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Exam 24: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

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Question 71

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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:

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

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

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Question 72

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Sulema,Inc.repairs and refinishes antique furniture.Manufacturing overhead at Sulema is applied to production on the basis of standard direct labor-hours.Which overhead variance(s) at Sulema would be unfavorably affected if a significant amount of glue is being wasted by inexperienced direct labor workers?

A) variable overhead rate variance
B) variable overhead efficiency variance
C) fixed manufacturing overhead budget variance
D) fixed manufacturing overhead volume variance

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

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Question 73

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Stallbaumer 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 labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: Required: Determine whether overhead was underapplied or overapplied for the year and by how much.

Pickell 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 machine-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. e.Determine whether overhead was underapplied or overapplied for the year and by how much.

The manufacturing overhead variance that is a measure of capacity utilization is:

(Appendix 10A) A manufacturing company 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: -The fixed manufacturing overhead volume variance for the period is closest to:

(Appendix 10A) Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows: Standard overhead costs per unit: Variable portion: 2 DLHs × $3 per DLH = $6 Fixed portion: 2 DLHs × $5 per DLH = $10 The following data pertain to operations in April: -The fixed manufacturing overhead budget variance for April was:

(Appendix 10A) Vaden 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 labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The fixed component of the predetermined overhead rate is closest to:

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:

Goolden 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 $58,000 for the month and its level of activity at 2,500 MHs.The actual total fixed manufacturing overhead was $61,200 for the month and the actual level of activity was 2,600 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

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

Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $4.60 per MH.The company had budgeted its fixed manufacturing overhead cost at $65,000 for the month.During the month,the actual total variable manufacturing overhead was $22,080 and the actual total fixed manufacturing overhead was $63,000.The actual level of activity for the period was 4,600 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

There can be no volume variance for variable manufacturing overhead.

(Appendix 10A) Arca 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 variable component of the predetermined overhead rate is closest to:

(Appendix 10A) Kisler 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 machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The predetermined overhead rate is closest to:

(Appendix 10A) Arca 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 manufacturing overhead is underapplied or overapplied by how much?

(Appendix 10A) Stopyra 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: -The variable overhead rate variance is:

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:

Brister Incorporated has provided the following data concerning its overhead variances for the most recent period: The total manufacturing overhead is underapplied or overapplied by how much?

(Appendix 10A) Arca 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 variable overhead rate variance is: