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The manufacturing overhead variance that is a measure of capacity utilization is:


A) the overhead rate variance.
B) the overhead efficiency variance.
C) the overhead budget variance.
D) the overhead volume variance.

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

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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 necessarily occur in a month in which the fixed manufacturing overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed manufacturing overhead.

A) True
B) False

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Harris Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The company has provided the following data: Harris Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The company has provided the following data: The volume variance would be: A) $2,500 F B) $1,800 F C) $1,800 U D) $1,500 F The volume variance would be:


A) $2,500 F
B) $1,800 F
C) $1,800 U
D) $1,500 F

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

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The economic impact of the inability to reach a target denominator level of activity would best be measured by:


A) the amount of the volume variance.
B) the contribution margin lost by failing to meet the target denominator level of activity.
C) the amount of the fixed manufacturing overhead budget variance.
D) the amount of the variable overhead efficiency variance.

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

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Rodarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's predetermined overhead rate for fixed manufacturing overhead is $1.20 per machine-hour and the denominator level of activity is 6,600 machine-hours.In the most recent month, the total actual fixed manufacturing overhead was $8,340 and the company actually worked 6,400 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,480 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?


A) $240 Favorable
B) $144 Unfavorable
C) $240 Unfavorable
D) $96 Favorable

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

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The total amount of manufacturing overhead applied is closest to:


A) $157,050
B) $195,512
C) $197,300
D) $155,654

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

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A volume variance and budget variance are computed for fixed manufacturing overhead costs.

A) True
B) False

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Pearlman 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 labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: Pearlman 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 labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: Required: a.Determine the variable overhead rate variance for the year. b.Determine the variable overhead efficiency variance for the year. c.Determine the fixed overhead budget variance for the year. d.Determine the fixed overhead volume variance for the year. Required: a.Determine the variable overhead rate variance for the year. b.Determine the variable overhead efficiency variance for the year. c.Determine the fixed overhead budget variance for the year. d.Determine the fixed overhead volume variance for the year.

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a.Variable component of the predetermine...

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Mcgreal Incorporated has provided the following data concerning its overhead variances for the most recent period: Mcgreal Incorporated has provided the following data concerning its overhead variances for the most recent period: The total of the overhead variances is: A) $17,666 F B) $5,962 U C) $17,666 U D) $5,962 F The total of the overhead variances is:


A) $17,666 F
B) $5,962 U
C) $17,666 U
D) $5,962 F

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

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Gregorich 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: Gregorich 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: A) $20,000 U B) $20,000 F C) $62,070 F D) $62,070 U The fixed overhead budget variance is:


A) $20,000 U
B) $20,000 F
C) $62,070 F
D) $62,070 U

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

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The fixed manufacturing overhead volume variance for the period is closest to:


A) $2,213 F
B) $2,113 F
C) $3,045 F
D) $832 U

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

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Hargett 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: Hargett 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: Required: a.Determine the variable overhead rate variance for the year. b.Determine the variable overhead efficiency variance for the year. c.Determine the fixed overhead budget variance for the year. d.Determine the fixed overhead volume variance for the year. e.Determine whether overhead was underapplied or overapplied for the year and by how much. Required: a.Determine the variable overhead rate variance for the year. b.Determine the variable overhead efficiency variance for the year. c.Determine the fixed overhead budget variance for the year. d.Determine the fixed overhead volume variance for the year. e.Determine whether overhead was underapplied or overapplied for the year and by how much.

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a.Variable component of the predetermine...

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Maertz Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The budgeted fixed manufacturing overhead cost for the most recent month was $10,890 and the actual fixed manufacturing overhead cost for the month was $10,540.The company based its original budget on 3,300 machine-hours.The standard hours allowed for the actual output of the month totaled 3,240 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?


A) $198 Unfavorable
B) $350 Unfavorable
C) $198 Favorable
D) $350 Favorable

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

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Leshem 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: Leshem 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 variable overhead rate variance is: A) $9,184 U B) $8,528 F C) $9,184 F D) $8,528 U The variable overhead rate variance is:


A) $9,184 U
B) $8,528 F
C) $9,184 F
D) $8,528 U

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

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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: 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) $1.67 per machine-hour B) $1.81 per machine-hour C) $1.76 per machine-hour D) $1.19 per machine-hour The variable component of the predetermined overhead rate is closest to:


A) $1.67 per machine-hour
B) $1.81 per machine-hour
C) $1.76 per machine-hour
D) $1.19 per machine-hour

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

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Hoag Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: Hoag Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: The company based its original budget on 2,600 machine-hours.The company actually worked 2,280 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,080 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month? A) $4,352 Favorable B) $4,352 Unfavorable C) $7,072 Unfavorable D) $7,072 Favorable The company based its original budget on 2,600 machine-hours.The company actually worked 2,280 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,080 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?


A) $4,352 Favorable
B) $4,352 Unfavorable
C) $7,072 Unfavorable
D) $7,072 Favorable

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

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The overhead applied to products during the period was closest to:


A) $30,000
B) $30,240
C) $27,300
D) $29,400

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

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The predetermined overhead rate is closest to:


A) $4.67 per machine-hour
B) $6.96 per machine-hour
C) $6.67 per machine-hour
D) $9.95 per machine-hour

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

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Figures 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 labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: Figures 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 labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable overhead efficiency variance is: A) $5,389 F B) $5,389 U C) $4,896 F D) $4,896 U The variable overhead efficiency variance is:


A) $5,389 F
B) $5,389 U
C) $4,896 F
D) $4,896 U

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

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The fixed overhead budget variance is:


A) $14,000 F
B) $43,560 U
C) $43,560 F
D) $14,000 U

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

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