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Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs). The denominator activity level is 60,000 direct labor-hours, or 300,000 units. ā€¢ A standard cost card for the company's product follows: Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs). The denominator activity level is 60,000 direct labor-hours, or 300,000 units. ā€¢ A standard cost card for the company's product follows: ā€¢ Actual data for the year follow: Required: a. Compute the variable overhead rate and efficiency variances. b. Compute the fixed manufacturing overhead budget and volume variances. ā€¢ Actual data for the year follow: Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs). The denominator activity level is 60,000 direct labor-hours, or 300,000 units. ā€¢ A standard cost card for the company's product follows: ā€¢ Actual data for the year follow: Required: a. Compute the variable overhead rate and efficiency variances. b. Compute the fixed manufacturing overhead budget and volume variances. Required: a. Compute the variable overhead rate and efficiency variances. b. Compute the fixed manufacturing overhead budget and volume variances.

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a. Variable overhead variances:
Variable...

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Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. The company has provided the following data concerning its fixed manufacturing overhead costs in March: Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. The company has provided the following data concerning its fixed manufacturing overhead costs in March: The fixed manufacturing overhead volume variance is: A) $3,000 U B) $3,000 F C) $9,000 U D) $6,000 U The fixed manufacturing overhead volume variance is:


A) $3,000 U
B) $3,000 F
C) $9,000 U
D) $6,000 U

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

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


A) the overhead rate variance.
B) the overhead efficiency variance.
C) the overhead budget variance.
D) the overhead volume variance.

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

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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 has no effect on the fixed manufacturing overhead budget variance.

A) True
B) False

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Ferro Enterprises uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours. During the month of September, the company applied $52,000 in fixed manufacturing overhead cost to units of product. At the end of the month, manufacturing overhead was overapplied by $3,000. If there was no volume variance in September, then the budgeted fixed manufacturing overhead cost for the month was:


A) $49,000
B) $52,000
C) $55,000
D) $58,000

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

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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: 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 total manufacturing overhead is underapplied or overapplied by how much? A) $9,216 Overapplied B) $9,216 Underapplied C) $47,940 Underapplied D) $47,940 Overapplied The total manufacturing overhead is underapplied or overapplied by how much?


A) $9,216 Overapplied
B) $9,216 Underapplied
C) $47,940 Underapplied
D) $47,940 Overapplied

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

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Gregorich 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: Gregorich 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 overhead budget variance is: A) $20,000 U B) $20,000 F C) $62,070 F D) $62,070 U The fixed overhead budget variance is:


A) $20,000 U
B) $20,000 F
C) $62,070 F
D) $62,070 U

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

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Carattini 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: Carattini 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: The total amount of manufacturing overhead applied is closest to: A) $340,376 B) $342,000 C) $312,900 D) $372,000 The total amount of manufacturing overhead applied is closest to:


A) $340,376
B) $342,000
C) $312,900
D) $372,000

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

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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 Ɨ $3 per DLH = $6 Fixed portion: 2 DLHs Ɨ $5 per DLH = $10 The following data pertain to operations in April: 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 Ɨ $3 per DLH = $6 Fixed portion: 2 DLHs Ɨ $5 per DLH = $10 The following data pertain to operations in April: The variable overhead efficiency variance for April was: A) $15,000 Unfavorable B) $23,000 Unfavorable C) $38,000 Favorable D) $38,000 Unfavorable The variable overhead efficiency variance for April was:


A) $15,000 Unfavorable
B) $23,000 Unfavorable
C) $38,000 Favorable
D) $38,000 Unfavorable

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

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Wineman 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 machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Wineman 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 machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: The fixed overhead volume variance is: A) $12,234 U B) $28,234 F C) $28,234 U D) $12,234 F The fixed overhead volume variance is:


A) $12,234 U
B) $28,234 F
C) $28,234 U
D) $12,234 F

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

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Gallucci 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: Gallucci 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 predetermined overhead rate is closest to: A) $7.53 per labor-hour B) $7.85 per labor-hour C) $14.31 per labor-hour D) $14.92 per labor-hour The predetermined overhead rate is closest to:


A) $7.53 per labor-hour
B) $7.85 per labor-hour
C) $14.31 per labor-hour
D) $14.92 per labor-hour

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

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

A) True
B) False

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The Chuba Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) . During December, the company actually used 7,200 direct labor-hours and made 1,900 units of finished product. The standard cost card for one unit of product includes the following data concerning manufacturing overhead: Variable overhead: 4 DLHs @ $5.25 per DLH Fixed overhead: 4 DLHs @ $2.00 per DLH For December, the company incurred $16,550 in fixed manufacturing overhead costs and recorded an $800 unfavorable volume variance. The budgeted fixed manufacturing overhead cost was:


A) $15,200
B) $16,000
C) $16,550
D) $13,700
E) $14,400

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

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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 fixed manufacturing overhead volume variance for the period is closest to: A) $1,240 U B) $496 F C) $1,736 F D) $516 F 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 fixed manufacturing overhead volume variance for the period is closest to: A) $1,240 U B) $496 F C) $1,736 F D) $516 F The fixed manufacturing overhead volume variance for the period is closest to:


A) $1,240 U
B) $496 F
C) $1,736 F
D) $516 F

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

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Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year: Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year: The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500. What was Tantanka's variable overhead efficiency variance? A) $5,400 Favorable B) $5,472 Unfavorable C) $21,600 Unfavorable D) $51,000 Unfavorable The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500. What was Tantanka's variable overhead efficiency variance?


A) $5,400 Favorable
B) $5,472 Unfavorable
C) $21,600 Unfavorable
D) $51,000 Unfavorable

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

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Wineman 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 machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Wineman 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 machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: The variable overhead efficiency variance is: A) $2,907 U B) $2,250 U C) $2,907 F D) $2,250 F The variable overhead efficiency variance is:


A) $2,907 U
B) $2,250 U
C) $2,907 F
D) $2,250 F

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

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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: 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: A) $18,955 F B) $19,125 F C) $19,125 U D) $18,955 U The variable overhead rate variance is:


A) $18,955 F
B) $19,125 F
C) $19,125 U
D) $18,955 U

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

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Muscato Corporation estimates that its variable manufacturing overhead is $19.00 per machine-hour and its fixed manufacturing overhead is $1,442,100 per period. If the denominator level of activity is 7,500 machine-hours, the variable component in the predetermined overhead rate would be:


A) $208.75 per machine-hour
B) $192.28 per machine-hour
C) $211.28 per machine-hour
D) $19.00 per machine-hour

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

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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: 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 fixed overhead volume variance is: A) $17,856 U B) $2,856 F C) $17,856 F D) $2,856 U The fixed overhead volume variance is:


A) $17,856 U
B) $2,856 F
C) $17,856 F
D) $2,856 U

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

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Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year: Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year: The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500. What was Tantanka's fixed manufacturing overhead volume variance? A) $5,700 Unfavorable B) $14,440 Unfavorable C) $28,500 Favorable D) $34,200 Unfavorable The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500. What was Tantanka's fixed manufacturing overhead volume variance?


A) $5,700 Unfavorable
B) $14,440 Unfavorable
C) $28,500 Favorable
D) $34,200 Unfavorable

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

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