1. Discover Motor Company uses a standard cost system to collect costs related to the production of its toothpick motors. The direct labor standard for each toothpick motor is 1.25 hours at a standard cost of $9.50 per hour. During the month of May, Discover's toothpick motor production used 5,900 direct labor-hours at a total direct labor cost of $54,575. This resulted in production of 4,800 toothpick motors for May. What is Discover's labor efficiency variance for the month of May? a. $950 favorable b. $1,475 favorable c. $8,975 unfavorable d. $10,450 unfavorable 2. Galimba Corporation, which produces commercial windows, has provided the following data: Budget producttion.........6000 windows

Standard machine-hours per window..... 6.1 machine hours

Budget machine hours (6.1 x 6,000)..... 36,600 machine hours

Standard machine-hours allowed for the actual output (6.1 x 6,2000).... 37,820 machine hours

Actual machine hours........ 38,360 machine hours

Budget variable overhead cost per machine-hour:

Supplies............. $2.70 per machine hour

Actual total variable over head cost:

Supplies........... $108,725 The variable overhead rate variance for supplies is closest to: a. $5,153 U b. $6,611 U c. $5,153 F d. $6,611 F 3. The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output.......... 9.7 hours

Standard variable overhead rate ......... $13.90 per hours The following data pertain to operations for the last month: What is the variable overhead rate variance for the month? Actual Hours....... 8,200 hours

Actual total variable overhead cost........ $116,030

Actual output............ 800 units a. $6,226 U b. $2,050 U c. $1,940 F d. $8,166 U 4. Aase Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: Budget level of Activity.......... 6,400 MHs

Actual level actuvity.... 6,000 MHs

Cost formula for variable overhead cost .........$6.60 per MHs

Budgeted fixed manufacturing overhead cost ........ $66,000

Actual total variable overhead ............$ 40,200 Acctual total fixed manufacturing over head.............. $66,000

What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month? a. $2,040 favorable b. $600 unfavorable c. $2,640 favorable d. $600 favorable 5. Massie Corporation, which produces commercial safes, has provided the following data: Budget production................... 8,600 safes

Standard machine hour per safe.................9.8 machine hours

Standard supplies cost.............................$7.50 per machine hour

Actual production...................8,900 safes

Actual machine hours...............87,760 machine hours

Actual supplies cost.................... $653,203 The variable overhead efficiency variance for supplies is: a. $4,050 F b. $18,947 F c. $18,947 U d. $4,050 U 6. The materials quantity variance is computed based on the amount of materials purchased during the period. a. TRUE b. FALSE 7. Nodine Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company's cost formula for variable overhead is $7.50 per MH. The company had budgeted its fixed manufacturing overhead cost at $48,000 for the month. During the month, the actual total variable overhead was $59,760 and the actual total fixed manufacturing overhead was $45,000. The actual level of activity for the period was 8,300 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month? a. $2,490 favorable b. $5,490 favorable c. $5,490 unfavorable d. $2,490 unfavorable 8. Cole laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Quantity Standard cost per bag

Direct material 20 pounds $8.00

Direct labor 0.1 hours $1.10

Varable overhead 0.1 hours $0.40 The company had no beginning inventories of any kind on Jan. 1. Variable overhead is applied to production on the basis of standard direct labor-hours. During January, the following activity was recorded by the company: Production of Fastgro: 4,000 bags Direct materials purchased: 85,000 pounds at a cost of $32,300 Direct labor worked: 390 hours at a cost of $4,875 Variable overhead incurred: $1,475 Inventory of direct materials on Jan. 31: 3,000 pounds The materials quantity variance for January is: a. $800 U b. $300 U c. $300 F d. $750 F 9. The following data have been provided by Dicus Corporation: Budget production.................... 1,200 units

standard machine hours per unit.................. 1.7 machine hours

Standard lubricants................ $1.00 per machine

Standard supplies................... $ 1.50 pert machine

Actual production.................... 1,400 units

Actual machine hours (total)...........2,500 machine hours

Actual Lubricant (total).................. $2,387

Actual supplies (total)....................$3,703 The variable overhead rate variance for supplies is closest to: a. $133 U b. $47 F c. $180 U d. $133 F 10. The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output.......3.7 hours

Standard variable overhead rate...........$17.60 per hour The following data pertain to operations for the last month:

Actual Hours.................... 8,900 hours

Actual total variable overhead cost............. $153,970

Actual output..................... 2,300 units What is the variable overhead efficiency variance for the month? a. $2,553 U b. $6,747 U c. $6,747 F d. $6,864 U