1)Rodriques Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,630 square feet and the actual level of activity was 1,720 square feet. The company's owner budgets for supply costs, a variable overhead cost, at $3.40 per square foot. The actual supply cost last month was $6,750. In the company's flexible budget performance report for last month, what would have been the variance for supply costs?
$902 U
2) A manufacturer of playground equipment has a standard costing system based on standard machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
Denominator level of activity= 8,800 MHs
Fixed overhead cost= $71,720
The following data pertain to operations for the most recent period:
Actual hours= 8,500 MHs
Standard hours allowed for the actual output= 8,556 MHs
Actual total fixed overhead cost= $71, 470
How much fixed overhead was applied to products during the period to the nearest dollar?
$69,731
3) Bartoletti Fabrication 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 $4.60 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 spending and fixed overhead budget variances for the month?
$1,080 favorable
4) Medlar Corporation's static budget for June appears below. The company bases its budgets on machine-hours.
Budgeted number of machine-hours = 8,900
Budgeted variable overhead costs:
Supplies (@ $2.20 per machine-hour) = $19,580
Power (@ $3.80 per machine-hour) = $33,820
Total variable overhead cost = $53,400
Budgeted fixed overhead cost:
Salaries= $26,700
Equipment depreciation= $39,160
Total fixed overhead cost=$65,860
Total budgeted overhead cost= $119,260
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.
The variance for power cost in the flexible budget performance report for the month should be:
$380 U
5) 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:
Denominator level of activity= 1,000 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost= $3,800
Fixed overhead cost = $14,250
The following data pertain to operations for the most recent period:
Actual hours = 1,200 DLHs
Standard hours allowed for the actual output = 885 DLHs
Actual total variable overhead cost= $4,380
Actual total fixed overhead cost= $12,450
How much overhead was applied to products during the period to the nearest dollar?
$15,974
6) Isadore Hospital bases its budgets on patient-visits. The hospital's static budget for July appears below:
Budgeted number of patient-visits= 7,700
Budgeted variable overhead costs:
Supplies (@$4.60 per patient-visit) = $35,420
Laundry (@$7.20 per patient-visit) = 55,440
Total variable overhead cost= 90,860
Budgeted fixed overhead costs:
Salaries = 46,200
Occupancy costs = 67,760
Total fixed overhead cost = 113,960
Total budgeted overhead cost = $204,820
Actual results for the month were:
Actual number of patient-visits= 7,800
Supplies= $38,250
Laundry= $61,240
Salaries= $46,190
Occupancy costs= $65,650
The variance for occupancy costs in the flexible budget performance report for the month is:
$2,110 F
7) A volume variance is computed for:
a) Both variable and fixed overhead
b) Variable overhead only
c) Fixed overhead only
d) Direct labor costs as well as overhead costs.
8) 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.
Which overhead variance(s) at Azzurra would be affected in an unfavorable manner if fire and theft insurance rates increase by 25% unexpectedly during the period?
a) variable overhead spending variance
b) variable overhead efficiency variance
c) fixed overhead budget variance
d) fixed overhead volume variance
e) both C and D above
9) A manufacturer of playground equipment has a standard costing system based on standard machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
Denominator level of activity= 8,800 MHs
Fixed overhead cost= $71,720
The following data pertain to operations for the most recent period:
Actual hours= 8,500 MHs
Standard hours allowed for the actual output= 8,556 MHs
Actual total fixed overhead cost= $71, 470
What was the fixed overhead volume variance for the period to the nearest dollar?
$1,989 U
10) Songster 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:
Original budget Actual cost
Fixed overhead costs:
Supervision………….. $14,100 $13,650
Utilities……………… $5,300 5,060
Factory depreciation… 7,200 7,470
Total overhead cost……. $26,600 $26,180
The company based its original budget on 3,500 machine-hours. The company actually worked 3,700 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,820 machine-hours. What was the overall fixed overhead budget variance for the month?
$420 favorable
11) A manufacturer of playground equipment has a standard costing system based on standard machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
Denominator level of activity= 8,800 MHs
Fixed overhead cost= $71,720
The following data pertain to operations for the most recent period:
Actual hours= 8,500 MHs
Standard hours allowed for the actual output= 8,556 MHs
Actual total fixed overhead cost= $71, 470
What was the total of the variable overhead spending and fixed overhead budget variances for the month?
12) Alapai 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:
Budgeted level of activity= 7,000 MHs
Actual level of activity= 7,200 MHs
Cost formula for variable manufacturing overhead cost= $9.40 per MH
Budgeted fixed manufacturing overhead cost= $40,000
Actual total variable manufacturing overhead= $66,960
Actual total fixed manufacturing overhead= $37,000
What was the total of the variable overhead spending and fixed overhead budget variances for the month?
$3,720 favorable
13) Bagley Company has a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. The company has provided the following data concerning its manufacturing overhead costs for last year:
Actual total overhead cost= $260,000
Budgeted fixed overhead cost= $180,000
Variable overhead rate= $2 per hour
Fixed overhead rate=$6 per hour
Standard hours allowed for output= 32,000 hours
The volume variance for the year was:
$12,000 F
14) Geschke Corporation, which produces commercial safes, has provided the following data:
Budgeted production= 8,500 safes
Standard machine hours per safe= 9.1 machine-hours
Standard supplies cost= $1.70 per machine-hours
Actual production= 8,700 safes
Actual machine-hours= 79,100 machine-hours
Actual supplies cost= $123,642
The variable overhead efficiency variance for supplies is:
$119 F
15) 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:
Denominator level of activity= 1,000 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost= $3,800
Fixed overhead cost=$14,250
The following data pertain to operations for the most recent period:
Actual hours= 1,200 DLHs
Standard hours allowed for the actual output= 885 DLHs
Actual total variable overhead cost= $4,380
Actual total fixed overhead cost= $12, 450
What was the fixed overhead budget variance for the period to the nearest dollar?
