142.Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape:
Material (3.50 ounces at $1.30 per ounce) $4.55
Labor (0.30 hour at $12.00 per hour) 3.60
Overhead 2.20
Total $10.35
At the start of 2014, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $56,000 and the variable overhead costs are budgeted at $1.50 per case. The following information summarizes the results for 2014:
Actual production, 75,000 cases
Purchased 275,000 ounces of material at a total cost of $343,750
Used 266,250 ounces of material in production
Employees worked 22,000 hours, total labor cost $275,000
Actual overhead incurred, $175,000
How much is the controllable overhead variance for 2014?
A.$3,000 unfavorable
B.$10,000 unfavorable
C.$6,500 unfavorable
D.$3,500 unfavorable
143.Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape:
Material (3.50 ounces at $1.30 per ounce) $4.55
Labor (0.30 hour at $12.00 per hour) 3.60
Overhead 2.20
Total $10.35
At the start of 2014, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $56,000 and the variable overhead costs are budgeted at $1.50 per case. The following information summarizes the results for 2014:
Actual production, 75,000 cases
Purchased 275,000 ounces of material at a total cost of $343,750
Used 266,250 ounces of material in production
Employees worked 22,000 hours, total labor cost $275,000
Actual overhead incurred, $175,000
How much is the overhead volume variance for 2014?
A.$6,500 unfavorable
B.$3,500 unfavorable
C.$10,000 unfavorable
D.$3,000 unfavorable
144.Haley Fans manufactures and distributes circulators. The standard and actual costs for the manufacture of circulators follows:
Standard CostsActual Costs
Variable cost, $24 per unitTotal variable cost, $12,300
Fixed cost, $40 per unitTotal fixed cost, $19,250
Budgeted factory overhead was $32,000. Overhead applied is based on the number of circulator units produced. The company estimated that 500 circulators would be produced, however only 480 were produced. How much is Haley’s overhead volume variance for 2014?
A.$800 unfavorable
B.$830 favorable
C.$450 favorable
D.$50 unfavorable
145.Eminem, Inc. manufactures music CDs. At the start of 2014, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is:
Plastic (0.25 pounds at $6.00 per pound)$1.50
Labor (0.10 hour at $12.00 per hour)1.20
Overhead ($0.80 fixed and $0.60 variable)1.40
Total$4.10
Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminem’s results for 2014:
Actual production110,000 CDs
Actual variable overhead$65,000
Actual fixed overhead$83,000
How much is the budgeted fixed overhead for 2014?
A.$86,400
B.$83,000
C.$88,000
D.$66,400
146.Eminem, Inc. manufactures music CDs. At the start of 2014, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is:
Plastic (0.25 pounds at $6.00 per pound)$1.50
Labor (0.10 hour at $12.00 per hour)1.20
Overhead ($0.80 fixed and $0.60 variable)1.40
Total$4.10
Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminem’s results for 2014:
Actual production110,000 CDs
Actual variable overhead$65,000
Actual fixed overhead$83,000
How much is the controllable overhead variance for 2014?
A.$4,400 favorable
B.$1,600 favorable
C.$6,000 favorable
D.$5,000 favorable
147.Eminem, Inc. manufactures music CDs. At the start of 2014, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is:
Plastic (0.25 pounds at $6.00 per pound)$1.50
Labor (0.10 hour at $12.00 per hour)1.20
Overhead ($0.80 fixed and $0.60 variable)1.40
Total$4.10
Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminem’s results for 2014:
Actual production110,000 CDs
Actual variable overhead$65,000
Actual fixed overhead$83,000
How much is the overhead volume variance for 2014?
A.$4,400 favorable
B.$1,600 favorable
C.$1,200 unfavorable
D.$3,200 favorable
148.Eminem, Inc. manufactures music CDs. At the start of 2014, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is:
Plastic (0.25 pounds at $6.00 per pound)$1.50
Labor (0.10 hour at $12.00 per hour)1.20
Overhead ($0.80 fixed and $0.60 variable)1.40
Total$4.10
Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminem’s results for 2014:
Actual production110,000 CDs
Actual variable overhead$65,000
Actual fixed overhead$83,000
How much is under or overapplied overhead for 2014?
A.$6,000 overapplied
B.$4,400 overapplied
C.$1,600 overapplied
D.$3,200 underapplied
149.Rumington Popcorn uses a standard cost system and applies overhead on a per unit basis. The company estimated that 30,000 units would be produced in 2014 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was:
Overhead = $120,000 + $6 per unit
During the year, actual overhead cost was $340,000. Actual units produced were 32,000. How much is the controllable overhead variance for 2014?
A.$20,000 favorable
B.$20,000 unfavorable
C.$28,000 favorable
D.$28,000 unfavorable
150.Rumington Popcorn uses a standard cost system and applies overhead on a per unit basis. The company estimated that 30,000 units would be produced in 2014 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was:
Overhead = $120,000 + $6 per unit
During the year, actual overhead cost was $340,000. Actual units produced were 32,000. How much is the amount of under or over applied overhead for 2014?
A.$20,000 overapplied
B.$20,000 underapplied
C.$28,000 overapplied
D.$28,000 underapplied
151.Rumington Popcorn uses a standard cost system and applies overhead on a per unit basis. The company estimated that 30,000 units would be produced in 2014 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was:
Overhead = $120,000 + $6 per unit
During the year, actual overhead cost was $340,000. Actual units produced were 32,000. How much is the overhead volume variance for 2014?
A.$2,000 favorable
B.$28,000 unfavorable
C.$8,000 favorable
D.$28,000 favorable