Question : 116. The following data given for the Zoyza Company: Budgeted production 26,000 units : 1226998

 

 

116. The following data is given for the Zoyza Company: 

Budgeted production

26,000 units

Actual production

27,500 units

Materials:

 

  Standard price per ounce

$6.50

  Standard ounces per completed unit

8

  Actual ounces purchased and used in production

228,000

  Actual price paid for materials

$1,504,800

Labor:

 

  Standard hourly labor rate

$22 per hour

  Standard hours allowed per completed unit

6.6

  Actual labor hours worked

183,000

  Actual total labor costs

$4,020,000

Overhead:

 

  Actual and budgeted fixed overhead

$1,029,600

  Standard variable overhead rate

$24.50 per standard labor hour

  Actual variable overhead costs

$4,520,000

 

 

  Overhead is applied on standard labor hours. The factory overhead controllable variance is: A. $73,250FB. $73,250UC. $59,400FD. $59,400U

 

117. The following data is given for the Zoyza Company: 

Budgeted production

26,000 units

Actual production

27,500 units

Materials:

 

  Standard price per ounce

$6.50

  Standard ounces per completed unit

8

  Actual ounces purchased and used in production

228,000

  Actual price paid for materials

$1,504,800

Labor:

 

  Standard hourly labor rate

$22 per hour

  Standard hours allowed per completed unit

6.6

  Actual labor hours worked

183,000

  Actual total labor costs

$4,020,000

Overhead:

 

  Actual and budgeted fixed overhead

$1,029,600

  Standard variable overhead rate

$24.50 per standard labor hour

  Actual variable overhead costs

$4,520,000

 

 

  Overhead is applied on standard labor hours. The factory overhead volume variance is: A. $73,250UB. $73,250FC. $59,400FD. $59,400U

 

118. 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. $9,000UC. $5,500FD. $5,500U

 

119. 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. $9,000FB. $9,000UC. $5,500FD. $5,500U

 

120. 

 

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 FavorableD. $8,981.75 Unfavorable

 

121. 

 

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 UnfavorableC. $1,701 UnfavorableD. $4,866.75 Favorable

 

122. 

 

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 FavorableB. $7,280.75 UnfavorableC. $8,981.75 UnfavorableD. $7,280.75 Favorable

 

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

 

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

 

125. Variances from standard costs are usually reported to: A. suppliersB. stockholdersC. managementD. creditors

 

126. 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 account onlyB. cost of goods sold account onlyC. finished goods account onlyD. work in process, cost of goods sold, and finished goods accounts

 

127. 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: A. 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

 

128. 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 PayableD. $1,000 Debit to Direct Materials Price Variance

 

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

 

130. The total manufacturing cost variance is A. 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.