A manufacturer of playground equipment has a standard costing system based on standard direct
labor-hours (DLHs) as the measure of activity. Data from the company’s flexible budget for
manufacturing overhead are given below:
Denominator level of activity
$
5,800
DLHs
Fixed overhead cost
$
58,870
–
The following data pertain to operations for the most recent period:
Actual hours
6,100
DLHs
Standard hours allowed for the actual output
6,018
DLHs
Actual total fixed manufacturing overhead cost
$
58,320
–
81) The predetermined fixed manufacturing overhead rate is closest to:
A) $10.15 per MH
B) $9.56 per MH
C) $9.65 per MH
D) $10.06 per MH
82) The fixed manufacturing overhead applied to products during the period is closest to:
A) $58,870
B) $61,083
C) $61,915
D) $58,320
83) A manufacturer of playground equipment has a standard costing system based on standard
direct labor-hours (DLHs) as the measure of activity. Data from the company’s flexible budget for
manufacturing overhead are given below:
Denominator level of activity
$
5,800
D LHs
Fixed overhead cost
$
58,870
–
The following data pertain to operations for the most recent period:
Actual hours
6,100
DLHs
Standard hours allowed for the actual output
6,018
DLHs
Actual total fixed manufacturing overhead cost
$
58,320
–
The fixed manufacturing overhead budget variance for the period is closest to:
A) $3,595 U
B) $550 F
C) $2,763 U
D) $784 F
84) The fixed manufacturing overhead volume variance for the period is closest to:
A) $2,213 F
B) $2,113 F
C) $3,045 F
D) $832 U
85) Tierman 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:
Budgeted fixed manufacturing overhead
$
221,700
Budgeted production (a)
15,000
units
Standard hours per unit (b)
2.00
machine-hours
Budgeted hours (a) × (b)
30,000
machine-hours
Actual production (a)
17,000
units
Standard hours per unit (b)
2.00
machine-hours
Standard hours allowed for the actual production (a) ×
(b)
34,000
machine-hours
Actual fixed manufacturing overhead
$
207,700
–
The fixed overhead budget variance is:
A) $14,000 F
B) $43,560 U
C) $43,560 F
D) $14,000 U
86) Tierman 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:
Budgeted fixed manufacturing overhead
$
221,700
Budgeted production (a)
15,000
units
Standard hours per unit (b)
2.00
machine-hours
Budgeted hours (a) × (b)
30,000
machine-hours
Actual production (a)
17,000
units
Standard hours per unit (b)
2.00
machine-hours
Standard hours allowed for the actual production (a) ×
(b)
34,000
machine-hours
Actual fixed manufacturing overhead
$
207,700
–
The fixed overhead volume variance is:
A) $43,560 U
B) $43,560 F
C) $29,560 F
D) $29,560 U
Zotta Enterprises uses standard costing and applies manufacturing overhead cost to products on
the basis of standard direct labor-hours (DLHs). Budgeted and actual data relating to
manufacturing overhead for last year appear below:
Actual fixed manufacturing overhead cost
$
38,900
Denominator activity
20,000
DLHs
Standard hours allowed for one unit
1.2
DLHs
Units produced
17,000
units
Fixed overhead budget variance
$
1,300
Unfavorable
–
87) The budgeted fixed manufacturing overhead cost was:
A) $24,000
B) $38,900
C) $40,200
D) $37,600
88) The standard direct labor-hours allowed for the output was:
A) 14,167 DLHs
B) 19,600 DLHs
C) 20,000 DLHs
D) 20,400 DLHs
89) The fixed manufacturing overhead cost applied to products was:
A) $31,960
B) $37,250
C) $38,352
D) $39,846
90) The volume variance was:
A) $5,640 U
B) $5,640 F
C) $752 U
D) $752 F
Stopyra 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 variable manufacturing overhead
$
28,200
Budgeted fixed manufacturing overhead
$
89,280
Budgeted hours
12,000
labor-hours
Actual production (a)
16,000
units
Standard hours per unit (b)
0.60
labor-hours
Standard hours allowed for the actual production (a) × (b)
9,600
labor-hours
Actual variable manufacturing overhead
$
26,967
Actual fixed manufacturing overhead
$
74,280
Actual hours
8,900
labor-hours
–
91) The variable overhead rate variance is:
A) $6,052 U
B) $6,052 F
C) $6,528 F
D) $6,528 U
92) The variable overhead efficiency variance is:
A) $1,645 F
B) $2,121 U
C) $2,121 F
D) $1,645 U
93) The fixed overhead budget variance is:
A) $2,856 U
B) $15,000 F
C) $2,856 F
D) $15,000 U
94) The fixed overhead volume variance is:
A) $17,856 U
B) $2,856 F
C) $17,856 F
D) $2,856 U
95) Muscato Corporation estimates that its variable manufacturing overhead is $19.00 per
machine-hour and its fixed manufacturing overhead is $1,442,100 per period.
If the denominator level of activity is 7,500 machine-hours, the variable component in the
predetermined overhead rate would be:
A) $208.75 per machine-hour
B) $192.28 per machine-hour
C) $211.28 per machine-hour
D) $19.00 per machine-hour
96) Muscato Corporation estimates that its variable manufacturing overhead is $19.00 per
machine-hour and its fixed manufacturing overhead is $1,442,100 per period.
If the denominator level of activity is 7,500 machine-hours, the fixed component in the
predetermined overhead rate would be:
A) $192.28 per machine-hour
B) $211.28 per machine-hour
C) $19.00 per machine-hour
D) $1,900.00 per machine-hour
97) Muscato Corporation estimates that its variable manufacturing overhead is $19.00 per
machine-hour and its fixed manufacturing overhead is $1,442,100 per period.
If the denominator level of activity is 7,600 machine-hours, the predetermined overhead rate
would be:
A) $1,900.00 per machine-hour
B) $19.00 per machine-hour
C) $189.75 per machine-hour
D) $208.75 per machine-hour
Arca 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
$
38,700
Budgeted fixed manufacturing overhead
170,700
Total budgeted manufacturing overhead
$
209,400
Budgeted production (a)
20,000
units
Standard hours per unit (b)
1.50
machine-hours
Budgeted hours (a) × (b)
30,000
machine-hours
Applying Overhead:
Actual production (a)
15,000
units
Standard hours per unit (b)
1.50
machine-hours
Standard hours allowed for the actual production
(a) × (b)
22,500
machine-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead
$
9,812
Actual fixed manufacturing overhead
185,700
Total actual manufacturing overhead
$
195,512
Actual hours
22,300
machine-hours
98) The predetermined overhead rate is closest to:
A) $8.69 per machine-hour
B) $10.47 per machine-hour
C) $6.98 per machine-hour
D) $13.03 per machine-hour
99) The variable component of the predetermined overhead rate is closest to:
A) $0.44 per machine-hour
B) $1.29 per machine-hour
C) $0.33 per machine-hour
D) $0.76 per machine-hour
100) The fixed component of the predetermined overhead rate is closest to:
A) $8.25 per machine-hour
B) $12.38 per machine-hour
C) $5.69 per machine-hour
D) $8.54 per machine-hour
101) The variable overhead rate variance is:
A) $18,955 F
B) $19,125 F
C) $19,125 U
D) $18,955 U
102) The variable overhead efficiency variance is:
A) $258 U
B) $88 F
C) $88 U
D) $258 F
103) The fixed overhead budget variance is:
A) $57,675 U
B) $15,000 F
C) $15,000 U
D) $57,675 F
104) The fixed overhead volume variance is:
A) $42,675 U
B) $57,675 U
C) $42,675 F
D) $57,675 F