Question : 61) If Pope, Inc. uses standard costing, the overhead allocated : 1196280

 

61) If Pope, Inc. uses standard costing, the overhead allocated to work in process 61) ______ A) decreases Manufacturing Overhead Allocated and decreases Work in Process B) increases Work in Process and increases Manufacturing Overhead Allocated. C) increases Manufacturing Overhead Allocated and decreases Manufacturing Overhead Control. D) increases Manufacturing Overhead Control and increases Manufacturing Overhead Allocated. E) increases Manufacturing Overhead Allocated and decreases Work in Process.

62) If Miller Company makes the following journal entry:

 

Variable Overhead Allocated$50,000

Variable Overhead Efficiency Variance15,000

Variable Overhead Control$62,500

Variable Overhead Spending Variance2,500

 

It may be inferred that 62) ______ A) the net variance is a $5,000 favourable spending variance. B) Actual variable manufacturing overhead costs were $65,000. C) the journal entry accounts are incorrect. D) the net variance is a $5,000 unfavourable spending variance E) Miller over-allocated variable manufacturing overhead.

63) In order to properly record a fixed manufacturing overhead spending variance of $30,000 unfavourable and a production volume overhead variance of $20,000 favourable, what would the appropriate journal entry be if actual fixed overhead is $500,000? 63) ______ A) Accounts Payable$500,000

Fixed Overhead Allocated              $500,000 B) Fixed Overhead Allocated              $570,000

Fixed Overhead Spending Variance$30,000

Fixed Overhead Production Volume Var.$20,000

Fixed Overhead Control520,000 C) Work in Process Control              $440,000

Fixed Overhead Allocated              $440,000 D) Fixed Overhead Allocated              $500,000

Accounts Payable              $500,000 E) Fixed Overhead Allocated              $490,000

Fixed Overhead Spending Variance30,000

Fixed Overhead Production Volume Variance$20,000

Fixed Overhead Control500,000

Use the information below to answer the following question(s).

 

Michelle Inc. uses a 4-variance analysis of its manufacturing overhead costs, and has the following results for April.

 

A.Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead.

Fixed overhead is allocated on a per unit basis.

 

B.Budgeted amounts for April 2002 are:

Direct labour-hours0.30 /Unit

Variable labour-hour overhead rate:$ 20.00 /DLH

Fixed manufacturing overhead:$600,000

Budgeted output (denominator level output):30,000 Units

 

C.Actual amounts for April 20×1 are:

Variable manufacturing overhead:$340,000

Fixed manufacturing overhead:$590,000

Direct labour-hours:16,000

Actual output:40,000

64) Which of the following journal entries is correct with respect to actual variable costs? 64) ______ A) Variable Manufacturing Overhead$240,000

Variable Manufacturing Overhead Control              $240,000 B) Work in Process Control              $590,000

Variable Manufacturing Overhead Allocated              $590,000 C) Variable Manufacturing Overhead Control              $340,000

Accounts Payable and other accounts              $340,000 D) Variable Manufacturing Overhead Control              $240,000

Variable Manufacturing Overhead              $240,000 E) Variable Manufacturing Overhead Allocated              $800,000

Variable Spending Variance$10,000

Variable Efficiency Variance$40,000

Variable Manufacturing Overhead Control$750,000

65) Which of the following journal entries is correct with respect to isolating fixed costs per accounting period (month of April)? 65) ______ A) Accounts Payable and other accounts$340,000

Fixed Manufacturing Overhead Control              $340,000 B) Work in Process Control              $590,000

Fixed Manufacturing Overhead Allocated              $590,000 C) Fixed Manufacturing Overhead Control              $340,000

Accounts Payable and other accounts              $340,000 D) Fixed Manufacturing Overhead Allocated              $800,000

Fixed Spending Variance$10,000

Fixed Efficiency Variance40,000

Fixed Manufacturing Overhead Control              750,000 E) Fixed Manufacturing Overhead Allocated              $800,000

Fixed Spending Variance$10,000

Fixed Production Volume Variance200,000

Fixed Manufacturing Overhead Control590,000

66) Non-financial performance measures are best viewed as 66) ______ A) performance variances. B) problem solvers. C) attention directors. D) personnel matters. E) attention directors and problem solvers.

67) Which option(s) would be consistent with the proration approach for end-of-period adjustments? 67) ______ A) prorate based on the allocated overhead amount in the ending balance of inventory and Cost of Goods Sold B) immediate write-off to Cost of Goods Sold C) prorate based on the total ending balance of Cost of Goods Sold alone D) prorate based on the total ending balance of inventory and Cost of Goods Sold E) any of the above three options is acceptable

68) Which of the following would possibly be adjusted as an end-of-period adjustment, using the adjusted allocation rate approach? 68) ______ A) individual job records B) ending inventory C) only individual job records and ending inventory D) Cost of Goods Sold E) ending inventory, individual job records, and Cost of Goods Sold

69) Fixed and variable cost variances can ________ be applied to activity-based costing systems. 69) ______ A) never B) seldom C) occasionally D) most times E) always

Use the information below to answer the following question(s).

 

Munoz, Inc. produces a special line of plastic toy racing cars.

Munoz, Inc. produces the cars in batches.

To manufacture a batch of the cars, Munoz, Inc. must set up the machines and molds.

Setup costs are batch-level costs because they are associated with batches rather than individual units of products.

A separate Setup Department is responsible for setting up machines and molds for different styles of car.

 

Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup-hours.

The following information pertains to June 2004.

 

ActualStatic-budget

AmountsAmounts

Units produced and sold15,00011,250

Batch size (number of units per batch)250225

Setup-hours per batch55.25

Variable overhead cost per setup-hour$40$38

Total fixed setup overhead costs$14,400$14,000

70) Calculate the efficiency variance for variable setup overhead costs. 70) ______ A) $525 favourable B) $1,500 favourable C) $975 unfavourable D) $700 unfavourable E) $1,500 unfavourable

 

71) Calculate the spending variance for variable setup overhead costs. 71) ______ A) $1,500 favourable B) $525 favourable C) $1,500 unfavourable D) $975 unfavourable E) $700 unfavourable

72) Calculate the spending variance for fixed setup overhead costs. 72) ______ A) $3,600 unfavourable B) $800 unfavourable C) $400 unfavourable D) $400 favourable E) $3,200 unfavourable