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The following data for February has been provided by Gillard Corporation. The following data for February has been provided by Gillard Corporation. -The budget variance for February is: A) $7,440 F B) $7,440 U C) $1,140 F D) $1,140 U -The budget variance for February is:


A) $7,440 F
B) $7,440 U
C) $1,140 F
D) $1,140 U

E) C) and D)
F) All of the above

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Littleton Manufacturing uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. At standard, each unit of product requires one machine-hour to complete. The standard variable overhead is $1.80 per machine-hour and $432,000 per year. The denominator level of activity is 120,000 machine-hours, or 120,000 units. Actual data for the year were as follows: Littleton Manufacturing uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. At standard, each unit of product requires one machine-hour to complete. The standard variable overhead is $1.80 per machine-hour and $432,000 per year. The denominator level of activity is 120,000 machine-hours, or 120,000 units. Actual data for the year were as follows: Required: a. What are the predetermined variable and fixed manufacturing overhead rates? b. Compute the variable overhead rate and efficiency variances. c. Compute the fixed manufacturing overhead budget and volume variances. Required: a. What are the predetermined variable and fixed manufacturing overhead rates? b. Compute the variable overhead rate and efficiency variances. c. Compute the fixed manufacturing overhead budget and volume variances.

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a. Standard variable overhead rate = $21...

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Odonell Corporation estimates that its variable manufacturing overhead is $11.20 per machine-hour and its fixed manufacturing overhead is $563,640 per period. -If the denominator level of activity is 6,000 machine-hours, the variable component in the predetermined overhead rate would be:


A) $93.94 per machine-hour
B) $11.20 per machine-hour
C) $105.14 per machine-hour
D) $103.60 per machine-hour

E) A) and B)
F) A) and C)

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Dexter Corporation uses a standard cost system and applies manufacturing overhead cost to units of product on the basis of standard direct labor-hours (DLHs) . Information on Dexter Corporation's manufacturing overhead costs for last period is given below: Dexter Corporation uses a standard cost system and applies manufacturing overhead cost to units of product on the basis of standard direct labor-hours (DLHs) . Information on Dexter Corporation's manufacturing overhead costs for last period is given below: Given these data, the underapplied or overapplied overhead cost for the period would be: A) $10,000 overapplied B) $2,000 overapplied C) $10,000 underapplied D) $8,000 underapplied Given these data, the underapplied or overapplied overhead cost for the period would be:


A) $10,000 overapplied
B) $2,000 overapplied
C) $10,000 underapplied
D) $8,000 underapplied

E) None of the above
F) All of the above

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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: 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: The following data pertain to operations for the most recent period: -The fixed manufacturing overhead budget variance for the period is closest to: A) $2,675 U B) $1,450 F C) $3,691 F D) $1,270 F The following data pertain to operations for the most recent period: 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: The following data pertain to operations for the most recent period: -The fixed manufacturing overhead budget variance for the period is closest to: A) $2,675 U B) $1,450 F C) $3,691 F D) $1,270 F -The fixed manufacturing overhead budget variance for the period is closest to:


A) $2,675 U
B) $1,450 F
C) $3,691 F
D) $1,270 F

E) None of the above
F) A) and B)

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A manufacturing company 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: A manufacturing company 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: The following data pertain to operations for the most recent period: -The fixed manufacturing overhead volume variance for the period is closest to: A) $1,359 U B) $2,550 F C) $3,902 U D) $1,352 U The following data pertain to operations for the most recent period: A manufacturing company 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: The following data pertain to operations for the most recent period: -The fixed manufacturing overhead volume variance for the period is closest to: A) $1,359 U B) $2,550 F C) $3,902 U D) $1,352 U -The fixed manufacturing overhead volume variance for the period is closest to:


A) $1,359 U
B) $2,550 F
C) $3,902 U
D) $1,352 U

E) All of the above
F) B) and D)

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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 NOT necessarily occur in a month in which there is a fixed manufacturing overhead budget variance.

A) True
B) False

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Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours. Two direct labor-hours are required for each unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. -The fixed manufacturing overhead volume variance for the period was:


A) $750 Unfavorable
B) $2,500 Unfavorable
C) $1,500 Unfavorable
D) $1,000 Unfavorable

E) None of the above
F) C) and D)

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The Forbes Corporation uses a standard cost system in which overhead costs are applied to products on the basis of standard direct labor-hours (DLHs) . The following data applied to the company's activities for June: The Forbes Corporation uses a standard cost system in which overhead costs are applied to products on the basis of standard direct labor-hours (DLHs) . The following data applied to the company's activities for June: -The fixed component of the predetermined overhead rate for June is: A) $3.00 per DLH B) $3.23 per DLH C) $3.78 per DLH D) $3.46 per DLH -The fixed component of the predetermined overhead rate for June is:


A) $3.00 per DLH
B) $3.23 per DLH
C) $3.78 per DLH
D) $3.46 per DLH

E) B) and C)
F) B) and D)

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Which of the following variances is generally the least significant from the standpoint of cost control?


