Question 1

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. The amount of overhead that the company would apply to finished production would ordinarily be the actual direct labor-hours times the predetermined overhead rate per direct labor-hour.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not correct?

Accepted Answer

A)   If the denominator level of activity and the standard hours allowed for the output of the period are the same, then there is no volume variance.
B)   If the denominator level of activity is greater than the standard hours allowed for the output of the period, then the volume variance is unfavorable.
C)   If the denominator level of activity is greater than the standard hours allowed for the output of the period, then the volume variance is favorable.
D)   The volume variance is the most appropriate measure of the utilization of plant facilities.E) B) and D)
F) B) and C)

Question 3

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:  The following data pertain to operations for the most recent period: 
-What is the predetermined overhead rate to the nearest cent?

Accepted Answer

A)   $25.25
B)   $24.97
C)   $25.34
D)   $25.06E) A) and D)
F) A) and C)

Question 4

Wolle Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $298,936 per period.
-If the denominator level of activity is 4,300 machine-hours, the fixed element in the predetermined overhead rate would be:

Accepted Answer

A)   $81.12
B)   $11.60
C)   $69.52
D)   $1,160.00E) All of the above
F) A) and D)

Question 5

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:  The following data pertain to operations for the most recent period: 
-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?

Accepted Answer

A)   $806 U
B)   $700 U
C)   $1,970 F
D)   $1,195 FE) B) and C)
F) A) and C)

Question 6

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:

Accepted Answer

A)   $3,000 U
B)   $3,000 F
C)   $9,000 U
D)   $6,000 UE) B) and C)
F) None of the above

Question 7

Wintersmith Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $278,124 per period.
-If the denominator level of activity is 4,300 machine-hours, the predetermined overhead rate would be:

Accepted Answer

A)   $76.28
B)   $64.68
C)   $1,160.00
D)   $11.60E) A) and C)
F) B) and C)

Question 8

Harris Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) . The company has provided the following data: 
The volume variance would be:

Accepted Answer

A)   $2,500 F
B)   $1,800 F
C)   $1,800 U
D)   $1,500 FE) C) and D)
F) A) and C)

Exam 27: Predetermined Overhead Rates and Overhead Analysis

Correct Answer
verified

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:

Correct Answer
verified

Correct Answer
verified

Harris Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) . The company has provided the following data: The volume variance would be:

Correct Answer
verified

Wolle Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $298,936 per period. -If the denominator level of activity is 4,300 machine-hours, the fixed element in the predetermined overhead rate would be:

Correct Answer
verified

Correct Answer
verified

Wintersmith Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $278,124 per period. -If the denominator level of activity is 4,300 machine-hours, the predetermined overhead rate would be:

Correct Answer
verified

Which of the following is not correct?

Correct Answer
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Exam 27: Predetermined Overhead Rates and Overhead Analysis

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Harris Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) . The company has provided the following data: The volume variance would be:

Correct AnswerverifiedShow Answer

Wolle Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $298,936 per period. -If the denominator level of activity is 4,300 machine-hours, the fixed element in the predetermined overhead rate would be:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Wintersmith Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $278,124 per period. -If the denominator level of activity is 4,300 machine-hours, the predetermined overhead rate would be:

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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