1. Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $8.80 per MH. The company had budgeted its fixed manufacturing overhead cost at $68,000 for the month. During the month, the actual total variable manufacturing overhead was $66,750 and the actual total fixed manufacturing overhead was $70,000. The actual level of activity for the period was 6,800 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

Multiple Choice

• $8,910 favorable

• $6,910 favorable

• $6,910 unfavorable

• $8,910 unfavorable

2. Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.9	ounces	$	2.00	per ounce	$	13.80
Direct labor		0.4	hours	$	13.00	per hour	$	5.20
Variable overhead		0.4	hours	$	8.00	per hour	$	3.20

The company reported the following results concerning this product in June

Originally budgeted output		2,300	units
Actual output		2,800	units
Raw materials used in production		21,900	ounces
Purchases of raw materials		23,000	ounces
Actual direct labor-hours		540	hours
Actual cost of raw materials purchases	$	42,000
Actual direct labor cost	$	12,300
Actual variable overhead cost	$	3,150

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor rate variance for June is:

Multiple Choice

• $5,280 U

• $5,280 F

• $49 F

• $49 U

3. Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.1	ounces	$	2.00	per ounce	$	12.20
Direct labor		0.7	hours	$	12.00	per hour	$	8.40
Variable overhead		0.7	hours	$	2.00	per hour	$	1.40

The company reported the following results concerning this product in February.

Originally budgeted output		5,400	units
Actual output		5,700	units
Raw materials used in production		33,100	ounces
Actual direct labor-hours		2,030	hours
Purchases of raw materials		35,500	ounces
Actual price of raw materials	$	17.10	per ounce
Actual direct labor rate	$	7.60	per hour
Actual variable overhead rate	$	1.10	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for February is:

Multiple Choice

• $1,832 U

• $1,832 F

• $1,827 U

• $1,827 F

4. A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator level of activity		2,800	MHs
Overhead costs at the denominator activity level:
Variable overhead cost	$	29,350
Fixed overhead cost	$	33,370

The following data pertain to operations for the most recent period:

Actual hours		2,700	MHs
Standard hours allowed for the actual output		2,840	MHs
Actual total variable manufacturing overhead cost	$	25,440
Actual total fixed manufacturing overhead cost	$	34,560

The predetermined overhead rate is closest to:

Multiple Choice

• $22.22 per hour

• $22.40 per hour

• $23.23 per hour

• $21.43 per hour