Question :
15) When machine-hours used as an overhead cost-allocation base and : 1217270
15) When machine-hours are used as an overhead cost-allocation base and the unexpected purchase of a new machine results in fewer expenditures for machine maintenance, the most likely result would be to report a(n):
A) favorable variable overhead spending variance
B) unfavorable variable overhead efficiency variance
C) favorable fixed overhead flexible-budget variance
D) unfavorable production-volume variance
16) For variable manufacturing overhead, there is no:
A) spending variance
B) efficiency variance
C) flexible-budget variance
D) production-volume variance
Answer the following questions using the information below:
Brown Corporation manufactured 3,000 chairs during June. The following variable overhead data pertain to June:
Budgeted variable overhead cost per unit$ 12.00
Actual variable manufacturing overhead cost$33,600
Flexible-budget amount for variable manufacturing overhead$36,000
Variable manufacturing overhead efficiency variance$720 unfavorable
17) What is the variable overhead flexible-budget variance?
A) $2,400 favorable
B) $720 unfavorable
C) $3,120 favorable
D) $2,400 unfavorable
18) What is the variable overhead spending variance?
A) $1,680 unfavorable
B) $2,400 favorable
C) $2,400 unfavorable
D) $3,120 favorable
Answer the following questions using the information below:
Patel Corporation manufactured 1,000 coolers during October. The following variable overhead data pertain to October:
Budgeted variable overhead cost per unit$ 9.00
Actual variable manufacturing overhead cost$8,400
Flexible-budget amount for variable manufacturing overhead$9,000
Variable manufacturing overhead efficiency variance$180 unfavorable
19) What is the variable overhead flexible-budget variance?
A) $600 favorable
B) $420 unfavorable
C) $780 favorable
D) $600 unfavorable
20) What is the variable overhead spending variance?
A) $420 unfavorable
B) $600 favorable
C) $600 unfavorable
D) $780 favorable
Answer the following questions using the information below:
Roberts Corporation manufactured 100,000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February:
ActualBudgeted
Production100,000 units100,000 units
Machine-hours9,800 hours10,000 hours
Variable overhead cost per machine-hour$5.25$5.00
21) What is the actual variable overhead cost?
A) $49,000
B) $50,000
C) $51,450
D) None of these answers is correct.
22) What is the flexible-budget amount?
A) $49,000
B) $50,000
C) $51,450
D) None of these answers is correct.
23) What is the variable overhead spending variance?
A) $1,000 favorable
B) $1,450 unfavorable
C) $2,450 unfavorable
D) None of these answers is correct.
24) What is the variable overhead efficiency variance?
A) $1,000 favorable
B) $1,450 unfavorable
C) $2,450 unfavorable
D) None of these answers is correct.
Answer the following questions using the information below:
Roberson Corporation manufactured 30,000 ice chests during September. The overhead cost-allocation base is $11.25 per machine-hour. The following variable overhead data pertain to September:
ActualBudgeted
Production30,000 units24,000 units
Machine-hours15,000 hours10,800 hours
Variable overhead cost per machine-hour:$11.00$11.25
