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

 

 

 

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