84. Sholette Manufacturing Corporation has a standard cost system in which it applies
manufacturing overhead to products on the basis of standard machine-hours (MHs) at $5.00 per
MH. During the month, the actual total variable manufacturing overhead was $22,540 and the
actual level of activity for the period was 4,600 MHs. What was the variable overhead rate
variance for the month?
85. Merle Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. For the most recent month, the company based its budget on 4,000 machine–
hours. Budgeted and actual overhead costs for the month appear below:
Original Budget
Based on 4,000
Machine-Hours
Actual Costs
Variable overhead costs:
Supplies $14,000 $13,150
Indirect labor 27,200 24,390
Fixed overhead costs:
Supervision 19,900 19,540
Utilities 4,700 4,360
Factory depreciation 8,800 8,620
Total overhead cost $74,600 $70,060
The company actually worked 3,690 machine-hours during the month. The standard hours
allowed for the actual output were 3,620 machine-hours for the month. What was the overall
variable overhead efficiency variance for the month?
86. Machain Corporation applies manufacturing overhead to products on the basis of
standard machine-hours. The company’s standard variable manufacturing overhead rate is $2.90
per machine-hour. The actual variable manufacturing overhead cost for the month was $15,270.
The original budget for the month was based on 5,000 machine-hours. The company actually
worked 5,090 machine-hours during the month. The standard hours allowed for the actual output
of the month totaled 5,200 machine-hours. What was the variable overhead efficiency variance
for the month?
87. Sperazza Corporation produces large commercial doors for warehouses and other
facilities. In the most recent month, the company budgeted production of 4,900 doors. Actual
production was 5,300 doors. According to standards, each door requires 6.4 machine–hours. The
actual machine-hours for the month were 34,340 machine-hours. The standard supplies cost is
$3.10 per machine-hour. The actual supplies cost for the month was $99,331. Supplies cost is an
element of variable manufacturing overhead. The variable overhead efficiency variance for
supplies cost is:
88. Hien Inc., uses machine-hours as the base to apply its manufacturing overhead. The
following information relates to variable manufacturing overhead standards at Hien:
Standard rate per machine-hour: $50
Total standard machine-hours allowed for units produced during September: 4,000
Hien’s variable overhead rate variance for September was $800 favorable. Its variable overhead
efficiency variance was $3,600 unfavorable. How many machine-hours did Hien actually use
during September?
89. Schley 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 $3,840 $4,730
Indirect labor 22,400 25,260
Total variable manufacturing overhead cost $26,240 $29,990
The original budget was based on 3,200 machine-hours. The company actually worked 3,510
machine-hours during the month and the standard hours allowed for the actual output were
3,660 machine-hours. What was the overall variable overhead efficiency variance for the month?
90. Suski 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 7,400 MHs
Actual level of activity 7,500 MHs
Standard variable manufacturing overhead rate $5.90 per MH
Actual total variable manufacturing overhead $42,750
What was the variable overhead rate variance for the month?
91. The following data have been provided by Gerlach Corporation, a company that produces
forklift trucks:
Budgeted production 1,900 trucks
Standard machine-hours per truck 8.6 machine-hours
Standard supplies cost $4.20 per machine-hour
Actual production 2,000 trucks
Actual machine-hours 16,970 machine-hours
Actual supplies cost (total) $78,137
Supplies cost is an element of variable manufacturing overhead. The variable overhead
efficiency variance for supplies cost is:
92. The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
Standard hours per unit of output 5.6 hours
Standard variable overhead rate $12.00 per hour
The following data pertain to operations for the last month:
Actual hours 2,600 hours
Actual total variable manufacturing overhead cost $31,330
Actual output 400 units
What is the variable overhead rate variance for the month?
93. At Cady Corporation, maintenance is a variable overhead cost that is based on machine–
hours. The performance report for June showed that actual maintenance costs totaled $9,600 and
that the associated rate variance was $400 unfavorable. If 8,000 machine-hours were actually
worked during June, the standard maintenance cost per machine-hour was:
94. Ruetz Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,520 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month Variable
element per
client-visit
Revenue – $44.00
Personnel expenses $26,200 $12.50
Medical supplies 1,200 8.70
Occupancy expenses 8,200 1.20
Administrative expenses 4,700 0.30
Total expenses $40,300 $22.70
The medical supplies in the flexible budget for November would be closest to:
95. Ruetz Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,520 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month Variable
element per
client-visit
Revenue − $44.00
Personnel expenses $26,200 $12.50
Medical supplies 1,200 8.70
Occupancy expenses 8,200 1.20
Administrative expenses 4,700 0.30
Total expenses $40,300 $22.70
The occupancy expenses in the flexible budget for November would be closest to:
96. Ruetz Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,520 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month Variable
element per
client-visit
Revenue − $44.00
Personnel expenses $26,200 $12.50
Medical supplies 1,200 8.70
Occupancy expenses 8,200 1.20
Administrative expenses 4,700 0.30
Total expenses $40,300 $22.70
The net operating income in the flexible budget for November would be closest to:
97. Vanderhyde Kennel uses tenant-days as its measure of activity; an animal housed in the
kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,300
tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element
per month Variable
element per
tenant-day
Revenue − $36.00
Wages and salaries $3,500 $7.20
Food and supplies 1,500 13.30
Facility expenses 9,500 4.70
Administrative expenses 6,800 0.40
Total expenses $21,300 $25.60
Actual results for May:
Revenue $124,830
Wages and salaries $28,818
Foods and supplies $44,652
Facility expenses $24,218
Administrative expenses $7,886
The wages and salaries in the planning budget for May would be closest to:
98. Vanderhyde Kennel uses tenant-days as its measure of activity; an animal housed in the
kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,300
tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element
per month Variable
element per
tenant-day
Revenue − $36.00
Wages and salaries $3,500 $7.20
Food and supplies 1,500 13.30
Facility expenses 9,500 4.70
Administrative expenses 6,800 0.40
Total expenses $21,300 $25.60
Actual results for May:
Revenue $124,830
Wages and salaries $28,818
Foods and supplies $44,652
Facility expenses $24,218
Administrative expenses $7,886
The administrative expenses in the planning budget for May would be closest to:
99. Vanderhyde Kennel uses tenant-days as its measure of activity; an animal housed in the
kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,300
tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element
per month Variable
element per
tenant-day
Revenue − $36.00
Wages and salaries $3,500 $7.20
Food and supplies 1,500 13.30
Facility expenses 9,500 4.70
Administrative expenses 6,800 0.40
Total expenses $21,300 $25.60
Actual results for May:
Revenue $124,830
Wages and salaries $28,818
Foods and supplies $44,652
Facility expenses $24,218
Administrative expenses $7,886
The net operating income in the planning budget for May would be closest to:
