Question 1

The following data for February has been provided by Gillard Corporation.
 
-The volume variance for February is:

Accepted Answer

A) $5,580 F 
B) $5,580 U 
C) $7,440 U 
D) $7,440 F 
A) $5,580 F 
B) $5,580 U 
C) $7,440 U 
D) $7,440 F

Question 2

Bakos Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $8.80 per machine-hour and fixed manufacturing overhead cost of $100,688 per period. If the denominator level of activity is 2,800 machine-hours, the variable component in the predetermined overhead rate would be:

Accepted Answer

A) $44.76 
B) $35.96 
C) $43.52 
D) $8.80 
A) $44.76 
B) $35.96 
C) $43.52 
D) $8.80

Question 3

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 fixed manufacturing overhead volume variance for March is:

Accepted Answer

A) $7,750 F 
B) $7,750 U 
C) $1,550 F 
D) $3,900 U 
A) $7,750 F 
B) $7,750 U 
C) $1,550 F 
D) $3,900 U

Question 4

Omary Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:   What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

Accepted Answer

A) $1,520 Unfavorable 
B) $3,180 Favorable 
C) $4,820 Unfavorable 
D) $6,340 Unfavorable 
A) $1,520 Unfavorable 
B) $3,180 Favorable 
C) $4,820 Unfavorable 
D) $6,340 Unfavorable

Question 5

Masek Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:   What was the fixed manufacturing overhead budget variance for the month?

Accepted Answer

A) $2,360 Unfavorable 
B) $1,000 Unfavorable 
C) $2,360 Favorable 
D) $1,000 Favorable 
A) $2,360 Unfavorable 
B) $1,000 Unfavorable 
C) $2,360 Favorable 
D) $1,000 Favorable

Question 6

Homer Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. The company has provided the following data concerning its manufacturing overhead costs for last year:
 
-The volume variance was:

Accepted Answer

A) $200 F 
B) $400 U 
C) $300 F 
D) $240 U 
A) $200 F 
B) $400 U 
C) $300 F 
D) $240 U

Question 7

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 1,100 machine-hours, the predetermined overhead rate would be:

Accepted Answer

A) $960.00 per machine-hour 
B) $9.60 per machine-hour 
C) $13.30 per machine-hour 
D) $22.90 per machine-hour 
A) $960.00 per machine-hour 
B) $9.60 per machine-hour 
C) $13.30 per machine-hour 
D) $22.90 per machine-hour

Question 8

In a standard costing system where the denominator activity for the predetermined overhead rate is labor-hours, overhead costs are applied to work in process on the basis of the standard labor-hours allowed for the actual output.

Accepted Answer

A) True 
 B)False

Question 9

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 the fixed manufacturing overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 10

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 volume variance for the period is closest to:

Accepted Answer

A) $2,720 U 
B) $1,225 F 
C) $2,811 U 
D) $3,945 U 
A) $2,720 U 
B) $1,225 F 
C) $2,811 U 
D) $3,945 U

Question 11

Saffold Corporation has provided the following data for December.
 
-The volume variance for December is:

Accepted Answer

A) $6,540 F 
B) $6,540 U 
C) $16,350 F 
D) $16,350 U 
A) $6,540 F 
B) $6,540 U 
C) $16,350 F 
D) $16,350 U

Question 12

Steinhagen 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 2,600 machine-hours. The company actually worked 2,790 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,960 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

Accepted Answer

A) $5,148 Favorable 
B) $5,148 Unfavorable 
C) $2,717 Favorable 
D) $2,717 Unfavorable 
A) $5,148 Favorable 
B) $5,148 Unfavorable 
C) $2,717 Favorable 
D) $2,717 Unfavorable

Question 13

A volume variance is computed for:

Accepted Answer

A) both variable and fixed manufacturing overhead. 
B) variable manufacturing overhead only. 
C) fixed manufacturing overhead only. 
D) direct labor costs as well as overhead costs. 
A) both variable and fixed manufacturing overhead. 
B) variable manufacturing overhead only. 
C) fixed manufacturing overhead only. 
D) direct labor costs as well as overhead costs.

Question 14

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 variable portion of the predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Question 15

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 overhead applied to products during the period was closest to:

Accepted Answer

A) $112,850 
B) $113,415 
C) $116,550 
D) $110,889 
A) $112,850 
B) $113,415 
C) $116,550 
D) $110,889

Question 16

The fixed manufacturing overhead budget variance is:

Accepted Answer

A) the difference between budgeted fixed manufacturing overhead cost and actual fixed manufacturing overhead cost. 
B) the difference between actual fixed manufacturing overhead cost and applied fixed manufacturing overhead cost. 
C) the difference between budgeted fixed manufacturing overhead cost and applied fixed manufacturing overhead cost. 
D) the difference between fixed overhead at the planned level of activity and the flexible budget for actual activity. 
A) the difference between budgeted fixed manufacturing overhead cost and actual fixed manufacturing overhead cost. 
B) the difference between actual fixed manufacturing overhead cost and applied fixed manufacturing overhead cost. 
C) the difference between budgeted fixed manufacturing overhead cost and applied fixed manufacturing overhead cost. 
D) the difference between fixed overhead at the planned level of activity and the flexible budget for actual activity.

