1. The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour. Compute the labor time variance.

a) 9,880F

b) 9,880U

c) 7,800U

d) 7,800F

2. The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:

Standard Costs

Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour

Variable overhead 3 hours @ $2.00 per hour

Actual Costs

Total variable cost, $18,000

Total fixed cost, $8,000

The amount of the factory overhead controllable variance is:

a) $2,000 unfavorable

b) $3,000 favorable

c) $0

d) $3,000 unfavorable

3. 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

What is the amount of the factory overhead volume variance?

a) $12,000 unfavorable

b) $12,000 favorable

c) $14,000 unfavorable

d) $26,000 unfavorable

4. The following data relate to direct labor costs for the current period:

Standard costs 7,500 hours at $11.40

Actual costs 6,000 hours at $12.00

What is the direct labor time variance?

a) $ 4,500 favorable

b) $18,000 unfavorable

c) $ 3,600 favorable

d) $17,100 favorable

5. 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 Unfavorable

b) $4,866.75 Favorable

c) $8,981.75 Favorable

d) $8,981.75 Unfavorable