Dagle Corporation has provided the following data for a recent month:.

Reference: 11-11

The variable overhead spending variance for power is:

  1. a. $2,844 U
  2. b. $2,844 F
  3. c. $572 U
  4. d. $2,272 U

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2.

(Points: 4)

Crispy Company manufactures smoke detectors and has developed the following flexible budget for its overhead costs. Manufacturing overhead at Crispy is applied to production on the basis of standard direct labor-hours:

Reference: 11-10

What was Crispy's fixed overhead budget variance?

  1. a. $11,760 favorable
  2. b. $37,680 favorable
  3. c. $42,000 unfavorable
  4. d. $53,760 favorable

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3.

(Points: 4) Pyrdum Corporation produces metal telephone poles. In the most recent month, the company budgeted production of 3,500 poles. Actual production was 3,800 poles. According to standards, each pole requires 4.6 machine-hours. The actual machine-hours for the month were 17,800 machine-hours. The budgeted indirect labor is $5.40 per machine-hour. The actual indirect labor cost for the month was $96,712. The variable overhead efficiency variance for indirect labor is:

  1. a. $2,320 U
  2. b. $1,728 F
  3. c. $2,320 F
  4. d. $1,728 U

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4.

(Points: 4) Ostler Hotel bases its budgets on guest-days. The hotel's static budget for April appears below:

The total overhead cost at an activity level of 9,700 guest-days per month should be:

  1. a. $213,150
  2. b. $237,650
  3. c. $223,950
  4. d. $224,920

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5.

(Points: 4)

Azzurra Company manufactures computer chips used in aircraft and automobiles. Manufacturing overhead at Azzurra is applied to production on the basis of standard machine-hours.

Reference: 11-7

Which overhead variance(s) at Azzurra would be affected in an unfavorable manner if some indirect materials were “inadvertently” taken home by a few of the indirect laborers?

  1. a. variable overhead spending variance
  2. b. variable overhead efficiency variance
  3. c. fixed overhead budget variance
  4. d. fixed overhead volume variance
  5. e. none of the above would be affected unfavorably

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6.

(Points: 4)

IsadoreHospital bases its budgets on patient-visits. The hospital's static budget for July appears below:

Reference: 11-3

The variance for laundry costs in the flexible budget performance report for the month is:

  1. a. $5,080 F
  2. b. $5,080 U
  3. c. $5,800 U
  4. d. $5,800 F

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7.

(Points: 4) Mongelli Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:

The Inn's variable overhead costs are driven by the number of guests.
What would be the total budgeted overhead cost for a month if the activity level is 99 guests? Assume that the activity levels of 90 guests and 99 guests are within the same relevant range.

  1. a. $7,793.90
  2. b. $61,541.00
  3. c. $8,512.90
  4. d. $7,739.00

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8.

(Points: 4)

The following data for May has been provided by Mccawley Corporation.

Reference: 11-28

The volume variance for May is:

  1. a. $2,070 U
  2. b. $4,140 U
  3. c. $4,140 F
  4. d. $2,070 F

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9.

(Points: 4)

Mandalay Hotel bases its budgets on guest-days. The hotel's static budget for August appears below:

Reference: 11-2

The total overhead cost at an activity level of 5,200 guest-days per month should be:

  1. a. $208,020
  2. b. $230,880
  3. c. $209,940
  4. d. $190,920

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10.

(Points: 4)

The following data for May has been provided by Mccawley Corporation.

Reference: 11-28

The budget variance for May is:

  1. a. $2,070 U
  2. b. $2,470 F
  3. c. $2,070 F
  4. d. $2,470 U

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11.

(Points: 4)

The following data have been provided by Liggett Corporation:

Reference: 11-14

The variable overhead spending variance for supplies is:

  1. a. $640 F
  2. b. $1,387 F
  3. c. $1,387 U
  4. d. $747 F

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12.

(Points: 4)

Medlar Corporation's static budget for June appears below. The company bases its budgets on machine-hours.

In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430.

Reference: 11-5

The variance for equipment depreciation in the flexible budget performance report for the month should be:

  1. a. $1,490 F
  2. b. $1,490 U
  3. c. $270 U
  4. d. $270 F

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13.

(Points: 4)

Asper Corporation has provided the following data for February.

Reference: 11-27

The volume variance for February is:

  1. a. $17,300 U
  2. b. $17,300 F
  3. c. $6,920 F
  4. d. $6,920 U

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14.

(Points: 4)

Keeran Corporation's flexible budget for two levels of activity appears below:

Reference: 11-25

If the denominator level of activity is 6,100 machine-hours, the variable element in the predetermined overhead rate would be:

  1. a. $5.20
  2. b. $44.24
  3. c. $39.68
  4. d. $44.88

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15.

(Points: 4) The following costs appear in Malgorzata Company's flexible budget at an activity level of 15,000 machine-hours:

  1. a. Item A
  2. b. Item B
  3. c. Item C
  4. d. Item D

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16.

(Points: 4) A volume variance is computed for:

  1. a. both variable and fixed overhead.
  2. b. variable overhead only.
  3. c. fixed overhead only.
  4. d. direct labor costs as well as overhead costs.

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17.

(Points: 4) Amirault Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company's cost formula for variable manufacturing overhead is $4.00 per MH. During the month, the actual total variable manufacturing overhead was $18,040 and the actual level of activity for the period was 4,100 MHs. What was the variable overhead spending variance for the month?

  1. a. $410 favorable
  2. b. $1,640 unfavorable
  3. c. $1,640 favorable
  4. d. $410 unfavorable

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18.

(Points: 4)

Mandalay Hotel bases its budgets on guest-days. The hotel's static budget for August appears below:

Reference: 11-2

The total fixed overhead cost at an activity level of 5,500 guest-days per month should be:

  1. a. $139,700
  2. b. $190,920
  3. c. $244,200
  4. d. $109,220

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19.

(Points: 4) Recht Corporation's summary flexible budget for two levels of activity appears below:

If the denominator level of activity is 1,200 machine-hours, the fixed element in the predetermined overhead rate would be:

  1. a. $14.95
  2. b. $930.00
  3. c. $24.25
  4. d. $9.30

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20.

(Points: 4) Bakos Corporation's abbreviated flexible budget for two levels of activity appears below:

If the denominator level of activity is 2,800 machine-hours, the variable element in the predetermined overhead rate would be:

  1. a. $44.76
  2. b. $35.96
  3. c. $43.52
  4. d. $8.80

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21.

(Points: 4)

Medlar Corporation's static budget for June appears below. The company bases its budgets on machine-hours.

In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430.

Reference: 11-5

The variance for power cost in the flexible budget performance report for the month should be:

  1. a. $1,900 F
  2. b. $1,900 U
  3. c. $380 U
  4. d. $380 F

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22.

(Points: 4)

Moncrief Corporation bases its budgets on machine-hours. The company's static budget for July appears below:

Reference: 11-4

The variance for equipment depreciation in the flexible budget performance report for the month should be:

  1. a. $1,890 U
  2. b. $90 F
  3. c. $90 U
  4. d. $1,890 F

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23.

(Points: 4)

Muscato Corporation's flexible budget for two levels of activity appears below:

Reference: 11-24

If the denominator level of activity is 7,500 machine-hours, the fixed element in the predetermined overhead rate would be:

  1. a. $192.28
  2. b. $211.28
  3. c. $19.00
  4. d. $1,900.00

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24.

(Points: 4)

Dagle Corporation has provided the following data for a recent month:.

Reference: 11-11

The variable overhead spending variance for indirect labor is:

  1. a. $4,356 U
  2. b. $2,718 F
  3. c. $4,356 F
  4. d. $1,638 U

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25.

(Points: 4)

Macchi Corporation has provided the following data for a recent period:

Reference: 11-13

The variable overhead spending variance for lubricants is:

  1. a. $202 F
  2. b. $358 U
  3. c. $202 U
  4. d. $560 U

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