41.

If all four of Argo Corporation's overhead variances are favorable, Argo's overhead will be underapplied.

True

False

42.

An unfavorable volume variance means that a firm operated at an activity level that was below the activity level planned for the period.

True

False

43.

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. The company's choice of the denominator level of activity has no effect on the variable portion of the predetermined overhead rate.

True

False

44.

A volume variance is computed for:

both variable and fixed manufacturing overhead.

variable manufacturing overhead only.

fixed manufacturing overhead only.

45.

Tropiano Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company had budgeted its fixed manufacturing overhead cost at $62,100 for the month and its level of activity at 3,200 MHs. The actual total fixed manufacturing overhead was $61,600 for the month and the actual level of activity was 3,000 MHs. What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

$3,381 Unfavorable

$500 Favorable

$500 Unfavorable