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Student name:__________
1) Holl Corporation has provided the following data for November.
Denominator level of activity 5,600 machine-hours
Budgeted fixed manufacturing overhead costs $ 70,560
Standard machine-hours allowed for the actual output 5,900
machine-hours
Actual fixed manufacturing overhead costs $ 69,440
Required:
a. Compute the budget variance for November.
b. Compute the volume variance for November.
2) Rhine 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 $ 134,680
Budgeted production (a) 20,000 units
Standard hours per unit (b) 1.40 machine-hours
Budgeted hours (a) × (b) 28,000 machine-hours
Applying Overhead:
Actual production (a) 17,000 units
Standard hours per unit (b) 1.40 machine-hours
Standard hours allowed for the actual production (a) × (b) 23,800
machine-hours
Actual fixed manufacturing overhead $ 145,680
Actual hours 25,200 machine-hours
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Required:
a. Determine the fixed overhead budget variance for the year.
b. Determine the fixed overhead volume variance for the year.
3) Flick Company uses a standard cost system in which manufacturing overhead is applied
to units of product on the basis of standard direct labor-hours. The company’s total budgeted
variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000
for variable overhead and $30,000 for fixed manufacturing overhead. The predetermined
overhead rate, including both fixed and variable components, is $2.50 per direct labor-hour. The
standards call for two direct labor-hours per unit of output produced. Last year, the company
produced 11,500 units of product and worked 22,000 direct labor-hours. Actual costs were
$22,500 for variable overhead and $31,000 for fixed manufacturing overhead.
Required:
a. What is the denominator level of activity?
b. What were the standard hours allowed for the output last year?
c. What was the variable overhead rate variance?
d. What was the variable overhead efficiency variance?
e. What was the fixed manufacturing overhead budget variance?
f. What was the fixed manufacturing overhead volume variance?
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4) Moozi Dairy Products processes and sells two products: milk and butter. Last year,
Moozi budgeted $1,200,000 of fixed manufacturing overhead and chose a denominator level of
activity of 80,000 machine-hours. Each unit of milk at Moozi has a standard of 0.1 machine-
hours and each unit of butter has a standard of 0.08 machine-hours. Last year, Moozi processed
560,000 units of milk and 340,000 units of butter. Moozi’s total fixed manufacturing overhead
incurred last year was $1,256,000. Actual machine-hours incurred for the year were 82,000.
Moozi applies manufacturing overhead to its products on the basis of standard machine-hours.
Required:
Compute Moozi’s fixed manufacturing overhead variances for last year.
5) Plantier 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. The
budgeted fixed manufacturing overhead for the year was $136,950 and the budgeted hours were
27,500 machine-hours. Data concerning the actual results for the most recent year appear below:
Applying Overhead:
Actual production (a) 27,000 units
Standard hours per unit (b) 1.10 machine-hours
Standard hours allowed for the actual production (a) × (b) 29,700
machine-hours
Actual fixed manufacturing overhead $ 154,950
Actual hours 28,300 machine-hours
Required:
a. Determine the fixed overhead budget variance for the year.
b. Determine the fixed overhead volume variance for the year.
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6) Emanuele 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 $ 29,715
Budgeted fixed manufacturing overhead 53,340
Total budgeted manufacturing overhead $ 83,055
Budgeted production (a) 15,000 units
Standard hours per unit (b) 0.70 machine-hours
Budgeted hours (a)× (b) 10,500 machine-hours
Applying Overhead:
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 Overhead and Hours:
Actual variable manufacturing overhead $ 36,966
Actual fixed manufacturing overhead 38,340
Total actual manufacturing overhead $ 75,306
Actual hours 10,100 machine-hours
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Required:
a. Compute the variable component of the company’s predetermined overhead rate.
b. Compute the fixed component of the company’s predetermined overhead rate.
c. Compute the company’s predetermined overhead rate.
d. Determine the variable overhead rate variance for the year.
e. Determine the variable overhead efficiency variance for the year.
f. Determine the fixed overhead budget variance for the year.
g. Determine the fixed overhead volume variance for the year.
h. Determine whether overhead was underapplied or overapplied for the year and by how much.
7) Edlow 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 $ 41,325
Budgeted fixed manufacturing overhead 174,135
Total budgeted manufacturing overhead $ 215,460
Budgeted production (a) 15,000 units
Standard hours per unit (b) 1.90 labor-hours
Budgeted hours (a)× (b) 28,500 labor-hours
Applying Overhead:
Actual production (a) 20,000 units
Standard hours per unit (b) 1.90 labor-hours
Standard hours allowed for the actual production (a) × (b) 38,000
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 18,216
Actual fixed manufacturing overhead 156,135
Total actual manufacturing overhead $ 174,351
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Actual hours 39,600 labor-hours
Required:
a. Determine the variable overhead rate variance for the year.
b. Determine the variable overhead efficiency variance for the year.
c. Determine the fixed overhead budget variance for the year.
d. Determine the fixed overhead volume variance for the year.
8) Held 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 $ 65,520
Budgeted fixed manufacturing overhead 256,165
Total budgeted manufacturing overhead $ 321,685
Budgeted production (a) 35,000 units
Standard hours per unit (b) 1.30 machine-hours
Budgeted hours (a)× (b) 45,500 machine-hours
Applying Overhead:
Actual production (a) 36,000 units
Standard hours per unit (b) 1.30 machine-hours
Standard hours allowed for the actual production (a) × (b) 46,800
machine-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 93,528
Actual fixed manufacturing overhead 240,165
Total actual manufacturing overhead $ 333,693
Actual hours 43,300 machine-hours
Actual variable overhead rate $ 2.16 per machine-hour
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Required:
a. Compute the variable component of the company’s predetermined overhead rate.
b. Compute the fixed component of the company’s predetermined overhead rate.
c. Compute the company’s predetermined overhead rate.
d. Determine the variable overhead rate variance for the year.
e. Determine the variable overhead efficiency variance for the year.
f. Determine the fixed overhead budget variance for the year.
g. Determine the fixed overhead volume variance for the year.
h. Determine whether overhead was underapplied or overapplied for the year and by how much.
9) Wangerin Corporation applies overhead to products based on machine-hours. The
denominator level of activity is 8,900 machine-hours. The budgeted fixed manufacturing
overhead costs are $328,410. In April, the actual fixed manufacturing overhead costs were
$334,640 and the standard machine-hours allowed for the actual output were 9,200 machine-
hours.
Required:
a. Compute the budget variance for April.
b. Compute the volume variance for April.
10) Pickell 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 (Planned) Overhead:
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Budgeted variable manufacturing overhead $ 96,720
Budgeted fixed manufacturing overhead 231,270
Total budgeted manufacturing overhead $ 327,990
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) 25,000 units
Standard hours per unit (b) 1.30 machine-hours
Standard hours allowed for the actual production (a) × (b) 32,500
machine-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 53,600
Actual fixed manufacturing overhead 242,270
Total actual manufacturing overhead $ 295,870
Actual hours 33,500 machine-hours
Actual variable overhead rate $ 1.60 per machine-hour
Required:
a. Determine the variable overhead rate variance for the year.
b. Determine the variable overhead efficiency variance for the year.
c. Determine the fixed overhead budget variance for the year.
d. Determine the fixed overhead volume variance for the year.
e. Determine whether overhead was underapplied or overapplied for the year and by how much.
11) Warrenfeltz 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 35,125
Budgeted fixed manufacturing overhead 90,875
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Total budgeted manufacturing overhead $ 126,000
Budgeted production (a) 25,000 units
Standard hours per unit (b) 0.50 labor-hours
Budgeted hours (a)× (b) 12,500 labor-hours
Applying Overhead:
Actual production (a) 23,000 units
Standard hours per unit (b) 0.50 labor-hours
Standard hours allowed for the actual production (a) × (b) 11,500
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 26,536
Actual fixed manufacturing overhead 71,875
Total actual manufacturing overhead $ 98,411
Actual hours 10,700 labor-hours
Required:
a. Compute the variable component of the company’s predetermined overhead rate.
b. Compute the fixed component of the company’s predetermined overhead rate.
c. Compute the company’s predetermined overhead rate.
d. Determine the variable overhead rate variance for the year.
e. Determine the variable overhead efficiency variance for the year.
f. Determine the fixed overhead budget variance for the year.
g. Determine the fixed overhead volume variance for the year.
12) You have just been hired as the controller of the Eastern Division of Global
Manufacturing. Performance records for last year are incomplete, with only the following data
available:
Variable overhead rate $ 3.00 per direct labor-hour
Budgeted fixed manufacturing overhead $ 84,800
Total actual overhead cost $ 262,500
Fixed overhead budget variance $ 7,200 unfavorable
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Variable overhead efficiency variance $ 15,000 unfavorable
Actual direct labor-hours worked 55,000 direct labor-hours
Denominator activity level 53,000 direct labor-hours
Standard hours per unit 2 direct labor-hours
Required:
Prepare a complete analysis of manufacturing overhead for the past year. Indicate actual,
standard, and denominator activity levels; variable overhead rate and efficiency variances; and
fixed manufacturing overhead budget and volume variances.
13) Birkland 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 $ 137,670
Budgeted fixed manufacturing overhead 278,460
Total budgeted manufacturing overhead $ 416,130
Budgeted production (a) 30,000 units
Standard hours per unit (b) 1.30 labor-hours
Budgeted hours (a)× (b) 39,000 labor-hours
Applying Overhead:
Actual production (a) 26,000 units
Standard hours per unit (b) 1.30 labor-hours
Standard hours allowed for the actual production (a) × (b) 33,800
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 87,185
Actual fixed manufacturing overhead 261,460
Total actual manufacturing overhead $ 348,645
Actual hours 32,900 labor-hours
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Actual variable overhead rate $ 2.65 per labor-hour
Required:
a. Compute the variable component of the company’s predetermined overhead rate.
b. Compute the fixed component of the company’s predetermined overhead rate.
c. Compute the company’s predetermined overhead rate.
d. Determine the variable overhead rate variance for the year.
e. Determine the variable overhead efficiency variance for the year.
f. Determine the fixed overhead budget variance for the year.
g. Determine the fixed overhead volume variance for the year.
14) Khat 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 42,450
Budgeted fixed manufacturing overhead 71,700
Total budgeted manufacturing overhead $ 114,150
Budgeted production (a) 30,000 units
Standard hours per unit (b) 0.50 labor-hours
Budgeted hours (a)× (b) 15,000 labor-hours
Applying Overhead:
Actual production (a) 35,000 units
Standard hours per unit (b) 0.50 labor-hours
Standard hours allowed for the actual production (a) × (b) 17,500
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 64,125
Actual fixed manufacturing overhead 89,700
Total actual manufacturing overhead $ 153,825
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Actual hours 17,100 labor-hours
Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.
15) Gaters 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 $ 68,800
Budgeted fixed manufacturing overhead 203,200
Total budgeted manufacturing overhead $ 272,000
Budgeted production (a) 20,000 units
Standard hours per unit (b) 2.00 labor-hours
Budgeted hours (a)× (b) 40,000 labor-hours
Applying Overhead:
Actual production (a) 15,000 units
Standard hours per unit (b) 2.00 labor-hours
Standard hours allowed for the actual production (a) × (b) 30,000
labor-hours
The company incurred a total of $240,080 in manufacturing overhead cost during the year.
Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.
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16) Modine Corporation has provided the following data for September.
Denominator level of activity 1,600 machine-hours
Budgeted fixed manufacturing overhead costs $ 42,400
Fixed portion of the predetermined overhead rate $ 26.50 per
machine-hour
Actual level of activity 1,700 machine-hours
Standard machine-hours allowed for the actual output 2,000 machine–
hours
Actual fixed manufacturing overhead costs $ 41,740
Required:
a. Compute the budget variance for September.
b. Compute the volume variance for September.
17) Eastern Company uses a standard cost system in which manufacturing overhead is
applied to units of product on the basis of standard direct labor-hours (DLHs). The denominator
activity level is 60,000 direct labor-hours, or 300,000 units. ● A standard cost card for the
company’s product follows:
Standard quantity or hours Standard price or rate Standard
cost
Direct materials 0.25 kilogram $ 16 per kilogram $ 4
Direct labor 0.20 DLH $ 10 per DLH 2
Variable overhead 0.20 DLH $ 5 per DLH 1
Fixed overhead 0.20 DLH $ 10 per DLH 2
Total standard cost $ 9
● Actual data for the year follow:
Units produced and sold 330,000
Actual direct labor-hours worked 64,800
Actual variable overhead cost $ 327,240
Actual fixed manufacturing overhead cost $ 612,000
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Required:
a.Compute the variable overhead rate and efficiency variances.
b. Compute the fixed manufacturing overhead budget and volume variances.
18) Berk 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 $ 84,075
Budgeted fixed manufacturing overhead $ 221,730
Budgeted production (a) 15,000 units
Standard hours per unit (b) 1.90 machine-hours
Budgeted hours (a) × (b) 28,500 machine-hours
Applying Overhead:
Actual production (a) 13,000 units
Standard hours per unit (b) 1.90 machine-hours
Standard hours allowed for the actual production (a) × (b) 24,700
machine-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 77,675
Actual fixed manufacturing overhead $ 237,730
Actual hours 23,900 machine-hours
Required:
a.Compute the variable component of the company’s predetermined overhead rate.
b. Compute the fixed component of the company’s predetermined overhead rate.
c. Determine the variable overhead rate variance for the year.
d. Determine the variable overhead efficiency variance for the year.
e. Determine the fixed overhead budget variance for the year.
f. Determine the fixed overhead volume variance for the year.
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19) Canel 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 production (a) 15,000 units
Standard hours per unit (b) 1.70 machine-hours
Budgeted hours (a) × (b) 25,500 machine-hours
Budgeted fixed manufacturing overhead $ 163,965
Actual production (a) 13,000 units
Standard hours per unit (b) 1.70 machine-hours
Standard hours allowed for the actual production (a) × (b) 22,100
machine-hours
Actual fixed manufacturing overhead $ 182,965
Actual hours 23,100 machine-hours
Required:
a. Determine the fixed overhead budget variance for the year.
b. Determine the fixed overhead volume variance for the year.
20) Hargett 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:
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Budgeted variable manufacturing overhead $ 45,450
Budgeted fixed manufacturing overhead 265,050
Total budgeted manufacturing overhead $ 310,500
Budgeted production (a) 30,000 units
Standard hours per unit (b) 1.50 machine-hours
Budgeted hours (a) × (b) 45,000 machine-hours
Applying Overhead:
Actual production (a) 34,000 units
Standard hours per unit (b) 1.50 machine-hours
Standard hours allowed for the actual production (a) × (b) 51,000
machine-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 68,110
Actual fixed manufacturing overhead 255,050
Total actual manufacturing overhead $ 323,160
Actual hours 49,000 machine-hours
Required:
a.Determine the variable overhead rate variance for the year.
b. Determine the variable overhead efficiency variance for the year.
c. Determine the fixed overhead budget variance for the year.
d. Determine the fixed overhead volume variance for the year.
e. Determine whether overhead was underapplied or overapplied for the year and by how much.
21) Fabert 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 25,900
Budgeted fixed manufacturing overhead $ 47,200
Budgeted production (a) 20,000 units
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Standard hours per unit (b) 0.50 labor-hours
Budgeted hours (a) × (b) 10,000 labor-hours
Applying Overhead:
Actual production (a) 24,000 units
Standard hours per unit (b) 0.50 labor-hours
Standard hours allowed for the actual production (a) × (b) 12,000
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 27,248
Actual fixed manufacturing overhead $ 34,200
Actual hours 13,100 labor-hours
Required:
a. Determine the variable overhead rate variance for the year.
b. Determine the variable overhead efficiency variance for the year.
c. Determine the fixed overhead budget variance for the year.
d. Determine the fixed overhead volume variance for the year.
22) Fenderson 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 129,240
0
Budgeted fixed manufacturing overhead 265,320
Total budgeted manufacturing overhead $ 394,560
Budgeted production (a) 20,000 units
Standard hours per unit (b) 1.80 machine-hours
Budgeted hours (a) × (b) 36,000 machine-hours
Applying Overhead:
Actual production (a) 18,000 units
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Standard hours per unit (b) 1.80 machine-hours
Standard hours allowed for the actual production (a) × (b) 32,400
machine-hours
The company incurred a total of $370,077 in manufacturing overhead cost during the year.
Required:
a. Compute the variable component of the company’s predetermined overhead rate.
b. Compute the fixed component of the company’s predetermined overhead rate.
c. Compute the company’s predetermined overhead rate.
d. Determine whether overhead was underapplied or overapplied for the year and by how much.
23) Hykes Corporation’s manufacturing overhead includes $5.40 per machine-hour for
supplies; $5.40 per machine-hour for indirect labor; $65,800 per period for salaries; and $64,990
per period for depreciation.
Required:
Determine the predetermined overhead rate if the denominator level of activity is 4,100
machine-hours. (Round your answer to 2 decimal places.)
24) Stallbaumer 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 $ 438,360
Budgeted hours 39,000 labor-hours
Actual production (a) 35,000 units
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Standard hours per unit (b) 1.30 labor-hours
Standard hours allowed for the actual production (a) × (b) 45,500
labor-hours
Total actual manufacturing overhead $ 439,170
Actual hours 47,500 labor-hours
Required:
Determine whether overhead was underapplied or overapplied for the year and by how much.
25) Benoit Corporation’s manufacturing overhead includes $14.00 per machine-hour for
variable manufacturing overhead and $638,300 per period for fixed manufacturing overhead.
Required:
Determine the predetermined overhead rate for the denominator level of activity of 6,500
machine-hours. (Round your answer to 2 decimal places.)
26) Pearlman 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 $ 101,460
Budgeted fixed manufacturing overhead 283,860
Total budgeted manufacturing overhead $ 385,320
Budgeted production (a) 30,000 units
Standard hours per unit (b) 1.90 labor-hours
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Budgeted hours (a) × (b) 57,000 labor-hours
Applying Overhead:
Actual production (a) 29,000 units
Standard hours per unit (b) 1.90 labor-hours
Standard hours allowed for the actual production (a) × (b) 55,100
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 69,938
Actual fixed manufacturing overhead 270,860
Total actual manufacturing overhead $ 340,798
Actual hours 57,800 labor-hours
Actual variable overhead rate $ 1.21 per labor-hour
Required:
a. Determine the variable overhead rate variance for the year.
b. Determine the variable overhead efficiency variance for the year.
c. Determine the fixed overhead budget variance for the year.
d. Determine the fixed overhead volume variance for the year.
27) Holl Corporation has provided the following data for November.
Denominator level of activity 4,800 machine-hours
Budgeted fixed manufacturing overhead costs $ 56,640
Standard machine-hours allowed for the actual output 5,100 machine–
hours
Actual fixed manufacturing overhead costs $ 55,860
Required:
a. Compute the budget variance for November.
b. Compute the volume variance for November.
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28) Wangerin Corporation applies overhead to products based on machine-hours. The
denominator level of activity is 6,900 machine-hours. The budgeted fixed manufacturing
overhead costs are $240,810. In April, the actual fixed manufacturing overhead costs were
$245,640 and the standard machine-hours allowed for the actual output were 7,200 machine-
hours.
Required:
a. Compute the budget variance for April.
b. Compute the volume variance for April.
29) Hykes Corporation’s manufacturing overhead includes $4.40 per machine-hour for
supplies; $4.40 per machine-hour for indirect labor; $55,800 per period for salaries; and $58,590
per period for depreciation.
Required:
Determine the predetermined overhead rate if the denominator level of activity is 3,100
machine-hours.
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30) Benoit Corporation’s manufacturing overhead includes $13.20 per machine-hour for
variable manufacturing overhead and $555,408 per period for fixed manufacturing overhead.
Required:
Determine the predetermined overhead rate for the denominator level of activity of 5,700
machine-hours.
31) 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
32) Azzurra Corporation manufactures computer chips used in aircraft and automobiles.
Manufacturing overhead at Azzurra is applied to production on the basis of standard machine-
hours. Which overhead variance(s) at Azzurra would be affected in an unfavorable manner if fire
and theft insurance rates increase by 25% unexpectedly during the period?
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A) variable overhead rate variance
B) variable overhead efficiency variance
C) fixed manufacturing overhead budget variance
D) fixed manufacturing overhead volume variance
33) The economic impact of the inability to reach a target denominator level of activity
would best be measured by:
A) the amount of the volume variance.
B) the contribution margin lost by failing to meet the target denominator level of
activity.
C) the amount of the fixed manufacturing overhead budget variance.
D) the amount of the variable overhead efficiency variance.
34) The manufacturing overhead variance that is a measure of capacity utilization is:
A) the overhead rate variance.
B) the overhead efficiency variance.
C) the overhead budget variance.
D) the overhead volume variance.
35) Dori Castings is a job order shop that uses a standard cost system. Manufacturing
overhead costs are applied on the basis of standard direct labor-hours.
The amount of fixed manufacturing overhead that Dori would apply to finished production
would be:
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A) the actual direct labor-hours times the standard fixed manufacturing overhead rate
per direct labor-hour.
B) the standard hours allowed for the actual units of finished output times the standard
fixed manufacturing overhead rate per direct labor-hour.
C) the standard units of output for the actual direct labor-hours worked times the
standard fixed manufacturing overhead rate per unit of output.
D) the actual fixed manufacturing overhead cost per direct labor-hour times the standard
hours allowed.
36) The fixed manufacturing overhead budget variance equals:
A) Actual fixed manufacturing overhead cost − Applied fixed manufacturing overhead
cost.
B) Actual fixed manufacturing overhead cost − Budgeted fixed manufacturing overhead
cost.
C) Budgeted fixed manufacturing overhead cost − Applied fixed manufacturing
overhead cost.
D) Actual fixed manufacturing overhead cost − (Actual hours × Standard fixed
manufacturing overhead rate).
37) The volume variance is nonzero whenever:
A) standard hours allowed for the output of a period differ from the denominator level
of activity.
B) actual hours differ from the denominator level of activity.
C) standard hours allowed for the output of a period differ from the actual hours during
the period.
D) actual fixed manufacturing overhead costs incurred during a period differ from
budgeted fixed manufacturing overhead costs as contained in the flexible budget.
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38) Teall 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 10,100 MHs
Actual level of activity 10,200 MHs
Standard variable manufacturing overhead rate $ 7.30 per MH
Budgeted fixed manufacturing overhead cost $ 66,000
Actual total variable manufacturing overhead $ 67,600
Actual total fixed manufacturing overhead $ 71,600
What was the fixed manufacturing overhead budget variance for the month?
A) $5,600 Unfavorable
B) $5,600 Favorable
C) $730 Favorable
D) $730 Unfavorable
39) Teall 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 8,500 MHs
Actual level of activity 8,600 MHs
Standard variable manufacturing overhead rate $ 5.70 per MH
Budgeted fixed manufacturing overhead cost $ 50,000
Actual total variable manufacturing overhead $ 51,600
Actual total fixed manufacturing overhead $ 54,000
What was the fixed manufacturing overhead budget variance for the month?
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A) $4,000 Unfavorable
B) $4,000 Favorable
C) $570 Favorable
D) $570 Unfavorable
40) Diehl Corporation uses a standard cost system in which it applies manufacturing
overhead to units of product on the basis of standard direct labor-hours. The company’s total
applied factory overhead was $315,000 last year when the company used 32,000 direct labor-
hours as the denominator activity. If the variable factory overhead rate was $8 per direct labor-
hour, and if 30,000 standard direct labor-hours were allowed for the output of the year, then the
total budgeted fixed factory overhead for the year must have been:
A) $60,000
B) $80,000
C) $90,000
D) $100,000
41) Hoag Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent
month appear below:
Original Budget Actual Costs
Fixed overhead costs:
Supervision $ 9,880 $ 9,970
Utilities 4,160 4,440
Factory depreciation 21,320 21,190
Total fixed manufacturing overhead cost $ 35,360 $ 35,600
The company based its original budget on 2,600 machine-hours. The company actually worked
2,280 machine-hours during the month. The standard hours allowed for the actual output of the
month totaled 2,080 machine-hours. What was the overall fixed manufacturing overhead volume
variance for the month?
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A) $4,352 Favorable
B) $4,352 Unfavorable
C) $7,072 Unfavorable
D) $7,072 Favorable
42) Recht Corporation bases its predetermined overhead rate on variable manufacturing
overhead cost of $9.30 per machine-hour and fixed manufacturing overhead cost of $17,940 per
period. If the denominator level of activity is 1,200 machine-hours, the fixed element in the
predetermined overhead rate would be:
A) $14.95
B) $930.00
C) $24.25
D) $9.30
43) Thilges 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 variable manufacturing overhead $ 29,125
Budgeted production (a) 25,000 units
Standard hours per unit (b) 0.50 machine-hours
Budgeted hours (a) × (b) 12,500 machine-hours
Actual production (a) 22,000 units
Standard hours per unit (b) 0.50 machine-hours
Standard hours allowed for the actual production (a) × (b) 11,000
machine-hours
Actual variable manufacturing overhead $ 30,160
Actual hours 10,400 machine-hours
The variable overhead efficiency variance is:
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A) $1,74 0 U
B) $1,398 F
C) $1,740 F
D) $1,398 U
44) Stopher 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 variable manufacturing overhead $ 45,220
Budgeted production (a) 20,000 units
Standard hours per unit (b) 1.90 machine-hours
Budgeted hours (a) × (b) 38,000 machine-hours
Actual production (a) 21,000 units
Standard hours per unit (b) 1.90 machine-hours
Standard hours allowed for the actual production (a) × (b) 39,900
machine-hours
Actual variable manufacturing overhead $ 66,789
Actual hours 36,900 machine-hours
The variable component of the predetermined overhead rate is closest to:
A) $1.67 per machine-hour
B) $1.81 per machine-hour
C) $1.76 per machine-hour
D) $1.19 per machine-hour
45) Likes 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:
Total budgeted manufacturing overhead $ 495,040
Budgeted production (a) 35,000 units
Standard hours per unit (b) 1.70 machine-hours
Budgeted hours (a) × (b) 59,500 machine-hours
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Applying Overhead:
Actual production (a) 30,000 units
Standard hours per unit (b) 1.70 machine-hours
Standard hours allowed for the actual production (a) × (b) 51,000
machine-hours
Total actual manufacturing overhead $ 498,000
Actual hours 52,000 machine-hours
The total amount of manufacturing overhead applied is closest to:
A) $488,400
B) $424,320
C) $432,640
D) $498,000
46) The Rowe Corporation uses a standard cost system in which it applies manufacturing
overhead to units of product on the basis of standard machine-hours. During January, the
company budgeted to incur $225,000 in manufacturing overhead cost and to operate at a
denominator activity level of 25,000 machine-hours. At standard, each unit of finished product
requires 3 machine-hours. The following cost and activity were recorded during January:
Total actual manufacturing overhead cost incurred $ 217,750
Units of product completed 8,000
Actual machine-hours worked 23,000
The amount of overhead cost that the company applied to Work in Process for January was:
A) $217,750
B) $225,000
C) $221,600
D) $216,000
47) Figures 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 $ 66,570
Budgeted hours 21,000 labor-hours
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Standard hours allowed for the actual production 18,000 labor–
hours
Actual variable manufacturing overhead $ 56,736
Actual hours 19,700 labor-hours
The variable overhead efficiency variance is:
A) $5,389 F
B) $5,389 U
C) $4,896 F
D) $4,896 U
48) Dapice 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 $ 76,815
Budgeted hours 13,500 labor-hours
Standard hours allowed for the actual production 14,400 labor–
hours
The fixed overhead volume variance is:
A) $5,121 U
B) $5,121 F
C) $21,121 F
D) $21,121 U
49) 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
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The fixed overhead budget variance is:
A) $37,328 U
B) $37,328 F
C) $17,000 F
D) $17,000 U
50) At the beginning of last year, Tarind Corporation budgeted $700,000 of fixed
manufacturing overhead and chose a denominator level of activity of 500,000 machine-hours. At
the end of the year, Tari’s fixed manufacturing overhead budget variance was $11,000 favorable.
Its fixed manufacturing overhead volume variance was $17,500 favorable. Actual direct labor-
hours for the year were 525,000. What was Tari’s total standard machine-hours allowed for last
year’s output?
A) 735,000
B) 512,500
C) 717,500
D) 752,500
51) 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
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52) 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
53) 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
$4.20 per machine-hour and the denominator level of activity is 4,400 machine-hours. In the
most recent month, the total actual fixed manufacturing overhead was $18,590 and the company
actually worked 4,330 machine-hours during the month. The standard hours allowed for the
actual output of the month totaled 4,350 machine-hours. What was the overall fixed
manufacturing overhead volume variance for the month?
A) $84 Favorable
B) $294 Favorable
C) $294 Unfavorable
D) $210 Unfavorable
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54) 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
55) 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 Unfavorable
B) $20,000 Favorable
C) $62,070 Favorable
D) $62,070 Unfavorable
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56) 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
57) 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
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58) 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
59) 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 $ 7,200 $ 7,390
Indirect labor 10,660 10,010
Fixed overhead costs:
Supervision 15,010 14,430
Utilities 14,300 14,350
Factory depreciation 57,810 58,340
Total overhead cost $ 104,980 $ 104,520
The company based its original budget on 7,200 machine-hours. The company actually worked
7,160 machine-hours during the month. The standard hours allowed for the actual output of the
month totaled 7,090 machine-hours. What was the overall fixed manufacturing overhead volume
variance for the month? (Round your intermediate calculations to 2 decimal places.)
