Use the following to answer questions 87-89: Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs). Standard Cost Per Tie Variable overhead (1.1 DLHS @ $14.00 per DLH)......... $15.40 Fixed overhead (1.1 DLHS @ $8.00 per DLH). $8.80 The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows: Number of ties produced................ 58,000 Direct labor-hours worked. 64,000 Variable overhead cost.................. $880,000 $525,000 Fixed overhead cost... 87. What was Vette's variable overhead spending variance? A) $2,800 unfavorable B) $13,200 favorable C) $16,000 favorable D) $68,000 unfavorable Answer: C Level: Medium LO: 3 88. What was Vette's fixed overhead budget variance? A) $1,600 unfavorable B) $3,000 favorable C) $13,000 unfavorable D) $17,600 unfavorable B O sktop/m%20acc%20practice%20(1).pdf 1 |A | C) $1,421,200 D) $1,452,000 Answer: B Level: Medium LO: 5 Use the following to answer questions 90-92: Tantanka Manufacturing Company uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year: Total budgeted overhead (at denominator level of activity). Total applied overhead. Total actual overhead. Variable Fixed $432,000 $684,000 $410,400 $649,800 $456,000 $655,500 The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500. 90. What did Tantanka use as a predetermined overhead rate for fixed overhead? A) $85.50 per machine-hour B) $86.64 per machine-hour C) $87.40 per machine-hour D) $90.00 per machine-hour Answer: A Level: Hard LO: 5 91. What was Tantanka's fixed overhead volume variance? A) $5,700 unfavorable B) $14,440 unfavorable C) $28,500 favorable D) $34,200 unfavorable Answer: D Level: Hard LO: 6 2/Desktop/m%20acc%20practice%20(1).pdf + E | |A | 3 a Garrison, Managerial Accounting, 12th Edition Chapter 11 Flexible Budgets and Overhead Analysis 92. What was Tantanka's variable overhead efficiency variance? A) $5,400 favorable B) $5,472 unfavorable C) $21,600 unfavorable D) $51,000 unfavorable Answer: A Level: Hard LO: 4 Use the following to answer questions 93-96: Norman Enterprises has a standard cost system in which manufacturing overhead is applied units of product on the basis of standard direct labor-hours (DLHS). The company has provided the following data concerning its fixed manufacturing overhead costs for last year Total actual fixed overhead cost incurred. Fixed overhead cost overapplied. Number of units produced............................. Volume variance, unfavorable.. $42,000 $6,000 12,500 $3,600 SAMSUNG p/m%20acc%20practice%20(1).pdf 3D | A | Answer: A Level: Hard LO: 4 Use the following to answer questions 93-96: Norman Enterprises has a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs). The company has provided the following data concerning its fixed manufacturing overhead costs for last year: Total actual fixed overhead cost incurred. Fixed overhead cost overapplied. Number of units produced. Volume variance, unfavorable Standard labor-hours per unit. $42,000 $6,000 12,500 $3,600 1.6 DLHS 93. The fixed portion of the predetermined overhead rate last year was: A) $1.80 per DLH B) $2.40 per DLH C) $2.88 per DLH D) $3.84 per DLH Answer: B Level: Hard LO: 5 94. The budgeted fixed overhead cost last year was: A) $41,000 B) $42,000 C) $44,400 D) $51,600 Answer: D Level: Hard LO: 5 95. The budget variance for fixed overhead last year was: A) $9,600 F B) $9,600 U C) $2,400 F D) $2,400 U Answer: A Level: Hard LO: 6. TALK esktop/m%20acc%20practice%20(1).pdf + D A | D) $3.84 per DLH Answer: B Level: Hard LO: 5 94. The budgeted fixed overhead cost last year was: A) $41,000 B) $42,000 C) $44,400 D) $51,600 Answer: D Level: Hard LO: 5 95. The budget variance for fixed overhead last year was: A) $9,600 F B) $9,600 U C) $2,400 F 584 D) $2,400 U Answer: A Level: Hard LO: 6 Th Garrison, Managerial Accounting 12th Edi Chapter 11 Flexible Budgets and Overhead Analysis 96. The denominator activity level in direct labor-hours last year was: A) 20,000 B) 21,500 C) 22,000 D) 23,500 T TALLE D) 23,500 Answer: B Level: Hard LO: 5 Use the following to answer questions 97-98: The Chuba Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs). During December, the company actually used 7,200 direct labor-hours and made 1,900 units of finished product. The standard cost card for one unit of product includes the following data concerning manufacturing overhead: Variable overhead: 4 DLHS @ $5.25 per DLH Fixed overhead: 4 DLHS @ $2.00 per DLH For December, the company incurred $16,550 in fixed overhead costs and recorded an $800 unfavorable volume variance. 97. The budgeted fixed overhead cost was: A) $15,200 B) $16,000 C) $16,550 D) $13.700 E) $14,400 Answer: B Level: Hard LO: 5,6 98. The denominator activity level in direct labor-hours used by Chuba in setting the predetermined overhead rate was: A) 7,600 hours B) 7,800 hours C) 8,000 hours D) 7,200 hours Answer: C Level: Hard LO: 5,6 SAMSUNG A V Chapter 11 Flexible Budgets and Overhead Analysis Use the following to answer questions 99-102: Zotta Enterprises uses standard costing and applies manufacturing overhead cost to products on the basis of standard direct labor-hours (DLHs). Budgeted and actual data relating to manufacturing overhead for last year appear below: Actual fixed overhead cost.. Denominator activity. $38,900 20,000 DLHs Standard hours allowed for one unit. 1.2 DLHS Units produced. 17,000 units $1,300 Unfavorable Fixed overhead budget variance. 99. The budgeted fixed manufacturing overhead cost was: A) $24,000 B) $38,900 C) $40,200 D) $37,600 Answer: D Level: Medium LO: 5,6. 100. The standard direct labor-hours allowed for the output was: A) 14,167 hrs B) 19.600 hrs C) 20,000 hrs D) 20,400 hrs Answer: D Level: Medium LO: 5,6 101. The fixed manufacturing overhead cost applied to products was: A) $31,960. B) $37,250 C) $38,352 D) $39,846 Answer: C Level: Medium LO: 5.6 SAMSUNG /Desktop/m%20acc%20practice%20(1).pdf + ED A Units produced. Fixed overhead budget variance... 17,000 units $1.300 Unfavorable 99. The budgeted fixed manufacturing overhead cost was: A) $24,000 B) $38,900 C) $40,200 D) $37,600 Answer: D Level: Medium LO: 5,6 100. The standard direct labor-hours allowed for the output was: A) 14,167 hrs B) 19.600 hrs C) 20,000 hrs D) 20,400 hrs Answer: D Level: Medium LO: 5,6 101. The fixed manufacturing overhead cost applied to products was: A) $31,960 B) $37,250 C) $38,352 D) $39,846 Answer: C Level: Medium LO: 5,6 102. The volume variance was: A) $5,640 U B) $5,640 F C) $752 U D) $752 F Answer: D Level: Medium LO: 5,6 O 586 Garrison, Managerial Accounting 12th Edition m%20acc%20practice%20(1).pdf D ID | AR | 3 Chapter 11 Flexible Budgets and Overhead Analysis Use the following to answer questions 103-106: A furniture manufacturer has a standard costing system based on direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity. Overhead costs at the denominator activity level: Variable overhead cost.. Fixed overhead cost 5,400 DLHs $14,310 $50,490 The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output.. Actual total variable overhead cost. Actual total fixed overhead cost. 5,900 DLHs 5,700 DLHS $16,225 $50,490 103. What is the predetermined overhead rate to the nearest cent? A) $12.35 B) $10.98 C) $12.00 D) $11.31 Answer: C Level: Medium LO: 5 104. How much overhead was applied to products during the period to the nearest dollar? A) $64,800 B) $68,400 C) $66,715 D) $70,800 Answer: B Level: Medium LO: 5 105. What was the fixed overhead budget variance for the period to the nearest dollar? top/m%20acc%20practice%20(1).pdf ED | AR | Actual total variable overhead cost... Actual total fixed overhead cost. $16,225 $50,490 103. What is the predetermined overhead rate to the nearest cent? A) $12.35 B) $10.98 C) $12.00 D) $11.31 Y Answer: C Level: Medium LO: 5 104. How much overhead was applied to products during the period to the nearest dollar? A) $64,800 B) $68,400 C) $66,715 D) $70,800 Answer: B Level: Medium LO: 5 105. What was the fixed overhead budget variance for the period to the nearest dollar? A) $4,675 U B) $2,805 U C) $1,712 F D) SO Answer: D Level: Medium LO: 6 Garrison, Managerial Accounting, 12th Edition 387 p/m%20acc%20practice%20(1).pdf | A | 3 Chapter 11 Flexible Budgets and Overhead Analysis 106. What was the fixed overhead volume variance for the period to the nearest dollar? A) $2,805 F B) $4,675 F C) $1,870 U D) $2,657 F Answer: A Level: Medium LO:6 Use the following to answer questions 107-110: A manufacturer of playground equipment has a standard costing system based on direct labor- hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity. Fixed overhead cost.. 8,100 DLHS $78,975 The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output... Actual total fixed overhead cost. 8,300 DLHS 8.229 DLHS $78,125 107. What is the predetermined fixed overhead rate to the nearest cent? A) $9.41 B) $9.65 C) $9.52 D) $9.75 Answer: D Level: Medium LO:5 108. How much fixed overhead was applied to products during the period to the nearest dollar? A) $80,233 Op/m%20acc%20practice%20(1).pdf EL |AR Denominator level of activity............. Fixed overhead cost.. V 8,100 DLHs $78,975 The following data pertain to operations for the most recent period: Actual hours. Standard hours allowed for the actual output................ Actual total fixed overhead cost. 8,300 DLHS 8,229 DLHS $78,125 107. What is the predetermined fixed overhead rate to the nearest cent? A) $9.41 588 B) $9.65 C) $9.52 D) $9.75 Answer: D Level: Medium LO: 5 108. How much fixed overhead was applied to products during the period to the nearest dollar? A) $80,233 B) $80,925 C) $78,975 D) $78,125 Answer. A Level: Medium LO: 5 Garrison, Managerial Accounting 12th Edition op/m%20acc%20practice%20(1).pdf CD |A | Chapter 11 Flexible Budgets and Overhead Analysis 109. What was the fixed overhead budget variance for the period to the nearest dollar? A) $668 F B) $850 F C) $2,800 U D) $2,108 U Answer: B Level: Medium LO: 6 110. What was the fixed overhead volume variance for the period to the nearest dollar? A) $1,258 F B) $1,225 F C) $1,950 F D) $692 U Answer: A Level: Medium LO: 6 Use the following to answer questions 111-112: A manufacturer of industrial equipment has a standard costing system based on direct labor- hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity.. Overhead costs at the denominator activity level: Variable overhead cost.. Fixed overhead cost 900 DLHS $7,740 $10,755 The following data pertain to operations for the most recent period: Actual hours 1,000 DLHs Standard hours allowed for the actual output. 888 DLHs Actual total variable overhead cost. $8,600 Actual total fixed overhead cost.. $11,755 O esktop/m%20acc%20practice%20(1).pdf D |A Answer: B Level: Medium LO: 5 Use the following to answer questions 113-114: V Homer Company has a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours (MHs). The company has provided the following data concerning its manufacturing overhead costs for last year: Actual machine-hours Standard machine-hours allowed for the actual output... Denominator activity. 840 MHs O 900 MHs 1,000 MHs Actual fixed overhead costs. $3,800 Budgeted fixed overhead costs. $4,000 Predetermined overhead rate ($1 variable +$4 fixed).... $5 per MH 113. The fixed overhead budget variance was: A) $200 F B) $400 U C) $300 F D) $240 U Answer: A Level: Easy LO: 6 114. The volume variance was: A) $200 F B) $400 U C) $300 F D) $240 U Answer: B Level: Medium LO: 6 0 esktop/m%20acc%20practice%20(1).pdf + Q BB | AR | V Chapter 11 Flexible Budgets and Overhead Analysis Use the following to answer questions 115-116: Difazzio Manufacturing Company uses a standard cost system with machine-hours as the activity base for overhead. Difazzio budgeted its fixed overhead costs at $728,000 for the year but ended up incurring only $691,600. The following data relate to machine-hours for the year: Denominator activity level in machine-hours. Standard machine-hours allowed for actual output. Actual number of machine-hours incurred. 115. What was Difazzio's fixed overhead budget variance? A) $8,400 favorable B) $9,408 favorable C) $36,400 favorable D) $41,600 unfavorable Answer: C Level: Easy LO: 6 116. What was Difazzio's fixed overhead volume variance? A) $9,408 favorable B) $26,000 favorable 2,600 2,800 2,500 C) $56,000 favorable D) $84,000 favorable. Answer: C Level: Medium LO: 6 Use the following to answer questions 117-118: An outdoor barbecue grill manufacturer has a standard costing system based on standard machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for 1 | AR | D) $84,000 favorable Answer: C Level: Medium LO: 6 Use the following to answer questions 117-118: V An outdoor barbecue grill manufacturer has a standard costing system based on standard machine-hours (MHS) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity...... Fixed overhead cost... 8,900 MHs $98,790 The following data pertain to operations for the most recent period: Actual hours. Standard hours allowed for the actual output. Actual total fixed overhead cost... 9,000 MHs 8,982 MHs $100,240 Garrison, Managerial Accounting, 12th Edition Chapter 11 Flexible Budgets and Overhead Analysis 117. What was the fixed overhead budget variance for the period to the nearest dollar? A) $340 F B) $1,450 U C) $540 F D) $200 E 591 /m%20acc%20practice%20(1).pdf ID | AR | v Chapter 11 Flexible Budgets and Overhead Analysis 117. What was the fixed overhead budget variance for the period to the nearest dollar? A) $340 F B) $1,450 U C) $540 F D) $200 F Answer: B Level: Medium LO: 6 118. What was the fixed overhead volume variance for the period to the nearest dollar? A) $1,110 F B) $200 U C) $910 F D) $915 F Answer: C Level: Medium LO: 6 Use the following to answer questions 87-89: Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs). Standard Cost Per Tie Variable overhead (1.1 DLHS @ $14.00 per DLH)......... $15.40 Fixed overhead (1.1 DLHS @ $8.00 per DLH). $8.80 The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows: Number of ties produced......... 58,000 Direct labor-hours worked 64,000 Variable overhead cost.................. $880,000 Fixed overhead cost... $525,000 87. What was Vette's variable overhead spending variance? A) $2,800 unfavorable B) $13,200 favorable C) $16,000 favorable D) $68,000 unfavorable Answer: C Level: Medium LO: 3 88. What was Vette's fixed overhead budget variance? A) $1,600 unfavorable B) $3,000 favorable C) $13,000 unfavorable D) $17,600 unfavorable B p/m%20acc%20practice%20(1).pdf E |A | V Chapter 11 Flexible Budgets and Overhead Analysis 106. What was the fixed overhead volume variance for the period to the nearest dollar? A) $2,805 F B) $4,675 F C) $1,870 U D) $2,657 F Answer: A Level: Medium LO:6 Use the following to answer questions 107-110: A manufacturer of playground equipment has a standard costing system based on direct labor- hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity.. Fixed overhead cost.. 8,100 DLHS $78,975 The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output... Actual total fixed overhead cost. 8,300 DLHS 8.229 DLHS $78.125 107. What is the predetermined fixed overhead rate to the nearest cent? A) $9.41 B) $9.65 C) $9.52 D) $9.75 Answer: D Level: Medium LO:5 108. How much fixed overhead was applied to products during the period to the nearest dollar? A) $80,233