Question : 92.At the start of 2014, Capital Cemetery determined its standard : 1302878

 

92.At the start of 2014, Capital Cemetery determined its standard labor cost to be 2.5 hours for each cemetery plot prepared at $14.00 per hour. The budget for variable overhead was $8 per plot and budgeted fixed overhead was $15,000 for the year. Overhead is applied based on the number of plots prepared. The company expects to prepare 5,000 plots during 2014. During 2014, the actual cost of labor was $14.30 per hour. Capital prepared 4,900 cemetery plots requiring 11,700 direct labor hours. Actual overhead for the year was $52,100. How much is the controllable overhead variance?

A.$1,800 favorable

B.$300 unfavorable

C.$2,100 favorable

D.$800 favorable

 

93.At the start of 2014, Capital Cemetery determined its standard labor cost to be 2.5 hours for each cemetery plot prepared at $14.00 per hour. The budget for variable overhead was $8 per plot and budgeted fixed overhead was $15,000 for the year. Overhead is applied based on the number of plots prepared. The company expects to prepare 5,000 plots during 2014. During 2014, the actual cost of labor was $14.30 per hour. Capital prepared 4,900 cemetery plots requiring 11,700 direct labor hours. Actual overhead for the year was $52,100. How much is the overhead volume variance?

A.$1,800 favorable

B.$300 unfavorable

C.$2,100 favorable

D.$800 favorable

94.Hanson produces pressure washers. The detail for the overhead estimates follows:

 

Variable OverheadBudget @ 50,000 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 overhead volume variance?

A.$72,000 favorable

B.$77,580 favorable

C.$63,940 favorable

D.$74,000 favorable

 

95.Sigorny Company uses standard costing and applies overhead on the basis of units produced. The company provided the following for July:

 

Predetermined overhead rate per unit produced$6.20

Budgeted fixed overhead$12,600

Variable overhead budgeted per unit$2.00

Actual units produced3,100

 

If the controllable overhead variance was $920 favorable in July, how much were total actual overhead costs?

               $17,880

               $18,800

C.$19,220

D.$19,720

 

96.Sigorny Company uses standard costing and applies overhead on the basis of units produced. The company provided the following for July:

 

Predetermined overhead rate per unit produced$6.20

Budgeted fixed overhead$12,600

Variable overhead budgeted per unit$2.00

Actual units produced3,100

 

How much is the budgeted variable overhead in July?

A.$18,600

B.$6,200

C.$19,220

D.$6,000

 

97.What does the overhead controllable variance indicate?

A. The company produced more or less than the quantity planned.

B. Material quantity standards were more or less than the actual quantity used.

C. Material price standards were more or less than the actual price.

D. Actual overhead cost was more or less than the amount indicated in the flexible budget.

 

98.Which of the following is not a criterion that a company might use to determine whether or not a variance is exceptional?

A.The variance is based on a significant percentage of the standard cost.

B.The variance is unfavorable.

C.The variance is for a large dollar amount.

D.The variance is for a significant percentage of the flexible budget amount.

 

99.Which of the following variances is most likely the responsibility of the purchasing manager?

A.Material quantity variance

B.Labor efficiency variance

C.Material price variance

D.Overhead volume variance

 

100.Under what condition(s) might a favorable variance be considered unfavorable?

I.When a manager overproduces to fully utilize labor in a non-bottleneck department

II.When a manager buys a better quality materials at a cheaper price

               I only

B.II only

C.Both I and II

D.Neither I nor II