A) $1,235 Favorable
B) $1,235 Unfavorable
C) $1,331 Favorable
D) $1,331 Unfavorable
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60) 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
61) 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
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62) 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
63) 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
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64) 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
65) 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
66) 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
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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
67) 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
68) 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:
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A) $1.26 per labor-hour
B) $1.20 per labor-hour
C) $1.64 per labor-hour
D) $1.57 per labor-hour
69) 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
70) 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:
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
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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
71) 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
72) 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 units
Standard hours per unit (b) 1.60 machine-hours
Budgeted hours (a) × (b) 56,000 machine-hours
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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
73) 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
74) 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
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75) 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
76) 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
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77) 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
78) 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
79) 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 $9.60 per
MH. The company had budgeted its fixed manufacturing overhead cost at $76,000 for the month.
During the month, the actual total variable manufacturing overhead was $66,770 and the actual
total fixed manufacturing overhead was $78,000. The actual level of activity for the period was
6,800 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead
budget variances for the month?
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A) $1,490 Unfavorable
B) $3,490 Favorable
C) $1,490 Favorable
D) $3,490 Unfavorable
80) 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
81) Merone Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The company bases its predetermined overhead rate on 3,000 machine-hours.
The company’s total budgeted fixed manufacturing overhead is $8,700. In the most recent month,
the total actual fixed manufacturing overhead was $8,100. The company actually worked 2,900
machine-hours during the month. The standard hours allowed for the actual output of the month
totaled 3,020 machine-hours. What was the overall fixed manufacturing overhead volume
variance for the month? (Round your intermediate calculations to 2 decimal places.)
A) $290 Unfavorable
B) $600 Favorable
C) $58 Favorable
D) $290 Favorable
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82) 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
83) 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
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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
84) Billa Corporation bases its predetermined overhead rate on variable manufacturing
overhead cost of $14.00 per machine-hour and fixed manufacturing overhead cost of $802,400
per period. If the denominator level of activity is 6,800 machine-hours, the predetermined
overhead rate would be: (Round your intermediate calculations to 2 decimal places.)
A) $14.00
B) $132.00
C) $118.00
D) $1,400.00
85) 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
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86) 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
87) 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:
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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
88) 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:
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A) $2,907 U
B) $2,250 U
C) $2,907 F
D) $2,250 F
89) 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
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90) 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
91) 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 1,800 MHs
Overhead costs at the denominator activity level:
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Variable overhead cost $ 17,150
Fixed overhead cost $ 21,370
The following data pertain to operations for the most recent period:
Actual hours 1,700 MHs
Standard hours allowed for the actual output 1,840 MHs
Actual total variable manufacturing overhead cost $ 15,440
Actual total fixed manufacturing overhead cost $ 22,560
The predetermined overhead rate is closest to:
A) $21.40 per hour
B) $21.11 per hour
C) $22.35 per hour
D) $22.66 per hour
92) 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 1,400 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 12,040
Fixed overhead cost $ 17,360
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
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93) 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 1,400 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 12,040
Fixed overhead cost $ 17,360
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
94) 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 1,400 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 12,040
Fixed overhead cost $ 17,360
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
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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
95) 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 1,400 MHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 12,040
Fixed overhead cost $ 17,360
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
96) 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:
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A) $5.20 per machine-hour
B) $44.24 per machine-hour
C) $39.68 per machine-hour
D) $44.88 per machine-hour
97) 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
98) Keeran Corporation estimates that its variable manufacturing overhead is $6.60 per
machine-hour and its fixed manufacturing overhead is $293,250 per period.
If the denominator level of activity is 7,500 machine-hours, the predetermined overhead rate
would be:
A) $660.00 per machine-hour
B) $6.60 per machine-hour
C) $45.70 per machine-hour
D) $39.10 per machine-hour
99) 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:
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A) $520.00 per machine-hour
B) $5.20 per machine-hour
C) $44.24 per machine-hour
D) $39.04 per machine-hour
100) 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 variable 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 variable manufacturing overhead $ 172,485
Actual hours 16,000 labor-hours
The variable overhead budget variance is:
A) $18,000 U
B) $18,000 F
C) $45,495 U
D) $45,495 F
101) 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 variable manufacturing overhead $ 190,485
Budgeted production (a) 15,000 units
Standard hours per unit (b) 1.70 labor-hours
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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 variable 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
102) 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
103) 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
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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
104) 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
105) 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 machine-hours
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Budgeted hours (a) × (b) 30,000 machine-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
106) 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 machine-hours
Budgeted hours (a) × (b) 30,000 machine-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
107) 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
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Standard hours per unit (b) 2.00 machine-hours
Budgeted hours (a) × (b) 30,000 machine-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
108) 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
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
109) 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
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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
110) 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
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
111) 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
The fixed manufacturing overhead volume variance for the period is closest to:
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A) $2,213 F
B) $2,113 F
C) $3,045 F
D) $832 U
112) 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
113) 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
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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
114) 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
The budgeted fixed manufacturing overhead cost was:
A) $24,000
B) $38,900
C) $40,200
D) $37,600
115) 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
The standard direct labor-hours allowed for the output was:
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A) 14,167 DLHs
B) 19,600 DLHs
C) 20,000 DLHs
D) 20,400 DLHs
116) 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
The fixed manufacturing overhead cost applied to products was:
A) $31,960
B) $37,250
C) $38,352
D) $39,846
117) 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
The volume variance was:
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A) $5,640 U
B) $5,640 F
C) $752 U
D) $752 F
118) 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
The variable overhead rate variance is:
A) $6,052 U
B) $6,05 2 F
C) $6,528 F
D) $6,528 U
119) 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
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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
The variable overhead efficiency variance is:
A) $1,645 F
B) $2,121 U
C) $2,121 F
D) $1,645 U
120) 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
The fixed overhead budget variance is:
A) $2,856 U
B) $15,000 F
C) $2,856 F
D) $15,000 U
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121) 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
The fixed overhead volume variance is:
A) $17,856 U
B) $2,856 F
C) $17,856 F
D) $2,856 U
122) 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
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123) Muscato Corporation estimates that its variable manufacturing overhead is $20.40 per
machine-hour and its fixed manufacturing overhead is $1,746,000 per period.
If the denominator level of activity is 9,000 machine-hours, the fixed component in the
predetermined overhead rate would be:
A) $194.00 per machine-hour
B) $214.40 per machine-hour
C) $20.40 per machine-hour
D) $2,040.00 per machine-hour
124) 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
125) 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
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126) 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
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
127) 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
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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
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
128) 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
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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
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
129) 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
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Actual hours 22,300 machine-hours
The variable overhead rate variance is:
A) $18,955 F
B) $19,125 F
C) $19,125 U
D) $18,955 U
130) 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
The variable overhead efficiency variance is:
A) $258 U
B) $88 F
C) $88 U
D) $258 F
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131) 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
The fixed overhead budget variance is:
A) $57,675 U
B) $15,000 F
C) $15,000 U
D) $57,675 F
132) 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:
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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
The fixed overhead volume variance is:
A) $42,675 U
B) $57,675 U
C) $42,675 F
D) $57,675 F
133) 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
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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
The total amount of manufacturing overhead applied is closest to:
A) $157,050
B) $195,512
C) $197,300
D) $155,654
134) 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
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Actual hours 22,300 machine-hours
The total of the overhead variances is:
A) $13,888 F
B) $13,888 U
C) $38,462 F
D) $38,462 U
135) 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
The total manufacturing overhead is underapplied or overapplied by how much?
A) $38,462 Underapplied
B) $13,888 Underapplied
C) $38,462 Overapplied
D) $13,888 Overapplied
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136) A manufacturing company 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 3,700 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 28,490
Fixed overhead cost $ 47,545
The following data pertain to operations for the most recent period:
Actual hours 3,900 DLHs
Standard hours allowed for the actual output 3,850 DLHs
Actual total variable manufacturing overhead cost $ 29,445
Actual total fixed manufacturing overhead cost $ 47,995
The predetermined overhead rate per MH is closest to:
A) $20.93 per MH
B) $19.86 per MH
C) $19.50 per MH
D) $20.55 per MH
137) A manufacturing company 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 6,700 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 31,700
Fixed overhead cost $ 94,260
The following data pertain to operations for the most recent period:
Actual hours 6,900 DLHs
Standard hours allowed for the actual output 6,884 DLHs
Actual total variable manufacturing overhead cost $ 30,880
Actual total fixed manufacturing overhead cost $ 97,420
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The overhead applied to products during the period was closest to:
A) $126,940
B) $129,419
C) $129,720
D) $125,960
138) A manufacturing company 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 3,700 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 28,490
Fixed overhead cost $ 47,545
The following data pertain to operations for the most recent period:
Actual hours 3,900 DLHs
Standard hours allowed for the actual output 3,850 DLHs
Actual total variable manufacturing overhead cost $ 29,445
Actual total fixed manufacturing overhead cost $ 47,995
The overhead applied to products during the period was closest to:
A) $79,118
B) $76,035
C) $77,440
D) $80,145
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139) A manufacturing company 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 3,700 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 28,490
Fixed overhead cost $ 47,545
The following data pertain to operations for the most recent period:
Actual hours 3,900 DLHs
Standard hours allowed for the actual output 3,850 DLHs
Actual total variable manufacturing overhead cost $ 29,445
Actual total fixed manufacturing overhead cost $ 47,995
The variable overhead rate variance for the period was closest to:
A) $585 U
B) $585 F
C) $955 U
D) $955 F
140) A manufacturing company 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 3,700 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 28,490
Fixed overhead cost $ 47,545
The following data pertain to operations for the most recent period:
Actual hours 3,900 DLHs
Standard hours allowed for the actual output 3,850 DLHs
Actual total variable manufacturing overhead cost $ 29,445
Actual total fixed manufacturing overhead cost $ 47,995
What was the variable overhead efficiency variance for the period to the nearest dollar?
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A) $578 U
B) $385 U
C) $378 U
D) $955 U
141) A manufacturing company 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 6,800 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 37,400
Fixed overhead cost $ 74,800
The following data pertain to operations for the most recent period:
Actual hours 7,000 DLHs
Standard hours allowed for the actual output 6,664 DLHs
Actual total variable manufacturing overhead cost $ 40,800
Actual total fixed manufacturing overhead cost $ 73,830
The fixed manufacturing overhead budget variance for the period is closest to:
A) $970 F
B) $526 F
C) $3,400 F
D) $3,696 U
142) A manufacturing company 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 3,700 DLHs
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Overhead costs at the denominator activity level:
Variable overhead cost $ 28,490
Fixed overhead cost $ 47,545
The following data pertain to operations for the most recent period:
Actual hours 3,900 DLHs
Standard hours allowed for the actual output 3,850 DLHs
Actual total variable manufacturing overhead cost $ 29,445
Actual total fixed manufacturing overhead cost $ 47,995
The fixed manufacturing overhead budget variance for the period is closest to:
A) $615 F
B) $2,120 U
C) $1,478 U
D) $450 U
143) A manufacturing company 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 3,700 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 28,490
Fixed overhead cost $ 47,545
The following data pertain to operations for the most recent period:
Actual hours 3,900 DLHs
Standard hours allowed for the actual output 3,850 DLHs
Actual total variable manufacturing overhead cost $ 29,445
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Actual total fixed manufacturing overhead cost $ 47,995
The fixed manufacturing overhead volume variance for the period is closest to:
A) $1,870 F
B) $1,928 F
C) $643 U
D) $2,570 F
144) Rainbolt 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 fixed manufacturing overhead $ 343,000
Budgeted hours 70,000 machine-hours
Actual production (a) 37,000 units
Standard hours per unit (b) 2.00 machine-hours
Standard hours allowed for the actual production (a) × (b) 74,000
machine-hours
Actual fixed manufacturing overhead $ 363,000
Actual hours 77,500 machine-hours
The fixed overhead budget variance is:
A) $20,000 U
B) $400 U
C) $20,000 F
D) $400 F
145) Rainbolt 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 fixed manufacturing overhead $ 343,000
Budgeted hours 70,000 machine-hours
Actual production (a) 37,000 units
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Standard hours per unit (b) 2.00 machine-hours
Standard hours allowed for the actual production (a) × (b) 74,000
machine-hours
Actual fixed manufacturing overhead $ 363,000
Actual hours 77,500 machine-hours
The fixed overhead volume variance is:
A) $400 F
B) $19,600 F
C) $400 U
D) $19,600 U
146) The following data for May has been provided by Mccawley Corporation.
Denominator level of activity 2,600 machine-hours
Budgeted fixed manufacturing overhead costs $ 53,820
Actual level of activity 2,700 machine-hours
Standard machine-hours allowed for the actual output 2,800 machine–
hours
Actual fixed manufacturing overhead costs $ 56,290
The budget variance for May is:
A) $2,070 U
B) $2,470 F
C) $2,070 F
D) $2,470 U
147) The following data for May has been provided by Mccawley Corporation.
Denominator level of activity 3,300 machine-hours
Budgeted fixed manufacturing overhead costs $ 70,620
Actual level of activity 3,400 machine-hours
Standard machine-hours allowed for the actual output 3,500 machine–
hours
Actual fixed manufacturing overhead costs $ 73,590
The volume variance for May is: (Round your intermediate calculations to 2 decimal places.)
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A) $2,140 U
B) $4,280 U
C) $4,280 F
D) $2,140 F
148) The following data for May has been provided by Mccawley Corporation.
