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Exam 24: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

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Question 91

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(Appendix 10A) Furtado Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The total amount of manufacturing overhead applied is closest to:

A) $201,600
B) $212,048
C) $190,874
D) $223,930

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

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Question 92

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(Appendix 10A) The following data for May has been provided by Mccawley Corporation. -The budget variance for May is:

A) $2,070 U
B) $2,470 F
C) $2,070 F
D) $2,470 U

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

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Question 93

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(Appendix 10A) A manufacturer of industrial equipment 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 overhead applied to products during the period was closest to:

Recht Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.30 per machine-hour and fixed manufacturing overhead cost of $17,940 per period.If the denominator level of activity is 1,200 machine-hours,the fixed element in the predetermined overhead rate would be:

Rhine Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: Required: a.Determine the fixed overhead budget variance for the year. b.Determine the fixed overhead volume variance for the year.

If the standard hours allowed for the actual output of the period is greater than the denominator level of activity (in hours),then the overhead volume variance will be favorable.

Stopher Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable component of the predetermined overhead rate is closest to:

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.The company's choice of the denominator level of activity has no effect on the fixed portion of the predetermined overhead rate.

(Appendix 10A) Stopyra Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The fixed overhead budget variance is:

Wangerin Corporation applies overhead to products based on machine-hours.The denominator level of activity is 6,900 machine-hours.The budgeted fixed manufacturing overhead costs are $240,810.In April,the actual fixed manufacturing overhead costs were $245,640 and the standard machine-hours allowed for the actual output were 7,200 machine-hours. Required: a.Compute the budget variance for April.Show your work! b.Compute the volume variance for April.Show your work!

(Appendix 10A) 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 overhead applied to products during the period was closest to:

(Appendix 10A) A manufacturer of playground equipment 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 volume variance for the period is closest to:

Diehl Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.The company's total applied factory overhead was $315,000 last year when the company used 32,000 direct labor-hours as the denominator activity.If the variable factory overhead rate was $8 per direct labor-hour,and if 30,000 standard direct labor-hours were allowed for the output of the year,then the total budgeted fixed factory overhead for the year must have been:

(Appendix 10A) Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows: Standard overhead costs per unit: Variable portion: 2 DLHs × $3 per DLH = $6 Fixed portion: 2 DLHs × $5 per DLH = $10 The following data pertain to operations in April: -The variable overhead efficiency variance for April was:

(Appendix 10A) Arca Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The fixed overhead budget variance is:

(Appendix 10A) Rainbolt Incorporated makes a single product--an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The fixed overhead budget variance is:

(Appendix 10A) A manufacturing company 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: