Please answer the following multiple choice questions.

MC-001 Neptune Inc. uses a standard cost system and has the following information for April: Actual direct labor hours (DLHs) worked Standard direct labor hours allowed for good output Actual total factory overhead cost incurred Budgeted fixed factory overhead costs Denominator activity level in direct labor hours (DLHs) Total factory overhead application rate per standard direct labor hour 17,700 19,000 $47,840 $11,400 15,800 $2.80 The total factory overhead flexible-budget variance in April for Neptune, Inc. is: Answer: A. B. C. D. E. $3,051 favorable $5,360 favorable $2,309 favorable $349 favorable $2,702 favorable MC-002 Answer: A. B. C. D. E. MC-003 Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $24,400 unfavorable. Direct labor efficiency variance = $70,000 (?) The standard calls for 3.00 direct labor hours per unit of output at $27.80 per labor hour. The standard direct labor hours for the units manufactured is 20.00% more than the total direct labor hours actually worked in August. What was the total standard cost applied to production? Answer: A. B. C. D. E. MC-004 $297,500 $45,600 $420,000 $350,000 $374,400 Nerrod Company sells its products at $460 per unit, net 30. The firm's gross margin ratio is 37 percent. The firm has estimated the following operating costs: Activity Sales calls Ordering processing Deliveries Sales returns Cost Driver and Rate $360 per visit $90 per order $45 per order + $.46 $53 per return +$2.76 per mile restocking per unit returned Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers: XBT Number of orders Number of parts per order Sales returns Number of items Number of units returned Number of sales calls Miles per delivery Shipping terms NINTO 9 450 3 35 5 9 FOB, Factory What is Nerrod's total customer unit-level cost applicable to XBT as a customer? A. B. C. D. $290 $6,090 $4,540 $4,390 1 1,830 8 46 9 18 FOB, Destination Answer: E. MC-005 $60 Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $714,900, and management budgeted $339,400 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used Direct labor Factory overhead $406,900 $321,800 $695,000 The January 1 balances of inventory accounts are shown below. Materials - all direct Work in process Finished goods $74,200 $43,200 $27,000 The December 31 balances of these inventory accounts were ten percent lower. The normal cost of goods sold, before under or overapplied overhead is: Answer: A. B. C. D. E. MC-006 $1,437,848 $1,449,728 $1,410,848 $1,413,548 $1,406,528 Landry Co. had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $13,600. Work in Process Inventory Beginning balance @ 12/1 230 units, 10% completed $16,000 Direct materials Direct labor $62,700 $39,100 Overhead Property taxes Depreciation Utilities Indirect labor $6,700 $36,700 $21,400 $4,800 Ending balance @ 12/31 347 units, 20% completed Completed 913 units and transferred then to finished goods inventory $25,600 $159,800 r` Total equivalent units for conversion under the FIFO method are calculated to be: Answer: MC-007 A. B. C. D. E. 982 1,260 1,030 995 959 Wings Co. budgeted $570,160 manufacturing direct wages, 2,410 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Materials handling Machine setup Machine repair Inspections Budgeted Overhead Cost $167,960 $13,560 $1,500 $11,070 Requiremenst for Job #971 which manufctured 31,180 units of product Direct labor 20 hours Budgeted Level for Cost Driver 3,240 pounds 400 setups 31,180 machine hours 170 inspections Overhead Cost Driver Weight materials Number of setups Machine hours Number of inspections Direct materials Machine setups Machine hours Inspections 130 pounds 30 setups 15,210 machine hours 16 inspections If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is: Answer: A. B. C. D. E. $9,430 $1,511 $1,611 $9,530 $2,111 MC-008 Answer: MC-009 A. B. C. D. E. Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 109,200 and estimated factory overhead was $667,600. The following information was for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials Work-in-process (All Job X) Finished goods $8,600 $35,800 $77,300 Materials purchases $117,900 Direct materials requisitioned: Job X Job Y $50,800 $38,000 Direct labor hours: Job X Job Y Labor cost incurred: Direct labor Indirect labor Factory supervisory salaries 4,800 4,200 $5.60 per hour $50,400 $15,600 $6,900 Rental costs Factory Administrative offices $8,000 $2,100 Total equipment depreciation costs: Factory Administrative offices $8,600 $1,800 Indirect materials used $13,600 The total cost of Job X is: Answer: A. B. C. D. E. MC-010 $113,480 $104,560 $140,360 $142,825 $107,025 Gerhan Company's flexible budget for the units actually manufactured in May shows $16,114 of total factory overhead; this output level represents 72.00% of available capacity. During May the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,168 DLHs, which represents 93.00% of available capacity. The company spent 5,100 DLHs and incurred $16,770 of total factory overhead cost during May, including $6,920 for fixed factory overhead. What is the factory overhead production-volume variance for Gerhan Company in May? Answer: A. B. C. D. E. MC-011 $1,098 unfavorable $1,788 unfavorable $557 unfavorable $1,000 favorable $2,444 unfavorable Billy Baroo Company uses a job order cost system The following information was found in the Work-in-Process account for the month of July. Date July 1 July 31 July 31 July 31 July 31 Description Balance Direct labor Direct materials Factory overhead Transfer to finished goods Amount (Dr or $11,400 $36,700 $48,800 $21,100 ($77,000) Billy Baroo applies overhead to production at a predetermined rate of 77% based on the direct labor cost Job #23, the only job still in process at the end of July, has been charged with direct labor of $11,700 Direct material charged to Job #23 was: Answer: A. B. C. D. E. MC-012 $14,105 $31,991 $29,300 $20,291 $41,000 The following information is available from Thinnews Co., a company that uses machine hours to apply factory overhead: Actual total factory overhead Actual fixed factory expenses Budgeted fixed overhead expenses Actual machine hours Standard machine hours for the units manufactured Denominator volume - machine hours Standard variable overhead rate per machine hour The factory overhead production volume variance is: Answer: MC-013 A. B. C. D. E. $5,046 unfavorable $900 unfavorable $3,383 favorable $1,673 unfavorable $900 favorable $28,970 $12,200 $13,110 6,060 5,810 6,660 $3.60 A. B. C. Answer: D. E. MC-014 Stoltenberg Co. had the following information for the month of June: Work in process beginning inventory, June 1 Units transferred in Work in process ending inventory, June 30 1,900 units 15,300 units 3,900 units Beginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 50 percent complete as to conversion. Materials are added at the end of the process. The equivalent units for materials under the weighted-average method are calculated to be: Answer: A. B. C. D. E. MC-015 11,400 15,250 10,300 13,300 14,680 Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (4.70 kilograms $11.00/kilogram) = $51.70/unit. Direct labor (3.30 hours $19.00 per hour) = $62.70/unit. All materials were issued at the beginning of processing. The operating data shown below were taken from the records for December: In-process beginning inventory In-process ending inventory - 80.00% complete as to labor Units completed during he period Budgeted output Purchases of materials (in kilograms) Total actual direct labor cost incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in December None 907 units 6,440 units 6,890 39,000 $520,101 25,380 hours $1,530 favorable 1,491 kilograms The direct materials usage variance for December is: Answer: MC-016 A. B. C. D. E. $1,530 favorable $32,759 unfavorable $1,472 unfavorable $32,759 favorable $1,472 favorable Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personnel receive large commissions to encourage them to be more aggressive in their sales efforts. Currently the economy of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to attract and retain customers, who otherwise might go to other western wear stores. Also, because of the rapid growth in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restocking of inventory and hiring and training new salespeople. Examine this chart. What is the most likely profit - approximately? Answer: A. B. C. D. E. MC-017 1,189 1,008 917 1,280 1,099 Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information pertains to the final department of Giddings's blockbuster drug called Solcax. Beginning work-in-process (40% completed) Transferred-in Normal spoilage Abnormal spoilage Good units transferred out Ending work-in-process (32% completed) Conversion costs in beginning inventory Current conversion cost 800 3,910 390 190 3,540 590 $2,503 $6,720 Giddings calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of Solcax that are spoiled are the result of defects not discovered before inspection of finished units. Materials are added at the beginning of the process. Using the weighted-average method, answer the following question: What are the total conversion costs of abnormal spoilage? Answer: A. B. C. D. $407 $657 $320 $835 MC-018 Answer: A. B. C. D. E. MC-019 O'Leary Company manufactures Product Z in a two-stage production cycle in Departments A and B. Materials are added at the beginning of the process in Department B. O'Leary uses the weighted-average method. Conversion costs for Department B were 40% complete as to the 4,500 units in the beginning work-in-process (WIP) inventory and 40% complete as to the 6,400 units in the ending work-in-process inventory. 9,000 units were completed and transferred out of Department B during October. An analysis of the costs relating to work-in-process inventories and production activity in Department B for October follows: WIP October 1 Costs added in October Transferred in Costs $9,000 $21,600 Materials Costs $2,700 $4,930 Conversion Costs $900 $3,600 The total cost per equivalent unit transferred-out for October of Product Z, rounded to the nearest penny, was: A. $.50 Answer: B. C. D. E. MC-020 $1.99 $2.87 $2.80 $.39 Roncy Manufacturing uses enhanced powder plastics (EPP) to manufacture high-pressure boards, Dura-Plastic. Information concerning its operation in June was as follows: Master budget units of Dura-Plastic to manufacture Units of Dura-Plastic actually manufactured Budgeted amount of EPP to purchase EPP material actually purchased EPP material actually used in production Standard cost of EPP actually used in production Standard quantity of EPP per unit of Dura-Plastic Cost of EPP purchased 6,400 7,300 56,000 oz 60,700 oz 58,000 oz $376,960 6.1 oz $466,250 The direct materials usage (efficiency) variance for June was: Answer: A. B. C. D. E. MC-021 Answer: -$15,804 unfavorable $71,742 unfavorable $88,546 unfavorable $87,546 unfavorable $72,742 unfavorable Examine this diagram. A. B. C. D. E. MC-022 Gerhan Company's flexible budget for the units actually manufactured in May shows $14,979 of total factory overhead; this output level represents 67.00% of available capacity. During May the company applied overhead to production at the rate of $2.90 per direct labor hour (DLH), based on a denominator volume level of 5,988 DLHs, which represents 85.00% of available capacity. The company spent 4,900 DLHs and incurred $15,740 of total factory overhead cost during May, including $6,640 for fixed factory overhead. Under a three-variance breakdown (decomposition) of the total overhead variance, what is the total factory overhead spending variance for May? Answer: A. B. C. D. E. $422 unfavorable $2,052 unfavorable $543 unfavorable N/Athis variance does not exist in a three-variance analysis of the total overhead variance. $339 unfavorable MC-023 Talamoto Co. manufactures a single product that goes through two processes mixing and cooking. The following data pertains to the Mixing Department for September. Work-in-process inventory, September 1 Conversion - 70% completed 32,600 units Work-in-process inventory, September 30 Conversion - 50% completed 20,000 units Units started into production Units completed and transferred out 72,700 units ? Costs: Work-in-process inventory, September 1 Material P Material Q Conversion $80,000 $106,100 $142,214 Cost added during September Material P Material Q Conversion $185,000 $169,890 $367,538 Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process. Cost per equivalent unit for conversion under the weighted-average method is calculated to be: Answer: A. B. C. D. E. MC-024 $2.52 $2.34 $5.07 $5.35 $2.62 Bradford Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost: C = $80,000 + $12M where: C = monthly manufacturing overhead cost, and M = machine hours The standard error of estimate of the regression is $6,000 The standard time required to manufacture one six-unit case of Bradford's single product is two machine hours Bradford applies manufacturing overhead to production on the basis of machine hours, and its normal annual production is 50,000 cases Bradford's estimated variable manufacturing overhead cost for a month in which scheduled production is 5,000 cases would be: Answer: A. B. C. D. E. MC-025 Answer: A. B. C. D. E. $200,000 $120,000 $80,000 $140,000 Some amount other than those given above MC-026 Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: (4.30 kilograms $10.90 per kilogram) $46.87 Labor: (4.30 hours $19.30 per hour) $82.99 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventory In-process ending inventory - 100.00% complete as to labor Units completed Budgeted output Purchases of materials in kilograms (AQ) Total actual labor costs incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in July Beginning inventory of materials none 1,100 units 7,710 units 8,600 units 32,000 $566,600 29,900 hours $3,200 unfavorable 1,630 kilograms none The standard cost of materials used in production was: Answer: A. B. C. D. E. MC-027 $334,070 $331,033 $577,070 $412,925 $566,600 Zero Company's standard factory overhead rate is $3.65 per direct labor hour (DLH), calculated at 87.00% capacity = 850 standard DLHs. In December, the company operated at 76.00% of capacity, or 743 standard DLHs. Budgeted factory overhead at 76.00% of capacity is $3,085, of which $1,293 is fixed overhead. For December, the actual factory overhead cost was $3,670 for 809 actual DLHs, of which $1,250 was for fixed factory overhead. Under a three-way breakdown (decomposition) of the total overhead variance, what is the total factory overhead spending variance for Zero Company in December? Answer: A. B. C. D. E. MC-028 $163 unfavorable $468 unfavorable $160 unfavorable N/Athis variance doesn't exist under a three-way breakdown of the total overhead variance. $425 unfavorable Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in digital equipment, Flex 10. Information concerning its operation in June is as follows: Budgeted units of Flex 10 for June Budgeted usage of FPS Number of units of Flex 10 manufactured PFS purchased PFS used Total actual cost of FPS used Direct materials usage variance - unfavorable 4,500 40,700 pounds 3,600 38,710 pounds 35,500 pounds $208,292 $19,600 The cost of PPS in the flexible budget for the number of units manufactured this period is: Answer: MC-029 A. B. C. D. E. $208,292 $217,067 $227,126 $222,288 $236,667 Information concerning Johnston Co.'s direct materials costs is as follows: Standard price per pound Actual quantity purchased Actual quantity used in production Units of production manufactured Materials purchased-price variance - favorable $5.96 2,674 2,501 650 $788 Budget data for the period Units to manufacture Units of direct materials 900 3,700 The direct materials usage variance for the period is: Answer: A. B. C. D. E. $1,120 unfavorable $1,020 unfavorable $1,170 unfavorable $1,120 favorable $1,020 favorable MC-030 Answer: A. B. C. D. E. MC-031 Answer: A. B. C. D. E. MC-032 Based on the maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures: Highest $79,400 89,200 Cost per month Machine hours Lowest $69,700 60,900 Using the high-low technique, estimate the annual fixed cost for maintenance expenditures: Answer: A. B. C. D. E. MC-033 $63,826 $48,826 $595,914 $58,826 $585,914 Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2013: Denominator volume - number of units Denominator volume - percent of capacity Denominator volume - standard direct labor hours Budgeted variable factory overhead at denominator volume Total standard factory overhead rate per direct labor hour 8,200 83% 24,800 $106,100 $15.80 During 2013, Bluecap worked 28,800 direct labor hours and manufactured 9,980 units. The actual factory overhead was $14,400 greater than the flexible budget amount for the units produced, of which $6,100 was due to fixed factory overhead. In preparing a budget for 2014 Bluecap decided to raise the level of operation to 92.00% of capacity, to manufacture 9,300 units at a budgeted total of 28,000 direct labor hours. The fixed overhead production volume variance for Bluecap Co. in 2013 is: A. B. $20,319 unfavorable $62,026 favorable Answer: C. D. E. MC-034 $47,626 unfavorable $14,219 unfavorable $5,919 favorable Neptune Inc. uses a standard cost system and has the following information for April: Actual direct labor hours (DLHs) worked Standard direct labor hours allowed for good output Actual total factory overhead cost incurred Budgeted fixed factory overhead costs Denominator activity level in direct labor hours (DLHs) Total factory overhead application rate per standard direct labor hour The total factory overhead spending variance in April for Neptune, Inc. is: Answer: A. B. C. D. E. $2,390 favorable $350 unfavorable $2,040 favorable $1,876 favorable $2,226 unfavorable MC-035 Answer: A. B. C. D. E. MC-036 Answer: A. B. C. D. E. MC-037 The following information is available from the Terry Company: Actual factory overhead Fixed overhead expenses, actual Fixed overhead expenses, budgeted Actual hours Standard hours Standard variable overhead rate per DLH Standard fixed overhead rate per DLH $25,300 $10,800 $11,300 4,530 4,100 $3.10 $2.50 What is the total overhead spending variance for Terry Company for the period? Answer: A. B. C. D. E. $43 favorable $1,050 unfavorable $1,333 unfavorable $2,340 unfavorable $500 favorable 16,800 17,800 $44,240 $10,500 14,500 $2.60 MC-038 Ventura uses a just-in-time (JIT) manufacturing system for all of its materials, components, and products. The master budget of the company for June called for use of 10,500 square feet of materials, while the flexible budget for the actual output of the month had 9,000 square feet of materials at a standard cost of $9.30 per square foot. Company records show that the actual price paid for the materials used in June was $9.28 per square foot, and that the direct materials purchase-price variance for the month was $990. The materials flexible budegt variance for June was: Answer: A. B. C. D. E. $375,660 unfavorable $990 favorable $376,160 unfavorable $377,150 unfavorable $376,650 unfavorable MC-039 Answer: A. B. C. D. E. MC-040 Gerhan Company's flexible budget for the units actually manufactured in May shows $17,508 of total factory overhead; this output level represents 77.00% of available capacity. During May the company applied overhead to production at the rate of $3.30 per direct labor hour (DLH), based on a denominator volume level of 6,644 DLHs, which represents 102.00% of available capacity. The company spent 5,600 DLHs and incurred $18,430 of total factory overhead cost during May, including $7,570 for fixed factory overhead. What is the factory overhead efficiency variance for May under the assumption that Gerhan uses a four-variance breakdown (decomposition) of the total overhead variance? Answer: A. B. C. D. E. MC-041 $3,667 unfavorable $663 favorable $4,330 favorable $1,879 unfavorable $1,585 unfavorable Precilla Company uses a standard costing system that allows 2.10 pounds of direct materials for one finished unit. During July, the company purchased 42,000 pounds of direct materials for $227,000 and manufactured 12,800 finished units. The standard direct materials cost allowed for the units manufactured is $128,000. The performance report shows that Pricilla has an unfavorable direct materials usage variance of $5,300. Also, the company records any price variance for materials at time of purchase. The number of pounds of direct materials used to produce July's output was: Answer: MC-042 A. B. C. D. E. 27,380 27,993 28,493 29,380 26,880 Landry Co. had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $12,600. Work in Process Inventory Beginning balance @ 12/1 216 units, 10% completed $15,600 Direct materials Direct labor $59,200 $37,000 Completed 887 units and transferred then to finished goods inventory $155,600 Overhead Property taxes Depreciation Utilities Indirect labor $6,300 $34,800 $20,300 $4,600 Ending balance @ 12/31 326 units, 20% completed $24,800 r` Cost per equivalent unit for conversion under the FIFO method is calculated to be (rounded): Answer: A. B. C. D. E. MC-043 $59.38 $108.17 $110.68 $85.03 $48.80 Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours per unit of product Budgeted finished units for the period Number of finished units produced Standard rate per direct labor hour (SP) Direct labor costs incurred Actual wage rate per direct labor hour (AP) 1.7 5,100 4,200 $17.00 $174,000 $15.00 The direct labor efficiency variance for October was: Answer: A. B. C. D. E. MC-044 $23,200 favorable $75,820 favorable $85,820 unfavorable $75,820 unfavorable $52,620 unfavorable The following budget data pertain to the Machining Department of Yolkenverst Co.: Maximum capacity Machine hours per unit Variable factory overhead Fixed factory overhead 68,000 units 2.9 $4.10 per machine hour $491,050 The company prepared the budget at 97% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production. During the year the Machining Department produced 57,000 units, consuming 144,240 machine hours and incurring $491,050 of fixed overhead. The budgeted total factory overhead for the Machining Department is: Answer: MC-045 A. B. C. D. E. $769,850 $1,275,314 $1,299,570 $784,264 $491,050 Talamoto Co. manufactures a single product that goes through two processes mixing and cooking. The following data pertains to the Mixing Department for September. Work-in-process inventory, September 1 Conversion - 80% completed 37,000 units Work-in-process inventory, September 30 Conversion - 60% completed 24,000 units Units started into production Units completed and transferred out 84,200 units ? Costs: Work-in-process inventory, September 1 Material P Material Q Conversion $95,000 $122,900 $168,448 Cost added during September Material P Material Q Conversion $211,000 $193,920 $430,001 Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are fifty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process. The cost of goods completed and transferred out under the weighted-average method is calculated to be: Answer: A. B. C. D. E. MC-046 $1,018,719 $1,017,719 $1,020,719 $1,021,719 $1,019,719 Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: (3.90 kilograms $9.70 per kilogram) $37.83 Labor: (3.90 hours $17.40 per hour) $67.86 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventory In-process ending inventory - 90.00% complete as to labor Units completed Budgeted output Purchases of materials in kilograms (AQ) Total actual labor costs incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in July Beginning inventory of materials none 1,000 units 7,110 units 7,800 units 29,000 $506,500 27,000 hours $3,000 unfavorable 1,440 kilograms none The direct labor efficiency variance for July was: Answer: A. B. C. D. E. MC-047 $39,469 favorable $2,851 unfavorable $73,759 favorable $3,000 unfavorable $36,700 unfavorable Megan, Inc. uses the following standard costs per unit for one of its products: Direct labor (1.70 hrs. @ $4.20/hr.) = $7.14; overhead (1.70 hrs. @ $2.20/hr.) = $3.74. The flexible budget for overhead is $104,000 plus $0.90 per direct labor hour (DLH). Actual data for the month show total overhead costs of $196,300, total fixed overhead of $105,400, 73,900 hours worked, and 35,000 units produced. The fixed overhead spending variance for Megan, Inc. for the month is: Answer: A. B. C. D. E. $65,400 unfavorable $12,960 unfavorable $26,750 unfavorable $24,390 unfavorable $1,400 unfavorable MC-048 Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 139% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 $86,200 $73,500 $131,200 Direct materials Work in process Finished goods December 31 $44,000 $47,900 $112,900 Other information Direct materials purchases Cost of goods available for sale Actual factory overhead $359,300 $1,073,100 $288,200 The total manufacturing costs for the year are: Answer: A. B. C. D. E. MC-049 Answer: MC-050 $942,900 $917,300 $941,900 $989,800 $916,300 Examine this chart. A. B. C. D. E. The Merchant Manufacturing Company has two service departments purchasing and maintenance, and two production departments fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM Purchasing Maintenance TO Purchasing 0% 20% Maintenance 60% 0% Fabrication 10% 30% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing Maintenance Fabrication Assembly $96,400 $18,400 $73,500 $48,600 Assembly 30% 50% The total cost accumulated in the assembly department using the step method is (assume the purchasing department goes first): Answer: A. B. C. D. E. $125,170 $132,400 $104,500 $111,730 $118,450