69. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
The total actual variable factory overhead cost incurred during the year was:
70. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
The standard fixed overhead application rate is:
71. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
The variable overhead spending variance is:
72. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
The variable factory overhead efficiency variance is:
73. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
The factory overhead production volume variance is:
74. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
Under a three-variance breakdown (decomposition) of the total factory overhead variance, the
total factory overhead spending variance is:
75. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
Under a three-variance breakdown (decomposition) of the total factory overhead variance, the
factory overhead efficiency variance is:
76. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
Under a three-variance breakdown (decomposition) of the total factory overhead variance, the
factory overhead production volume variance is:
77. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
Under a two-variance breakdown (decomposition) of the total factory overhead variance, the
total flexible-budget variance is:
78. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
Under a two-variance breakdown (decomposition) of the total factory overhead variance, the
factory overhead efficiency variance is:
79. The following information for the past year is available from Thinnews Co., a company
that uses machine hours to apply factory overhead:
Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3
Under a two-variance breakdown (decomposition) of the total factory overhead variance, the
factory overhead production volume variance is:
80. Bonehead Co. has the following factory overhead costs for the most recent period:
Standard overhead applied to this period’s production $72,000
Flexible budget for overhead based on
output
(i.e., units produced) 65,000
Total budgeted overhead in the master (static) budget 86,000
Actual total overhead cost incurred during the period 76,000
Under a two-variance analysis (breakdown) of the total overhead variance for the period, the
total overhead flexible-budget (FB) variance is:
81. Bonehead Co. has the following factory overhead costs for the most recent period:
Standard overhead applied to this period’s production $72,000
Flexible budget for overhead based on
output
(i.e., units produced) 65,000
Total budgeted overhead in the master (static) budget 86,000
Actual total overhead cost incurred during the period 76,000
The factory overhead production volume variance for Bonehead Co. this period is:
82. Bonehead Co. has the following factory overhead costs for the most recent period:
Standard overhead applied to this period’s production $72,000
Flexible budget for overhead based on
output
(i.e., units produced) 65,000
Total budgeted overhead in the master (static) budget 86,000
Actual total overhead cost incurred during the period 76,000
The total underapplied or overapplied factory overhead for Bonehead Co. for the period is:
83. Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The
following budgeted information pertains to 2016:
Denominator volume—number of units 8,000
Denominator volume—percent of capacity 80%
Denominator volume—standard direct labor hours 24,000
Budgeted variable factory overhead cost at denominator volume $103,200
Total standard factory overhead rate per direct labor hour $15.10
During 2016, Bluecap worked 28,000 direct labor hours and manufactured 9,600 units. The
actual factory overhead cost for the year was $14,000 greater than the flexible budget amount for
the units produced, of which $6,000 was due to fixed factory overhead. In preparing a budget for
2017 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be
“practical capacity”), to manufacture 9,000 units at a budgeted total of 27,000 direct labor hours.
The standard variable overhead application rate per direct labor hour in 2016 for Bluecap Co.
was:
84. Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The
following budgeted information pertains to 2016:
Denominator volume—number of units 8,000
Denominator volume—percent of capacity 80%
Denominator volume—standard direct labor hours 24,000
Budgeted variable factory overhead cost at denominator volume $103,200
Total standard factory overhead rate per direct labor hour $15.10
During 2016, Bluecap worked 28,000 direct labor hours and manufactured 9,600 units. The
actual factory overhead cost for the year was $14,000 greater than the flexible budget amount for
the units produced, of which $6,000 was due to fixed factory overhead. In preparing a budget for
2017 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be
“practical capacity”), to manufacture 9,000 units at a budgeted total of 27,000 direct labor hours.
The total budget for fixed factory overhead in 2016 for Bluecap Co. was:
85. Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The
following budgeted information pertains to 2016:
Denominator volume—number of units 8,000
Denominator volume—percent of capacity 80%
Denominator volume—standard direct labor hours 24,000
Budgeted variable factory overhead cost at denominator volume $103,200
Total standard factory overhead rate per direct labor hour $15.10
During 2016, Bluecap worked 28,000 direct labor hours and manufactured 9,600 units. The
actual factory overhead cost for the year was $14,000 greater than the flexible budget amount for
the units produced, of which $6,000 was due to fixed factory overhead. In preparing a budget for
2017 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be
“practical capacity”), to manufacture 9,000 units at a budgeted total of 27,000 direct labor hours.
Under the assumption that the total budgeted fixed overhead for 2017 is the same as it was for
2016, what is the standard fixed overhead application rate per direct labor hour for Bluecap Co.
for 2017?
86. Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The
following budgeted information pertains to 2016:
Denominator volume—number of units 8,000
Denominator volume—percent of capacity 80%
Denominator volume—standard direct labor hours 24,000
Budgeted variable factory overhead cost at denominator volume $103,200
Total standard factory overhead rate per direct labor hour $15.10
During 2016, Bluecap worked 28,000 direct labor hours and manufactured 9,600 units. The
actual factory overhead cost for the year was $14,000 greater than the flexible budget amount for
the units produced, of which $6,000 was due to fixed factory overhead. In preparing a budget for
2017 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be
“practical capacity”), to manufacture 9,000 units at a budgeted total of 27,000 direct labor hours.
The
variable overhead efficiency variance
in 2016 for Bluecap Co. was:
