Question 1

What is the predetermined overhead rate to the nearest cent?

Accepted Answer

A) $19.30 per DLH 
B) $19.65 per DLH 
C) $19.80 per DLH 
D) $20.15 per DLH 
A) $19.30 per DLH 
B) $19.65 per DLH 
C) $19.80 per DLH 
D) $20.15 per DLH

Question 2

Hykes Corporation's manufacturing overhead includes $4.40 per machine-hour for supplies; $4.40 per machine-hour for indirect labor; $55,800 per period for salaries; and $58,590 per period for depreciation.
Required:
Determine the predetermined overhead rate if the denominator level of activity is 3,100 machine-hours.Show your work!

Accepted Answer

Estimated total manufacturing overhead c

Question 3

If the denominator level of activity is 7,600 machine-hours, the predetermined overhead rate would be:

Accepted Answer

A) $1,900.00 per machine-hour 
B) $19.00 per machine-hour 
C) $189.75 per machine-hour 
D) $208.75 per machine-hour 
A) $1,900.00 per machine-hour 
B) $19.00 per machine-hour 
C) $189.75 per machine-hour 
D) $208.75 per machine-hour

Question 4

Garrity Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $6.80 per machine-hour and fixed manufacturing overhead cost of $503,272 per period.If the denominator level of activity is 7,600 machine-hours, the variable element in the predetermined overhead rate would be:

Accepted Answer

A) $6.80 
B) $72.16 
C) $66.22 
D) $73.02 
A) $6.80 
B) $72.16 
C) $66.22 
D) $73.02

Question 5

Potestio 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 total of the overhead variances is:

Accepted Answer

A) $34,955 U 
B) $45,030 F 
C) $34,955 F 
D) $45,030 U 
A) $34,955 U 
B) $45,030 F 
C) $34,955 F 
D) $45,030 U

Question 6

Dori Castings is a job order shop that uses a standard cost system.Manufacturing overhead costs are applied on the basis of standard direct labor-hours. The amount of fixed manufacturing overhead that Dori would apply to finished production would be:

Accepted Answer

A) the actual direct labor-hours times the standard fixed manufacturing overhead rate per direct labor-hour. 
B) the standard hours allowed for the actual units of finished output times the standard fixed manufacturing overhead rate per direct labor-hour. 
C) the standard units of output for the actual direct labor-hours worked times the standard fixed manufacturing overhead rate per unit of output. 
D) the actual fixed manufacturing overhead cost per direct labor-hour times the standard hours allowed. 
A) the actual direct labor-hours times the standard fixed manufacturing overhead rate per direct labor-hour. 
B) the standard hours allowed for the actual units of finished output times the standard fixed manufacturing overhead rate per direct labor-hour. 
C) the standard units of output for the actual direct labor-hours worked times the standard fixed manufacturing overhead rate per unit of output. 
D) the actual fixed manufacturing overhead cost per direct labor-hour times the standard hours allowed.

Question 7

Fabert 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:   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.

Accepted Answer

a.Variable component of the predetermine

Question 8

The total manufacturing overhead is underapplied or overapplied by how much?

Accepted Answer

A) $38,462 Underapplied 
B) $13,888 Underapplied 
C) $38,462 Overapplied 
D) $13,888 Overapplied 
A) $38,462 Underapplied 
B) $13,888 Underapplied 
C) $38,462 Overapplied 
D) $13,888 Overapplied

Question 9

The volume variance for February is:

Accepted Answer

A) $17,300 U 
B) $17,300 F 
C) $6,920 F 
D) $6,920 U 
A) $17,300 U 
B) $17,300 F 
C) $6,920 F 
D) $6,920 U

Question 10

Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.If the denominator level of activity is 4,700 machine-hours, the predetermined overhead rate would be:

Accepted Answer

A) $11.70 
B) $72.68 
C) $84.38 
D) $1,170.00 
A) $11.70 
B) $72.68 
C) $84.38 
D) $1,170.00

Question 11

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 actual direct labor-hours differ from standard hours allowed.

Accepted Answer

A) True 
 B)False

Question 12

The fixed overhead volume variance is:

Accepted Answer

A) $52,195 U 
B) $65,195 U 
C) $65,195 F 
D) $52,195 F 
A) $52,195 U 
B) $65,195 U 
C) $65,195 F 
D) $52,195 F

Question 13

The predetermined overhead rate is closest to:

Accepted Answer

A) $6.40 per labor-hour 
B) $7.79 per labor-hour 
C) $5.45 per labor-hour 
D) $9.14 per labor-hour 
A) $6.40 per labor-hour 
B) $7.79 per labor-hour 
C) $5.45 per labor-hour 
D) $9.14 per labor-hour

Question 14

Warrenfeltz 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:   Required:
a.Compute the variable component of the company's predetermined overhead rate.
b.Compute the fixed component of the company's predetermined overhead rate.
c.Compute the company's predetermined overhead rate.
d.Determine the variable overhead rate variance for the year.
e.Determine the variable overhead efficiency variance for the year.
f.Determine the fixed overhead budget variance for the year.
g.Determine the fixed overhead volume variance for the year.

Accepted Answer

a.Variable component of the predetermine

Question 15

The Marlow Corporation uses a standard cost system and applies manufacturing overhead to products on the basis of standard direct labor-hours.The denominator activity is set at 40,000 direct labor-hours per year.Budgeted fixed manufacturing overhead cost is $40,000 per year, and 0.5 direct labor-hours are required to manufacture one unit.The standard cost card would indicate fixed manufacturing overhead cost per unit to be:

Accepted Answer

A) $1.00 
B) $2.00 
C) $1.50 
D) $0.50 
A) $1.00 
B) $2.00 
C) $1.50 
D) $0.50

Question 16

The variable overhead efficiency variance is:

Accepted Answer

A) $258 U 
B) $88 F 
C) $88 U 
D) $258 F 
A) $258 U 
B) $88 F 
C) $88 U 
D) $258 F

Question 17

What was Tantanka's fixed manufacturing overhead volume variance?

Accepted Answer

A) $5,700 Unfavorable 
B) $14,440 Unfavorable 
C) $28,500 Favorable 
D) $34,200 Unfavorable 
A) $5,700 Unfavorable 
B) $14,440 Unfavorable 
C) $28,500 Favorable 
D) $34,200 Unfavorable

Question 18

Ferro Enterprises uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.During the month of September, the company applied $52,000 in fixed manufacturing overhead cost to units of product.At the end of the month, manufacturing overhead was overapplied by $3,000.If there was no volume variance in September, then the budgeted fixed manufacturing overhead cost for the month was:

Accepted Answer

A) $49,000 
B) $52,000 
C) $55,000 
D) $58,000 
A) $49,000 
B) $52,000 
C) $55,000 
D) $58,000

Question 19

The fixed component of the predetermined overhead rate is closest to:

Accepted Answer

A) $8.25 per machine-hour 
B) $12.38 per machine-hour 
C) $5.69 per machine-hour 
D) $8.54 per machine-hour 
A) $8.25 per machine-hour 
B) $12.38 per machine-hour 
C) $5.69 per machine-hour 
D) $8.54 per machine-hour

Question 20

Canel 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 fixed overhead budget variance for the year.
b.Determine the fixed overhead volume variance for the year.

Accepted Answer

a.Budget variance = Actual fixed overhea

What is the predetermined overhead rate to the nearest cent?

If the denominator level of activity is 7,600 machine-hours, the predetermined overhead rate would be:

Dori Castings is a job order shop that uses a standard cost system.Manufacturing overhead costs are applied on the basis of standard direct labor-hours. The amount of fixed manufacturing overhead that Dori would apply to finished production would be:

The total manufacturing overhead is underapplied or overapplied by how much?

The volume variance for February is:

Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.If the denominator level of activity is 4,700 machine-hours, the predetermined overhead rate would be:

The fixed overhead volume variance is:

The predetermined overhead rate is closest to:

The variable overhead efficiency variance is:

What was Tantanka's fixed manufacturing overhead volume variance?

The fixed component of the predetermined overhead rate is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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Exam 18:Flexible Budgets, Standard Costs, and Variance Analysis

What is the predetermined overhead rate to the nearest cent?

If the denominator level of activity is 7,600 machine-hours, the predetermined overhead rate would be:

Dori Castings is a job order shop that uses a standard cost system.Manufacturing overhead costs are applied on the basis of standard direct labor-hours. The amount of fixed manufacturing overhead that Dori would apply to finished production would be:

The total manufacturing overhead is underapplied or overapplied by how much?

The volume variance for February is:

Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.If the denominator level of activity is 4,700 machine-hours, the predetermined overhead rate would be:

The fixed overhead volume variance is:

The predetermined overhead rate is closest to:

The variable overhead efficiency variance is:

What was Tantanka's fixed manufacturing overhead volume variance?

The fixed component of the predetermined overhead rate is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters