Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4,500 machine-hours. Budgeted and actual overhead costs for the month appear below original Budget Based on 4, 500 Machine-Hours Actual Costs Variable overhead costs: $12,730 38, 700 $12,000 38, 400 Supplies Indirect labor Fixed overhead costs: 20,600 6,800 7,800 $85, 600 20, 240 Supervision Utilities Factory depreciation 6, 760 8,110 $86, 540 Total overhead cost The company actually worked 4,520 machine-hours during the month The standard hours allowed for the actual output were 4,510 machine hours for the month. What was the overall variable overhead efficiency variance for the month? Multiple Choice s800 Favoreabke $112 Unfavorable $270 Favorable $229 Favornable The following materials standards have been established for a particular product: Standard quantity per unit of output standard price 5.1 pounds $13.90 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased $63, 580 Actual materials used in production 5,350 pounds Actual output 5,850 pounds 770 units The direct materials purchases variance is computed when the materials are purchased What is the materials quantity variance for the month? Multiple Choice $5,434 U $15,466 U $19,780 U $6,950 U Turrublates Corporation makes a product that uses a material with the following standards: Standard quantity 8.4 liters per unit Standard price 2.90 per liter Standard cost$24.36 per unit The company budgeted for production of 4,200 units in April, but actual production was 4,300 units. The company used 37,000 liters of direct material to produce this output. The company purchased 20,500 liters of the direct material at $3.0 per liter The direct materials purchases variance is computed when the materials are purchased The materials quantity variance for April is: Handerson Corporation makes a product with the following standard costs Standard Quantity or Hours 9.3 kilos 0.4 hours 0.4 hours Standard Price or Rate $ 6.80 per kilo $28.00 per hour $ 6.80 per hour Direct materials Direct labor Variable overhead The company reported the following results concerning this product in August Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 4, 000 units 29,830 kilos 32, 400 kilos 1, 140 hours $203, 920 $ 23,536 $ 8, 346 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for August is: Multiple Choice $825 F $588 U $825 U $588 F
