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Exam 18: Standard Costs and Variances

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Question 1

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Heersink Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $10.50 per machine-hour and fixed manufacturing overhead cost of $108,108 per period. If the denominator level of activity is 2,700 machine-hours, the fixed element in the predetermined overhead rate would be:

A) $1,050.00
B) $40.04
C) $10.50
D) $50.54

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

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Question 2

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The amount of fixed manufacturing overhead cost applied to work in process during September was:

A) $47,832
B) $26,520
C) $42,432
D) $43,605

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

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Question 3

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

The variable overhead rate variance for October was:

How much overhead was applied to products during the period to the nearest dollar?

The variable overhead rate variance for maintenance cost for November was:

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 actual hours worked.

What is the predetermined overhead rate to the nearest cent?

The variable overhead efficiency variance was:

If the denominator level of activity is 6,900 machine-hours, the variable element in the predetermined overhead rate would be:

Trecroci Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company bases its predetermined overhead rate on 2,500 machine-hours. The company's total budgeted fixed manufacturing overhead is $5,750. In the most recent month, the total actual fixed manufacturing overhead was $6,030. The company actually worked 2,600 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,490 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

Jaune Company 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 following data pertain to last month's operations: The fixed manufacturing overhead budget variance is:

How much fixed manufacturing overhead was applied to products during the period to the nearest dollar?

Dull Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,600 machine-hours. The budgeted fixed manufacturing overhead costs are $286,380. In October, the actual fixed manufacturing overhead costs were $274,330 and the standard machine-hours allowed for the actual output were 8,400 machine-hours. Required: a. Compute the budget variance for October. Show your work! b. Compute the volume variance for October. Show your work!

Temores Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $1.50 per machine-hour and the denominator level of activity is 5,600 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $8,510 and the company actually worked 5,840 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,980 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

Meister Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company had budgeted its fixed manufacturing overhead cost at $68,800 for the month and its level of activity at 2,000 MHs. The actual total fixed manufacturing overhead was $73,300 for the month and the actual level of activity was 1,800 MHs. What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

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 there is a fixed manufacturing overhead budget variance.

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 affects the Variable component of the predetermined overhead rate.

How much overhead was applied to products during the period to the nearest dollar?

The fixed manufacturing overhead cost applied to work in process was: