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An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: -What was the fixed manufacturing overhead volume variance for the period to the nearest dollar? A) $507 U B) $775 F C) $495 U D) $1,270 U -What was the fixed manufacturing overhead volume variance for the period to the nearest dollar?


A) $507 U
B) $775 F
C) $495 U
D) $1,270 U

E) A) and B)
F) None of the above

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Hoops Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's predetermined overhead rate for fixed manufacturing overhead is $1.30 per machine-hour and the denominator level of activity is 3,700 machine-hours.In the most recent month,the total actual fixed manufacturing overhead was $4,450 and the company actually worked 4,000 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3,880 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?


A) $390 favorable
B) $234 favorable
C) $156 unfavorable
D) $390 unfavorable

E) A) and C)
F) B) and C)

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Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours.The above standards were based on an expected annual volume of 20,000 sofas.The actual results last year were as follows: -What was Mzimba's variable overhead efficiency variance? A) $8,766 unfavorable B) $15,552 unfavorable C) $17,280 unfavorable D) $51,200 favorable Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours.The above standards were based on an expected annual volume of 20,000 sofas.The actual results last year were as follows: Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours.The above standards were based on an expected annual volume of 20,000 sofas.The actual results last year were as follows: -What was Mzimba's variable overhead efficiency variance? A) $8,766 unfavorable B) $15,552 unfavorable C) $17,280 unfavorable D) $51,200 favorable -What was Mzimba's variable overhead efficiency variance?


A) $8,766 unfavorable
B) $15,552 unfavorable
C) $17,280 unfavorable
D) $51,200 favorable

E) A) and B)
F) All of the above

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The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours.The standard cost card shows that 3 direct labor-hours are required per unit of product.For August,the company budgeted to work 90,000 direct labor-hours and to incur the following total manufacturing overhead costs: The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours.The standard cost card shows that 3 direct labor-hours are required per unit of product.For August,the company budgeted to work 90,000 direct labor-hours and to incur the following total manufacturing overhead costs: During August,the company completed 28,000 units of product,worked 86,000 direct labor-hours,and incurred the following total manufacturing overhead costs: The denominator activity in the predetermined overhead rate is 90,000 direct labor-hours. -For August,the variable overhead efficiency variance is: A) $1,800 F B) $0 C) $2,200 U D) $2,200 F During August,the company completed 28,000 units of product,worked 86,000 direct labor-hours,and incurred the following total manufacturing overhead costs: The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours.The standard cost card shows that 3 direct labor-hours are required per unit of product.For August,the company budgeted to work 90,000 direct labor-hours and to incur the following total manufacturing overhead costs: During August,the company completed 28,000 units of product,worked 86,000 direct labor-hours,and incurred the following total manufacturing overhead costs: The denominator activity in the predetermined overhead rate is 90,000 direct labor-hours. -For August,the variable overhead efficiency variance is: A) $1,800 F B) $0 C) $2,200 U D) $2,200 F The denominator activity in the predetermined overhead rate is 90,000 direct labor-hours. -For August,the variable overhead efficiency variance is:


A) $1,800 F
B) $0
C) $2,200 U
D) $2,200 F

E) A) and D)
F) A) and C)

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The Tate Company uses a standard costing system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) .The company recorded the following costs and activity for September: The Tate Company uses a standard costing system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) .The company recorded the following costs and activity for September: -The amount of fixed manufacturing overhead cost contained in the company's flexible budget for manufacturing overhead for September was: A) $61,400 B) $57,000 C) $60,000 D) $58,550 -The amount of fixed manufacturing overhead cost contained in the company's flexible budget for manufacturing overhead for September was:


A) $61,400
B) $57,000
C) $60,000
D) $58,550

E) A) and B)
F) All of the above

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Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours.The above standards were based on an expected annual volume of 20,000 sofas.The actual results last year were as follows: -What was Mzimba's variable overhead rate variance? A) $8,514 favorable B) $8,766 unfavorable C) $17,280 unfavorable D) $54,846 unfavorable Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours.The above standards were based on an expected annual volume of 20,000 sofas.The actual results last year were as follows: Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours.The above standards were based on an expected annual volume of 20,000 sofas.The actual results last year were as follows: -What was Mzimba's variable overhead rate variance? A) $8,514 favorable B) $8,766 unfavorable C) $17,280 unfavorable D) $54,846 unfavorable -What was Mzimba's variable overhead rate variance?


A) $8,514 favorable
B) $8,766 unfavorable
C) $17,280 unfavorable
D) $54,846 unfavorable

E) B) and C)
F) A) and D)

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Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: -What was Wriphoff's variable overhead rate variance for last year? A) $6,850 favorable B) $7,294 unfavorable C) $14,144 unfavorable D) $15,070 unfavorable The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: -What was Wriphoff's variable overhead rate variance for last year? A) $6,850 favorable B) $7,294 unfavorable C) $14,144 unfavorable D) $15,070 unfavorable -What was Wriphoff's variable overhead rate variance for last year?


A) $6,850 favorable
B) $7,294 unfavorable
C) $14,144 unfavorable
D) $15,070 unfavorable

E) B) and C)
F) A) and B)

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Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: -What was Wriphoff's fixed manufacturing overhead budget variance for last year? A) $7,600 favorable B) $9,200 unfavorable C) $30,416 unfavorable D) $38,016 unfavorable The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: -What was Wriphoff's fixed manufacturing overhead budget variance for last year? A) $7,600 favorable B) $9,200 unfavorable C) $30,416 unfavorable D) $38,016 unfavorable -What was Wriphoff's fixed manufacturing overhead budget variance for last year?


A) $7,600 favorable
B) $9,200 unfavorable
C) $30,416 unfavorable
D) $38,016 unfavorable

E) B) and C)
F) B) and D)

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A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: -What was the variable overhead efficiency variance for the period to the nearest dollar? A) $898 F B) $1,875 U C) $227 U D) $224 U -What was the variable overhead efficiency variance for the period to the nearest dollar?


A) $898 F
B) $1,875 U
C) $227 U
D) $224 U

E) A) and B)
F) B) and D)

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The fixed manufacturing overhead budget variance and the fixed manufacturing overhead volume variance taken together explain the difference between the actual fixed manufacturing overhead cost incurred and the fixed manufacturing overhead cost applied to production.

A) True
B) False

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Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours.The company has provided the following data concerning its fixed manufacturing overhead costs in March: Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours.The company has provided the following data concerning its fixed manufacturing overhead costs in March: -The fixed manufacturing overhead volume variance is: A) $3,000 U B) $3,000 F C) $9,000 U D) $6,000 U -The fixed manufacturing overhead volume variance is:


A) $3,000 U
B) $3,000 F
C) $9,000 U
D) $6,000 U

E) A) and C)
F) C) and D)

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Shiplett Corporation applies overhead to products based on machine-hours.The denominator level of activity is 8,800 machine-hours.The budgeted fixed manufacturing overhead costs are $317,680.In March,the actual fixed manufacturing overhead costs were $314,300 and the standard machine-hours allowed for the actual output were 8,500 machine-hours. Required: a.Compute the budget variance for March.Show your work! b.Compute the volume variance for March.Show your work!

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a.Budget variance = Actual fixed manufac...

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An unfavorable fixed manufacturing overhead volume variance would be caused by:


A) actual fixed manufacturing overhead costs being greater than budgeted fixed manufacturing overhead costs.
B) actual fixed manufacturing overhead costs being greater than applied fixed manufacturing overhead costs.
C) fixed manufacturing overhead cost being overapplied for the period.
D) the denominator hours exceeding the standard hours allowed for the output of a period.

E) A) and B)
F) B) and C)

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Sucher Company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard machine-hours.The company's standards are based on variable manufacturing overhead of $3 per machine-hour and fixed manufacturing overhead of $300,000 per year.The denominator level of activity is 30,000 machine-hours.Standards call for 2.5 machine-hours per unit of output.Actual activity and manufacturing overhead costs for the year are given below: Sucher Company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard machine-hours.The company's standards are based on variable manufacturing overhead of $3 per machine-hour and fixed manufacturing overhead of $300,000 per year.The denominator level of activity is 30,000 machine-hours.Standards call for 2.5 machine-hours per unit of output.Actual activity and manufacturing overhead costs for the year are given below: Required: a.What are the standard hours allowed for the output? b.What was the variable overhead rate variance? c.What was the variable overhead efficiency variance? d.What was the fixed manufacturing overhead budget variance? e.What was the fixed manufacturing overhead volume variance? Required: a.What are the standard hours allowed for the output? b.What was the variable overhead rate variance? c.What was the variable overhead efficiency variance? d.What was the fixed manufacturing overhead budget variance? e.What was the fixed manufacturing overhead volume variance?

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a.12,800 units * 2.5 machine hours per u...

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Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?


A) variable overhead rate variance.
B) variable overhead efficiency variance.
C) fixed manufacturing overhead budget variance.
D) fixed manufacturing overhead volume variance.

E) C) and D)
F) B) and D)

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A manufacturer of playground equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: A manufacturer of playground equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: -How much fixed manufacturing overhead was applied to products during the period to the nearest dollar? A) $59,210 B) $59,907 C) $61,120 D) $58,110 -How much fixed manufacturing overhead was applied to products during the period to the nearest dollar?


A) $59,210
B) $59,907
C) $61,120
D) $58,110

E) None of the above
F) All of the above

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Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: -What total amount of manufacturing overhead cost (variable and fixed) did Wriphoff apply to the 35,600 vases produced during last year? A) $512,640 B) $548,000 C) $564,800 D) $569,600 The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases.Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours.The overhead standards used at Wriphoff are as follows: The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours.The actual results for last year were as follows: -What total amount of manufacturing overhead cost (variable and fixed) did Wriphoff apply to the 35,600 vases produced during last year? A) $512,640 B) $548,000 C) $564,800 D) $569,600 -What total amount of manufacturing overhead cost (variable and fixed) did Wriphoff apply to the 35,600 vases produced during last year?


A) $512,640
B) $548,000
C) $564,800
D) $569,600

E) B) and D)
F) B) and C)

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The predetermined overhead rate (variable and fixed) is $7.50 per machine-hour and the denominator activity level is 135,000 machine-hours.If the variable portion of the predetermined overhead rate is $3.00 per machine-hour,then the budgeted fixed factory overhead for the year is:


A) $30,000
B) $607,500
C) $405,000
D) $1,012,500

E) A) and D)
F) None of the above

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Desormeaux Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The budgeted fixed manufacturing overhead cost for the most recent month was $21,600 and the actual fixed manufacturing overhead cost for the month was $21,120.The company based its original budget on 5,400 machine-hours.The standard hours allowed for the actual output of the month totaled 5,850 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?


A) $1,800 favorable
B) $1,800 unfavorable
C) $480 favorable
D) $480 unfavorable

E) B) and C)
F) A) and D)

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Labossiere Corporation has provided the following data for November. Labossiere Corporation has provided the following data for November. -The budget variance for November is: A) $5,590 U B) $2,920 F C) $5,590 F D) $2,920 U -The budget variance for November is:


A) $5,590 U
B) $2,920 F
C) $5,590 F
D) $2,920 U

E) A) and D)
F) B) and C)

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