Question : 78.              In the Dichter Co., indirect labor budgeted for $72,000 : 1311867

 

 

78.              In the Dichter Co., indirect labor is budgeted for $72,000 and factory supervision is budgeted for $24,000 at normal capacity of 160,000 direct labor hours. If 180,000 direct labor hours are worked, flexible budget total for these costs is

a.$96,000.

b.$108,000.

c.$105,000.

d.$99,000.

 

 

79.              Stone Industries uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is:  $48,000 variable and $270,000 fixed. If Stone had actual overhead costs of $321,000 for 18,000 units produced, what is the difference between actual and budgeted costs?

a.$3,000 unfavorable

b.$3,000 favorable

c.$9,000 unfavorable

d.$12,000 favorable

 

 

80.              A company’s planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:

Variable                     Fixed

Indirect materials$140,000Depreciation$60,000

Indirect labor200,000Taxes10,000

Factory supplies20,000Supervision50,000

A flexible budget prepared at the 80,000 machine hours level of activity would show total manufacturing overhead costs of

a.$288,000.

b.$360,000.

c.$384,000.

d.$408,000.

 

 

81.              In the Goblette Manufacturing Company, indirect labor is budgeted for $108,000 and factory supervision is budgeted for $36,000 at normal capacity of 160,000 direct labor hours. If 180,000 direct labor hours are worked, flexible budget total for these costs is:

a.$144,000.

b.$162,000.

c.$157,500.

d.$148,500.

 

 

82.              Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced, what is the difference between actual and budgeted costs?

a.$2,000 unfavorable.

b.$2,000 favorable.

c.$6,000 unfavorable.

d.$8,000 favorable.

 

 

83.              A company’s planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:

Variable                     Fixed

Indirect materials$120,000Depreciation$50,000

Indirect labor160,000Taxes10,000

Factory supplies20,000Supervision40,000

A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of

a.$270,000.

b.$360,000.

c.$370,000.

d.$300,000.

 

 

84.              Kevin Jarvis Industries produced 192,000 units in 90,000 direct labor hours. Production for the period was estimated at 198,000 units and 99,000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at

a.96,000 hours and 99,000 hours.

b.99,000 hours and 90,000 hours.

c.96,000 hours and 90,000 hours.

d.90,000 hours and 90,000 hours.

 

 

85.              A company’s planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:

Variable                     Fixed

Indirect materials$90,000Depreciation$37,500

Indirect labor120,000Taxes7,500

Factory supplies15,000Supervision30,000

A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of

a.$202,500.

b.$270,000.

c.$277,500.

d.$225,000.

 

 

86.              Kathleen Corp. produced 320,000 units in 150,000 direct labor hours. Production for the period was estimated at 330,000 units and 165,000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at

a.160,000 hours and 165,000 hours.

b.165,000 hours and 150,000 hours.

c.160,000 hours and 150,000 hours.

d.150,000 hours and 150,000 hours.

 

87.              At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30,000. At 15,000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90,000. Fixed and variable costs may be expressed as:

a.$30,000 fixed plus $4 per direct labor hour variable.

b.$30,000 fixed plus $6 per direct labor hour variable.

c.$60,000 fixed plus $2 per direct labor hour variable.

d.$60,000 fixed plus $4 per direct labor hour variable.

 

 

 

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