52,600
labor-hours
–
The total manufacturing overhead is underapplied or overapplied by how much?
A) $9,216 Overapplied
B) $9,216 Underapplied
C) $47,940 Underapplied
D) $47,940 Overapplied