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Exam 18: Standard Costs and Variances

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Question 21

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The fixed manufacturing overhead volume variance for March is:

A) $1,000 favorable
B) $5,000 favorable
C) $2,500 unfavorable
D) $5,000 unfavorable

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

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Question 22

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

A) $486 F
B) $1,105 U
C) $619 U
D) $612 U

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

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Question 23

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The Ammon Company uses a standard cost system in which manufacturing overhead is applied to units on the basis of standard machine-hours. During July, the company budgeted $350,000 in manufacturing overhead cost at a denominator activity of 25,000 machine-hours. At standard, each unit of finished product requires 5 machine-hours. The following cost and activity were recorded during July: The amount of overhead cost that the company applied to work in process for July was:

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

If the denominator level of activity is 7,000 machine-hours, the predetermined overhead rate would be:

What is the predetermined overhead rate to the nearest cent?

The budget variance represents the difference between the actual fixed manufacturing overhead cost incurred during a period and the budgeted fixed manufacturing overhead cost.

Rubyor Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $10.70 per machine-hour and fixed manufacturing overhead cost of $821,104 per period. If the denominator level of activity is 7,300 machine-hours, the variable element in the predetermined overhead rate would be:

Franklin's fixed manufacturing overhead budget variance for the year is:

The economic impact of the inability to reach a target denominator level of activity would best be measured by:

Rostad 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: $\begin{array}{l}&\text { Original Budget }&\text { Actual Costs }\\\text { Variable overhead costs: }\\\text {Supplies. }&\$ 7,100&\$7,290 \\\text {Indirect labor. }&10,650&10,000\\\text { Fixed overhead costs: }\\\text { Supervision}&14,910&14,420\\\text {Utilities. }&14,200&14,250 \\\text {Factory depreciation }&61,770&61,410 \\\text {Total overhead cost }&\$ 108,630&\$107,370 \\\end{array}$ The company based its original budget on 7,100 machine-hours. The company actually worked 7,060 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,990 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

In a standard costing system, underapplied or overapplied fixed manufacturing overhead is equal to the sum of the fixed manufacturing overhead budget variance and the fixed manufacturing overhead volume variance.

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

The variable overhead efficiency variance for utilities cost for November was:

The fixed manufacturing overhead budget variance for October was:

The amount of fixed manufacturing overhead cost that was estimated for September was:

The budget variance for April is:

Overhead is applied to work in process in a standard costing system by:

If the denominator level of activity is 9,000 machine-hours, the fixed element in the predetermined overhead rate would be:

If the denominator level of activity is 6,900 machine-hours, the fixed element in the predetermined overhead rate would be: