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Exam 18: Standard Costs and Variances

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Question 31

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Sultzer 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: $\begin{array}{lrr}&\text { Original Budget }&\text {Actual Costs }\\\text { Fixed overhead costs: }\\\text {Supervision. }&\$ 18,900 & \$ 19,090 \\\text { Utilities.}&3,400 & 3,190 \\\text {Factory depreciation. }&9,800 & 9,660 \\\text {Total overhead cost }&\$ 32,100 & \$ 31,940 \\\end{array}$ The company based its original budget on 3,000 machine-hours. The company actually worked 2,730 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,690 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

A) $3,317 favorable
B) $160 unfavorable
C) $3,317 unfavorable
D) $160 favorable

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

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Question 32

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At the end of the year, actual manufacturing overhead costs were $110,000 and applied manufacturing overhead costs were $118,800. If the denominator activity for the year was 20,000 machine-hours, and if 22,000 standard machine-hours were allowed for the year's production, the predetermined overhead rate per machine-hour was:

A) $5.00
B) $5.94
C) $5.50
D) $5.40

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

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Question 33

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

Krouse Corporation's manufacturing overhead includes $14.70 per machine-hour for variable manufacturing overhead and $191,580 per period for fixed manufacturing overhead. Required: Determine the predetermined overhead rate for the denominator level of activity of 3,100 machine-hours.

The fixed element of the predetermined overhead rate was (per DLH) :

Walkenhorst Corporation's manufacturing overhead includes $7.80 per machine-hour for supplies; $7.30 per machine-hour for indirect labor; $21,210 per period for salaries; and $19,950 per period for depreciation. Required: Determine the predetermined overhead rate if the denominator level of activity is 1,500 machine-hours. Show your work!

The variable overhead rate variance was:

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 Fixed component of the predetermined overhead rate.

The variable overhead efficiency variance for March is:

Moralez 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: What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

The variable element of the predetermined overhead rate was (per DLH) :

The total predetermined overhead rate per machine-hour for November was:

What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?

The variable overhead rate variance for March is:

The Clayton Company uses a standard cost system in which manufacturing overhead costs are applied to units of the company's single product on the basis of standard direct labor-hours (DLHs). The standard cost card for the product follows: $\begin{array}{lr}\text { Standard Cost Card-per unit of product }\\\text { Direct Materials, 4 yards at \$ 3.50 per yard.}&\$ 14 \\\text { Direct Labor, 1.5 DLHs at \$8 per DLH }&12 \\\text {Variable Overhead, 1.5 DLHs at \$2 per DLH }&3 \\\text {Fixed Overhead, 1.5 DLHs at \$6 per DLH }&9 \\\text { Standard cost per unit.}&\$ 38 \\\end{array}$ The following data pertain to last year's activities: • The company manufactured 18,000 units of product during the year. A total of 70,200 yards of material was purchased during the year at a cost of $3.75 per yard. All of this material was used to manufacture the 18,000 units. • The company worked 29,250 direct labor-hours during the year at a cost of $7.80 per hour. • The denominator activity level was 22,500 direct labor-hours. • Budgeted fixed manufacturing overhead costs were $135,000 while actual manufacturing overhead costs were $133,200. • Actual variable overhead costs were $61,425. Required: a. Compute the direct materials price and quantity variances for the year. b. Compute the direct labor rate and efficiency variances for the year. c. Compute the variable overhead rate and efficiency variances for the year. d. Compute the fixed manufacturing overhead budget and volume variances for the year.

What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?

What was the variable overhead rate variance for the period to the nearest dollar?

Coskey Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the month appear below: $\begin{array}{l}&\text { Original Budget }&\text { Actual Costs }\\\text { Variable overhead costs: }\\\text {Supplies. }&\$ 16,770 & \$ 16,150 \\\text {Indirect labor. }&19,890 & 18,910\\\text { Fixed overhead costs: }\\\text { Supervision}&13,300 & 13,540 \\\text {Utilities. }&4,100 & 4,100 \\\text {Factory depreciation }&9,300 & 9,380 \\\text {Total overhead cost }&\$ 63,360 & \$ 62,080 \\\end{array}$ The company based its original budget on 3,900 machine-hours. The company actually worked 3,580 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,770 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

The terms "standard quantity allowed" or "standard hours allowed" means:

The fixed manufacturing overhead applied to Franklin's production for the year is: