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Exam 19: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

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Question 41

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Henley Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.For the month of January,the fixed manufacturing overhead volume variance was $2,220 favorable.The company uses a fixed manufacturing overhead rate of $1.85 per direct labor-hour.During January,the standard direct labor-hours allowed for the month's output:

A) exceeded denominator hours by 1,000.
B) fell short of denominator hours by 1,000.
C) exceeded denominator hours by 1,200.
D) fell short of denominator hour by 1,200.

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

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Question 42

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

A) $225,500
B) $227,250
C) $224,725
D) $226,669

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

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Question 43

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Web Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours.During February,the company used a denominator activity of 80,000 machine-hours in computing its predetermined overhead rate.However,only 75,000 standard machine-hours were allowed for the month's actual production.If the fixed manufacturing overhead volume variance for February was $6,400 unfavorable,then the total budgeted fixed manufacturing overhead cost for the month was:

Which of the following is not correct?

If all four of Argo Corporation's overhead variances are favorable,Argo's overhead will be overapplied.

The following data for August has been provided by Mirabelli Corporation. -The budget variance for August is:

A manufacturer of industrial equipment 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: -What is the predetermined overhead rate to the nearest cent?

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

Kuhlman 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 2,800 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 2,860 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

Felux Corporation has provided the following data for October. Required: a.Compute the budget variance for October.Show your work! b.Compute the volume variance for October.Show your work!

Harris Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The company has provided the following data: The volume variance would be:

The fixed portion of the predetermined overhead rate is used for product costing purposes and has no significance in terms of cost control.

Mauve Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The following data pertain to last month: The fixed manufacturing overhead budget variance is:

A decrease in denominator level of activity will:

The fixed manufacturing overhead budget variance is more meaningful than the volume variance for cost control purposes.

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 actual direct labor-hours differ from standard hours allowed.

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

Guadalupe Manufacturing Company uses a standard cost system with direct labor-hours as the activity base for overhead.Last year,Guadalupe applied a total of $936,000 of fixed manufacturing overhead cost to the products it produced.The following data relate to production for the year: What was Guadalupe's fixed manufacturing overhead volume variance?

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 volume variance.

The following data for August has been provided by Mirabelli Corporation. -The volume variance for August is: