Question :
121. The standard factory overhead rate $7.50 per machine hour ($6.20 : 1246900
121. The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
Actual:
Variable factory overhead
$360,000
Fixed factory overhead
104,000
Standard hours allowed for units produced:
60,000 hours at $7.50
450,000
What is the amount of the factory overhead volume variance? A. $12,000 unfavorableB. $12,000 favorableC. $14,000 unfavorableD. $26,000 unfavorable
122. The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
Actual:
Variable factory overhead
$360,000
Fixed factory overhead
104,000
Standard hours allowed for units produced:
60,000 hours at $7.50
450,000
What is the amount of the factory overhead controllable variance? A. $12,000 unfavorableB. $12,000 favorableC. $14,000 unfavorableD. $26,000 unfavorable
123. Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a: A. quantity varianceB. controllable varianceC. volume varianceD. rate variance
124. The controllable variance measures: A. operating results at less than normal capacityB. the efficiency of using variable overhead resourcesC. operating results at more than normal capacityD. control over fixed overhead costs
125. The unfavorable volume variance may be due to all but the following factors: A. failure to maintain an even flow of workB. machine breakdownsC. unexpected increases in the cost of utilitiesD. failure to obtain enough sales orders
126. Favorable volume variances may be harmful when: A. machine repairs cause work stoppagesB. supervisors fail to maintain an even flow of workC. production in excess of normal capacity cannot be soldD. there are insufficient sales orders to keep the factory operating at normal capacity
127. The following data is given for the Bahia Company:
Budgeted production
1,000 units
Actual production
980 units
Materials:
Standard price per lb
$2.00
Standard pounds per completed unit
12
Actual pounds purchased and used in production
11,800
Actual price paid for materials
$23,000
Labor:
Standard hourly labor rate
$14 per hour
Standard hours allowed per completed unit
4.5
Actual labor hours worked
4,560
Actual total labor costs
$62,928
Overhead:
Actual and budgeted fixed overhead
$27,000
Standard variable overhead rate
$3.50 per standard direct labor hour
Actual variable overhead costs
$15,500
Overhead is applied on standard labor hours.The factory overhead controllable variance is: 65UB. 65FC. 540UD. 540F
128. The following data is given for the Bahia Company:
Budgeted production
1,000 units
Actual production
980 units
Materials:
Standard price per lb
$2.00
Standard pounds per completed unit
12
Actual pounds purchased and used in production
11,800
Actual price paid for materials
$23,000
Labor:
Standard hourly labor rate
$14 per hour
Standard hours allowed per completed unit
4.5
Actual labor hours worked
4,560
Actual total labor costs
$62,928
Overhead:
Actual and budgeted fixed overhead
$27,000
Standard variable overhead rate
$3.50 per standard labor hour
Actual variable overhead costs
$15,500
Overhead is applied on standard labor hours.The factory overhead volume variance is: A. 65UB. 65F 540UD. 540F
129. 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. 73,250F 73,250UC. 59,400FD. 59,400U
130. 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. 73,250F 59,400FD. 59,400U