A) Materials price variance.
B) Labor efficiency variance.
C) Fixed manufacturing overhead volume variance.
D) Variable overhead rate variance.

E) B) and C)
F) A) and D)

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C

Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs) as the activity base for overhead. The following information relates to Cuda's operations last year: Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs) as the activity base for overhead. The following information relates to Cuda's operations last year: -What was Cuda's variable overhead rate variance? A) $6,000 Unfavorable B) $15,000 Favorable C) $20,000 Unfavorable D) $21,000 Favorable -What was Cuda's variable overhead rate variance?


A) $6,000 Unfavorable
B) $15,000 Favorable
C) $20,000 Unfavorable
D) $21,000 Favorable

E) B) and D)
F) B) and C)

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A

Odonell Corporation estimates that its variable manufacturing overhead is $11.20 per machine-hour and its fixed manufacturing overhead is $563,640 per period. -If the denominator level of activity is 6,000 machine-hours, the fixed component in the predetermined overhead rate would be:


A) $1,120.00 per machine-hour
B) $11.20 per machine-hour
C) $93.94 per machine-hour
D) $105.14 per machine-hour

E) C) and D)
F) A) and D)

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C

Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours. Two direct labor-hours are required for each unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. -The fixed manufacturing overhead budget variance for the period was:


A) $6,300 Unfavorable
B) $2,500 Unfavorable
C) $1,500 Unfavorable
D) $1,000 Unfavorable

E) A) and D)
F) All of the above

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Stenquist Corporation has provided the following data for January. Stenquist Corporation has provided the following data for January. Required: a. Compute the budget variance for January. Show your work! b. Compute the volume variance for January. Show your work! Required: a. Compute the budget variance for January. Show your work! b. Compute the volume variance for January. Show your work!

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a. Budget variance = Actual fixed manufa...

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Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. -The variable overhead efficiency variance for utilities cost for June was A) $400 F B) $400 U C) $600 F D) $600 U During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. -The variable overhead efficiency variance for utilities cost for June was A) $400 F B) $400 U C) $600 F D) $600 U At standard, each unit of finished product requires 1.4 hours of machine time. -The variable overhead efficiency variance for utilities cost for June was


A) $400 F
B) $400 U
C) $600 F
D) $600 U

E) B) and D)
F) C) and D)

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Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year: Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. -What was Nitrol's fixed manufacturing overhead volume variance for last year? A) $2,500 Favorable B) $7,500 Favorable C) $12,500 Favorable D) $40,000 Unfavorable The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. -What was Nitrol's fixed manufacturing overhead volume variance for last year?


A) $2,500 Favorable
B) $7,500 Favorable
C) $12,500 Favorable
D) $40,000 Unfavorable

E) A) and B)
F) A) and C)

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An outdoor barbecue grill manufacturer 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: An outdoor barbecue grill manufacturer 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: The following data pertain to operations for the most recent period: -The fixed manufacturing overhead budget variance for the period is closest to: A) $166 U B) $422 F C) $585 F D) $1,400 U The following data pertain to operations for the most recent period: An outdoor barbecue grill manufacturer 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: The following data pertain to operations for the most recent period: -The fixed manufacturing overhead budget variance for the period is closest to: A) $166 U B) $422 F C) $585 F D) $1,400 U -The fixed manufacturing overhead budget variance for the period is closest to:


A) $166 U
B) $422 F
C) $585 F
D) $1,400 U

E) None of the above
F) A) and B)

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The Adlake Corporation makes and sells a single product and uses a standard cost system. During October, the company budgeted $300,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours. At standard, each unit of finished product requires 5 machine-hours. The following cost and activity were recorded during October: The Adlake Corporation makes and sells a single product and uses a standard cost system. During October, the company budgeted $300,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours. At standard, each unit of finished product requires 5 machine-hours. The following cost and activity were recorded during October: The amount of overhead cost that the company applied to work in process for October was: A) $279,300 B) $291,330 C) $294,000 D) $285,000 The amount of overhead cost that the company applied to work in process for October was:


A) $279,300
B) $291,330
C) $294,000
D) $285,000

E) A) and B)
F) A) and C)

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The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: -The variable overhead rate variance for March is: A) $4,900 U B) $11,060 U C) $14,700 U D) $17,300 U -The variable overhead rate variance for March is:


A) $4,900 U
B) $11,060 U
C) $14,700 U
D) $17,300 U

E) A) and C)
F) A) and B)

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The Claus Corporation makes and sells a single product and uses standard costing. During January, the company actually used 8,700 direct labor-hours (DLHs) and produced 3,000 units of product. The standard cost card for one unit of product includes the following: Variable factory overhead: 3.0 DLHs @ $4.00 per DLH. Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH. For January, the company incurred $22,000 of actual fixed manufacturing overhead costs and recorded a $875 favorable volume variance. -The fixed manufacturing overhead cost used to compute the predetermined overhead rate was:


A) $31,500
B) $30,625
C) $32,375
D) $33,250

E) A) and B)
F) C) and D)

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