Question : 111. The controllable variance measures: A. operating results at less than normal capacityB. the : 1239579

 

 

111. 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

 

112. The unfavorable volume variance may be due to all of the following factors except: A. failure to maintain an even flow of workB. machine breakdownsC. unexpected increases in the cost of utilitiesD. failure to obtain enough sales orders

 

113. 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. all of the above

 

114. The following data is given for the Bahia Company: 

Budgeted production

1,000 units

Actual production

   980 units

Materials:

 

  Standard price per pound

$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: A. $65UB. $65FC. $540UD. $540F

 

115. The following data is given for the Bahia Company: 

Budgeted production (at 100% production capacity)

1,000 units

Actual production

   980 units

Materials:

 

  Standard price per pound

$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. $65FC. $540UD. $540F

 

116. The following data is given for the Zoyza Company: 

Budgeted production (at 100% production capacity)

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. $73,250FB. $73,250UC. $59,400FD. $59,400U

 

117. The following data is given for the Zoyza Company: 

Budgeted production (at 100% production capacity)

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. $73,250FC. $59,400FD. $59,400U

 

118. The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units. Compute the factory overhead controllable variance. A. $9,000FB. $9,000UC. $5,500FD. $5,500U

 

119. The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units. Compute the factory overhead volume variance. A. $9,000FB. $9,000UC. $5,500FD. $5,500U

 

120. 

 

Standard

Actual

Variable OH Rate

$3.35

 

Fixed OH Rate

$1.80

 

Hours

18,900

17,955

Fixed Overhead

$46,000

 

Actual Variable Overhead

 

$67,430

Total Factory Overhead

 

$101,450

 

 

 

Calculate the total factory overhead cost variance using the above information: A. $4,866.75 UnfavorableB. $4,866.75 FavorableC. $8,981.75 FavorableD. $8,981.75 Unfavorable

 

 

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