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The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: The budgeted direct labor-hours is used as the denominator activity for the month. -The fixed manufacturing overhead budget variance for March is: A) $2,000 favorable B) $500 favorable C) $2,000 unfavorable D) $2,500 favorable The budgeted direct labor-hours is used as the denominator activity for the month. -The fixed manufacturing overhead budget variance for March is:


A) $2,000 favorable
B) $500 favorable
C) $2,000 unfavorable
D) $2,500 favorable

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

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The Dodge Company makes and sells a single product and uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. The Dodge Company had the following budgeted and actual data for the year: The Dodge Company makes and sells a single product and uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. The Dodge Company had the following budgeted and actual data for the year: The budgeted direct labor-hours is used as the denominator activity for the month. -The fixed manufacturing overhead volume variance as: A) $7,500 F B) $1,500 F C) $3,750 U D) $7,500 UThe budgeted direct labor-hours is used as the denominator activity for the month. -The fixed manufacturing overhead volume variance as:


A) $7,500 F
B) $1,500 F
C) $3,750 U
D) $7,500 U

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

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Rameriz Company erred in selecting a denominator activity and chose a much higher level than was realistic.This error would most likely result in a large:


A) favorable variable overhead efficiency variance.
B) favorable fixed manufacturing overhead budget variance.
C) unfavorable overhead volume variance.
D) unfavorable fixed manufacturing overhead budget variance.

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

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Sommers Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.70 per MH.The company budgeted its fixed manufacturing overhead cost at $67,000 for the month.During the month,the actual total variable manufacturing overhead was $66,660 and the actual total fixed manufacturing overhead was $70,000.The actual level of activity for the period was 6,600 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?


A) $2,640 unfavorable
B) $5,640 favorable
C) $2,640 favorable
D) $5,640 unfavorable

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

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The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs) . The standards call for 3 hours of direct labor per unit produced. The following data pertain to the company's manufacturing overhead for the month of July: The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs) . The standards call for 3 hours of direct labor per unit produced. The following data pertain to the company's manufacturing overhead for the month of July: -The Fixed component of the predetermined overhead rate for June is: A) $3.11 B) $3.39 C) $3.77 D) $3.00 -The Fixed component of the predetermined overhead rate for June is:


A) $3.11
B) $3.39
C) $3.77
D) $3.00

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

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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: 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: -What is the predetermined overhead rate to the nearest cent? A) $16.97 B) $17.25 C) $16.59 D) $17.65 The following data pertain to operations for the most recent period: 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: -What is the predetermined overhead rate to the nearest cent? A) $16.97 B) $17.25 C) $16.59 D) $17.65 -What is the predetermined overhead rate to the nearest cent?


A) $16.97
B) $17.25
C) $16.59
D) $17.65

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

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Morisey Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $8.60 per machine-hour and fixed manufacturing overhead cost of $457,002 per period.If the denominator level of activity is 6,300 machine-hours,the predetermined overhead rate would be:


A) $81.14
B) $860.00
C) $72.54
D) $8.60

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

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The budget variance represents the difference between the actual fixed manufacturing overhead cost incurred during a period and the budgeted fixed manufacturing overhead cost.

A) True
B) False

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The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: The following data concerning production pertain to last year's operations: -The volume variance was: A) $2,000 favorable B) $2,600 unfavorable C) $1,000 favorable D) $800 favorable The following data concerning production pertain to last year's operations: The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: The following data concerning production pertain to last year's operations: -The volume variance was: A) $2,000 favorable B) $2,600 unfavorable C) $1,000 favorable D) $800 favorable -The volume variance was:


A) $2,000 favorable
B) $2,600 unfavorable
C) $1,000 favorable
D) $800 favorable

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

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The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: The budgeted direct labor-hours is used as the denominator activity for the month. -The variable overhead rate variance for March is: A) $7,000 unfavorable B) $9,000 unfavorable C) $13,000 unfavorable D) $11,000 unfavorable The budgeted direct labor-hours is used as the denominator activity for the month. -The variable overhead rate variance for March is:


A) $7,000 unfavorable
B) $9,000 unfavorable
C) $13,000 unfavorable
D) $11,000 unfavorable

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

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Sultzer 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: Sultzer 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: The company based its original budget on 3,000 machine-hours.The company actually worked 2,730 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,690 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month? A) $3,317 favorable B) $160 unfavorable C) $3,317 unfavorable D) $160 favorable The company based its original budget on 3,000 machine-hours.The company actually worked 2,730 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,690 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?


A) $3,317 favorable
B) $160 unfavorable
C) $3,317 unfavorable
D) $160 favorable

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

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Coskey Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below: Coskey Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below: The company based its original budget on 3,900 machine-hours.The company actually worked 3,580 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3,770 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month? A) $1,280 favorable B) $320 favorable C) $320 unfavorable D) $1,280 unfavorable The company based its original budget on 3,900 machine-hours.The company actually worked 3,580 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3,770 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?


A) $1,280 favorable
B) $320 favorable
C) $320 unfavorable
D) $1,280 unfavorable

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

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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: -What was the variable overhead rate variance for the period to the nearest dollar? A) $1,750 U B) $820 F C) $1,750 F D) $820 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: -What was the variable overhead rate variance for the period to the nearest dollar? A) $1,750 U B) $820 F C) $1,750 F D) $820 U -What was the variable overhead rate variance for the period to the nearest dollar?


A) $1,750 U
B) $820 F
C) $1,750 F
D) $820 U

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

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A furniture 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:A furniture 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: -What was the fixed manufacturing overhead budget variance for the period to the nearest dollar? A) $4,286 F B) $1,800 U C) $2,775 F D) $1,575 F The following data pertain to operations for the most recent period: A furniture 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: -What was the fixed manufacturing overhead budget variance for the period to the nearest dollar? A) $4,286 F B) $1,800 U C) $2,775 F D) $1,575 F -What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?


A) $4,286 F
B) $1,800 U
C) $2,775 F
D) $1,575 F

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

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The following data for April has been provided by Mittler Corporation. The following data for April has been provided by Mittler Corporation. -The volume variance for April is: A) $10,150 U B) $8,120 U C) $8,120 F D) $10,150 F -The volume variance for April is:


A) $10,150 U
B) $8,120 U
C) $8,120 F
D) $10,150 F

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

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Walkenhorst Corporation's manufacturing overhead includes $7.80 per machine-hour for supplies;$7.30 per machine-hour for indirect labor;$21,210 per period for salaries;and $19,950 per period for depreciation. Required: Determine the predetermined overhead rate if the denominator level of activity is 1,500 machine-hours.Show your work!

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Estimated total manufacturing overhead c...

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The fixed manufacturing overhead budget variance is not controllable by managers because fixed costs are not controllable.

A) True
B) False

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The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: The following data concerning production pertain to last year's operations: -The fixed element of the predetermined overhead rate was (per DLH) : A) $4.15 B) $3.00 C) $2.00 D) $1.15 The following data concerning production pertain to last year's operations: The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: The following data concerning production pertain to last year's operations: -The fixed element of the predetermined overhead rate was (per DLH) : A) $4.15 B) $3.00 C) $2.00 D) $1.15 -The fixed element of the predetermined overhead rate was (per DLH) :


A) $4.15
B) $3.00
C) $2.00
D) $1.15

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

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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.The amount of overhead that the company would apply to finished production would ordinarily be the standard hours allowed for the actual units of finished output times the predetermined overhead rate per direct labor-hour.

A) True
B) False

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The Ammon Company uses a standard cost system in which manufacturing overhead is applied to units on the basis of standard machine-hours.During July,the company budgeted $350,000 in manufacturing overhead cost at a denominator activity of 25,000 machine-hours.At standard,each unit of finished product requires 5 machine-hours.The following cost and activity were recorded during July: The Ammon Company uses a standard cost system in which manufacturing overhead is applied to units on the basis of standard machine-hours.During July,the company budgeted $350,000 in manufacturing overhead cost at a denominator activity of 25,000 machine-hours.At standard,each unit of finished product requires 5 machine-hours.The following cost and activity were recorded during July: The amount of overhead cost that the company applied to work in process for July was: A) $292,500 B) $315,000 C) $322,000 D) $325,000 The amount of overhead cost that the company applied to work in process for July was:


A) $292,500
B) $315,000
C) $322,000
D) $325,000

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

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