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Chapter 13
145. Which of the following formulas is used to compute utilization rate?
a.
Units entering process / Units passing inspection
b.
Service units used / Available service units
c.
Standard quantity / Actual quantity
d.
(Actual price – standard price) × Actual quantity
146. A hotel has 50 suites in total, and the number of booked suites for the month of April is 20. Calculate the occupancy
rate of suites of the hotel.
a.
40%
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b.
250%
c.
60%
d.
45%
147. Based on the following information, calculate the overall process yield.
Process M:
Units passing inspection 7,755 units
Units entering process 11,750 units
Process N:
Units passing inspection 5,762 units
Units entering process 6,700 units
a.
80.93%
b.
60.82%
c.
66.00%
d.
56.76%
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148. Based on the following information, calculate process yield.
Units passing inspection 12,750 units
Units entering process 15,000 units
a.
85%
b.
15%
c.
90%
d.
117%
149. Frogue Corporation uses a standard cost system. The following information was provided for the period that just
ended:
Actual price per kilogram
$2.50
Actual kilograms of material used
31,000
Actual hourly labor rate
$18.10
Actual hours of production
4,900 labor hrs.
Standard price per kilogram
$2.80
Standard kilograms per completed unit
6 kilograms
Standard hourly labor rate
$18.00
Standard time per completed unit
1 hr.
Actual total factory overhead
$34,900
Actual fixed factory overhead
$18,000
Standard fixed factory overhead rate
$1.20 per labor hour
Standard variable factory overhead rate
$3.80 per labor hour
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Maximum plant capacity
15,000 hours
Units completed during the period
5,000
The variable factory overhead controllable variance is:
a.
$6,000 favorable.
b.
$2,100 favorable.
c.
$2,100 unfavorable.
d.
$6,000 unfavorable.
150. The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for
fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory
overhead for the production of 15,000 units during August were as follows:
Actual:
Variable factory overhead
$360,000
Fixed factory overhead
104,000
Standard:
60,000 hours at $7.50
450,000
What is the amount of the fixed factory overhead volume variance?
a.
$26,000 unfavorable
b.
$12,000 favorable
c.
$26,000 favorable
d.
$12,000 unfavorable
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151. The following data is given for the Walker Company:
Budgeted production
1,000 units
Actual production
980 units
Materials:
Standard price per lb
$2.00
Standard pounds per completed unit
12
Actual pounds purchased and used in production
11,800
Actual price paid for materials
$23,000
Labor:
Standard hourly labor rate
$14 per hour
Standard hours allowed per completed unit
4.5
Actual labor hours worked
4,560
Actual total labor costs
$62,928
Overhead:
Actual and budgeted fixed overhead
$27,000
Standard variable overhead rate
$3.50 per standard direct labor hour
Actual variable overhead costs
$15,500
Overhead is applied on standard labor hours.
The variable factory overhead controllable variance is:
a.
$65 unfavorable.
b.
$65 favorable.
c.
$250 unfavorable.
d.
$250 favorable.
Chapter 13
152. Frogue Corporation uses a standard cost system. The following information was provided for the period that just
ended:
Actual price per kilogram
$2.50
Actual kilograms of material used
31,000
Actual hourly labor rate
$18.10
Actual hours of production
4,900 labor hrs.
Standard price per kilogram
$2.80
Standard kilograms per completed unit
6 kilograms
Standard hourly labor rate
$18.00
Standard time per completed unit
1 hr.
Actual total factory overhead
$34,900
Actual fixed factory overhead
$18,000
Standard fixed factory overhead rate
$1.20 per labor hour
Standard variable factory overhead rate
$3.80 per labor hour
Maximum plant capacity
15,000 hours
Units completed during the period
5,000
The total factory overhead cost variance is:
a.
$3,900 favorable.
b.
$10,400 favorable.
c.
$10,400 unfavorable.
d.
$9,900 unfavorable.
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153. The standard fixed factory overhead rate is based on 100% capacity of 135,000 machine hours for Interile Inc. The
standard costs and the actual costs of factory overhead for the production of 32,000 units during March were as follows:
Actual: Factory overhead
$860,000
Standard: 100,000 hours at $8.00
800,000
If there was a $70,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate?
a.
$2.00
b.
$2.50
c.
$3.00
d.
$3.50
154. The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours. The standard costs
and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows:
Standard:
40,000 hours at $3
$120,000
Actual:
Factory overhead
(41,000 direct labor hours)
131,200
If there was a $9,000 unfavorable volume variance for December, what is the standard fixed factory overhead cost rate?
a.
$1.00
b.
$0.90
c.
$2.40
d.
