Question : 82.What does an unfavorable overhead volume variance indicate? A.The quantity of : 1302877

 

 

82.What does an unfavorable overhead volume variance indicate?

A.The quantity of production was less than what was anticipated.

B.The company spent more costs on overhead than expected.

C.Production took longer than expected.

D.The company produced more units than it budgeted.

 

83.In which of the following situations will the overhead volume variance be favorable?

A.When more units are produced than were originally planned

B.When actual overhead costs are less than the flexible budget

C.When the predetermined overhead rate was set too low

D.When there are units remaining in ending inventory

 

84.Which of the following values is used in the calculations for both the controllable overhead variance and the overhead volume variance?

A.Overhead applied to production using the predetermined overhead rate

B.Flexible budget level of overhead for the actual level of production

C.Actual overhead incurred

D.None of these answer choices are used in both calculations.

 

85.Steep, Inc. budgeted 6,000 cup holders for March. Each holder is sold for $12. Actual production for March was 6,300 cup holders. Manufacturing overhead is applied based on units produced. Standards and actual costs follow for March:

 

StandardsActual

Materials1.1 pounds @ $2.40 a pound6,400 pounds purchased for $15,040;

6,450 pounds used

Labor0.10 hours @ $14.00 per hour620 hours @ $14.30 per hour

Variable overhead$16,800$18,400

Fixed overhead$9,600$10,300

 

How much is the overhead controllable variance?

A.$1,460 unfavorable

B.$480 favorable

C.$2,300 unfavorable

D.$980 favorable

 

86.Steep, Inc. budgeted 6,000 cup holders for March. Each holder is sold for $12. Manufacturing overhead is applied based on units produced. Actual production for March was 6,300 cup holders. Standards and actual costs follow for March:

 

StandardsActual

Materials1.1 pounds @ $2.40 a pound6,400 pounds purchased for $15,040;

6,450 pounds used

Labor0.10 hours @ $14.00 per hour620 hours @ $14.30 per hour

Variable overhead$16,800$18,400

Fixed overhead$9,600$10,300

 

How much is the overhead volume variance?

A.$1,460 unfavorable

B.$480 favorable

C.$2,300 unfavorable

D.$980 favorable

87.For what reason(s) might the overhead volume variance occur?

I.Overhead cost control is poor.

II.The actual activity level was less than estimated.

III.The expected production level was greater than budgeted.

A.I and II

               II and III

               I and III

               I, II, and III

 

88.Into what components is the manufacturing overhead variance decomposed when it is analyzed?

A.Overhead volume variance and controllable overhead variance

B.Overhead rate variance and overhead efficiency variance

C.Fixed overhead variance and variable overhead variance

D.Controllable overhead variance and uncontrollable overhead variance

 

89.Cuevas Company produces magic swords. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system for 2014:

 

Standard/Budgeted DataActual Data

Material½ lb. @ $15.00 per lb.Produced2,100 units

Labor1.2 hrs. @ $12 per hr.Materials purchased1,050 lbs. for $14,700

Fixed overhead$62,000Materials used1,080 lbs.

Variable overhead$11 per unitLabor worked2,500 hrs. costing $29,375

Production2,000 unitsOverhead$82,000

 

How much is the standard cost per unit?

                                        $21.90

                                        $63.90

                                        $69.00

                                       $62.42

 

90.Rodchester Company uses standard costing. Overhead is applied at $12 per unit produced. Data for the month of March follows:

 

Actual overhead costs              $194,000

Actual units produced               17,400

Flexible budget overhead for units produced              $210,000

 

How much is the overhead volume variance?

A.$16,000 favorable

B.$17,200 favorable

C.$1,200 unfavorable

D.$14,800 unfavorable

 

91.RTC Supply Co. produces cleaning equipment for professional cleaners. At the start of the year, RTC estimated variable overhead costs to be $13 per unit and total fixed overhead costs at $300,000 based on a volume of 60,000 units. The detail for the overhead estimates follows:

 

Variable OverheadBudget @ 60,000 unitsActual Costs

Indirect materials              $  480,000              $  469,500

Utilities              120,000              93,000

Maintenance                 180,000                 224,000

Total variable overhead              780,000              786,500

 

Fixed Overhead

Supervisor salaries              125,000              127,000

Depreciation              150,000              145,000

Other fixed overhead                   25,000                   26,000

Total fixed overhead                 300,000                 298,000

Total overhead costs              $1,080,000              $1,084,500

 

Actual production for the year totaled 62,000 units. How much is the variable overhead flexible budget variance?

A.$4,500 unfavorable

B.$10,000 favorable

C.$21,500 favorable

D.$19,500 favorable