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Exam 18: Standard Costs and Variances

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Question 21

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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?

A) $512 favorable
B) $512 unfavorable
C) $1,408 favorable
D) $1,408 unfavorable

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

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Question 22

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

A) $50.37
B) $56.47
C) $610.00
D) $6.10

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

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Question 23

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The fixed manufacturing overhead volume variance for March is:

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

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

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

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

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

What is the predetermined overhead rate to the nearest cent?

The fixed manufacturing overhead budget variance for October was:

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.

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

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

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

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:

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

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

The budget variance for April is:

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

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: