Question : 131. The St. Augustine Corporation originally budgeted for $360,000 of fixed : 1246901

 

131. The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units. Compute the factory overhead controllable variance. A. 9,000FB. 9,000U 5,500FD. 5,500U

 

132. The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units. Compute the factory overhead volume variance. A. 9,000F 9,000UC. 5,500FD. 5,500U

 

133. 

 

Standard

Actual

Variable OH Rate

$3.35

 

Fixed OH Rate

$1.80

 

Hours

18,900

17,955

Fixed Overhead

$46,000

 

Actual Variable Overhead

 

$67,430

Total Factory Overhead

 

$101,450

 

 

 

Calculate the total factory overhead cost variance using the above information: A. $4,866.75 UnfavorableB. $4,866.75 FavorableC. $8,981.75 Favorable $8,981.75 Unfavorable

 

134. 

 

Standard

Actual

Variable OH Rate

$3.35

 

Fixed OH Rate

$1.80

 

Hours

18,900

17,955

Fixed Overhead

$46,000

 

Actual Variable Overhead

 

$67,430

Total Factory Overhead

 

$101,450

 

 

 

Calculate the fixed factory overhead volume variance using the above information: A. $1,701 FavorableB. $4,866.75 Unfavorable $1,701 UnfavorableD. $4,866.75 Favorable

 

135. 

 

Standard

Actual

Variable OH Rate

$3.35

 

Fixed OH Rate

$1.80

 

Hours

18,900

17,955

Fixed Overhead

$46,000

 

Actual Variable Overhead

 

$67,430

Total Factory Overhead

 

$101,450

 

 

 

Calculate the variable factory overhead controllable variance using the above information: A. $8,981.75 Favorable $7,280.75 UnfavorableC. $8,981.75 UnfavorableD. $7,280.75 Favorable

 

136. A negative fixed overhead volume variance can be caused due to the following except: A. Sales orders at a low levelB. Machine breakdownsC. Employee inexperience Increase in utility costs

 

137. At the end of the fiscal year, variances from standard costs are usually transferred to the: A. direct labor accountB. factory overhead account cost of goods sold accountD. direct materials account

 

138. Variances from standard costs are usually reported to: A. suppliersB. stockholders managementD. creditors

139. If at the end of the fiscal year the variances from standard are significant, the variances should be transferred to the: A. work in process accountB. cost of goods sold accountC. finished goods account work in process, cost of goods sold, and finished goods accounts

140. Assuming that the Morocco Desk Co. purchases 8,000 feet of lumber at $6.00 per foot and the standard price for direct materials is $5.00, the entry to record the purchase and unfavorable direct materials price variance is:  Direct Materials                                      40,000Direct Materials Price Variance                8,000  Accounts Payable                                                         48,000B. Direct Materials                                      40,000  Accounts Payable                                                         40,000C. Direct Materials                                      48,000  Direct Materials Price Variance                                       8,000  Accounts Payable                                                         40,000D. Work in Process                                      48,000  Direct Materials Price Variance                                       8,000  Accounts Payable                                                         40,000

141. A company records their inventory purchases at standard cost but also records purchase price variances. The company purchased 5,000 widgets $8.00, the standard cost for the widgets is $7.80. Which of the following would be included in the journal entry? A. $39,000 Debit to Accounts PayableB. $1,000 Credit to Direct Materials Price VarianceC. $39,000 Credit to Accounts Payable $1,000 Debit to Direct Materials Price Variance

142. The use of standards for nonmanufacturing expenses is:  not as common as it is for manufacturing costsB. as common as it is for manufacturing costsC. not usefulD. impossible

143. The total manufacturing cost variance is  the difference between actual costs and standard costs for units produced.B. the flexible budget variance plus the time varianceC. the difference between planned costs and standard costs for units producedD. none of the above.

 

 

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