$0.80
Chapter 13
155. The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of
2,500 units of product are as follows:
Standard Costs
Direct materials
2,500 kilograms @ $8
Direct labor
7,500 hours @ $12
Actual Costs
Direct materials
2,600 kilograms @ $8.75
Direct labor
7,400 hours @ $11.40
Factory overhead (100% capacity - 10,000 hrs.):
Variable cost @ $2 per hour
Total variable cost, $18,000
Fixed cost @ $0.80 per hour
Total fixed cost, $8,000
The amount of the fixed factory overhead volume variance is:
a.
$2,000 favorable.
b.
$2,500 favorable.
c.
$2,500 unfavorable.
d.
$2,000 unfavorable.
Chapter 13
156. The following data is given for the Walker Company:
Budgeted production
1,000 units
Actual production
980 units
Materials:
Standard price per lb
$2.00
Standard pounds per completed unit
12
Actual pounds purchased and used in production
11,800
Actual price paid for materials
$23,000
Labor:
Standard hourly labor rate
$14 per hour
Standard hours allowed per completed unit
4.5
Actual labor hours worked
4,560
Actual total labor costs
$62,928
Overhead:
Actual and budgeted fixed overhead
$27,000
Standard variable overhead rate
$3.50per standard labor hour
Actual variable overhead costs
$15,500
Overhead is applied on standard labor hours.
The factory overhead volume variance is:
a.
$65 unfavorable.
b.
$65 favorable.
c.
$540 unfavorable.
d.
$540 favorable.
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157. The standard factory overhead rate of Quaker Inc. is $10 per direct labor hour ($8 for variable factory overhead and
$2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost
of factory overhead for the production of 5,000 units during May were as follows:
Standard:
25,000 hours at $10
$250,000
Actual:
Variable factory overhead
202,500
Fixed factory overhead
60,000
What is the amount of the fixed factory overhead volume variance?
a.
$12,500 favorable
b.
$10,000 unfavorable
c.
$12,500 unfavorable
d.
$10,000 favorable
158. The standard factory overhead rate of Quaker Inc. is $10 per direct labor hour ($8 for variable factory overhead and
$2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost
of factory overhead for the production of 5,000 units during May were as follows:
Standard:
25,000 hours at $10
$250,000
Actual:
Variable factory overhead
202,500
Fixed factory overhead
60,000
What is the amount of the variable factory overhead controllable variance?
a.
$10,000 favorable
b.
$2,500 unfavorable
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c.
$10,000 unfavorable
d.
$2,500 favorable
159. Fixed factory overhead volume variance is the difference between:
a.
the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units
produced.
b.
the budgeted fixed overhead for actual units produced and the standard fixed overhead for the actual units
produced.
c.
the budgeted fixed overhead for actual units produced and the actual fixed overhead for the actual units
produced.
d.
the budgeted fixed overhead at 100% of normal capacity and the actual fixed overhead for the actual units
produced.
Chapter 13
160. The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for
fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory
overhead for the production of 15,000 units during August were as follows:
Actual:
Variable factory overhead
$360,000
Fixed factory overhead
104,000
Standard:
60,000 hours at $7.50
450,000
What is the amount of the variable factory overhead controllable variance?
a.
$12,000 unfavorable
b.
$12,000 favorable
c.
$14,000 unfavorable
d.
$26,000 unfavorable
161. The _____ is the difference between the actual variable overhead costs and the budgeted variable overhead for actual
production.
a.
variable factory overhead quantity variance
b.
variable factory overhead controllable variance
c.
variable factory overhead rate variance
d.
variable factory overhead volume variance
Chapter 13
162. Lack of enough sales orders to keep a factory operating at normal capacity results in an unfavorable:
a.
direct materials quantity variance.
b.
fixed factory overhead volume variance.
c.
budgeted variable factory overhead variance.
d.
fixed factory overhead controllable variance.
163. Which of the following factors results in an unfavorable fixed factory overhead volume variance?
a.
A budgeted increase in sales that requires more advertising expenses
b.
The payment of long-term debt payments
c.
An unexpected increase in the cost of utilities
d.
Work stoppages caused by lack of materials
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164. Standard Corporation uses a standard cost system. The following information was provided for the period that just
ended:
Standard time per completed unit
3 hrs.
Actual total factory overhead
$108,000
Fixed factory overhead
$60,000
Standard fixed factory overhead rate
$2.00 per labor hour
Standard variable factory overhead rate
$1.50 per labor hour
Normal capacity
30,000 hours
Plant operated during the period
28,000 hours
Units completed during the period
9,000
The fixed factory overhead volume variance is
a.
$6,000 favorable.
b.
$3,000 favorable.
c.
$3,000 unfavorable.
d.
$6,000 unfavorable.
