Question : 71. Bellow Ltd. uses direct labor hours as the cost driver : 1295667

71. Bellow Ltd. uses direct labor hours as the cost driver for variable overhead. In order to calculate the variable overhead efficiency variance, which of the following items does not need to be known? A. Actual overhead costsB. Actual direct labor hoursC. Standard variable overhead rate per direct labor hourD. Standard direct labor hours allowed

72. The variable overhead efficiency variance: A. is interpreted in the same manner as the direct labor efficiency variance.B. measures the efficient use of factory utilities, factory maintenance, and factory supplies.C. measures the efficient use of the cost driver used in the flexible budget.D. measures the efficient use of direct materials.

73. Sampson Apparel Inc. incurred actual variable overhead expenses of $62,000 in the current year for the production of 10,000 units. Variable overhead was applied at a rate of $2.00 per direct labor hour and 3 direct labor hours were budgeted for each unit. The company used 29,000 direct labor hours for production. Refer to the Sampson Apparel Inc. information above. What was Sampson’s variable overhead spending variance? A. $4,000 UB. $4,000 FC. $2,000 UD. $2,000 F

74. Sampson Apparel Inc. incurred actual variable overhead expenses of $62,000 in the current year for the production of 10,000 units. Variable overhead was applied at a rate of $2.00 per direct labor hour and 3 direct labor hours were budgeted for each unit. The company used 29,000 direct labor hours for production. Refer to the Sampson Apparel Inc. information above. What was Sampson’s variable overhead efficiency variance? A. $4,000 UB. $4,000 FC. $2,000 UD. $2,000 F

75. Latimer Textiles Inc. incurred actual variable overhead expenses of $27,000 in the current year for the production of 8,000 units. Variable overhead was applied at a rate of $1.75 per direct labor hour and 2 direct labor hours were budgeted for each unit. The company used 17,400 direct labor hours for production. Refer to the Latimer Textiles Inc. information above. What was Latimer’s variable overhead spending variance? A. $3,450 UB. $3,450 FC. $2,450 UD. $2,450 F

76. Latimer Textiles Inc. incurred actual variable overhead expenses of $27,000 in the current year for the production of 8,000 units. Variable overhead was applied at a rate of $1.75 per direct labor hour and 2 direct labor hours were budgeted for each unit. The company used 17,400 direct labor hours for production. Refer to the Latimer Textiles Inc. information above. What was Latimer’s variable overhead efficiency variance? A. $3,450 UB. $3,450 FC. $2,450 UD. $2,450 F

77. Atkinson Landscaping applies variable overhead based on direct labor hours. At the beginning of the current year, Atkinson had estimated the following: 

Estimated variable overhead

$56,000

Estimated units of production

10,000 units

Standard direct labor hours per unit

2.5 hours

During the year, 11,000 units were produced using a total of 27,200 direct labor hours and actual overhead costs were $60,000. Refer to the Atkinson Landscaping information above. Atkinson’s variable overhead spending variance for the year was: A. $   672 FB. $   928 FC. $4,000 UD. $   145 U

78. Atkinson Landscaping applies variable overhead based on direct labor hours. At the beginning of the current year, Atkinson had estimated the following: 

Estimated variable overhead

$56,000

Estimated units of production

10,000 units

Standard direct labor hours per unit

2.5 hours

During the year, 11,000 units were produced using a total of 27,200 direct labor hours and actual overhead costs were $60,000. Refer to the Atkinson Landscaping information above. Atkinson’s variable overhead efficiency variance for the year was: A. $   672 FB. $   928 FC. $4,000 UD. $   145 U

79. The fixed overhead volume variance is calculated by taking the difference between: A. actual fixed overhead and budgeted fixed overhead.B. budgeted fixed overhead and budgeted variable overhead.C. budgeted fixed overhead and applied fixed overhead.D. budgeted fixed overhead per the flexible budget and budgeted fixed overhead per the static budget.

80. Which of the following variances is generally not reported as being favorable or unfavorable? A. Variable overhead efficiency varianceB. Direct labor rate varianceC. Fixed overhead volume varianceD. Direct materials usage variance