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Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. -The fixed manufacturing overhead budget variance (in total) for June was: A) $3,230 F B) $3,230 U C) $1,180 F D) $1,180 U During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. -The fixed manufacturing overhead budget variance (in total) for June was: A) $3,230 F B) $3,230 U C) $1,180 F D) $1,180 U At standard, each unit of finished product requires 1.4 hours of machine time. -The fixed manufacturing overhead budget variance (in total) for June was:


A) $3,230 F
B) $3,230 U
C) $1,180 F
D) $1,180 U

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

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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: 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 fixed manufacturing overhead budget variance was: A) $200 F B) $400 U C) $300 F D) $240 U -The fixed manufacturing overhead budget variance was:


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

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

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Coblentz Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $6.20 per MH. The company had budgeted its fixed manufacturing overhead cost at $40,000 for the month. During the month, the actual total variable manufacturing overhead was $48,970 and the actual total fixed manufacturing overhead was $43,000. The actual level of activity for the period was 8,300 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?


A) $2,490 Favorable
B) $510 Favorable
C) $510 Unfavorable
D) $2,490 Unfavorable

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

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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: -The variable overhead efficiency variance for the period is closest to: A) $300 F B) $1,465 U C) $1,760 U D) $1,775 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: -The variable overhead efficiency variance for the period is closest to: A) $300 F B) $1,465 U C) $1,760 U D) $1,775 U -The variable overhead efficiency variance for the period is closest to:


A) $300 F
B) $1,465 U
C) $1,760 U
D) $1,775 U

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

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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: 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 predetermined overhead rate is closest to: A) $21.90 per hour B) $21.80 per hour C) $21.16 per hour D) $21.26 per hour The following data pertain to operations for the most recent period: 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 predetermined overhead rate is closest to: A) $21.90 per hour B) $21.80 per hour C) $21.16 per hour D) $21.26 per hour -The predetermined overhead rate is closest to:


A) $21.90 per hour
B) $21.80 per hour
C) $21.16 per hour
D) $21.26 per hour

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

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In a standard costing system, if the actual fixed manufacturing overhead cost exceeds the budgeted fixed manufacturing overhead cost for the period, then fixed manufacturing overhead cost would be overapplied for the period.

A) True
B) False

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The higher the denominator activity level used to compute the predetermined overhead rate, the lower the predetermined overhead rate.

A) True
B) False

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Denby 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: Denby 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 6,400 machine-hours. The company actually worked 6,710 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,540 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? A) $3,286 Favorable B) $1,484 Unfavorable C) $3,286 Unfavorable D) $1,484 Favorable The company based its original budget on 6,400 machine-hours. The company actually worked 6,710 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,540 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?


A) $3,286 Favorable
B) $1,484 Unfavorable
C) $3,286 Unfavorable
D) $1,484 Favorable

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

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Nova Corporation produces a single product and uses a standard cost system to help control costs. Overhead is applied to production on the basis of standard machine-hours. According to the company's flexible budget, the following overhead costs should be incurred at an activity level of 18,000 machine-hours (the denominator activity level chosen for the current year): Nova Corporation produces a single product and uses a standard cost system to help control costs. Overhead is applied to production on the basis of standard machine-hours. According to the company's flexible budget, the following overhead costs should be incurred at an activity level of 18,000 machine-hours (the denominator activity level chosen for the current year): During the current year, the following operating results were recorded: At the end of the year, the company's Manufacturing Overhead account showed total debits for actual overhead costs of $145,100 and total credits of $136,000 for overhead applied. The difference $(9,100) represents under-applied overhead, the cause of which management would like to know. Required: a. Compute the predetermined overhead rate that would have been used during the year, showing separately the variable and fixed components of the rate. b. Show how the $136,000 of overhead actually applied was computed. c. Analyze the $9,100 under-applied overhead figure in terms of the variable overhead rate and efficiency variances and the fixed manufacturing overhead budget and volume variances. During the current year, the following operating results were recorded: Nova Corporation produces a single product and uses a standard cost system to help control costs. Overhead is applied to production on the basis of standard machine-hours. According to the company's flexible budget, the following overhead costs should be incurred at an activity level of 18,000 machine-hours (the denominator activity level chosen for the current year): During the current year, the following operating results were recorded: At the end of the year, the company's Manufacturing Overhead account showed total debits for actual overhead costs of $145,100 and total credits of $136,000 for overhead applied. The difference $(9,100) represents under-applied overhead, the cause of which management would like to know. Required: a. Compute the predetermined overhead rate that would have been used during the year, showing separately the variable and fixed components of the rate. b. Show how the $136,000 of overhead actually applied was computed. c. Analyze the $9,100 under-applied overhead figure in terms of the variable overhead rate and efficiency variances and the fixed manufacturing overhead budget and volume variances. At the end of the year, the company's Manufacturing Overhead account showed total debits for actual overhead costs of $145,100 and total credits of $136,000 for overhead applied. The difference $(9,100) represents under-applied overhead, the cause of which management would like to know. Required: a. Compute the predetermined overhead rate that would have been used during the year, showing separately the variable and fixed components of the rate. b. Show how the $136,000 of overhead actually applied was computed. c. Analyze the $9,100 under-applied overhead figure in terms of the variable overhead rate and efficiency variances and the fixed manufacturing overhead budget and volume variances.

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a. Predetermined overhead rate = Estimat...

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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 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 budget variance for March is: A) $900 F B) $3,900 F C) $3,000 U D) $7,750 F -The fixed manufacturing overhead budget variance for March is:


A) $900 F
B) $3,900 F
C) $3,000 U
D) $7,750 F

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

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Faessler Corporation applies overhead to products based on machine-hours. The denominator level of activity is 6,500 machine-hours. The budgeted fixed manufacturing overhead costs are $242,450. In July, the actual fixed manufacturing overhead costs were $242,490 and the standard machine-hours allowed for the actual output were 7,000 machine-hours. Required: a. Compute the budget variance for July. Show your work! b. Compute the volume variance for July. Show your work!

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a. Budget variance = Actual fixed manufa...

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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 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 variable overhead efficiency variance for March is: A) $12,400 F B) $6,160 U C) $12,400 U D) $6,160 F -The variable overhead efficiency variance for March is:


A) $12,400 F
B) $6,160 U
C) $12,400 U
D) $6,160 F

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

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The Claus Corporation makes and sells a single product and uses standard costing. During January, the company actually used 8,700 direct labor-hours (DLHs) and produced 3,000 units of product. The standard cost card for one unit of product includes the following: Variable factory overhead: 3.0 DLHs @ $4.00 per DLH. Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH. For January, the company incurred $22,000 of actual fixed manufacturing overhead costs and recorded a $875 favorable volume variance. -The denominator level of activity in direct labor-hours (DLHs) used by Claus in setting the predetermined overhead rate for January is:


A) 9,500 DLHs
B) 9,250 DLHs
C) 8,750 DLHs
D) 10,500 DLHs

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

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Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours. Two direct labor-hours are required for each unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. -The variable overhead efficiency variance for the period was:


A) $5,300 Unfavorable
B) $1,200 Unfavorable
C) $1,500 Unfavorable
D) $6,500 Unfavorable

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

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A manufacturer of playground equipment 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 manufacturer of playground equipment 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: A) $2,256 F B) $2,331 F C) $3,089 U D) $5,420 F The following data pertain to operations for the most recent period: A manufacturer of playground equipment 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: A) $2,256 F B) $2,331 F C) $3,089 U D) $5,420 F -The fixed manufacturing overhead volume variance for the period is closest to:


A) $2,256 F
B) $2,331 F
C) $3,089 U
D) $5,420 F

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

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The Santos Corporation made an error when selecting a denominator level of activity and chose a much lower 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) favorable fixed manufacturing overhead volume variance.
D) unfavorable fixed manufacturing overhead budget variance.

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

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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: -The variable overhead rate variance for the period was closest to: A) $315 U B) $1,465 F C) $1,465 U D) $315 F 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: -The variable overhead rate variance for the period was closest to: A) $315 U B) $1,465 F C) $1,465 U D) $315 F -The variable overhead rate variance for the period was closest to:


A) $315 U
B) $1,465 F
C) $1,465 U
D) $315 F

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

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Aslett Corporation's manufacturing overhead includes $3.80 per machine-hour for supplies; $8.80 per machine-hour for indirect labor; $214,132 per period for salaries; and $546,720 per period for depreciation. Required: Determine the predetermined overhead rate if the denominator level of activity is 6,800 machine-hours. Show your work!

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Estimated total manufacturing overhead c...

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The Murray Corporation makes and sells a single product. The company recorded the following activity and cost data for May: 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 amount of fixed manufacturing overhead cost applied to work in process during May was: A) $61,725 B) $62,700 C) $42,750 D) $64,125 The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour. -The amount of fixed manufacturing overhead cost applied to work in process during May was:


A) $61,725
B) $62,700
C) $42,750
D) $64,125

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

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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 1,000 machine-hours, the variable component in the predetermined overhead rate would be:


A) $22.90 per machine-hour
B) $14.63 per machine-hour
C) $24.23 per machine-hour
D) $9.60 per machine-hour

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

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