QUESTION 7

1. Likert company manufactures extremely accurate scales. They use a standard costing system. Last year the company projected that 290,000 scales would be produced. When Likert company closed out manufacturing overhead, they recorded a $116,000 debit to the FOH Budget Variance and a $135,000 credit to the FOH Volume Variance. Likert company budgeted $2,409,000 of fixed overhead. What was the actual amount of fixed overhead?

QUESTION 8

1. If a firm uses direct labor hours as its overhead driver, a favorable VOH efficiency variance implies there must also be a favorable labor efficiency variance.

   True

   False

QUESTION 9

1. Alpha company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours. For the most recent period, the VOH spending variance was $80,000 F, and the VOH Efficiency Variance was $80,000 U. The company budgeted making 4,800 units at 3.5 hours each with $924,000 of VOH. The company actually produced 3,000 units. How many direct labor hours were used?

   (Please round to nearest whole direct labor hour at the end of your calculations)

QUESTION 10

1. Note the change in numbers from the previous problem.

   Alpha company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours. For the most recent period, the VOH spending variance was $100,000 F, and the VOH Efficiency Variance was $50,000 U. The company budgeted making 4,800 units at 3.5 hours each with $924,000 of VOH. The company actually produced 4,000 units. What was the actual VOH?

   (Please round to nearest dollar at the end of your calculations)