104. The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual
production are as follows:
Standard
Costs
Fixed overhead (based on 10,000 hours)
3 hours @ $.80 per hour
Variable overhead
3 hours @ $2.00 per hour
Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,000
The amount of the factory overhead controllable variance is:
105. The standard factory overhead rate 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 factory overhead volume variance?
106. The standard factory overhead rate 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 factory overhead controllable variance?
107. Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused
productive capacity is indicated by the:
108. 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
Fixed factory overhead
Standard hours allowed for units produced:
60,000 hours
What is the amount of the factory overhead volume variance?
109. 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
Fixed factory overhead
Standard hours allowed for units produced:
60,000 hours
What is the amount of the factory overhead controllable variance?
110. Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a:
111. The controllable variance measures:
112. The unfavorable volume variance may be due to all of the following factors except:
113. Favorable volume variances may be harmful when:
114. The following data is given for the Bahia Company:
Budgeted production
1,000 units
Actual production
980 units
Materials:
Standard price per pound
$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 factory overhead controllable variance is:
115. The following data is given for the Bahia Company:
Budgeted production (at 100% production capacity)
1,000 units
Actual production
980 units
Materials:
Standard price per pound
$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 labor hour
Actual variable overhead costs
$15,500
Overhead is applied on standard labor hours.
The factory overhead volume variance is:
116. The following data is given for the Zoyza Company:
Budgeted production (at 100% production capacity)
26,000 units
Actual production
27,500 units
Materials:
Standard price per ounce
$6.50
Standard ounces per completed unit
8
Actual ounces purchased and used in production
228,000
Actual price paid for materials
$1,504,800
Labor:
Standard hourly labor rate
$22 per hour
Standard hours allowed per completed unit
6.6
Actual labor hours worked
183,000
Actual total labor costs
$4,020,000
Overhead:
Actual and budgeted fixed overhead
$1,029,600
Standard variable overhead rate
$24.50 per standard labor hour
Actual variable overhead costs
$4,520,000
Overhead is applied on standard labor hours.
The factory overhead controllable variance is:
117. The following data is given for the Zoyza Company:
Budgeted production (at 100% production capacity)
26,000 units
Actual production
27,500 units
Materials:
Standard price per ounce
$6.50
Standard ounces per completed unit
8
Actual ounces purchased and used in production
228,000
Actual price paid for materials
$1,504,800
Labor:
Standard hourly labor rate
$22 per hour
Standard hours allowed per completed unit
6.6
Actual labor hours worked
183,000
Actual total labor costs
$4,020,000
Overhead:
Actual and budgeted fixed overhead
$1,029,600
Standard variable overhead rate
$24.50 per standard labor hour
Actual variable overhead costs
$4,520,000
Overhead is applied on standard labor hours.
The factory overhead volume variance is:
118. The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% production
capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit.
The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead
was $170,000. Actual production was 11,700 units.
Compute the factory overhead controllable variance.
119. The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% production
capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit.
The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead
was $170,000. Actual production was 11,700 units.
Compute the factory overhead volume variance.
120.
Standard
Actual
Variable OH Rate
$3.35
Fixed OH Rate
$1.80
Hours
18,900
17,955
Fixed Overhead
$46,000
Actual Variable Overhead
$67,430
Total Factory Overhead
$101,450
Calculate the total factory overhead cost variance using the above information:
121.
Standard
Actual
Variable OH Rate
$3.35
Fixed OH Rate
$1.80
Hours
18,900
17,955
Fixed Overhead
$46,000
Actual Variable Overhead
$67,430
Total Factory Overhead
$101,450
Calculate the fixed factory overhead volume variance using the above information:
122.
Standard
Actual
Variable OH Rate
$3.35
Fixed OH Rate
$1.80
Hours
18,900
17,955
Fixed Overhead
$46,000
Actual Variable Overhead
$67,430
Total Factory Overhead
$101,450
Calculate the variable factory overhead controllable variance using the above information:
123. A negative fixed overhead volume variance can be caused due to the following except:
124. At the end of the fiscal year, variances from standard costs are usually transferred to the:
125. Variances from standard costs are usually reported to:
126. If at the end of the fiscal year the variances from standard are significant, the variances should be
transferred to the:
127. Assuming that the Morocco Desk Co. purchases 6,000 feet of lumber at $6.00 per foot and the standard
price for direct materials is $5.00, the entry to record the purchase and unfavorable direct materials price
variance is:
128. A company records their inventory purchases at standard cost but also records purchase price variances.
The company purchased 5,000 widgets $8.00. The standard cost for the widgets is $7.60. Which of the
following would be included in the journal entry?
129. The use of standards for nonmanufacturing expenses is:
130. The total manufacturing cost variance is
131. Ruby Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of
material is $7.50. During the month, 8,500 chairs were manufactured, using 43,600 yards at a cost of $7.55 per
yard. Determine the (a) price variance, (b) quantity variance, and (c) cost variance.
132. Ruby Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of
material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per
yard. Determine the (a) price variance, (b) quantity variance, and (c) cost variance.
133. Ruby Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of
material is $7.60. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.50.
Determine the (a) price variance, (b) quantity variance, and (c) cost variance.
134. Japan Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per
hour. If 7,700 units required 19,250 hours at an hourly rate of $14.90 per hour, what is the direct labor (a) rate
variance, (b) time variance, and (c) cost variance?
135. Tippi Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per
hour. If 7,700 units required 17,550 hours at an hourly rate of $15.20 per hour, what is the direct labor (a) rate
variance, (b) time variance, and (c) cost variance?
136. Trumpet Company produced 8,700 units of product that required 3.25 standard hours per unit. The
standard variable overhead cost per unit is $4.00 per hour. The actual variance factory overhead was $111,000.
Determine the variable factory overhead controllable variance.
137. The Trumpet Company produced 8,700 units of a product that required 3.25 standard hours per unit. The
standard fixed overhead cost per unit is $1.20 per hour at 29,000 hours, which is 100% of normal capacity.
Determine the fixed factory overhead volume variance.
138. Oak Company produces a chair that requires 6 yds. of material per unit. The standard price of one yard of
material is $7.50. During the month, 8,500 chairs were manufactured, using 48,875 yards. Journalize the entry
to record the standard direct materials used in production.
139. Prepare an income statement for the year ended December 31, 2012, through gross profit for Aframe
Company using the following information. Assume Aframe Company sold 8,600 units at $125 per unit. (Note:
Normal production is 9,000 units)
140. If a company records inventory purchases at standard cost and also records purchase price variances,
prepare the journal entry for a purchase of 6,000 widgets that were bought at $8.00 and have a standard cost of
$8.15.
141. The following are inputs and outputs to the help desk.
Operator training
Number of calls per day
Maintenance of computer equipment
Number of operators
Number of complaints
142. Greyson Company produced 8,300 units of their product that required 4.25 standard hours per unit.
Determine the standard fixed overhead cost per unit at 27,000 hours, which is 100% of normal capacity, if the
favorable fixed factory overhead volume variance is $14,895.