Question :
169.If the standard hours allowed less than the standard hours : 1311910
169.If the standard hours allowed are less than the standard hours at normal capacity,
a.the overhead volume variance will be unfavorable.
b.variable overhead costs will be underapplied.
c.the overhead controllable variance will be favorable.
d.variable overhead costs will be overapplied.
a170.Which of the following statements about overhead variances is false?
a.Standard hours allowed are used in calculating the controllable variance.
b.Standard hours allowed are used in calculating the volume variance.
c.The controllable variance pertains solely to fixed costs.
d.The total overhead variance pertains to both variable and fixed costs.
a171.The overhead volume variance relates only to
a.variable overhead costs.
b.fixed overhead costs.
c.both variable and fixed overhead costs.
d.all manufacturing costs.
a172.What does the controllable variance measure?
a.Whether a company incurred more or less fixed overhead costs compared to the amount of overhead applied
b.Whether a company incurred more or less overhead costs than allowed
c.The efficiency of using variable overhead resources
d.Whether the production manager is able to control the production facility
a173.The overhead controllable variance is calculated as the difference between actual overhead costs incurred and the budgeted
a.overhead costs for the standard hours allowed.
b.overhead costs applied to the product.
c.overhead costs at the normal level of activity.
d.fixed overhead costs.
a174.If the standard hours allowed are less than the standard hours at normal capacity, the volume variance
a.cannot be calculated.
b.will be favorable.
c.will be unfavorable.
d.will be greater than the controllable variance.
a175.The budgeted overhead costs for standard hours allowed and the overhead costs applied to the product are the same amount
a.for both variable and fixed overhead costs.
b.only when standard hours allowed are less than normal capacity.
c.for variable overhead costs.
d.for fixed overhead costs.
a176.The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing.
Variable manufacturing overhead costs$92,400
Fixed manufacturing overhead costs$55,440
Normal production level in labor hours30,800
Normal production level in units5,775
Standard labor hours per unit4
During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie’s total overhead rate is
a.$2.40.
b.$4.00.
c.$6.40.
d.$6.53.
a177.The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing.
Variable manufacturing overhead costs$92,400
Fixed manufacturing overhead costs$55,440
Normal production level in labor hours30,800
Normal production level in units5,775
Standard labor hours per unit4
During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie’s total overhead variance is
a.$1,680 U.
b.$6,160 U.
c.$7,840 U.
d.$22,400 U.
a178.The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing.
Variable manufacturing overhead costs$92,400
Fixed manufacturing overhead costs$55,440
Normal production level in labor hours30,800
Normal production level in units5,775
Standard labor hours per unit4
During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie’s controllable overhead variance is
a.$1,680 U.
b.$6,160 U.
c.$7,840 U.
d.$22,400 U.
a