$1,800 F
16) 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:
Denominator level of activity= 1,000 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost= $3,800
Fixed overhead cost=$14,250
The following data pertain to operations for the most recent period:
Actual hours= 1,200 DLHs
Standard hours allowed for the actual output= 885 DLHs
Actual total variable overhead cost= $4,380
Actual total fixed overhead cost= $12, 450
What is the predetermined overhead rate to the nearest cent?
$18.05
17) The fixed manufacturing overhead budget variance equals:
a) Actual fixed manufacturing overhead cost--Applied fixed manufacturing overhead cost. b) Actual fixed manufacturing overhead cost -- Budgeted fixed manufacturing overhead cost.
c) Budgeted fixed manufacturing overhead cost – Applied fixed manufacturing overhead cost
d) Actual fixed manufacturing overhead cost – (Actual hours x Standard fixed overhead rate)
18) Bagley Company has a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. The company has provided the following data concerning its manufacturing overhead costs for last year:
Actual total overhead cost= $260,000
Budgeted fixed overhead cost= $180,000
Variable overhead rate= $2 per hour
Fixed overhead rate=$6 per hour
Standard hours allowed for output= 32,000 hours
The denominator activity level used to compute predetermined overhead rates was:
a) 32,000 hours
b) 22,500 hours
c) 30,000 hours
d) It is impossible to determine from the data given
19) Rodarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $1.20 per machine-hour and the denominator level of activity is 6,600 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $8,340 and the company actually worked 6,400 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,480 machine-hours. What was the overall fixed overhead volume variance for the month?
$144 unfavorable
20) 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:
Direct labor-hours= 56,000 70,000 84,000
Detector produced= 40,000 50,000 60,000
Variable overhead cost=$252,000 $315,000 $378,000
Fixed overhead cost= $672,000 $672,000 $672,000
Crispy was expecting to produce 40,000 detectors last year. The actual results for the year were as follows:
Number of detectors produced= 43,200
Direct labor-hours incurred= 62,640
Variable overhead cost= $278,748
Fixed overhead cost= $714,000
What total amount of manufacturing overhead cost (variable and fixed) did Crispy apply to the 43,200 detectors produced?
$997,920
21) Medlar Corporation's static budget for June appears below. The company bases its budgets on machine-hours
Budgeted number of machine hours= 8,900
Budgeted variable overhead costs:
Supplies (@$2.20 per machine hour) = $19,580
Power (@$3.80 per machine-hour) = 33,820
Total variable overhead cost= 53,400
Budgeted fixed overhead costs:
Salaries = 26,700
Equipment depreciation = 39,160
Total fixed overhead cost = 65,860
Total budgeted overhead cost = $119,260
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.
The variance for equipment depreciation in the flexible budget performance report for the month should be:
$270 U
22) The following data have been provided by Liggett Corporation:
Budgeted production= 7,400 units
Standard machine hours per unit= 6.6 machine-hours
Standard lubricants= $3.50 per machine-hour
Standard supplies= $2.00 per machine- hour
Actual production= 7,600 units
Actual machine-hours (total)= 49,840 machine-hours
Actual supplies (total)= $98,933
The variable overhead spending variance for supplies is:
$747 F
23) Mandalay Hotel bases its budgets on guest-days. The hotel's static budget for August appears below:
Budgeted number of guest-days= 4,300
Budgeted variable overhead costs:
Supplies (@$9.60 per guest-day) = $41,280
Laundry (@$9.40 per guest-day) = 40,420
Total variable overhead cost= 81,700
Budgeted fixed overhead costs:
Wages and Salaries = 57,190
Occupancy costs = 52,030
Total fixed overhead cost = 109,220
Total budgeted overhead cost = $190,920
The total variable overhead cost at an activity level of 5,000 guest-days per month should be:
$95,000
24) Macchi Corporation has provided the following data for a recent period:
Budget production= 2,200 units
Actual production= 2,500 units
Standard machine-hours per unit= 3.1 machine-hours
Budgeted machine-hours (3.1 x 2,200)= 6,820 machine-hours
Standard machine-hours allowed for the actual output (3.1 x 2,500)= 7,750 machine-hours
Actual machine-hours = 8,030 machine-hours
Budgeted variable overhead cost per machine-hour:
Lubricants= $2.00 per machine-hours
Supplies = $2.60 per machine-hours
Actual total variable overhead costs:
Lubricants=$15,858
Supplies =$20,392
The variable overhead spending variance for supplies is:
$486 F
25) A furniture manufacturer 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:
Denominator level of activity= 8,500 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost= $19,550
Fixed overhead cost=$93,075
The following data pertain to operations for the most recent period:
Actual hours= 8,600 DLHs
Standard hours allowed for the actual output= 8,575 DLHs
Actual total variable overhead cost= $18,490
Actual total fixed overhead cost= $91,225
What was the fixed overhead volume variance for the period to the nearest dollar?
$821 F