Question 17

The Murray Corporation makes and sells a single product. The company recorded the following activity and cost data for May:
 
 The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour.

-The fixed manufacturing overhead used to calculate the predetermined overhead rate was:

Accepted Answer

A) $64,125 
B) $67,500 
C) $68,400 
D) $70,275 
A) $64,125 
B) $67,500 
C) $68,400 
D) $70,275

Question 18

Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs).
 
The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows:

-What was Vette's variable overhead rate variance?

Accepted Answer

A) $2,800 Unfavorable 
B) $13,200 Favorable 
C) $16,000 Favorable 
D) $68,000 Unfavorable 
A) $2,800 Unfavorable 
B) $13,200 Favorable 
C) $16,000 Favorable 
D) $68,000 Unfavorable

Question 19

Traveller Corporation sells one product and uses a standard cost system. Last year the overhead volume variance was zero. Which of the following is correct?

Accepted Answer

A) Actual variable manufacturing overhead cost was equal to standard variable manufacturing overhead cost. 
B) Total applied overhead was equal to total actual overhead. 
C) The denominator activity was equal to actual activity. 
D) The budgeted fixed costs were equal to the applied fixed costs. 
A) Actual variable manufacturing overhead cost was equal to standard variable manufacturing overhead cost. 
B) Total applied overhead was equal to total actual overhead. 
C) The denominator activity was equal to actual activity. 
D) The budgeted fixed costs were equal to the applied fixed costs.

Question 20

Saffold Corporation has provided the following data for December.

-The budget variance for December is:

Accepted Answer

A) $10,050 U 
B) $6,540 U 
C) $6,540 F 
D) $10,050 F 
A) $10,050 U 
B) $6,540 U 
C) $6,540 F 
D) $10,050 F

The following data for February has been provided by Gillard Corporation. -The volume variance for February is:

Masek Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month?

Homer Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. The company has provided the following data concerning its manufacturing overhead costs for last year: -The volume variance was:

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 1,100 machine-hours, the predetermined overhead rate would be:

In a standard costing system where the denominator activity for the predetermined overhead rate is labor-hours, overhead costs are applied to work in process on the basis of the standard labor-hours allowed for the actual output.

Saffold Corporation has provided the following data for December. -The volume variance for December is:

A volume variance is computed for:

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 variable portion of the predetermined overhead rate.

The fixed manufacturing overhead budget variance is:

The Murray Corporation makes and sells a single product. The company recorded the following activity and cost data for May: The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour. -The fixed manufacturing overhead used to calculate the predetermined overhead rate was:

Traveller Corporation sells one product and uses a standard cost system. Last year the overhead volume variance was zero. Which of the following is correct?

Saffold Corporation has provided the following data for December. -The budget variance for December is:

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Journal Entries to Record Variances

Performance Measurement in Decentralized Organizations

Transfer Pricing

Service Department Charges

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

The Concept of Present Value

Income Taxes and the Net Present Value Method

Statement of Cash Flows

The Direct Method of Determining the Net Cash Provided by Operating Activities

Financial Statement Analysis

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Exam 4: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

The following data for February has been provided by Gillard Corporation. -The volume variance for February is:

Masek Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month?

Homer Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. The company has provided the following data concerning its manufacturing overhead costs for last year: -The volume variance was:

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 1,100 machine-hours, the predetermined overhead rate would be:

In a standard costing system where the denominator activity for the predetermined overhead rate is labor-hours, overhead costs are applied to work in process on the basis of the standard labor-hours allowed for the actual output.

Saffold Corporation has provided the following data for December. -The volume variance for December is:

A volume variance is computed for:

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 variable portion of the predetermined overhead rate.

The fixed manufacturing overhead budget variance is:

The Murray Corporation makes and sells a single product. The company recorded the following activity and cost data for May: The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour. -The fixed manufacturing overhead used to calculate the predetermined overhead rate was:

Traveller Corporation sells one product and uses a standard cost system. Last year the overhead volume variance was zero. Which of the following is correct?

Saffold Corporation has provided the following data for December. -The budget variance for December is:

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Journal Entries to Record Variances

Performance Measurement in Decentralized Organizations

Transfer Pricing

Service Department Charges

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

The Concept of Present Value

Income Taxes and the Net Present Value Method

Statement of Cash Flows

The Direct Method of Determining the Net Cash Provided by Operating Activities

Financial Statement Analysis

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