Denominator level of activity 2,600 machine-hours
Budgeted fixed manufacturing overhead costs $ 53,820
Actual level of activity 2,700 machine-hours
Standard machine-hours allowed for the actual output 2,800 machine–
hours
Actual fixed manufacturing overhead costs $ 56,290
The volume variance for May is:
A) $2,070 U
B) $4,140 U
C) $4,140 F
D) $2,070 F
149) Chojnowski 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 82,450
Budgeted fixed manufacturing overhead 325,975
Total budgeted manufacturing overhead $ 408,425
Budgeted production (a) 25,000 units
Standard hours per unit (b) 1.70 labor-hours
Budgeted hours (a)× (b) 42,500 labor-hours
Applying Overhead:
Actual production (a) 20,000 units
Standard hours per unit (b) 1.70 labor-hours
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Standard hours allowed for the actual production (a) × (b) 34,000
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 74,812
Actual fixed manufacturing overhead 312,975
Total actual manufacturing overhead $ 387,787
Actual hours 31,700 labor-hours
The predetermined overhead rate is closest to:
A) $19.39 per labor-hour
B) $16.34 per labor-hour
C) $11.41 per labor-hour
D) $9.61 per labor-hour
150) Chojnowski 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 82,450
Budgeted fixed manufacturing overhead 325,975
Total budgeted manufacturing overhead $ 408,425
Budgeted production (a) 25,000 units
Standard hours per unit (b) 1.70 labor-hours
Budgeted hours (a)× (b) 42,500 labor-hours
Applying Overhead:
Actual production (a) 20,000 units
Standard hours per unit (b) 1.70 labor-hours
Standard hours allowed for the actual production (a) × (b) 34,000
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 74,812
Actual fixed manufacturing overhead 312,975
Total actual manufacturing overhead $ 387,787
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Actual hours 31,700 labor-hours
The variable component of the predetermined overhead rate is closest to:
A) $1.76 per labor-hour
B) $2.36 per labor-hour
C) $2.20 per labor-hour
D) $1.94 per labor-hour
151) Chojnowski 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 82,450
Budgeted fixed manufacturing overhead 325,975
Total budgeted manufacturing overhead $ 408,425
Budgeted production (a) 25,000 units
Standard hours per unit (b) 1.70 labor-hours
Budgeted hours (a)× (b) 42,500 labor-hours
Applying Overhead:
Actual production (a) 20,000 units
Standard hours per unit (b) 1.70 labor-hours
Standard hours allowed for the actual production (a) × (b) 34,000
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 74,812
Actual fixed manufacturing overhead 312,975
Total actual manufacturing overhead $ 387,787
Actual hours 31,700 labor-hours
The fixed component of the predetermined overhead rate is closest to:
A) $13.04 per labor-hour
B) $7.67 per labor-hour
C) $15.65 per labor-hour
D) $9.21 per labor-hour
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152) Chojnowski 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 82,450
Budgeted fixed manufacturing overhead 325,975
Total budgeted manufacturing overhead $ 408,425
Budgeted production (a) 25,000 units
Standard hours per unit (b) 1.70 labor-hours
Budgeted hours (a)× (b) 42,500 labor-hours
Applying Overhead:
Actual production (a) 20,000 units
Standard hours per unit (b) 1.70 labor-hours
Standard hours allowed for the actual production (a) × (b) 34,000
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 74,812
Actual fixed manufacturing overhead 312,975
Total actual manufacturing overhead $ 387,787
Actual hours 31,700 labor-hours
The variable overhead rate variance is:
A) $14,280 F
B) $13,314 U
C) $14,280 U
D) $13,314 F
153) Chojnowski 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 (Planned) Overhead:
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Budgeted variable manufacturing overhead $ 82,450
Budgeted fixed manufacturing overhead 325,975
Total budgeted manufacturing overhead $ 408,425
Budgeted production (a) 25,000 units
Standard hours per unit (b) 1.70 labor-hours
Budgeted hours (a)× (b) 42,500 labor-hours
Applying Overhead:
Actual production (a) 20,000 units
Standard hours per unit (b) 1.70 labor-hours
Standard hours allowed for the actual production (a) × (b) 34,000
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 74,812
Actual fixed manufacturing overhead 312,975
Total actual manufacturing overhead $ 387,787
Actual hours 31,700 labor-hours
The variable overhead efficiency variance is:
A) $4,462 F
B) $5,428 U
C) $4,462 U
D) $5,428 F
154) Chojnowski 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 82,450
Budgeted fixed manufacturing overhead 325,975
Total budgeted manufacturing overhead $ 408,425
Budgeted production (a) 25,000 units
Standard hours per unit (b) 1.70 labor-hours
Budgeted hours (a)× (b) 42,500 labor-hours
Applying Overhead:
Actual production (a) 20,000 units
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Standard hours per unit (b) 1.70 labor-hours
Standard hours allowed for the actual production (a) × (b) 34,000
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 74,812
Actual fixed manufacturing overhead 312,975
Total actual manufacturing overhead $ 387,787
Actual hours 31,700 labor-hours
The fixed overhead budget variance is:
A) $13,000 F
B) $13,000 U
C) $52,195 F
D) $52,195 U
155) Chojnowski 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 (Planned) Overhead:
Budgeted variable manufacturing overhead $ 82,450
Budgeted fixed manufacturing overhead 325,975
Total budgeted manufacturing overhead $ 408,425
Budgeted production (a) 25,000 units
Standard hours per unit (b) 1.70 labor-hours
Budgeted hours (a)× (b) 42,500 labor-hours
Applying Overhead:
Actual production (a) 20,000 units
Standard hours per unit (b) 1.70 labor-hours
Standard hours allowed for the actual production (a) × (b) 34,000
labor-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead $ 74,812
Actual fixed manufacturing overhead 312,975
Total actual manufacturing overhead $ 387,787
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Actual hours 31,700 labor-hours
The fixed overhead volume variance is:
A) $52,195 U
B) $65,195 U
C) $65,195 F
D) $52,195 F
156) 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 budget variance for the period is closest to:
A) $5,810 U
B) $2,503 F
C) $1,450 F
D) $3,009 U
157) 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
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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
158) 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:
Total budgeted manufacturing overhead $ 70,035
Budgeted production (a) 15,000 units
Standard hours per unit (b) 0.70 machine-hours
Budgeted hours (a) × (b) 10,500 machine-hours
Actual production (a) 14,000 units
Standard hours per unit (b) 0.70 machine-hours
Standard hours allowed for the actual production (a) × (b) 9,800
machine-hours
Total actual manufacturing overhead $ 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
159) 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:
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Total budgeted manufacturing overhead $ 70,035
Budgeted production (a) 15,000 units
Standard hours per unit (b) 0.70 machine-hours
Budgeted hours (a) × (b) 10,500 machine-hours
Actual production (a) 14,000 units
Standard hours per unit (b) 0.70 machine-hours
Standard hours allowed for the actual production (a) × (b) 9,800
machine-hours
Total actual manufacturing overhead $ 97,489
The total amount of manufacturing overhead applied is closest to:
A) $91,900
B) $69,368
C) $97,489
D) $65,366
160) 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:
Total budgeted manufacturing overhead $ 70,035
Budgeted production (a) 15,000 units
Standard hours per unit (b) 0.70 machine-hours
Budgeted hours (a) × (b) 10,500 machine-hours
Actual production (a) 14,000 units
Standard hours per unit (b) 0.70 machine-hours
Standard hours allowed for the actual production (a) × (b) 9,800
machine-hours
Total actual manufacturing overhead $ 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
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161) 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
162) 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
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163) 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
164) 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?
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A) $10,708 Overapplied
B) $9,956 Underapplied
C) $10,708 Underapplied
D) $9,956 Overapplied
165) Asper Corporation has provided the following data for February.
Denominator level of activity 9,300 machine-hours
Budgeted fixed manufacturing overhead costs $ 284,020
Fixed component of the predetermined overhead rate $ 36.20 per
machine-hour
Actual level of activity 9,500 machine-hours
Standard machine-hours allowed for the actual output 9,800 machine–
hours
Actual fixed manufacturing overhead costs $ 275,960
The budget variance for February is:
A) $8,060 F
B) $7,240 U
C) $8,060 U
D) $7,240 F
166) 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:
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A) $6,460 F
B) $6,920 U
C) $6,460 U
D) $6,920 F
167) 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
168) 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
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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
169) 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
170) 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
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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
171) 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:
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A) $9.39 per labor-hour
B) $9.22 per labor-hour
C) $13.15 per labor-hour
D) $12.91 per labor-hour
172) 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
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173) 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
174) 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:
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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
175) 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
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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
176) A manufacturer of industrial 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 8,000 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 56,400
Fixed overhead cost $ 100,800
The following data pertain to operations for the most recent period:
Actual hours 7,800 DLHs
Standard hours allowed for the actual output 7,735 DLHs
Actual total variable manufacturing overhead cost $ 54,210
Actual total fixed manufacturing overhead cost $ 100,200
What is the predetermined overhead rate to the nearest cent?
A) $19.30 per DLH
B) $19.65 per DLH
C) $19.80 per DLH
D) $20.15 per DLH
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177) A manufacturer of industrial 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 8,000 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 56,400
Fixed overhead cost $ 100,800
The following data pertain to operations for the most recent period:
Actual hours 7,800 DLHs
Standard hours allowed for the actual output 7,735 DLHs
Actual total variable manufacturing overhead cost $ 54,210
Actual total fixed manufacturing overhead cost $ 100,200
The overhead applied to products during the period was closest to:
A) $151,993
B) $154,410
C) $157,200
D) $153,270
178) Standard Corporation has developed standard manufacturing overhead costs based on a
capacity of 180,000 direct labor-hours (DLHs) as follows:
Standard overhead costs per unit:
Variable portion: 2 DLHs × $3 per DLH = $6
Fixed portion: 2 DLHs × $5 per DLH = $10
The following data pertain to operations in April:
Actual output 80,000 units
Actual direct labor cost $ 644,000
Actual direct labor-hours worked 165,000 DLHs
Variable overhead cost incurred $ 518,000
Fixed overhead cost incurred $ 860,000
The variable overhead rate variance for April was:
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A) $15,000 Unfavorable
B) $23,000 Unfavorable
C) $38,000 Favorable
D) $38,000 Unfavorable
179) Standard Corporation has developed standard manufacturing overhead costs based on a
capacity of 180,000 direct labor-hours (DLHs) as follows:
Standard overhead costs per unit:
Variable portion: 2 DLHs × $3 per DLH = $6
Fixed portion: 2 DLHs × $5 per DLH = $10
The following data pertain to operations in April:
Actual output 80,000 units
Actual direct labor cost $ 644,000
Actual direct labor-hours worked 165,000 DLHs
Variable overhead cost incurred $ 518,000
Fixed overhead cost incurred $ 860,000
The variable overhead efficiency variance for April was:
A) $15,000 Unfavorable
B) $23,000 Unfavorable
C) $38,000 Favorable
D) $38,000 Unfavorable
180) Standard Corporation has developed standard manufacturing overhead costs based on a
capacity of 180,000 direct labor-hours (DLHs) as follows:
Standard overhead costs per unit:
Variable portion: 2 DLHs × $3 per DLH = $6
Fixed portion: 2 DLHs × $5 per DLH = $10
The following data pertain to operations in April:
Actual output 80,000 units
Actual direct labor cost $ 644,000
Actual direct labor-hours worked 165,000 DLHs
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Variable overhead cost incurred $ 518,000
Fixed overhead cost incurred $ 860,000
The fixed manufacturing overhead budget variance for April was:
A) $40,000 Unfavorable
B) $40,000 Favorable
C) $60,000 Favorable
D) $60,000 Unfavorable
181) Standard Corporation has developed standard manufacturing overhead costs based on a
capacity of 180,000 direct labor-hours (DLHs) as follows:
Standard overhead costs per unit:
Variable portion: 2 DLHs × $3 per DLH = $6
Fixed portion: 2 DLHs × $5 per DLH = $10
The following data pertain to operations in April:
Actual output 80,000 units
Actual direct labor cost $ 644,000
Actual direct labor-hours worked 165,000 DLHs
Variable overhead cost incurred $ 518,000
Fixed overhead cost incurred $ 860,000
The fixed manufacturing overhead volume variance for April was:
A) $60,000 Unfavorable
B) $60,000 Favorable
C) $100,000 Favorable
D) $100,000 Unfavorable
182) Jessep Corporation has a standard cost system in which manufacturing overhead is
applied on the basis of standard direct labor-hours. The company has provided the following data
concerning its fixed manufacturing overhead costs in March:
Actual machine-hours 14,000 hours
Standard machine-hours allowed for the actual output 12,000 hours
Denominator activity 15,000 hours
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Actual fixed manufacturing overhead costs $ 48,000
Budgeted fixed manufacturing overhead costs $ 45,000
The fixed manufacturing overhead budget variance is:
A) $1,000 U
B) $3,000 U
C) $2,000 U
D) $2,000 F
183) Jessep Corporation has a standard cost system in which manufacturing overhead is
applied on the basis of standard direct labor-hours. The company has provided the following data
concerning its fixed manufacturing overhead costs in March:
Actual machine-hours 14,000 hours
Standard machine-hours allowed for the actual output 12,000 hours
Denominator activity 15,000 hours
Actual fixed manufacturing overhead costs $ 48,000
Budgeted fixed manufacturing overhead costs $ 45,000
The fixed manufacturing overhead volume variance is:
A) $3,000 U
B) $3,000 F
C) $9,000 U
D) $6,000 U
184) A volume variance and budget variance are computed for fixed manufacturing overhead
costs.
⊚ true
⊚ false
185) The higher the denominator activity level used to compute the predetermined overhead
rate, the higher the predetermined overhead rate.
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⊚ true
⊚ false
186) A company has a standard cost system in which fixed and variable manufacturing
overhead costs are applied to products on the basis of direct labor-hours. A fixed manufacturing
overhead volume variance will necessarily occur in a month in which the fixed manufacturing
overhead applied to units of product on the basis of standard hours allowed differs from the
budgeted fixed manufacturing overhead.
⊚ true
⊚ false
187) The budget variance for fixed manufacturing overhead is the difference between actual
fixed manufacturing overhead costs incurred and the amount of fixed manufacturing overhead
applied to work in process.
⊚ true
⊚ false
188) In a standard costing system, if the actual fixed manufacturing overhead cost exceeds the
budgeted fixed manufacturing overhead cost for the period, then fixed manufacturing overhead
cost would be underapplied for the period.
⊚ true
⊚ false
189) There can be no volume variance for variable manufacturing overhead.
⊚ true
⊚ false
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190) A company has a standard cost system in which fixed and variable manufacturing
overhead costs are applied to products on the basis of direct labor-hours. The company’s choice
of the denominator level of activity has no effect on the fixed manufacturing overhead budget
variance.
⊚ true
⊚ false
191) An unfavorable volume variance means that the company operated at an activity level
greater than that planned for the period.
⊚ true
⊚ false
192) A company has a standard cost system in which fixed and variable manufacturing
overhead costs are applied to products on the basis of direct labor-hours. A fixed manufacturing
overhead volume variance will necessarily occur in a month in which actual direct labor-hours
differ from standard hours allowed.
⊚ true
⊚ false
193) A fixed manufacturing overhead budget variance occurs as the result of a difference
between the denominator level of activity (in hours) and the standard hours allowed for the
actual output of the period.
⊚ true
⊚ false
194) If the standard hours allowed for the actual output of the period is greater than the
denominator level of activity (in hours), then the overhead volume variance will be favorable.
⊚ true
⊚ false
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195) A company has a standard cost system in which fixed and variable manufacturing
overhead costs are applied to products on the basis of direct labor-hours. The company’s choice
of the denominator level of activity has no effect on the fixed portion of the predetermined
overhead rate.
⊚ true
⊚ false
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Answer Key
Test name: chapter 10A
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