Question Details

91. How much overhead was applied to products during the period to the nearest dollar?

A. $93,240.

B. $94,770.

C. $96,034.

D. $96,770.

A manufacturer of industrial equipment has a standard costing system based on direct labour-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:

92. What is the predetermined overhead rate to the nearest cent?

A. $19.30.

B. $19.65.

C. $19.80.

D. $20.15.

93. How much overhead was applied to products during the period to the nearest dollar?

A. $151,993.

B. $153,270.

C. $154,410.

D. $157,200.

Dori Castings is a job order shop that uses a standard cost system to account for its production costs.

Manufacturing overhead costs are applied to production on the basis of direct labour-hours.

94. Dori's choice of a production volume as a denominator for calculating its predetermined overhead

rate:

A. has no effect on the fixed portion of this rate, which is used for applying costs to production.

B. has an effect on the variable portion of this rate, which is used for applying costs to production.

C. has no effect on the fixed overhead budget variance.

D. has no effect on the fixed overhead volume variance.

95. A volume variance will exist for Dori in a month where:

A. production volume differs from sales volume.

B. actual direct labour-hours differ from standard hours allowed.

C. there is a budget variance in fixed overhead costs.

D.

the fixed overhead applied to units of product on the basis of standard hours allowed differs from the

budgeted fixed overhead.

96. The amount of fixed overhead that Dori would apply to finished production would be:

A. the actual direct labour-hours times the standard fixed overhead rate per direct labour-hour.

B.

the standard hours allowed for the actual units of finished output times the standard fixed overhead rate

per direct labour-hour.

C.

the standard units of output for the actual direct labour-hours worked times the standard fixed overhead

rate per unit of output.

D. the actual fixed overhead cost per direct labour-hour times the standard hours allowed.

Jessep Corporation has a standard cost system in which manufacturing overhead is applied to units of

product on the basis of direct labour-hours. The company has provided the following data concerning its

fixed manufacturing overhead costs in March:

97. The fixed overhead budget variance is?

A. $1,000 U.

B. $2,000 F.

C. $2,000 U.

D. $3,000 U.

98. The fixed overhead volume variance is?

A. $3,000 U.

B. $3,000 F.

C. $6,000 U.

D. $9,000 U.

An outdoor barbecue grill manufacturer has a standard costing system based on direct labour-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:

99. What was the fixed overhead budget variance for the period to the nearest dollar?

A. $166 U.

B. $422 F.

C. $585 F.

D. $1,400 U.

100.What was the fixed overhead volume variance for the period to the nearest dollar?

A. $163 F.

B. $815 F.

C. $978 F.

D. $993 F.

An outdoor barbecue grill manufacturer has a standard costing system based on machine-hours (MHs) 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: