QUESTION 4 ABC Company uses a standard absorption costing system that allocates overhead on the basis of direct labor hours Here is their Statement of Gross Margin Statement of Gross Margin Standard Revenue 1,000,000 Sales price variance (30,000) Sales volume variance 60,000 Net revenue 1,030,000 CGS Standard 700,000 Total direct labor variance 30,000 Direct materials price variance (50,000) Direct materials quantity variance 40,000 Fixed overhead budget variance 50,000 Fixed overhead volume variance (100,000) Variable overhead spending variance 20,000 Variable overhead efficiency variance (80,000) Adjusted Cost of Goods Sold 610,000 Gross Margin 420,000 indicate whether the following statement is true or false The firm has over applied fixed overhead () True () False QUESTION 5 Note the change in numbers from the previous question Jordan Company produces basketballs and uses a standard costing system Budgeted fixed overhead was $288,000 Rent changed during the year, causing actual fixed overhead to be $264,000 Jordan Company applies overhead on the basis of DLH They projected 1,181,000 basketballs would be produced during the year They actually produced 1,221,000 basketballs The standard is 1DLH per basketball They actually used 1DLH per basketball What is the fixed overhead budget variance (Please indicate an favorable variance with a f and an unfavorable variance with a u ) QUESTION 6 Note the change in numbers from the previous problem Druid Company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours They recently used 2,000 labor hours to produce 400 units Their static budget indicated expectations of 500 units, 2,000 DLH and $70,000 in variable overhead Actual VOH totaled $40,000 What was the variable overhead efficiency variance Please indicate favorable variances with an f and unfavorable variances with a u (Round to the nearest dollar at the end of your calculations)

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QUESTION 4 ABC Company uses a standard absorption costing system that allocates overhead on the basis of direct labor hours. Here is their Statement of

QUESTION 4

ABC Company uses a standard absorption costing system that allocates overhead on the basis of direct labor hours. Here is their Statement of Gross Margin:

Statement of Gross Margin
Standard Revenue	1,000,000
Sales price variance	(30,000)
Sales volume variance	60,000
Net revenue	1,030,000

CGS @ Standard	700,000
Total direct labor variance	30,000
Direct materials price variance	(50,000)
Direct materials quantity variance	40,000
Fixed overhead budget variance	50,000
Fixed overhead volume variance	(100,000)
Variable overhead spending variance	20,000
Variable overhead efficiency variance	(80,000)
Adjusted Cost of Goods Sold	610,000
Gross Margin	420,000

indicate whether the following statement is true or false.

The firm has over-applied fixed overhead.

() True

() False

QUESTION 5

Note the change in numbers from the previous question.

Jordan Company produces basketballs and uses a standard costing system. Budgeted fixed overhead was $288,000. Rent changed during the year, causing actual fixed overhead to be $264,000. Jordan Company applies overhead on the basis of DLH. They projected 1,181,000 basketballs would be produced during the year. They actually produced 1,221,000 basketballs. The standard is 1DLH per basketball. They actually used 1DLH per basketball. What is the fixed overhead budget variance?

(Please indicate an favorable variance with a "f" and an unfavorable variance with a "u")

QUESTION 6

Note the change in numbers from the previous problem.

Druid Company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours. They recently used 2,000 labor hours to produce 400 units. Their static budget indicated expectations of 500 units, 2,000 DLH and $70,000 in variable overhead. Actual VOH totaled $40,000. What was the variable overhead efficiency variance?

Please indicate favorable variances with an "f" and unfavorable variances with a "u"

(Round to the nearest dollar at the end of your calculations)