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The Murray Corporation makes and sells a single product. The company recorded the following activity and cost data for May: The Murray Corporation makes and sells a single product. The company recorded the following activity and cost data for May: The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour. -The fixed manufacturing overhead used to calculate the predetermined overhead rate was: A) $64,125 B) $67,500 C) $68,400 D) $70,275 The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour. -The fixed manufacturing overhead used to calculate the predetermined overhead rate was:


A) $64,125
B) $67,500
C) $68,400
D) $70,275

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

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Masek 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: Masek 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 fixed manufacturing overhead budget variance for the month? A) $2,360 Unfavorable B) $1,000 Unfavorable C) $2,360 Favorable D) $1,000 Favorable What was the fixed manufacturing overhead budget variance for the month?


A) $2,360 Unfavorable
B) $1,000 Unfavorable
C) $2,360 Favorable
D) $1,000 Favorable

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

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The fixed manufacturing overhead budget variance is:


A) the difference between budgeted fixed manufacturing overhead cost and actual fixed manufacturing overhead cost.
B) the difference between actual fixed manufacturing overhead cost and applied fixed manufacturing overhead cost.
C) the difference between budgeted fixed manufacturing overhead cost and applied fixed manufacturing overhead cost.
D) the difference between fixed overhead at the planned level of activity and the flexible budget for actual activity.

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

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Odonell Corporation estimates that its variable manufacturing overhead is $11.20 per machine-hour and its fixed manufacturing overhead is $563,640 per period. -If the denominator level of activity is 1,100 machine-hours, the predetermined overhead rate would be:


A) $960.00 per machine-hour
B) $9.60 per machine-hour
C) $13.30 per machine-hour
D) $22.90 per machine-hour

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

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The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: -The fixed manufacturing overhead volume variance for March is: A) $7,750 F B) $7,750 U C) $1,550 F D) $3,900 U -The fixed manufacturing overhead volume variance for March is:


A) $7,750 F
B) $7,750 U
C) $1,550 F
D) $3,900 U

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

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A volume variance is computed for:


A) both variable and fixed manufacturing overhead.
B) variable manufacturing overhead only.
C) fixed manufacturing overhead only.
D) direct labor costs as well as overhead costs.

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

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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. A fixed manufacturing overhead volume variance will NOT necessarily occur in a month in which the fixed manufacturing overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed manufacturing overhead.

A) True
B) False

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Saffold Corporation has provided the following data for December. Saffold Corporation has provided the following data for December. -The volume variance for December is: A) $6,540 F B) $6,540 U C) $16,350 F D) $16,350 U -The volume variance for December is:


A) $6,540 F
B) $6,540 U
C) $16,350 F
D) $16,350 U

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

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The following data for February has been provided by Gillard Corporation. The following data for February has been provided by Gillard Corporation. -The volume variance for February is: A) $5,580 F B) $5,580 U C) $7,440 U D) $7,440 F -The volume variance for February is:


A) $5,580 F
B) $5,580 U
C) $7,440 U
D) $7,440 F

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

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Saffold Corporation has provided the following data for December. Saffold Corporation has provided the following data for December. -The budget variance for December is: A) $10,050 U B) $6,540 U C) $6,540 F D) $10,050 F -The budget variance for December is:


A) $10,050 U
B) $6,540 U
C) $6,540 F
D) $10,050 F

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

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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 variable portion of the predetermined overhead rate.

A) True
B) False

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Steinhagen 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: Steinhagen 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: The company based its original budget on 2,600 machine-hours. The company actually worked 2,790 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,960 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? A) $5,148 Favorable B) $5,148 Unfavorable C) $2,717 Favorable D) $2,717 Unfavorable The company based its original budget on 2,600 machine-hours. The company actually worked 2,790 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,960 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?


A) $5,148 Favorable
B) $5,148 Unfavorable
C) $2,717 Favorable
D) $2,717 Unfavorable

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

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Omary 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: Omary 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? A) $1,520 Unfavorable B) $3,180 Favorable C) $4,820 Unfavorable D) $6,340 Unfavorable What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?


A) $1,520 Unfavorable
B) $3,180 Favorable
C) $4,820 Unfavorable
D) $6,340 Unfavorable

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

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Traveller Corporation sells one product and uses a standard cost system. Last year the overhead volume variance was zero. Which of the following is correct?


A) Actual variable manufacturing overhead cost was equal to standard variable manufacturing overhead cost.
B) Total applied overhead was equal to total actual overhead.
C) The denominator activity was equal to actual activity.
D) The budgeted fixed costs were equal to the applied fixed costs.

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

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Bakos Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $8.80 per machine-hour and fixed manufacturing overhead cost of $100,688 per period. If the denominator level of activity is 2,800 machine-hours, the variable component in the predetermined overhead rate would be:


A) $44.76
B) $35.96
C) $43.52
D) $8.80

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

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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) $2,720 U B) $1,225 F C) $2,811 U D) $3,945 U 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) $2,720 U B) $1,225 F C) $2,811 U D) $3,945 U -The fixed manufacturing overhead volume variance for the period is closest to:


A) $2,720 U
B) $1,225 F
C) $2,811 U
D) $3,945 U

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

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Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs) . Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs) . The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows: -What was Vette's variable overhead rate variance? A) $2,800 Unfavorable B) $13,200 Favorable C) $16,000 Favorable D) $68,000 Unfavorable The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows: Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs) . The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows: -What was Vette's variable overhead rate variance? A) $2,800 Unfavorable B) $13,200 Favorable C) $16,000 Favorable D) $68,000 Unfavorable -What was Vette's variable overhead rate variance?


A) $2,800 Unfavorable
B) $13,200 Favorable
C) $16,000 Favorable
D) $68,000 Unfavorable

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

Correct Answer

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A manufacturing company 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 manufacturing company 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 overhead applied to products during the period was closest to: A) $112,850 B) $113,415 C) $116,550 D) $110,889 The following data pertain to operations for the most recent period: A manufacturing company 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 overhead applied to products during the period was closest to: A) $112,850 B) $113,415 C) $116,550 D) $110,889 -The overhead applied to products during the period was closest to:


A) $112,850
B) $113,415
C) $116,550
D) $110,889

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

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Homer Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. The company has provided the following data concerning its manufacturing overhead costs for last year: Homer Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. The company has provided the following data concerning its manufacturing overhead costs for last year: -The volume variance was: A) $200 F B) $400 U C) $300 F D) $240 U -The volume variance was:


A) $200 F
B) $400 U
C) $300 F
D) $240 U

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

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In a standard costing system where the denominator activity for the predetermined overhead rate is labor-hours, overhead costs are applied to work in process on the basis of the standard labor-hours allowed for the actual output.

A) True
B) False

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